UNITED
STATES SECURITIES AND EXCHANGE COMMISSION


Washington,
D.C. 20549





Form
10-Q





(Mark
One)


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


For
the quarterly period ended December 31, 2008





or





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


For
the transition period from __________________ to __________________





Commission
              File Number
            Registrant,
      State of Incorporation,
              Address and Telephone
Number
            I.R.S.
      Employer
              Identification No.amerco logo1-11255
            AMERCO
            88-0106815(A
      Nevada Corporation)1325
      Airmotive Way, Ste. 100Reno,
      Nevada 89502-3239Telephone
      (775) 688-6300










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 R  No
£




Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting
company.  See definition of a “large accelerated filer,” “accelerated
filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check
one):





Large
accelerated filer £    Accelerated filer
R    Non-accelerated filer
£    Smaller reporting
company £




Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act.)


Yes £ No R




19,607,996
shares of AMERCO Common Stock, $0.25 par value, were outstanding at February 1,
2009.





TABLE
OF CONTENTS





Page No.PART
      I FINANCIAL INFORMATIONItem
      1.
            Financial
      Statementsa)Condensed Consolidated
      Balance Sheets as ofDecember31, 2008(unaudited)
      and March 31,2008
            1b)Condensed Consolidated
      Statementsof Operations for the QuartersendedDecember31,
      2008and 2007(unaudited)
            2c)Condensed Consolidated
      Statementsof Operations for theNine MonthsendedDecember31, 2008and
      2007(unaudited)
            3d)Condensed Consolidated
      StatementsofComprehensive Income for theQuarters andNine MonthsendedDecember31, 2008and
      2007(unaudited)
            4e)Condensed Consolidated
      Statements of Cash Flows for the Nine
      MonthsendedDecember31, 2008and
      2007(unaudited)
            5f)Notes to Condensed
      Consolidated FinancialStatements
      (unaudited)
            6 –
      34Item
      2.
            Management’s Discussion and
      Analysis of Financial Condition and Results of
      Operations
            35
      – 52Item
      3.
            Quantitative and Qualitative
      Disclosures About Market
      Risk
            52
      – 53Item
      4.
            Controls and
      Procedures
            53
      – 54PART
      II OTHER INFORMATIONItem
      1.
            Legal
      Proceedings
            55Item
      1A.
            Risk
      Factors
            55Item
      2.
            Unregistered Sales of Equity
      Securities andUse of
      Proceeds
            55
      – 56Item
      3.
            Defaults Upon Senior
      Securities
            56Item
      4.
            Submission of Matters to
      a Vote of Security
      Holders
            56Item
      5.
            Other
      Information
            56Item
      6.
            Exhibits
            56








PART
I FINANCIAL INFORMATION




ITEM
1.  Financial
Statements







AMERCO AND CONSOLIDATED ENTITIES


CONDENSED CONSOLIDATED BALANCE SHEETS





December 31,
                  
                  
                  March 31,2008
                  
                  
                  2008(Unaudited)(In thousands)ASSETSCash and cash equivalents
                  
                  $
                  311,517
                  
                  
                  $
                  206,622Reinsurance recoverables and trade receivables,
      net
                  
                  
                  208,193
                  
                  
                  
                  201,116Notes and mortgage receivables, net
                  
                  
                  3,133
                  
                  
                  
                  2,088Inventories, net
                  
                  
                  75,434
                  
                  
                  
                  65,349Prepaid expenses
                  
                  
                  49,435
                  
                  
                  
                  56,159Investments, fixed maturities and marketable
      equities
                  
                  
                  538,323
                  
                  
                  
                  633,784Investments, other
                  
                  
                  200,126
                  
                  
                  
                  185,591Deferred policy acquisition costs, net
                  
                  
                  48,047
                  
                  
                  
                  35,578Other assets
                  
                  
                  135,134
                  
                  
                  
                  131,138Related party assets
                  
                  
                  304,624
                  
                  
                  
                  303,8861,873,966
                  
                  
                  
                  1,821,311Property, plant and equipment, at cost:Land
                  
                  
                  207,148
                  
                  
                  
                  208,164Buildings and improvements
                  
                  
                  914,585
                  
                  
                  
                  859,882Furniture and equipment
                  
                  
                  326,422
                  
                  
                  
                  309,960Rental trailers and other rental equipment
                  
                  
                  211,155
                  
                  
                  
                  205,572Rental trucks
                  
                  
                  1,683,369
                  
                  
                  
                  1,734,4253,342,679
                  
                  
                  
                  3,318,003Less: Accumulated depreciation
                  
                  
                  (1,320,285
                  )
                  
                  
                  (1,306,827
                  )Total property, plant and equipment
                  
                  
                  2,022,394
                  
                  
                  
                  2,011,176Total assets
                  
                  $
                  3,896,360
                  
                  
                  $
                  3,832,487LIABILITIES AND STOCKHOLDERS' EQUITYLiabilities:Accounts payable and accrued expenses
                  
                  $
                  325,059
                  
                  
                  $
                  292,526AMERCO's notes, loans and leases payable
                  
                  
                  1,560,557
                  
                  
                  
                  1,504,677Policy benefits and losses, claims and loss expenses
      payable
                  
                  
                  783,419
                  
                  
                  
                  789,374Liabilities from investment contracts
                  
                  
                  313,792
                  
                  
                  
                  339,198Other policyholders' funds and liabilities
                  
                  
                  7,869
                  
                  
                  
                  10,467Deferred income
                  
                  
                  22,268
                  
                  
                  
                  11,781Deferred income taxes
                  
                  
                  129,772
                  
                  
                  
                  126,033Total liabilities
                  
                  
                  3,142,736
                  
                  
                  
                  3,074,056Commitments and contingencies (Notes 3, 6, 7 and
      8)Stockholders' equity:Series preferred stock, with or without par value, 50,000,000
      shares authorized:Series A preferred stock, with no par value, 6,100,000 shares
      authorized;6,100,000 shares issued and outstanding as of December 31 and
      March 31, 2008
                  
                  
                  -
                  
                  
                  
                  -Series B preferred stock, with no par value, 100,000 shares
      authorized; noneissued and outstanding as of December 31 and March 31,
      2008
                  
                  
                  -
                  
                  
                  
                  -Series common stock, with or without par value, 150,000,000
      shares authorized:Series A common stock of $0.25 par value, 10,000,000 shares
      authorized;none issued and outstanding as of December 31 and March 31,
      2008
                  
                  
                  -
                  
                  
                  
                  -Common stock of $0.25 par value, 150,000,000 shares authorized;
      41,985,700issued as of December 31 and March 31, 2008
                  
                  
                  10,497
                  
                  
                  
                  10,497Additional paid-in capital
                  
                  
                  420,423
                  
                  
                  
                  419,370Accumulated other comprehensive loss
                  
                  
                  (100,102
                  )
                  
                  
                  (55,279
                  )Retained earnings
                  
                  
                  954,390
                  
                  
                  
                  915,415Cost of common shares in treasury, net (22,377,517 shares as
      ofDecember 31, 2008 and 22,354,386 as of March 31,
      2008)
                  
                  
                  (525,640
                  )
                  
                  
                  (524,677
                  )Unearned employee stock ownership plan
    shares
                  
                  
                  (5,944
                  )
                  
                  
                  (6,895
                  )Total stockholders' equity
                  
                  
                  753,624
                  
                  
                  
                  758,431Total liabilities and stockholders' equity
                  
                  $
                  3,896,360
                  
                  
                  $
                  3,832,487









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


1


AMERCO AND CONSOLIDATED ENTITIES




CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS




Quarter Ended December 31,2008
                        
                        
                        2007(Unaudited)(In thousands, except share and per share
      amounts)Revenues:Self-moving equipment rentals
                        
                        $
                        311,657
                        
                        
                        $
                        326,937Self-storage revenues
                        
                        
                        27,397
                        
                        
                        
                        29,630Self-moving and self-storage products and service
      sales
                        
                        
                        38,663
                        
                        
                        
                        43,211Property management fees
                        
                        
                        6,059
                        
                        
                        
                        6,925Life insurance premiums
                        
                        
                        27,509
                        
                        
                        
                        27,757Property and casualty insurance premiums
                        
                        
                        8,029
                        
                        
                        
                        7,738Net investment and interest income
                        
                        
                        14,913
                        
                        
                        
                        16,008Other revenue
                        
                        
                        8,357
                        
                        
                        
                        7,254Total revenues
                        
                        
                        442,584
                        
                        
                        
                        465,460Costs and expenses:Operating expenses
                        
                        
                        259,242
                        
                        
                        
                        268,974Commission expenses
                        
                        
                        36,664
                        
                        
                        
                        38,563Cost of sales
                        
                        
                        23,229
                        
                        
                        
                        26,677Benefits and losses
                        
                        
                        27,313
                        
                        
                        
                        25,290Amortization of deferred policy acquisition
      costs
                        
                        
                        2,743
                        
                        
                        
                        2,687Lease expense
                        
                        
                        38,719
                        
                        
                        
                        33,931Depreciation, net of (gains) losses on
      disposals
                        
                        
                        68,675
                        
                        
                        
                        61,015Total costs and expenses
                        
                        
                        456,585
                        
                        
                        
                        457,137Earnings (loss) from operations
                        
                        
                        (14,001
                        )
                        
                        
                        8,323Interest expense
                        
                        
                        (26,000
                        )
                        
                        
                        (25,191
                        )Pretax loss
                        
                        
                        (40,001
                        )
                        
                        
                        (16,868
                        )Income tax benefit
                        
                        
                        15,049
                        
                        
                        
                        6,474Net loss
                        
                        
                        (24,952
                        )
                        
                        
                        (10,394
                        )Less: Preferred stock dividends
                        
                        
                        (3,241
                        )
                        
                        
                        (3,241
                        )Loss applicable to common shareholders
                        
                        $
                        (28,193
                        )
                        
                        $
                        (13,635
                        )Basic and diluted loss applicable per common
      share
                        
                        $
                        (1.46
                        )
                        
                        $
                        (0.69
                        )Weighted average common shares outstanding: Basic and
      diluted
                        
                        
                        19,347,660
                        
                        
                        
                        19,746,237







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


2







AMERCO AND CONSOLIDATED ENTITIES




CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS




Nine Months Ended December 31,2008
                      
                      
                      2007(Unaudited)(In thousands, except share and per share
      amounts)Revenues:Self-moving equipment rentals
                      
                      $
                      1,140,930
                      
                      
                      $
                      1,155,240Self-storage revenues
                      
                      
                      82,849
                      
                      
                      
                      94,754Self-moving and self-storage products and service
      sales
                      
                      
                      159,515
                      
                      
                      
                      174,420Property management fees
                      
                      
                      15,496
                      
                      
                      
                      14,865Life insurance premiums
                      
                      
                      81,525
                      
                      
                      
                      84,881Property and casualty insurance premiums
                      
                      
                      21,512
                      
                      
                      
                      20,986Net investment and interest income
                      
                      
                      44,492
                      
                      
                      
                      46,695Other revenue
                      
                      
                      30,554
                      
                      
                      
                      24,236Total revenues
                      
                      
                      1,576,873
                      
                      
                      
                      1,616,077Costs and expenses:Operating expenses
                      
                      
                      792,801
                      
                      
                      
                      827,032Commission expenses
                      
                      
                      138,711
                      
                      
                      
                      132,348Cost of sales
                      
                      
                      90,856
                      
                      
                      
                      95,268Benefits and losses
                      
                      
                      82,303
                      
                      
                      
                      80,159Amortization of deferred policy acquisition
      costs
                      
                      
                      7,169
                      
                      
                      
                      9,870Lease expense
                      
                      
                      111,803
                      
                      
                      
                      100,967Depreciation, net of (gains) losses on
      disposals
                      
                      
                      200,047
                      
                      
                      
                      161,026Total costs and expenses
                      
                      
                      1,423,690
                      
                      
                      
                      1,406,670Earnings from operations
                      
                      
                      153,183
                      
                      
                      
                      209,407Interest expense
                      
                      
                      (74,774
                      )
                      
                      
                      (76,356
                      )Pretax earnings
                      
                      
                      78,409
                      
                      
                      
                      133,051Income tax expense
                      
                      
                      (29,711
                      )
                      
                      
                      (51,219
                      )Net earnings
                      
                      
                      48,698
                      
                      
                      
                      81,832Less: Preferred stock dividends
                      
                      
                      (9,723
                      )
                      
                      
                      (9,723
                      )Earnings available to common shareholders
                      
                      $
                      38,975
                      
                      
                      $
                      72,109Basic and diluted earnings per common share
                      
                      $
                      2.01
                      
                      
                      $
                      3.64Weighted average common shares outstanding: Basic and
      diluted
                      
                      
                      19,347,302
                      
                      
                      
                      19,820,107







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







3


AMERCO AND CONSOLIDATED ENTITIES




CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME









Quarter Ended December 31,2008
                
                
                2007(Unaudited)(In thousands)Comprehensive income (loss):Net loss
                
                $
                (24,952
                )
                
                $
                (10,394
                )Other comprehensive income (loss), net of
    tax:Foreign currency translation
                
                
                (11,178
                )
                
                
                551Unrealized gain (loss) on investments
                
                
                (6,444
                )
                
                
                2,106Change in fair value of cash flow hedges
                
                
                (32,661
                )
                
                
                (10,846
                )Total comprehensive loss
                
                $
                (75,235
                )
                
                $
                (18,583
                )










Nine Months Ended December 31,2008
                
                
                2007(Unaudited)(In thousands)Comprehensive income:Net earnings
                
                $
                48,698
                
                
                $
                81,832Other comprehensive income (loss), net of
    tax:Foreign currency translation
                
                
                (13,471
                )
                
                
                12,430Unrealized gain (loss) on investments, net
                
                
                (10,118
                )
                
                
                819Change in fair value of cash flow hedges
                
                
                (21,234
                )
                
                
                (12,287
                )Total comprehensive income
                
                $
                3,875
                
                
                $
                82,794










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


4


AMERCO AND CONSOLIDATED ENTITIES




CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS




Nine Months Ended December 31,2008
                        
                        
                        2007(Unaudited)(In thousands)Cash flow from operating activities:Net earnings
                        
                        $
                        48,698
                        
                        
                        $
                        81,832Adjustments to reconcile net earnings to cash provided by
      operations:Depreciation
                        
                        
                        185,027
                        
                        
                        
                        170,184Amortization of deferred policy acquisition
      costs
                        
                        
                        7,169
                        
                        
                        
                        9,870Change in allowance for losses on trade
      receivables
                        
                        
                        (138
                        )
                        
                        
                        75Change in allowance for losses on mortgage
      notes
                        
                        
                        (308
                        )
                        
                        
                        (29
                        )Change in allowance for inventory
      reserves
                        
                        
                        1,488
                        
                        
                        
                        2,371Net (gain) loss on sale of real and personal
      property
                        
                        
                        15,020
                        
                        
                        
                        (9,158
                        )Net loss on sale of investments
                        
                        
                        153
                        
                        
                        
                        375Deferred income taxes
                        
                        
                        22,108
                        
                        
                        
                        17,332Net change in other operating assets and
      liabilities:Reinsurance recoverables and trade
    receivables
                        
                        
                        (6,947
                        )
                        
                        
                        4,816Inventories
                        
                        
                        (11,573
                        )
                        
                        
                        1,586Prepaid expenses
                        
                        
                        6,726
                        
                        
                        
                        12,196Capitalization of deferred policy acquisition
      costs
                        
                        
                        (7,509
                        )
                        
                        
                        (3,894
                        )Other assets
                        
                        
                        (3,684
                        )
                        
                        
                        1,040Related party assets
                        
                        
                        3,786
                        
                        
                        
                        35,003Accounts payable and accrued expenses
                        
                        
                        (6,924
                        )
                        
                        
                        (2,206
                        )Policy benefits and losses, claims and loss expenses
      payable
                        
                        
                        (3,770
                        )
                        
                        
                        (3,038
                        )Other policyholders' funds and liabilities
                        
                        
                        (2,599
                        )
                        
                        
                        (88
                        )Deferred income
                        
                        
                        10,675
                        
                        
                        
                        (6,246
                        )Related party liabilities
                        
                        
                        (4,493
                        )
                        
                        
                        (9,131
                        )Net cash provided by operating
    activities
                        
                        
                        252,905
                        
                        
                        
                        302,890Cash flows from investing activities:Purchases of:Property, plant and equipment
                        
                        
                        (316,970
                        )
                        
                        
                        (440,328
                        )Short term investments
                        
                        
                        (253,786
                        )
                        
                        
                        (171,918
                        )Fixed maturities investments
                        
                        
                        (126,375
                        )
                        
                        
                        (56,505
                        )Equity securities
                        
                        
                        -
                        
                        
                        
                        (27
                        )Preferred stock
                        
                        
                        (2,000
                        )
                        
                        
                        -Real estate
                        
                        
                        (412
                        )
                        
                        
                        (3,404
                        )Mortgage loans
                        
                        
                        (12,146
                        )
                        
                        
                        (12,522
                        )Proceeds from sale of:Property, plant and equipment
                        
                        
                        106,435
                        
                        
                        
                        134,099Short term investments
                        
                        
                        244,399
                        
                        
                        
                        192,974Fixed maturities investments
                        
                        
                        195,451
                        
                        
                        
                        77,773Equity securities
                        
                        
                        28
                        
                        
                        
                        46Preferred stock
                        
                        
                        -
                        
                        
                        
                        5,625Real estate
                        
                        
                        704
                        
                        
                        
                        784Mortgage loans
                        
                        
                        5,165
                        
                        
                        
                        6,394Payments from notes and mortgage
receivables
                        
                        
                        816
                        
                        
                        
                        89Net cash used by investing activities
                        
                        
                        (158,691
                        )
                        
                        
                        (266,920
                        )Cash flows from financing activities:Borrowings from credit facilities
                        
                        
                        165,330
                        
                        
                        
                        487,626Principal repayments on credit facilities
                        
                        
                        (117,207
                        )
                        
                        
                        (244,108
                        )Debt issuance costs
                        
                        
                        (360
                        )
                        
                        
                        (11,876
                        )Capital lease payments
                        
                        
                        (561
                        )
                        
                        
                        -Leveraged Employee Stock Ownership Plan - repayments from
      loan
                        
                        
                        951
                        
                        
                        
                        923Treasury stock repurchases
                        
                        
                        (963
                        )
                        
                        
                        (33,966
                        )Securitization deposits
                        
                        
                        -
                        
                        
                        
                        (60,764
                        )Preferred stock dividends paid
                        
                        
                        (9,723
                        )
                        
                        
                        (9,723
                        )Investment contract deposits
                        
                        
                        14,460
                        
                        
                        
                        13,864Investment contract withdrawals
                        
                        
                        (39,867
                        )
                        
                        
                        (49,806
                        )Net cash provided by financing
    activities
                        
                        
                        12,060
                        
                        
                        
                        92,170Effects of exchange rate on cash
                        
                        
                        (1,379
                        )
                        
                        
                        311Increase in cash equivalents
                        
                        
                        104,895
                        
                        
                        
                        128,451Cash and cash equivalents at the beginning of
      period
                        
                        
                        206,622
                        
                        
                        
                        75,272Cash and cash equivalents at the end of
      period
                        
                        $
                        311,517
                        
                        
                        $
                        203,723





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


5


AMERCO AND CONSOLIDATED ENTITIES




NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)






1.      Basis of
Presentation




The third fiscal quarter for AMERCO ends on the 31st of
December for each year that is referenced. Our insurance company subsidiaries
have a third quarter that ends on the 30th of
September for each year that is referenced. They have been consolidated on that
basis. Our insurance companies’ financial reporting processes conform to
calendar year reporting as required by state insurance departments. Management
believes that consolidating their calendar year into our fiscal year financial
statements does not materially affect the financial position or results of
operations. The Company discloses any material events occurring during the
intervening period. Consequently, all references to our insurance subsidiaries’
years 2008 and 2007 correspond to fiscal 2009 and 2008 for
AMERCO.




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




The condensed consolidated balance sheets as of December 31, 2008 and
March 31, 2008 include the accounts of AMERCO and its wholly-owned subsidiaries.
The December 31, 2008 condensed consolidated statements of operations and cash
flows include the accounts of AMERCO and its wholly-owned subsidiaries. The
December 31, 2007 condensed consolidated statements of operations and cash flows
include the accounts of AMERCO and its wholly-owned subsidiaries and for SAC
Holding II Corporation and its subsidiaries (“SAC Holding II”) through October
2007.




The condensed consolidated balance sheet as of December 31, 2008 and
the related condensed consolidated statements of operations for the third
quarter and the first nine months and the cash flows for the first nine months
ended fiscal 2009 and 2008 are unaudited.




In our opinion, all adjustments necessary for the fair presentation
of such condensed consolidated financial statements have been included. Such
adjustments consist only of normal recurring items. Interim results are not
necessarily indicative of results for a full year. The information in this 10-Q
should be read in conjunction with Management’s Discussion and Analysis and
financial statements and notes thereto included in the AMERCO 2008 Form
10-K.




Intercompany accounts and transactions have been
eliminated.




Description of Legal Entities




AMERCO, a Nevada corporation (“AMERCO”), is the holding company
for:




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




Amerco Real Estate Company (“Real Estate”),




Republic Western Insurance Company (“RepWest”), and




Oxford Life Insurance Company (“Oxford”).




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


6


AMERCO AND CONSOLIDATED ENTITIES




NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS –
(CONTINUED)






Description of Operating Segments




AMERCO has (or had) four reportable segments. They are (or were)
Moving and Storage, Property and Casualty Insurance, Life Insurance and SAC
Holding II (through October 2007).




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




Property and Casualty Insurance includes RepWest and its wholly-owned
subsidiaries. RepWest provides loss adjusting and claims handling for U-Haul
through regional offices across North America. RepWest also underwrites
components of the Safemove, Safetow and Safestor protection packages to U-Haul
customers.




Life Insurance includes Oxford and its wholly-owned subsidiaries.
Oxford provides life and health insurance products primarily to the senior
market through the direct writing or reinsuring of life insurance, Medicare
supplement and annuity policies. Additionally, Oxford administered the
self-insured employee health and dental plans for Arizona employees of the
Company until December 31, 2008.




SAC Holding II owns self-storage properties that are managed by
U-Haul under property management agreements and act as independent U-Haul rental
equipment dealers. AMERCO, through its subsidiaries, has contractual interests
in certain SAC Holding II properties entitling AMERCO to potential future income
based on the financial performance of these properties. Prior to November 2007,
AMERCO was considered the primary beneficiary of these contractual interests.
Consequently, for those reporting periods prior to November 2007, we included
the results of SAC Holding II in the consolidated financial statements of
AMERCO, as required by Financial Accounting Standards Board Interpretation No.
46 (R), Consolidation of
Variable Interest Entities (“FIN 46(R)”).




2. Earnings (loss) per Share




Net earnings (loss) for purposes of computing earnings (loss) per
common share are net earnings (loss) less preferred stock dividends. Preferred
stock dividends include accrued dividends of AMERCO.




The weighted average common shares outstanding listed above exclude
post-1992 shares of the employee stock ownership plan that have not been
committed to be released. The unreleased shares net of shares committed to be
released were 256,962 and 306,846 as of December 31, 2008 and December 31, 2007,
respectively.




6,100,000 shares of preferred stock have been excluded from the
weighted average shares outstanding calculation because they are not common
stock and they are not convertible into common stock.


7


AMERCO AND CONSOLIDATED ENTITIES




NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS –
(CONTINUED)






3. Borrowings




Long-Term Debt




Long-term debt was as follows:




December 31,
                          
                          
                          March 31,2009 Rate (a)
                          
                          
                          Maturities
                          
                          
                          2008
                          
                          
                          2008(Unaudited)(In thousands)Real estate loan (amortizing term)
                          
                          
                          6.93
                          %
                          
                          2018
                          
                          
                          $
                          277,500
                          
                          
                          $
                          285,000Real estate loan (revolving credit)
                          
                          
                          3.33
                          %
                          
                          2018
                          
                          
                          
                          170,000
                          
                          
                          
                          100,000Senior mortgages
                          
                          
                          5.19% - 5.75
                          %
                          
                          
                          2009 - 2015
                          
                          
                          
                          501,683
                          
                          
                          
                          511,818Construction loan (revolving credit)
                          
                          
                          3.41
                          %
                          
                          2009
                          
                          
                          
                          37,280
                          
                          
                          
                          30,783Working capital loan (revolving credit)
                          
                          
                          -
                          
                          
                          2009
                          
                          
                          
                          -
                          
                          
                          
                          -Fleet loans (amortizing term)
                          
                          
                          5.25% - 7.42
                          %
                          
                          
                          2012 - 2015
                          
                          
                          
                          302,250
                          
                          
                          
                          288,806Fleet loans (securitization)
                          
                          
                          5.40% - 5.56
                          %
                          
                          
                          2010 - 2014
                          
                          
                          
                          260,152
                          
                          
                          
                          288,270Other obligations
                          
                          
                          -
                          
                          
                          
                          2009 - 2015
                          
                          
                          
                          11,692
                          
                          
                          
                          -Total AMERCO notes, loans and leases
payable
                          
                          
                          
                          
                          
                          
                          $
                          1,560,557
                          
                          
                          $
                          1,504,677(a) Interest rates as of December 31, 2008, including the
      effect of applicable hedging instruments.






Real Estate Backed Loans




Real Estate Loan




Amerco Real Estate Company and certain of its subsidiaries and U-Haul
Company of Florida are borrowers under a Real Estate Loan. The loan has a final
maturity date of August 2018. The loan is comprised of a term loan facility with
initial availability of $300.0 million and a revolving credit facility with an
availability of $200.0 million. As of December 31, 2008, the outstanding balance
on the Real Estate Loan was $277.5 million and $170.0 million had been drawn
down on the revolving credit facility. U-Haul International, Inc. is a guarantor
of this loan.




The amortizing term portion of the Real Estate Loan requires monthly
principal and interest payments, with the unpaid loan balance and accrued and
unpaid interest due at maturity. The revolving credit portion of the Real Estate
Loan requires monthly interest payments when drawn, with the unpaid loan balance
and any accrued and unpaid interest due at maturity.  The Real Estate
Loan is secured by various properties owned by the borrowers.




The interest rate for the amortizing term portion, per the provisions
of the amended Loan Agreement, is the applicable London Inter-Bank Offer Rate
(“LIBOR”) plus the applicable margin. At December 31, 2008, the applicable LIBOR
was 1.83% and the applicable margin was 1.50%, the sum of which was 3.33%. The
rate on the term facility portion of the loan is hedged with an interest rate
swap fixing the rate at 6.93% based on current margin.




The interest rate for the revolving credit facility, per the
provision of the amended Loan Agreement, is the applicable LIBOR plus the
applicable margin. The margin ranges from 1.50% to 2.00%. At December 31, 2008,
the applicable LIBOR was 1.83% and the applicable margin was 1.50%, the sum of
which was 3.33%.




The default provisions of the Real Estate Loan include non-payment of
principal or interest and other standard reporting and change-in-control
covenants. There are limited restrictions regarding our use of the
funds.


8


AMERCO AND CONSOLIDATED ENTITIES




NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS –
(CONTINUED)






Senior Mortgages




Various subsidiaries of Amerco Real Estate Company and U-Haul
International, Inc. are borrowers under certain senior mortgages. These senior
mortgages loan balances as of December 31, 2008 were in the aggregate amount of
$445.9 million and are due July 2015. The Senior Mortgages require average
monthly principal and interest payments of $3.0 million with the unpaid loan
balance and accrued and unpaid interest due at maturity. These senior mortgages
are secured by certain properties owned by the borrowers. The interest rates,
per the provisions of these senior mortgages, are 5.68% and 5.52% per annum.
Amerco Real Estate Company and U-Haul International, Inc. have provided limited
guarantees of these senior mortgages. The default provisions of these senior
mortgages include non-payment of principal or interest and other standard
reporting and change-in-control covenants. There are limited restrictions
regarding our use of the funds.




Various subsidiaries of the Company are borrowers under the mortgage
backed loans that we also classify as senior mortgages. These loans are secured
by certain properties owned by the borrowers. The loan balance of these notes
totals $55.8 million as of December 31, 2008. Maturity dates begin in 2009 with
the majority maturing in 2015. Rates for these loans range from 5.19% to 5.75%.
The loans require monthly principal and interest payments with the balances due
upon maturity. The default provisions of the loans include non-payment of
principal or interest and other standard reporting and change-in-control
covenants. There are limited restrictions regarding our use of the
funds.




Construction / Working Capital Loans




Amerco Real Estate Company and a subsidiary of U-Haul International,
Inc. entered into a revolving credit construction loan effective June 29, 2006.
The maximum amount that can be drawn at any one time is $40.0
million.  The final maturity is June 2009. As of December 31, 2008,
the outstanding balance was $37.3 million.




The Construction Loan requires monthly interest only payments with
the principal and any accrued and unpaid interest due at maturity. The loan can
be used to develop new or existing storage properties. The loan is secured by
the properties being constructed. The interest rate, per the provision of the
Loan Agreement, is the applicable LIBOR plus a margin of 1.50%. At December 31,
2008, the applicable LIBOR was 1.91% and the margin was 1.50%, the sum of which
was 3.41%. U-Haul International, Inc. is a guarantor of this loan. The default
provisions of the loan include non-payment of principal or interest and other
standard reporting and change-in-control covenants.




Amerco Real Estate Company is a borrower under an asset backed
working capital loan. The maximum amount that can be drawn at any one time is
$35.0 million. The loan is secured by certain properties owned by the borrower.
The interest rate, per the provision of the Loan Agreement, is the applicable
LIBOR plus a margin of 1.50%. The loan agreement provides for revolving loans,
subject to the terms of the loan agreement with final maturity in November 2009.
The loan requires monthly interest payments with the unpaid loan balance and
accrued and unpaid interest due at maturity. U-Haul International, Inc. and
AMERCO are the guarantors of this loan. The default provisions of the loan
include non-payment of principal or interest and other standard reporting and
change-in-control covenants. At December 31, 2008, the Company had utilized
$25.0 million of availability as collateral for a letter of credit, leaving the
Company with $10.0 million of available credit.




Fleet Loans




Rental Truck Amortizing Loans




U-Haul International, Inc. and several of its subsidiaries are
borrowers under amortizing term loans. The loans balances as of December 31,
2008 were $302.3 million with the final maturities between April 2012 and July
2015.




The Amortizing Loans require monthly principal and interest payments,
with the unpaid loan balance and accrued and unpaid interest due at maturity.
These loans were used to purchase new trucks. The interest rates, per the
provision of the Loan Agreements, are the applicable LIBOR plus a margin between
0.90% and 1.75%. At December 31, 2008, the applicable LIBOR was 1.20% to 1.83%
and applicable margins were between 1.125% and 1.75%. The interest rates are
hedged with interest rate swaps fixing the rates between 5.25% and 7.42% based
on current margins.


9


AMERCO AND CONSOLIDATED ENTITIES




NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS –
(CONTINUED)






AMERCO and U-Haul International, Inc. are guarantors of these loans.
The default provisions of these loans include non-payment of principal or
interest and other standard reporting and change-in-control
covenants.




Rental Truck Securitizations




U-Haul S Fleet and its subsidiaries (collectively, “USF”) issued a
$217.0 million asset-backed note (“Box Truck Note”) and an $86.6 million
asset-backed note (“Cargo Van/Pickup Note”) on June 1, 2007. USF is a
bankruptcy-remote special purpose entity wholly-owned by U-Haul International,
Inc. The net proceeds from these securitized transactions were used to finance
new box truck, cargo van and pickup truck purchases throughout fiscal 2008. U.S.
Bank, NA acts as the trustee for this securitization.




The Box Truck Note has a fixed interest rate of 5.56% with an
estimated final maturity of February 2014. At December 31, 2008, the outstanding
balance was $173.6 million. The note is secured by the box trucks that were
purchased and operating cash flows associated with their
operation.




The Cargo Van/Pickup Note has a fixed interest rate of 5.40% with an
estimated final maturity of May 2010. At December 31, 2008, the outstanding
balance was $86.6 million. The note is secured by the cargo vans and pickup
trucks that were purchased and the operating cash flows associated with their
operation.




The Box Truck Note and Cargo Van/Pickup Note have the benefit of
financial guaranty insurance policies that guarantee the timely payment of
interest on and the ultimate payment of the principal of the
notes.




The Box Truck Note and the Cargo Van/Pickup Note are subject to
certain covenants with respect to liens, additional indebtedness of the special
purpose entities, the disposition of assets and other customary covenants of
bankruptcy-remote special purpose entities. The default provisions of the notes
include non-payment of principal or interest and other standard reporting and
change in control covenants.




Other Obligations




In April 2008, the Company entered into a $10.0 million capital lease
for new rental equipment. The term of the lease is seven years and the Company
has the option to purchase the equipment at a predetermined amount after the
fifth year of the lease. At December 31, 2008, the balance on the lease was $9.4
million.




The Company entered into $7.9 million of premium financing
arrangements for one year expiring in March and April 2009 at rates between
3.64% and 5.10%. At December 31, 2008, the outstanding balance of these
arrangements was $2.3 million.




Annual Maturities of AMERCO Consolidated Notes, Loans and Leases
Payable




The annual maturities of AMERCO consolidated long-term debt as of
December 31, 2008 for the next five years and thereafter is as
follows:




Year Ending December 31,2009
                
                2010
                
                2011
                
                2012
                
                2013
                
                Thereafter(Unaudited)(In thousands)Notes, loans and leases payable, secured
                $135,185
                
                $167,937
                
                $83,000
                
                $149,041
                
                $56,298
                
                $969,096







10


AMERCO AND CONSOLIDATED ENTITIES




NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS –
(CONTINUED)






4. Interest on Borrowings




Interest Expense




Expenses associated with loans outstanding were as
follows:




Quarter Ended December 31,2008
                  
                  
                  2007(Unaudited)(In thousands)Interest expense
                  
                  $
                  20,641
                  
                  
                  $
                  23,495Capitalized interest
                  
                  
                  (292
                  )
                  
                  
                  (227
                  )Amortization of transaction costs
                  
                  
                  1,207
                  
                  
                  
                  1,451Interest expense (income) resulting from
      derivatives
                  
                  
                  4,444
                  
                  
                  
                  (14
                  )Total AMERCO interest expense
                  
                  
                  26,000
                  
                  
                  
                  24,705SAC Holding II interest expense
                  
                  
                  -
                  
                  
                  
                  1,070Less: Intercompany transactions
                  
                  
                  -
                  
                  
                  
                  584Total SAC Holding II interest expense
                  
                  
                  -
                  
                  
                  
                  486Total
                  
                  $
                  26,000
                  
                  
                  $
                  25,191







Nine Months Ended December 31,2008
                  
                  
                  2007(Unaudited)(In thousands)Interest expense
                  
                  $
                  60,230
                  
                  
                  $
                  70,890Capitalized interest
                  
                  
                  (537
                  )
                  
                  
                  (832
                  )Amortization of transaction costs
                  
                  
                  3,717
                  
                  
                  
                  3,846Interest expense (income) resulting from
      derivatives
                  
                  
                  11,364
                  
                  
                  
                  (1,035
                  )Total AMERCO interest expense
                  
                  
                  74,774
                  
                  
                  
                  72,869SAC Holding II interest expense
                  
                  
                  -
                  
                  
                  
                  7,537Less: Intercompany transactions
                  
                  
                  -
                  
                  
                  
                  4,050Total SAC Holding II interest expense
                  
                  
                  -
                  
                  
                  
                  3,487Total
                  
                  $
                  74,774
                  
                  
                  $
                  76,356









Interest paid in cash by AMERCO amounted to $19.8 million and $22.6
million for the third quarter of fiscal 2009 and 2008,
respectively.




Interest paid in cash by AMERCO amounted to $57.5 million and $68.6
million for the first nine months of fiscal 2009 and 2008,
respectively.




The Company manages exposure to changes in market interest rates. The
Company’s use of derivative instruments is limited to highly effective interest
rate swaps to hedge the risk of changes in cash flows (future interest payments)
attributable to changes in LIBOR swap rates, the designated benchmark interest
rate being hedged on certain of our LIBOR-indexed variable-rate debt. The
interest rate swaps effectively fix the Company’s interest payments on certain
LIBOR-indexed variable-rate debt. The Company monitors its positions and the
credit ratings of its counterparties and does not currently anticipate
non-performance by the counterparties. Interest rate swap agreements are not
entered into for trading purposes.


11


AMERCO AND CONSOLIDATED ENTITIES




NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS –
(CONTINUED)






On May 13, 2004, the Company entered into an interest rate cap
agreement for $50.0 million of our variable rate debt over a three year
term; however, this agreement was dedesignated as a cash flow hedge effective
July 11, 2005 when the Real Estate Loan was paid down by $222.4 million. The
$50.0 million interest rate cap agreement expired on May 17, 2007. Subsequent to
July 11, 2005, all changes in the interest rate caps fair value (including
changes in the option’s time value) were charged to earnings as the original
forecasted transaction was cancelled. Prior to July 11, 2005, the change in each
caplets’ respective allocated fair value amount was reclassified out of
accumulated other comprehensive income (loss) into earnings when each of the
hedged forecasted transactions (the quarterly interest payments) impacted
earnings and when interest payments were either made or
received.




On June 8, 2005, the Company entered into separate interest rate swap
agreements for $100.0 million of our variable-rate debt over a three year term
and for $100.0 million of our variable-rate debt over a five-year term that were
designated as cash flow hedges effective July 1, 2005. These swap agreements
were cancelled on August 18, 2006 in conjunction with our amendment of the Real
Estate Loan, and we entered into a new interest rate swap agreement for $300.0
million of our variable-rate debt over a twelve-year term effective on August
18, 2006. As of August 18, 2006, a net gain of approximately $6.0 million
related to the two cancelled swaps was included in other comprehensive income
(loss). As the variable-rate debt is replaced, it is probable that the original
forecasted transaction (future interest payments) will continue to occur.
Therefore, the net derivative gain related to the two cancelled swaps shall
continue to be reported in other comprehensive income (loss) and be reclassified
into earnings when the original forecasted transaction affects earnings
consistent with the term of the original designated hedging relationship. For
the first nine months ended December 31, 2008, the Company reclassified $1.0
million of the net derivative gain to interest income. The Company estimates
that $1.0 million of the existing net gains will be reclassified into earnings
within the next 12 months.




On November 15, 2005, the Company entered into a forward starting
interest rate swap agreement for $142.3 million of our variable-rate debt over a
six-year term that became effective on May 10, 2006. This swap was designated as
a cash flow hedge effective May 31, 2006.




On June 21, 2006, the Company entered into an interest rate swap
agreement for $50.0 million of our variable-rate debt over a seven-year term
that became effective on July 10, 2006. On June 9, 2006, the Company entered
into a forward starting interest rate swap agreement for $144.9 million of our
variable-rate debt over a six-year term that became effective on October 10,
2006. On February 9, 2007, the Company entered into an interest rate swap
agreement for $30.0 million of our variable-rate debt over a seven-year term
that became effective on February 12, 2007. On March 8, 2007, the Company
entered into two separate interest rate swap agreements each for $20.0 million
of our variable-rate debt over seven-year terms that became effective on March
10, 2007.




On April 8, 2008, the Company entered into a forward starting
interest rate swap agreement for $19.3 million of our variable-rate debt over a
seven year term that became effective on August 15, 2008. On August 27, 2008,
the Company entered into an interest rate swap agreement for $19.0 million of
our variable-rate debt over a seven year term that became effective on August
29, 2008. On September 24, 2008, the Company entered into an interest rate swap
agreement for $30.0 million of our variable-rate debt over a seven year term
that became effective on September 30, 2008. These interest rate swap agreements
were designated as cash flow hedges on their inception (trade
dates).




For the first nine months ended December 31, 2008, the Company
recognized net losses of $11.7 million from highly effective cash flow hedges,
which are attributable to the portion of the change in the fair value of the
hedges. The hedging relationship of certain interest rate swap agreements is not
considered to be perfectly effective in which an effectiveness test is performed
for each reporting period. The net loss attributable to the portion of the
change in the fair value representing the amount of the hedges’ ineffectiveness
recognized in earnings during the first nine months was $0.7 million included in
interest expense. All forecasted transactions currently being hedged are
expected to occur by 2018.







12


AMERCO AND CONSOLIDATED ENTITIES




NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS –
(CONTINUED)






Interest Rates




Interest rates and Company borrowings were as
follows:




Revolving Credit ActivityQuarter Ended December 31,2008
                
                
                2007(Unaudited)(In thousands, except interest rates)Weighted average interest rate during the
      quarter
                
                
                4.19
                %
                
                
                6.47
                %Interest rate at the end of the quarter
                
                
                3.34
                %
                
                
                6.75
                %Maximum amount outstanding during the
    quarter
                
                $
                212,280
                
                
                $
                41,700Average amount outstanding during the
    quarter
                
                $
                204,672
                
                
                $
                35,830Facility fees
                
                $
                225
                
                
                $
                192







Revolving Credit ActivityNine Months Ended December 31,2008
                
                
                2007(Unaudited)(In thousands, except interest rates)Weighted average interest rate during the first nine
      months
                
                
                4.15
                %
                
                
                6.58
                %Interest rate at the end of the first nine
      months
                
                
                3.34
                %
                
                
                6.75
                %Maximum amount outstanding during the first nine
      months
                
                $
                212,280
                
                
                $
                138,700Average amount outstanding during the first nine
      months
                
                $
                167,672
                
                
                $
                78,576Facility fees
                
                $
                397
                
                
                $
                326







13


AMERCO AND CONSOLIDATED ENTITIES




NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS –
(CONTINUED)






5. Stockholders Equity




On December 5, 2007, we announced that the Board of Directors (the
“Board”) had authorized us to repurchase up to $50.0 million of our common
stock. The stock was repurchased by the Company from time to time on the open
market through December 31, 2008. The extent to which the Company repurchased
its shares and the timing of such purchases were dependent upon market
conditions and other corporate considerations. The purchases were funded from
available working capital. During the third quarter of fiscal 2009, no shares of
our common stock were repurchased, with the exception of the shares repurchased
under our Odd Lot Repurchase Program detailed below. This program terminated on
December 31, 2008.




Period
                                
                                Total # of Shares Repurchased
                                
                                
                                Average Price Paid per Share (1)
                                
                                
                                Total # of Shares Repurchased as Part of Publicly Announced
      Plan
                                
                                
                                Total $ of Shares Repurchased as Part of Publicly Announced
      Plan
                                
                                
                                Maximum $ of Shares That May Yet be Repurchased Under the
      Plan(Unaudited)Cumulative Plan Total
                                
                                
                                428,000
                                
                                
                                $
                                54.94
                                
                                
                                
                                428,000
                                
                                
                                $
                                23,512,380
                                
                                
                                $
                                26,487,620(1) Represents weighted average purchase price for the periods
      presented.









On August 8, 2008, we announced the Board had authorized us to
initiate a no-fee Odd Lot Repurchase Program (the “Program”) to purchase AMERCO
common stock held by persons who own less than 100 shares of AMERCO common
stock. The Program offer expired at 5:00 p.m. Eastern Standard Time on December
31, 2008. The following table details the shares purchased as part of the
Program.







Period
                          
                          Total # of Shares Repurchased
                          
                          
                          Average Price Paid per Share (1)
                          
                          
                          Total $ of Shares Repurchased as Part of Odd Lot
      Program(Unaudited)Second Quarter Total
                          
                          
                          15,679
                          
                          
                          $
                          42.04
                          
                          
                          $
                          659,205October 1 - 31, 2008
                          
                          
                          4,786
                          
                          
                          $
                          42.37
                          
                          
                          $
                          202,804November 1 - 30, 2008
                          
                          
                          2,147
                          
                          
                          
                          38.26
                          
                          
                          
                          82,141December 1 - 31, 2008
                          
                          
                          519
                          
                          
                          
                          35.68
                          
                          
                          
                          18,517Third Quarter Total
                          
                          
                          7,452
                          
                          
                          $
                          40.72
                          
                          
                          $
                          303,462Cumulative Plan Total
                          
                          
                          23,131
                          
                          
                          $
                          41.62
                          
                          
                          $
                          962,667(1) Represents weighted average purchase price for the periods
      presented.









On December 3, 2008, the Board authorized and directed us to amend
the Employee Stock Ownership Plan (“ESOP”) to provide that distributions under
the Plan with respect to accounts valued at no more than $1,000 shall be in the
form of cash at the sole discretion of the advisory committee, subject to a
participant’s or beneficiary’s right to elect a distribution of AMERCO common
stock. The Board also authorized us, using management’s discretion, to buy back
shares of former employee ESOP participants whose respective ESOP account
balances are valued at more than $1,000 but who own less than 100 shares, at the
then-prevailing market prices. During the third quarter of fiscal 2009, no such
shares were purchased.


14


AMERCO AND CONSOLIDATED ENTITIES




NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS –
(CONTINUED)






6. Contingent Liabilities and Commitments




The Company leases a portion of its rental equipment and certain of
its facilities under operating leases with terms that expire at various dates
substantially through 2016, with the exception of one land lease expiring in
2034. At December 31, 2008, AMERCO has guaranteed $181.7 million of residual
values for rental equipment assets at the end of the respective lease terms.
Certain leases contain renewal and fair market value purchase options as well as
mileage and other restrictions. At the expiration of each lease, the Company has
the option to renew the lease, purchase the asset for fair market value, or sell
the asset to a third party on behalf of the lessor. AMERCO has been leasing
equipment since 1987 and has experienced no material losses relating to these
types of residual value guarantees.




Lease commitments for leases having terms of more than one year were
as follows:




Property,
                    Plant and
                    Equipment
                  
                  
                  Rental
                    Equipment
                  
                  
                  Total(Unaudited)(In thousands)Year-ended December 31:2009
                  
                  $
                  12,965
                  
                  
                  $
                  133,218
                  
                  
                  $
                  146,1832010
                  
                  
                  12,620
                  
                  
                  
                  116,234
                  
                  
                  
                  128,8542011
                  
                  
                  12,489
                  
                  
                  
                  99,412
                  
                  
                  
                  111,9012012
                  
                  
                  12,238
                  
                  
                  
                  84,846
                  
                  
                  
                  97,0842013
                  
                  
                  11,364
                  
                  
                  
                  66,962
                  
                  
                  
                  78,326Thereafter
                  
                  
                  10,578
                  
                  
                  
                  63,762
                  
                  
                  
                  74,340Total
                  
                  $
                  72,254
                  
                  
                  $
                  564,434
                  
                  
                  $
                  636,688









7. Contingencies




Shoen




In September 2002, Paul F. Shoen filed a shareholder derivative
lawsuit in the Second Judicial District Court of the State of Nevada, Washoe
County, captioned Paul
F. Shoen vs. SAC Holding Corporation et al., CV 02-05602, 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 as a nominal
Defendant in the case. 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 prior to the
filing of the complaint. The complaint seeks a declaration that such transfers
are void as well as unspecified damages. In October 2002, the Defendants filed
motions to dismiss the complaint. Also in October 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 and in January 2003, M.S. Management Company,
Inc. filed a derivative action in the Second Judicial District Court of the
State of Nevada, Washoe County, captioned M.S. Management Company,
Inc. vs. William E. Carty, et al., CV 03-00386. Two additional derivative
suits were also filed against these parties. Each of these suits is
substantially similar to the Paul F. Shoen case. The Court consolidated the five
cases and thereafter dismissed these actions in May 2003, concluding that the
AMERCO Board of Directors had the requisite level of independence required in
order to have these claims resolved by the Board. Plaintiffs appealed this
decision and, in July 2006, the Nevada Supreme Court reversed the ruling of the
trial court and remanded the case to the trial court for proceedings consistent
with its ruling, allowing the Plaintiffs to file an amended complaint and plead
in addition to substantive claims, demand futility.


15


AMERCO AND CONSOLIDATED ENTITIES




NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS –
(CONTINUED)






In November 2006, the Plaintiffs filed an amended complaint. In
December 2006, the Defendants filed motions to dismiss, based on various legal
theories. In March 2007, the Court denied AMERCO’s motion to dismiss regarding
the issue of demand futility, stating that “Plaintiffs have satisfied the
heightened pleading requirements of demand futility by showing a majority of the
members of the AMERCO Board of Directors were interested parties in the SAC
transactions.” The Court heard oral argument on the remainder of the Defendants’
motions to dismiss, including the motion (“Goldwasser Motion”) based on the fact
that the subject matter of the lawsuit had been settled and dismissed in earlier
litigation known as Goldwasser v. Shoen,
C.V.N.-94-00810-ECR (D.Nev), Washoe County, Nevada. In addition, in September
and October 2007, the Defendants filed Motions for Judgment on the Pleadings or
in the Alternative Summary Judgment, based on the fact that the stockholders of
the Company had ratified the underlying transactions at the 2007 annual meeting
of stockholders of AMERCO. In December 2007, the Court denied this motion. This
ruling does not preclude a renewed motion for summary judgment after discovery
and further proceedings on these issues. On April 7, 2008, the litigation was
dismissed, on the basis of the Goldwasser Motion. On May 8, 2008, the Plaintiffs
filed a notice of appeal of such dismissal to the Nevada Supreme Court. On May
20, 2008, AMERCO filed a cross appeal relating to the denial of its Motion to
Dismiss in regard to demand futility. The appeals are currently
pending.




Environmental




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 cleanup of underground fuel storage tanks. It is the opinion of
management, that none of these suits, claims or proceedings involving AMERCO,
individually or in the aggregate, are expected to result in a material adverse
effect on AMERCO’s financial position or results of operations.




Compliance with environmental requirements of federal, state and
local governments may significantly affect 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.




Based upon the information currently available to Real Estate,
compliance with the environmental laws and its share of the costs of
investigation and cleanup of known hazardous waste sites are not expected to
result in a material adverse effect on AMERCO’s financial position or results of
operations. Real Estate expects to spend approximately $2.8 million in total
through 2011 to remediate these properties.




Other




The Company is named as a defendant in various other litigation and
claims arising out of the normal course of business. In management’s opinion,
none of these other matters will have a material effect on the Company’s
financial position and results of operations.


16


AMERCO AND CONSOLIDATED ENTITIES




NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS –
(CONTINUED)






8. Related Party Transactions




AMERCO has engaged in related party transactions and has continuing
related party interests with certain major stockholders, directors and officers
of the consolidated group as disclosed below. Management believes that the
transactions described below and in the related notes were consummated on terms
equivalent to those that would prevail in arm’s-length
transactions.




SAC Holding Corporation and its subsidiaries and SAC Holding II
Corporation and its subsidiaries, collectively referred to as “SAC Holdings”
were established in order to acquire self-storage properties. These properties
are being managed by the Company pursuant to management agreements. The sale of
self-storage properties by the Company to SAC Holdings has in the past provided
significant cash flows to the Company.




Management believes that its sales of self-storage properties to SAC
Holdings has provided a unique structure for the Company to earn moving
equipment rental revenues and property management fee revenues from the SAC
Holdings self-storage properties that the Company manages.




During the first nine months of fiscal 2009, subsidiaries of the
Company held various junior unsecured notes of SAC Holdings. Substantially all
of the equity interest of SAC Holdings is controlled by Blackwater Investments,
Inc. (“Blackwater”). Blackwater is wholly-owned by Mark V. Shoen, a
significant shareholder and executive officer of AMERCO. The Company does not
have an equity ownership interest in SAC Holdings. The Company recorded interest
income of $13.8 million and $14.0 million, and received cash interest payments
of $11.6 million and $14.9 million from SAC Holdings during the first nine
months of fiscal 2009 and 2008, respectively. The largest aggregate amount of
notes receivable outstanding during the first nine months of fiscal 2009 was
$198.1 million and the aggregate notes receivable balance at December 31, 2008
was $197.7 million. In accordance with the terms of these notes, SAC Holdings
may repay the notes without penalty or premium at any time.




Interest accrues on the outstanding principal balance of junior notes
of SAC Holdings that the Company holds at a 9.0% rate per annum. A fixed portion
of that basic interest is paid on a monthly basis. Additional interest can be
earned on notes totaling $122.2 million of principal depending upon the amount
of remaining basic interest and the cash flow generated by the underlying
property. This amount is referred to as the “cash flow-based
calculation.”




To the extent that this cash flow-based calculation exceeds the
amount of remaining basic interest, contingent interest would be paid on the
same monthly date as the fixed portion of basic interest. To the extent that the
cash flow-based calculation is less than the amount of remaining basic interest,
the additional interest payable on the applicable monthly date is limited to the
amount of that cash flow-based calculation. In such a case, the excess of the
remaining basic interest over the cash flow-based calculation is deferred. In
addition, subject to certain contingencies, the junior notes provide that the
holder of the note is entitled to receive a portion of the appreciation realized
upon, among other things, the sale of such property by SAC Holdings. To date, no
excess cash flows related to these arrangements have been earned or
paid.




During the first nine months of fiscal 2009, AMERCO and U-Haul held
various junior notes with Private Mini Storage Realty L.P. (“Private Mini”). The
equity interests of Private Mini are ultimately controlled by
Blackwater.  The Company recorded interest income of $4.0 million and
$3.8 million during the first nine months of fiscal 2009 and 2008, and received
cash interest payments of $4.0 million and $3.7 million, from Private Mini
during the first nine months of fiscal 2009 and 2008, respectively. The balance
of notes receivable from Private Mini at December 31, 2008 was $68.5 million.
The largest aggregate amount outstanding during fiscal 2009 was $69.1
million.


17


AMERCO AND CONSOLIDATED ENTITIES




NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS –
(CONTINUED)






The Company currently manages the self-storage properties owned or
leased by SAC Holdings, Mercury Partners, L.P. (“Mercury”), Four SAC
Self-Storage Corporation (“4 SAC”), Five SAC Self-Storage Corporation (“5 SAC”),
Galaxy Investments, L.P. (“Galaxy”) and Private Mini pursuant to a standard form
of management agreement, under which the Company receives a management fee of
between 4% and 10% of the gross receipts plus reimbursement for certain
expenses. The Company received management fees, exclusive of reimbursed
expenses, of $20.1 million and $19.4 million from the above mentioned entities
during the first nine months of fiscal 2009 and 2008, respectively. This
management fee is consistent with the fee received for other properties the
Company previously managed for third parties. SAC Holdings, 4 SAC, 5 SAC, Galaxy
and Private Mini are substantially controlled by Blackwater. Mercury is
substantially controlled by Mark V. Shoen. James P. Shoen, a significant
shareholder and director of AMERCO, has an interest in Mercury.




The Company leases space for marketing company offices, vehicle
repair shops and hitch installation centers from subsidiaries of SAC Holdings, 5
SAC and Galaxy. Total lease payments pursuant to such leases were $1.8 million
and $1.5 million for the first nine months of fiscal 2009 and 2008,
respectively. The terms of the leases are similar to the terms of leases for
other properties owned by unrelated parties that are leased to the
Company.




At December 31, 2008, subsidiaries of SAC Holdings, 4 SAC, 5 SAC,
Galaxy and Private Mini acted as U-Haul independent dealers. The financial and
other terms of the dealership contracts with the aforementioned companies and
their subsidiaries are substantially identical to the terms of those with the
Company’s other independent dealers whereby commissions are paid by the Company
based upon equipment rental revenues. The Company paid the above mentioned
entities $27.5 million and $28.7 million in commissions pursuant to such
dealership contracts during the first nine months of fiscal 2009 and 2008,
respectively.




These agreements and notes with subsidiaries of SAC Holdings, 4 SAC,
5 SAC, Galaxy and Private Mini, excluding Dealer Agreements, provided revenue of
$30.2 million, expenses of $1.8 million and cash flows of $30.9 million during
the first nine months of fiscal 2009. Revenues and commission expenses related
to the Dealer Agreements were $130.1 million and $27.5 million,
respectively.




In prior years, U-Haul sold various properties to SAC Holdings at
prices in excess of U-Haul’s carrying values resulting in gains which U-Haul
deferred and treated as additional paid-in capital. The transferred properties
have historically been stated at the original cost basis as the gains were
eliminated in consolidation. In March 2004, a portion of these deferred gains
were recognized and treated as contributions from a related party in the amount
of $111.0 million as a result of the deconsolidation of SAC Holding Corporation.
In November 2007, the remaining portion of these deferred gains were recognized
and treated as contributions from a related party in the amount of $46.1 million
as a result of the deconsolidation of SAC Holding II
Corporation.




Related Party Assets







December 31,
                  
                  
                  March 31,2008
                  
                  
                  2008(Unaudited)(In thousands)U-Haul notes, receivables and interest from Private
      Mini
                  
                  $
                  74,297
                  
                  
                  $
                  71,038U-Haul notes receivable from SAC Holdings
      Corporation
                  
                  
                  197,723
                  
                  
                  
                  198,144U-Haul interest receivable from SAC Holdings
      Corporation
                  
                  
                  6,786
                  
                  
                  
                  4,498U-Haul receivable from SAC Holdings
    Corporation
                  
                  
                  19,746
                  
                  
                  
                  20,617U-Haul receivable from Mercury
                  
                  
                  6,077
                  
                  
                  
                  6,791Other
                  
                  
                  (5
                  )
                  
                  
                  2,798$
                  304,624
                  
                  
                  $
                  303,886







18


AMERCO AND CONSOLIDATED ENTITIES




NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS –
(CONTINUED)






9. Consolidating Financial Information by Industry
Segment




AMERCO has (or had) four reportable segments. They are (or were)
Moving and Storage, Property and Casualty Insurance, Life Insurance and SAC
Holding II. Management tracks revenues separately, but does not report any
separate measure of the profitability for rental vehicles, rentals of
self-storage spaces and sales of products that are required to be classified as
a separate operating segment and accordingly does not present these as separate
reportable segments. Deferred income taxes are shown as liabilities on the
condensed consolidating statements.




The consolidated balance sheets as of December 31, 2008 and March 31,
2008 include the accounts of AMERCO and its wholly-owned subsidiaries. The
December 31, 2008 consolidated statements of operations and cash flows include
the accounts of AMERCO and its wholly-owned subsidiaries. The December 31, 2007
consolidated statements of operations and cash flows include the accounts of
AMERCO and its wholly-owned subsidiaries and SAC Holding II and its subsidiaries
through October 2007.




AMERCO’s four reportable segments are (or were):




(a)
            Moving and Storage, comprised of AMERCO, U-Haul, and Real
      Estate and the subsidiaries of U-Haul and Real
  Estate,




(b)
            Property and Casualty Insurance, comprised of RepWest and its
      subsidiaries,




(c)
            Life Insurance, comprised of Oxford and its subsidiaries,
      and




(d)
            SAC Holding II and its subsidiaries (through October
      2007).




The information includes elimination entries necessary to consolidate
AMERCO, the parent, with its subsidiaries and SAC Holding II and its
subsidiaries.




Investments in subsidiaries are accounted for by the parent using the
equity method of accounting.







19


AMERCO AND CONSOLIDATED ENTITIES




NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS –
(CONTINUED)






9. Financial Information by Consolidating Industry
Segment:




Consolidating balance sheets by industry segment as of December 31,
2008 are as follows:




Moving & Storage
                              
                              
                              AMERCO Legal GroupAMERCO
                              
                              
                              U-Haul
                              
                              
                              Real Estate
                              
                              
                              Eliminations
                              
                              
                              
                              Moving & Storage
                                Consolidated
                              
                              
                              Property & Casualty Insurance (a)
                              
                              
                              Life
                                Insurance (a)
                              
                              
                              Eliminations
                              
                              
                              
                              AMERCO
                                Consolidated(Unaudited)(In thousands)Assets:Cash and cash equivalents
                              
                              $
                              30
                              
                              
                              $
                              272,458
                              
                              
                              $
                              -
                              
                              
                              $
                              -
                              
                              
                              
                              $
                              272,488
                              
                              
                              $
                              33,224
                              
                              
                              $
                              5,805
                              
                              
                              $
                              -
                              
                              
                              
                              $
                              311,517Reinsurance recoverables and trade receivables,
      net
                              
                              
                              -
                              
                              
                              
                              16,304
                              
                              
                              
                              26
                              
                              
                              
                              -
                              
                              
                              
                              
                              16,330
                              
                              
                              
                              181,526
                              
                              
                              
                              10,337
                              
                              
                              
                              -
                              
                              
                              
                              
                              208,193Notes and mortgage receivables, net
                              
                              
                              -
                              
                              
                              
                              2,008
                              
                              
                              
                              1,125
                              
                              
                              
                              -
                              
                              
                              
                              
                              3,133
                              
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              
                              3,133Inventories, net
                              
                              
                              -
                              
                              
                              
                              75,434
                              
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              
                              75,434
                              
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              
                              75,434Prepaid expenses
                              
                              
                              20
                              
                              
                              
                              48,978
                              
                              
                              
                              437
                              
                              
                              
                              -
                              
                              
                              
                              
                              49,435
                              
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              
                              49,435Investments, fixed maturities and marketable
      equities
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              
                              -
                              
                              
                              
                              91,954
                              
                              
                              
                              446,369
                              
                              
                              
                              -
                              
                              
                              
                              
                              538,323Investments, other
                              
                              
                              -
                              
                              
                              
                              846
                              
                              
                              
                              12,811
                              
                              
                              
                              -
                              
                              
                              
                              
                              13,657
                              
                              
                              
                              93,966
                              
                              
                              
                              92,503
                              
                              
                              
                              -
                              
                              
                              
                              
                              200,126Deferred policy acquisition costs, net
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              48,047
                              
                              
                              
                              -
                              
                              
                              
                              
                              48,047Other assets
                              
                              
                              9
                              
                              
                              
                              103,808
                              
                              
                              
                              29,234
                              
                              
                              
                              -
                              
                              
                              
                              
                              133,051
                              
                              
                              
                              1,696
                              
                              
                              
                              387
                              
                              
                              
                              -
                              
                              
                              
                              
                              135,134Related party assets
                              
                              
                              1,208,643
                              
                              
                              
                              249,237
                              
                              
                              
                              81,104
                              
                              
                              
                              (1,231,699
                              )
                              (c)
                              
                              
                              307,285
                              
                              
                              
                              2,387
                              
                              
                              
                              -
                              
                              
                              
                              (5,048
                              )
                              (c)
                              
                              
                              304,6241,208,702
                              
                              
                              
                              769,073
                              
                              
                              
                              124,737
                              
                              
                              
                              (1,231,699
                              )
                              
                              
                              
                              870,813
                              
                              
                              
                              404,753
                              
                              
                              
                              603,448
                              
                              
                              
                              (5,048
                              )
                              
                              
                              
                              1,873,966Investment in subsidiaries
                              
                              
                              (274,025
                              )
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              574,432
                              
                              (b)
                              
                              
                              300,407
                              
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              (300,407
                              )
                              (b)
                              
                              
                              -Property, plant and equipment, at cost:Land
                              
                              
                              -
                              
                              
                              
                              40,195
                              
                              
                              
                              166,953
                              
                              
                              
                              -
                              
                              
                              
                              
                              207,148
                              
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              
                              207,148Buildings and improvements
                              
                              
                              -
                              
                              
                              
                              148,197
                              
                              
                              
                              766,388
                              
                              
                              
                              -
                              
                              
                              
                              
                              914,585
                              
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              
                              914,585Furniture and equipment
                              
                              
                              301
                              
                              
                              
                              307,959
                              
                              
                              
                              18,162
                              
                              
                              
                              -
                              
                              
                              
                              
                              326,422
                              
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              
                              326,422Rental trailers and other rental equipment
                              
                              
                              -
                              
                              
                              
                              211,155
                              
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              
                              211,155
                              
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              
                              211,155Rental trucks
                              
                              
                              -
                              
                              
                              
                              1,683,369
                              
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              
                              1,683,369
                              
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              
                              1,683,369301
                              
                              
                              
                              2,390,875
                              
                              
                              
                              951,503
                              
                              
                              
                              -
                              
                              
                              
                              
                              3,342,679
                              
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              
                              3,342,679Less:  Accumulated depreciation
                              
                              
                              (252
                              )
                              
                              
                              (1,003,900
                              )
                              
                              
                              (316,133
                              )
                              
                              
                              -
                              
                              
                              
                              
                              (1,320,285
                              )
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              
                              (1,320,285
                              )Total property, plant and equipment
                              
                              
                              49
                              
                              
                              
                              1,386,975
                              
                              
                              
                              635,370
                              
                              
                              
                              -
                              
                              
                              
                              
                              2,022,394
                              
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              -
                              
                              
                              
                              
                              2,022,394Total assets
                              
                              $
                              934,726
                              
                              
                              $
                              2,156,048
                              
                              
                              $
                              760,107
                              
                              
                              $
                              (657,267
                              )
                              
                              
                              $
                              3,193,614
                              
                              
                              $
                              404,753
                              
                              
                              $
                              603,448
                              
                              
                              $
                              (305,455
                              )
                              
                              
                              $
                              3,896,360(a)  Balances as of September 30,
      2008(b) Eliminate investment in subsidiaries(c) Eliminate intercompany receivables and
      payables







20







AMERCO AND CONSOLIDATED ENTITIES




NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS –
(CONTINUED)






Consolidating balance sheets by industry segment as of December 31,
2008 are as follows:







Moving & Storage
                            
                            
                            AMERCO Legal GroupAMERCO
                            
                            
                            U-Haul
                            
                            
                            Real Estate
                            
                            
                            Eliminations
                            
                            
                            
                            Moving & Storage
                              Consolidated
                            
                            
                            Property & Casualty Insurance (a)
                            
                            
                            Life
                              Insurance (a)
                            
                            
                            Eliminations
                            
                            
                            
                            AMERCO
                              Consolidated(Unaudited)(In thousands)Liabilities:Accounts payable and accrued expenses
                            
                            $
                            1,514
                            
                            
                            $
                            313,467
                            
                            
                            $
                            5,758
                            
                            
                            $
                            -
                            
                            
                            
                            $
                            320,739
                            
                            
                            $
                            -
                            
                            
                            $
                            4,320
                            
                            
                            $
                            -
                            
                            
                            
                            $
                            325,059AMERCO's notes, loans and leases payable
                            
                            
                            -
                            
                            
                            
                            629,140
                            
                            
                            
                            931,417
                            
                            
                            
                            -
                            
                            
                            
                            
                            1,560,557
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            1,560,557Policy benefits and losses, claims and loss expenses
      payable
                            
                            
                            -
                            
                            
                            
                            359,841
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            359,841
                            
                            
                            
                            287,974
                            
                            
                            
                            135,604
                            
                            
                            
                            -
                            
                            
                            
                            
                            783,419Liabilities from investment contracts
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            313,792
                            
                            
                            
                            -
                            
                            
                            
                            
                            313,792Other policyholders' funds and liabilities
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            -
                            
                            
                            
                            6,038
                            
                            
                            
                            1,831
                            
                            
                            
                            -
                            
                            
                            
                            
                            7,869Deferred income
                            
                            
                            -
                            
                            
                            
                            22,268
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            22,268
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            22,268Deferred income taxes
                            
                            
                            173,644
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            173,644
                            
                            
                            
                            (37,598
                            )
                            
                            
                            (6,274
                            )
                            
                            
                            -
                            
                            
                            
                            
                            129,772Related party liabilities
                            
                            
                            -
                            
                            
                            
                            1,234,640
                            
                            
                            
                            -
                            
                            
                            
                            (1,231,699
                            )
                            (c)
                            
                            
                            2,941
                            
                            
                            
                            1,988
                            
                            
                            
                            119
                            
                            
                            
                            (5,048
                            )
                            (c)
                            
                            
                            -Total liabilities
                            
                            
                            175,158
                            
                            
                            
                            2,559,356
                            
                            
                            
                            937,175
                            
                            
                            
                            (1,231,699
                            )
                            
                            
                            
                            2,439,990
                            
                            
                            
                            258,402
                            
                            
                            
                            449,392
                            
                            
                            
                            (5,048
                            )
                            
                            
                            
                            3,142,736Stockholders' equity:Series preferred stock:Series A preferred stock
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            -Series B preferred stock
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            -Series A common stock
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            -Common stock
                            
                            
                            10,497
                            
                            
                            
                            540
                            
                            
                            
                            1
                            
                            
                            
                            (541
                            )
                            (b)
                            
                            
                            10,497
                            
                            
                            
                            3,301
                            
                            
                            
                            2,500
                            
                            
                            
                            (5,801
                            )
                            (b)
                            
                            
                            10,497Additional paid-in capital
                            
                            
                            420,423
                            
                            
                            
                            121,230
                            
                            
                            
                            147,481
                            
                            
                            
                            (268,711
                            )
                            (b)
                            
                            
                            420,423
                            
                            
                            
                            89,620
                            
                            
                            
                            26,271
                            
                            
                            
                            (115,891
                            )
                            (b)
                            
                            
                            420,423Accumulated other comprehensive income
    (loss)
                            
                            
                            (100,102
                            )
                            
                            
                            (91,575
                            )
                            
                            
                            -
                            
                            
                            
                            91,575
                            
                            (b)
                            
                            
                            (100,102
                            )
                            
                            
                            (4,710
                            )
                            
                            
                            (3,817
                            )
                            
                            
                            8,527
                            
                            (b)
                            
                            
                            (100,102
                            )Retained earnings (deficit)
                            
                            
                            954,390
                            
                            
                            
                            (427,559
                            )
                            
                            
                            (324,550
                            )
                            
                            
                            752,109
                            
                            (b)
                            
                            
                            954,390
                            
                            
                            
                            58,140
                            
                            
                            
                            129,102
                            
                            
                            
                            (187,242
                            )
                            (b)
                            
                            
                            954,390Cost of common shares in treasury, net
                            
                            
                            (525,640
                            )
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            (525,640
                            )
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            (525,640
                            )Unearned employee stock ownership plan
    shares
                            
                            
                            -
                            
                            
                            
                            (5,944
                            )
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            (5,944
                            )
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            (5,944
                            )Total stockholders' equity (deficit)
                            
                            
                            759,568
                            
                            
                            
                            (403,308
                            )
                            
                            
                            (177,068
                            )
                            
                            
                            574,432
                            
                            
                            
                            
                            753,624
                            
                            
                            
                            146,351
                            
                            
                            
                            154,056
                            
                            
                            
                            (300,407
                            )
                            
                            
                            
                            753,624Total liabilities and stockholders' equity
                            
                            $
                            934,726
                            
                            
                            $
                            2,156,048
                            
                            
                            $
                            760,107
                            
                            
                            $
                            (657,267
                            )
                            
                            
                            $
                            3,193,614
                            
                            
                            $
                            404,753
                            
                            
                            $
                            603,448
                            
                            
                            $
                            (305,455
                            )
                            
                            
                            $
                            3,896,360(a)  Balances as of September 30,
      2008(b) Eliminate investment in subsidiaries(c) Eliminate intercompany receivables and
      payables





21


AMERCO AND CONSOLIDATED ENTITIES




NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS –
(CONTINUED)






Consolidating balance sheets by industry segment as of March 31, 2008
are as follows:




Moving & Storage
                            
                            
                            AMERCO Legal GroupAMERCO
                            
                            
                            U-Haul
                            
                            
                            Real Estate
                            
                            
                            Eliminations
                            
                            
                            
                            Moving & Storage
                              Consolidated
                            
                            
                            Property & Casualty Insurance (a)
                            
                            
                            Life
                              Insurance (a)
                            
                            
                            Eliminations
                            
                            
                            
                            AMERCO
                              Consolidated(In thousands)Assets:Cash and cash equivalents
                            
                            $
                            30
                            
                            
                            $
                            191,220
                            
                            
                            $
                            -
                            
                            
                            $
                            -
                            
                            
                            
                            $
                            191,250
                            
                            
                            $
                            6,848
                            
                            
                            $
                            8,524
                            
                            
                            $
                            -
                            
                            
                            
                            $
                            206,622Reinsurance recoverables and trade receivables,
      net
                            
                            
                            -
                            
                            
                            
                            20,529
                            
                            
                            
                            27
                            
                            
                            
                            -
                            
                            
                            
                            
                            20,556
                            
                            
                            
                            170,305
                            
                            
                            
                            10,255
                            
                            
                            
                            -
                            
                            
                            
                            
                            201,116Notes and mortgage receivables, net
                            
                            
                            -
                            
                            
                            
                            1,158
                            
                            
                            
                            930
                            
                            
                            
                            -
                            
                            
                            
                            
                            2,088
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            2,088Inventories, net
                            
                            
                            -
                            
                            
                            
                            65,349
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            65,349
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            65,349Prepaid expenses
                            
                            
                            4,508
                            
                            
                            
                            51,418
                            
                            
                            
                            233
                            
                            
                            
                            -
                            
                            
                            
                            
                            56,159
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            56,159Investments, fixed maturities and marketable
      equities
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            -
                            
                            
                            
                            144,171
                            
                            
                            
                            489,613
                            
                            
                            
                            -
                            
                            
                            
                            
                            633,784Investments, other
                            
                            
                            -
                            
                            
                            
                            838
                            
                            
                            
                            13,515
                            
                            
                            
                            -
                            
                            
                            
                            
                            14,353
                            
                            
                            
                            80,786
                            
                            
                            
                            90,452
                            
                            
                            
                            -
                            
                            
                            
                            
                            185,591Deferred policy acquisition costs, net
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            -
                            
                            
                            
                            30
                            
                            
                            
                            35,548
                            
                            
                            
                            -
                            
                            
                            
                            
                            35,578Other assets
                            
                            
                            8
                            
                            
                            
                            97,285
                            
                            
                            
                            30,494
                            
                            
                            
                            -
                            
                            
                            
                            
                            127,787
                            
                            
                            
                            2,808
                            
                            
                            
                            543
                            
                            
                            
                            -
                            
                            
                            
                            
                            131,138Related party assets
                            
                            
                            1,164,092
                            
                            
                            
                            244,801
                            
                            
                            
                            29,198
                            
                            
                            
                            (1,131,730
                            )
                            (c)
                            
                            
                            306,361
                            
                            
                            
                            7,067
                            
                            
                            
                            -
                            
                            
                            
                            (9,542
                            )
                            (c)
                            
                            
                            303,8861,168,638
                            
                            
                            
                            672,598
                            
                            
                            
                            74,397
                            
                            
                            
                            (1,131,730
                            )
                            
                            
                            
                            783,903
                            
                            
                            
                            412,015
                            
                            
                            
                            634,935
                            
                            
                            
                            (9,542
                            )
                            
                            
                            
                            1,821,311Investment in subsidiaries
                            
                            
                            (234,927
                            )
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            534,247
                            
                            (b)
                            
                            
                            299,320
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            (299,320
                            )
                            (b)
                            
                            
                            -Property, plant and equipment, at cost:Land
                            
                            
                            -
                            
                            
                            
                            44,224
                            
                            
                            
                            163,940
                            
                            
                            
                            -
                            
                            
                            
                            
                            208,164
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            208,164Buildings and improvements
                            
                            
                            -
                            
                            
                            
                            109,826
                            
                            
                            
                            750,056
                            
                            
                            
                            -
                            
                            
                            
                            
                            859,882
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            859,882Furniture and equipment
                            
                            
                            304
                            
                            
                            
                            291,561
                            
                            
                            
                            18,095
                            
                            
                            
                            -
                            
                            
                            
                            
                            309,960
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            309,960Rental trailers and other rental equipment
                            
                            
                            -
                            
                            
                            
                            205,572
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            205,572
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            205,572Rental trucks
                            
                            
                            -
                            
                            
                            
                            1,734,425
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            1,734,425
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            1,734,425304
                            
                            
                            
                            2,385,608
                            
                            
                            
                            932,091
                            
                            
                            
                            -
                            
                            
                            
                            
                            3,318,003
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            3,318,003Less:  Accumulated depreciation
                            
                            
                            (242
                            )
                            
                            
                            (999,040
                            )
                            
                            
                            (307,545
                            )
                            
                            
                            -
                            
                            
                            
                            
                            (1,306,827
                            )
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            (1,306,827
                            )Total property, plant and equipment
                            
                            
                            62
                            
                            
                            
                            1,386,568
                            
                            
                            
                            624,546
                            
                            
                            
                            -
                            
                            
                            
                            
                            2,011,176
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            
                            2,011,176Total assets
                            
                            $
                            933,773
                            
                            
                            $
                            2,059,166
                            
                            
                            $
                            698,943
                            
                            
                            $
                            (597,483
                            )
                            
                            
                            $
                            3,094,399
                            
                            
                            $
                            412,015
                            
                            
                            $
                            634,935
                            
                            
                            $
                            (308,862
                            )
                            
                            
                            $
                            3,832,487(a)  Balances as of December 31,
    2007(b) Eliminate investment in subsidiaries(c) Eliminate intercompany receivables and
      payables







22


AMERCO AND CONSOLIDATED ENTITIES




NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS –
(CONTINUED)






Consolidating balance sheets by industry segment as of March 31, 2008
are as follows:




Moving & Storage
                                                                    
                                                                    
                                                                    AMERCO Legal GroupAMERCO
                                                                    
                                                                    
                                                                    U-Haul
                                                                    
                                                                    
                                                                    Real Estate
                                                                    
                                                                    
                                                                    Eliminations
                                                                    
                                                                    
                                                                    
                                                                    Moving & Storage
                                                                      Consolidated
                                                                    
                                                                    
                                                                    Property & Casualty Insurance (a)
                                                                    
                                                                    
                                                                    Life
                                                                      Insurance (a)
                                                                    
                                                                    
                                                                    Eliminations
                                                                    
                                                                    
                                                                    
                                                                    AMERCO
                                                                      Consolidated(In thousands)Liabilities:Accounts payable and accrued expenses
                                                                    
                                                                    $
                                                                    924
                                                                    
                                                                    
                                                                    $
                                                                    281,666
                                                                    
                                                                    
                                                                    $
                                                                    4,903
                                                                    
                                                                    
                                                                    $
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    $
                                                                    287,493
                                                                    
                                                                    
                                                                    $
                                                                    -
                                                                    
                                                                    
                                                                    $
                                                                    5,033
                                                                    
                                                                    
                                                                    $
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    $
                                                                    292,526AMERCO's notes and loans payable
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    630,533
                                                                    
                                                                    
                                                                    
                                                                    874,144
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    1,504,677
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    1,504,677Policy benefits and losses, claims and loss expenses
      payable
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    360,308
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    360,308
                                                                    
                                                                    
                                                                    
                                                                    291,318
                                                                    
                                                                    
                                                                    
                                                                    137,748
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    789,374Liabilities from investment contracts
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    339,198
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    339,198Other policyholders' funds and liabilities
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    6,854
                                                                    
                                                                    
                                                                    
                                                                    3,613
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    10,467Deferred income
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    11,781
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    11,781
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    11,781Deferred income taxes
                                                                    
                                                                    
                                                                    167,523
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    167,523
                                                                    
                                                                    
                                                                    
                                                                    (36,783
                                                                    )
                                                                    
                                                                    
                                                                    (4,707
                                                                    )
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    126,033Related party liabilities
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    1,135,916
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    (1,131,730
                                                                    )
                                                                    (c)
                                                                    
                                                                    
                                                                    4,186
                                                                    
                                                                    
                                                                    
                                                                    2,048
                                                                    
                                                                    
                                                                    
                                                                    3,308
                                                                    
                                                                    
                                                                    
                                                                    (9,542
                                                                    )
                                                                    (c
                                                                    )
                                                                    
                                                                    -Total liabilities
                                                                    
                                                                    
                                                                    168,447
                                                                    
                                                                    
                                                                    
                                                                    2,420,204
                                                                    
                                                                    
                                                                    
                                                                    879,047
                                                                    
                                                                    
                                                                    
                                                                    (1,131,730
                                                                    )
                                                                    
                                                                    
                                                                    
                                                                    2,335,968
                                                                    
                                                                    
                                                                    
                                                                    263,437
                                                                    
                                                                    
                                                                    
                                                                    484,193
                                                                    
                                                                    
                                                                    
                                                                    (9,542
                                                                    )
                                                                    
                                                                    
                                                                    
                                                                    3,074,056Stockholders' equity:Series preferred stock:Series A preferred stock
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    -Series B preferred stock
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    -Series A common stock
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    -Common stock
                                                                    
                                                                    
                                                                    10,497
                                                                    
                                                                    
                                                                    
                                                                    540
                                                                    
                                                                    
                                                                    
                                                                    1
                                                                    
                                                                    
                                                                    
                                                                    (541
                                                                    )
                                                                    (b)
                                                                    
                                                                    
                                                                    10,497
                                                                    
                                                                    
                                                                    
                                                                    3,300
                                                                    
                                                                    
                                                                    
                                                                    2,500
                                                                    
                                                                    
                                                                    
                                                                    (5,800
                                                                    )
                                                                    (b)
                                                                    
                                                                    
                                                                    10,497Additional paid-in capital
                                                                    
                                                                    
                                                                    419,370
                                                                    
                                                                    
                                                                    
                                                                    121,230
                                                                    
                                                                    
                                                                    
                                                                    147,481
                                                                    
                                                                    
                                                                    
                                                                    (268,711
                                                                    )
                                                                    (b)
                                                                    
                                                                    
                                                                    419,370
                                                                    
                                                                    
                                                                    
                                                                    86,121
                                                                    
                                                                    
                                                                    
                                                                    26,271
                                                                    
                                                                    
                                                                    
                                                                    (112,392
                                                                    )
                                                                    (b)
                                                                    
                                                                    
                                                                    419,370Accumulated other comprehensive income
    (loss)
                                                                    
                                                                    
                                                                    (55,279
                                                                    )
                                                                    
                                                                    
                                                                    (56,870
                                                                    )
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    56,870
                                                                    
                                                                    (b)
                                                                    
                                                                    
                                                                    (55,279
                                                                    )
                                                                    
                                                                    
                                                                    63
                                                                    
                                                                    
                                                                    
                                                                    1,528
                                                                    
                                                                    
                                                                    
                                                                    (1,591
                                                                    )
                                                                    (b)
                                                                    
                                                                    
                                                                    (55,279
                                                                    )Retained earnings (deficit)
                                                                    
                                                                    
                                                                    915,415
                                                                    
                                                                    
                                                                    
                                                                    (419,043
                                                                    )
                                                                    
                                                                    
                                                                    (327,586
                                                                    )
                                                                    
                                                                    
                                                                    746,629
                                                                    
                                                                    (b)
                                                                    
                                                                    
                                                                    915,415
                                                                    
                                                                    
                                                                    
                                                                    59,094
                                                                    
                                                                    
                                                                    
                                                                    120,443
                                                                    
                                                                    
                                                                    
                                                                    (179,537
                                                                    )
                                                                    (b)
                                                                    
                                                                    
                                                                    915,415Cost of common shares in treasury, net
                                                                    
                                                                    
                                                                    (524,677
                                                                    )
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    (524,677
                                                                    )
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    (524,677
                                                                    )Unearned employee stock ownership plan
    shares
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    (6,895
                                                                    )
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    (6,895
                                                                    )
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    (6,895
                                                                    )Total stockholders' equity (deficit)
                                                                    
                                                                    
                                                                    765,326
                                                                    
                                                                    
                                                                    
                                                                    (361,038
                                                                    )
                                                                    
                                                                    
                                                                    (180,104
                                                                    )
                                                                    
                                                                    
                                                                    534,247
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    758,431
                                                                    
                                                                    
                                                                    
                                                                    148,578
                                                                    
                                                                    
                                                                    
                                                                    150,742
                                                                    
                                                                    
                                                                    
                                                                    (299,320
                                                                    )
                                                                    
                                                                    
                                                                    
                                                                    758,431Total liabilities and stockholders' equity
                                                                    
                                                                    $
                                                                    933,773
                                                                    
                                                                    
                                                                    $
                                                                    2,059,166
                                                                    
                                                                    
                                                                    $
                                                                    698,943
                                                                    
                                                                    
                                                                    $
                                                                    (597,483
                                                                    )
                                                                    
                                                                    
                                                                    $
                                                                    3,094,399
                                                                    
                                                                    
                                                                    $
                                                                    412,015
                                                                    
                                                                    
                                                                    $
                                                                    634,935
                                                                    
                                                                    
                                                                    $
                                                                    (308,862
                                                                    )
                                                                    
                                                                    
                                                                    $
                                                                    3,832,487(a)  Balances as of December 31,
    2007(b) Eliminate investment in subsidiaries(c) Eliminate intercompany receivables and
      payables







23


AMERCO AND CONSOLIDATED ENTITIES




NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS –
(CONTINUED)






Consolidating statements of operations by industry segment for the
quarter ended December 31, 2008 are as follows:




Moving & Storage
                                      
                                      
                                      AMERCO Legal GroupAMERCO
                                      
                                      
                                      U-Haul
                                      
                                      
                                      Real Estate
                                      
                                      
                                      Eliminations
                                      
                                      
                                      
                                      Moving & Storage
                                        Consolidated
                                      
                                      
                                      Property & Casualty Insurance (a)
                                      
                                      
                                      Life
                                        Insurance (a)
                                      
                                      
                                      Eliminations
                                      
                                      
                                      
                                      
                                      AMERCO
                                        Consolidated(Unaudited)(In thousands)Revenues:Self-moving equipment rentals
                                      
                                      $
                                      -
                                      
                                      
                                      $
                                      311,597
                                      
                                      
                                      $
                                      -
                                      
                                      
                                      $
                                      -
                                      
                                      
                                      
                                      $
                                      311,597
                                      
                                      
                                      $
                                      -
                                      
                                      
                                      $
                                      -
                                      
                                      
                                      $
                                      60
                                      
                                      (c)
                                      
                                      
                                      $
                                      311,657Self-storage revenues
                                      
                                      
                                      -
                                      
                                      
                                      
                                      26,857
                                      
                                      
                                      
                                      540
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      
                                      27,397
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      
                                      
                                      27,397Self-moving & self-storage products & service
      sales
                                      
                                      
                                      -
                                      
                                      
                                      
                                      38,663
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      
                                      38,663
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      
                                      
                                      38,663Property management fees
                                      
                                      
                                      -
                                      
                                      
                                      
                                      6,059
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      
                                      6,059
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      
                                      
                                      6,059Life insurance premiums
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      27,509
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      
                                      
                                      27,509Property and casualty insurance premiums
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      8,129
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      (100
                                      )
                                      (c)
                                      
                                      
                                      
                                      8,029Net investment and interest income
                                      
                                      
                                      1,090
                                      
                                      
                                      
                                      6,916
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      
                                      8,006
                                      
                                      
                                      
                                      2,188
                                      
                                      
                                      
                                      5,012
                                      
                                      
                                      
                                      (293
                                      )
                                      (b,d
                                      )
                                      
                                      
                                      14,913Other revenue
                                      
                                      
                                      -
                                      
                                      
                                      
                                      9,652
                                      
                                      
                                      
                                      17,641
                                      
                                      
                                      
                                      (19,164
                                      )
                                      (b)
                                      
                                      
                                      8,129
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      821
                                      
                                      
                                      
                                      (593
                                      )
                                      (b)
                                      
                                      
                                      
                                      8,357Total revenues
                                      
                                      
                                      1,090
                                      
                                      
                                      
                                      399,744
                                      
                                      
                                      
                                      18,181
                                      
                                      
                                      
                                      (19,164
                                      )
                                      
                                      
                                      
                                      399,851
                                      
                                      
                                      
                                      10,317
                                      
                                      
                                      
                                      33,342
                                      
                                      
                                      
                                      (926
                                      )
                                      
                                      
                                      
                                      
                                      
                                      442,584Costs and expenses:Operating expenses
                                      
                                      
                                      2,032
                                      
                                      
                                      
                                      267,144
                                      
                                      
                                      
                                      2,749
                                      
                                      
                                      
                                      (19,164
                                      )
                                      (b)
                                      
                                      
                                      252,761
                                      
                                      
                                      
                                      3,095
                                      
                                      
                                      
                                      5,660
                                      
                                      
                                      
                                      (2,274
                                      )
                                      (b,c,d
                                      )
                                      
                                      
                                      259,242Commission expenses
                                      
                                      
                                      -
                                      
                                      
                                      
                                      36,664
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      
                                      36,664
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      
                                      
                                      
                                      36,664Cost of sales
                                      
                                      
                                      -
                                      
                                      
                                      
                                      23,229
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      
                                      23,229
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      
                                      
                                      
                                      23,229Benefits and losses
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      4,599
                                      
                                      
                                      
                                      21,065
                                      
                                      
                                      
                                      1,649
                                      
                                      (c)
                                      
                                      
                                      
                                      27,313Amortization of deferred policy acquisition
      costs
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      14
                                      
                                      
                                      
                                      2,729
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      
                                      
                                      
                                      2,743Lease expense
                                      
                                      
                                      22
                                      
                                      
                                      
                                      38,996
                                      
                                      
                                      
                                      2
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      
                                      39,020
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      (301
                                      )
                                      (b)
                                      
                                      
                                      
                                      38,719Depreciation, net of (gains) losses on
      disposals
                                      
                                      
                                      4
                                      
                                      
                                      
                                      66,131
                                      
                                      
                                      
                                      2,540
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      
                                      68,675
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      
                                      
                                      
                                      68,675Total costs and expenses
                                      
                                      
                                      2,058
                                      
                                      
                                      
                                      432,164
                                      
                                      
                                      
                                      5,291
                                      
                                      
                                      
                                      (19,164
                                      )
                                      
                                      
                                      
                                      420,349
                                      
                                      
                                      
                                      7,708
                                      
                                      
                                      
                                      29,454
                                      
                                      
                                      
                                      (926
                                      )
                                      
                                      
                                      
                                      
                                      
                                      456,585Equity in earnings of subsidiaries
                                      
                                      
                                      (39,063
                                      )
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      43,056
                                      
                                      (e)
                                      
                                      
                                      3,993
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      (3,993
                                      )
                                      (e)
                                      
                                      
                                      
                                      -Earnings (loss) from operations
                                      
                                      
                                      (40,031
                                      )
                                      
                                      
                                      (32,420
                                      )
                                      
                                      
                                      12,890
                                      
                                      
                                      
                                      43,056
                                      
                                      
                                      
                                      
                                      (16,505
                                      )
                                      
                                      
                                      2,609
                                      
                                      
                                      
                                      3,888
                                      
                                      
                                      
                                      (3,993
                                      )
                                      
                                      
                                      
                                      
                                      
                                      (14,001
                                      )Interest income (expense)
                                      
                                      
                                      23,728
                                      
                                      
                                      
                                      (39,189
                                      )
                                      
                                      
                                      (10,539
                                      )
                                      
                                      
                                      -
                                      
                                      
                                      
                                      
                                      (26,000
                                      )
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      
                                      
                                      
                                      (26,000
                                      )Pretax earnings (loss)
                                      
                                      
                                      (16,303
                                      )
                                      
                                      
                                      (71,609
                                      )
                                      
                                      
                                      2,351
                                      
                                      
                                      
                                      43,056
                                      
                                      
                                      
                                      
                                      (42,505
                                      )
                                      
                                      
                                      2,609
                                      
                                      
                                      
                                      3,888
                                      
                                      
                                      
                                      (3,993
                                      )
                                      
                                      
                                      
                                      
                                      
                                      (40,001
                                      )Income tax benefit (expense)
                                      
                                      
                                      (8,649
                                      )
                                      
                                      
                                      27,466
                                      
                                      
                                      
                                      (1,264
                                      )
                                      
                                      
                                      -
                                      
                                      
                                      
                                      
                                      17,553
                                      
                                      
                                      
                                      (912
                                      )
                                      
                                      
                                      (1,592
                                      )
                                      
                                      
                                      -
                                      
                                      
                                      
                                      
                                      
                                      
                                      15,049Net earnings (loss)
                                      
                                      
                                      (24,952
                                      )
                                      
                                      
                                      (44,143
                                      )
                                      
                                      
                                      1,087
                                      
                                      
                                      
                                      43,056
                                      
                                      
                                      
                                      
                                      (24,952
                                      )
                                      
                                      
                                      1,697
                                      
                                      
                                      
                                      2,296
                                      
                                      
                                      
                                      (3,993
                                      )
                                      
                                      
                                      
                                      
                                      
                                      (24,952
                                      )Less:  Preferred stock dividends
                                      
                                      
                                      (3,241
                                      )
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      
                                      (3,241
                                      )
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -
                                      
                                      
                                      
                                      
                                      
                                      
                                      (3,241
                                      )Earnings (loss) available to common
      shareholders
                                      
                                      $
                                      (28,193
                                      )
                                      
                                      $
                                      (44,143
                                      )
                                      
                                      $
                                      1,087
                                      
                                      
                                      $
                                      43,056
                                      
                                      
                                      
                                      $
                                      (28,193
                                      )
                                      
                                      $
                                      1,697
                                      
                                      
                                      $
                                      2,296
                                      
                                      
                                      $
                                      (3,993
                                      )
                                      
                                      
                                      
                                      
                                      $
                                      (28,193
                                      )(a)  Balances for the quarter ended September 30,
      2008(b) Eliminate intercompany lease income(c) Eliminate intercompany premiums(d) Eliminate intercompany interest on debt(e) Eliminate equity in earnings of
      subsidiaries







24


AMERCO AND CONSOLIDATED ENTITIES




NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS –
(CONTINUED)




Consolidating statements of operations by industry for the quarter
ended December 31, 2007 are as follows:





Moving & Storage
                                                                            
                                                                            
                                                                            AMERCO Legal Group
                                                                            
                                                                            
                                                                            AMERCO
      as ConsolidatedAMERCO
                                                                            
                                                                            
                                                                            U-Haul
                                                                            
                                                                            
                                                                            Real Estate
                                                                            
                                                                            
                                                                            Eliminations
                                                                            
                                                                            
                                                                            
                                                                            Moving & Storage
                                                                              Consolidated
                                                                            
                                                                            
                                                                            Property & Casualty Insurance (a)
                                                                            
                                                                            
                                                                            Life
                                                                              Insurance (a)
                                                                            
                                                                            
                                                                            Eliminations
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            AMERCO
                                                                              Consolidated
                                                                            
                                                                            
                                                                            SAC Holding II (h)
                                                                            
                                                                            
                                                                            Eliminations
                                                                            
                                                                            
                                                                            
                                                                            Total Consolidated(Unaudited)(In thousands)Revenues:Self-moving equipment rentals
                                                                            
                                                                            $
                                                                            -
                                                                            
                                                                            
                                                                            $
                                                                            326,937
                                                                            
                                                                            
                                                                            $
                                                                            -
                                                                            
                                                                            
                                                                            $
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            $
                                                                            326,937
                                                                            
                                                                            
                                                                            $
                                                                            -
                                                                            
                                                                            
                                                                            $
                                                                            -
                                                                            
                                                                            
                                                                            $
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            $
                                                                            326,937
                                                                            
                                                                            
                                                                            $
                                                                            689
                                                                            
                                                                            
                                                                            $
                                                                            (689
                                                                            )
                                                                            (b)
                                                                            
                                                                            $
                                                                            326,937Self-storage revenues
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            27,435
                                                                            
                                                                            
                                                                            
                                                                            523
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            27,958
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            27,958
                                                                            
                                                                            
                                                                            
                                                                            1,672
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            29,630Self-moving & self-storage products & service
      sales
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            42,134
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            42,134
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            42,134
                                                                            
                                                                            
                                                                            
                                                                            1,077
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            43,211Property management fees
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            7,137
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            7,137
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            7,137
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            (212
                                                                            )
                                                                            (g)
                                                                            
                                                                            
                                                                            6,925Life insurance premiums
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            27,757
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            27,757
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            27,757Property and casualty insurance premiums
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            7,738
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            7,738
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            7,738Net investment and interest income
                                                                            
                                                                            
                                                                            1,076
                                                                            
                                                                            
                                                                            
                                                                            7,953
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            9,029
                                                                            
                                                                            
                                                                            
                                                                            3,154
                                                                            
                                                                            
                                                                            
                                                                            4,798
                                                                            
                                                                            
                                                                            
                                                                            (389
                                                                            )
                                                                            (b,d
                                                                            )
                                                                            
                                                                            
                                                                            16,592
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            (584
                                                                            )
                                                                            (d)
                                                                            
                                                                            
                                                                            16,008Other revenue
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            7,373
                                                                            
                                                                            
                                                                            
                                                                            17,663
                                                                            
                                                                            
                                                                            
                                                                            (18,788
                                                                            )
                                                                            (b)
                                                                            
                                                                            
                                                                            6,248
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            1,288
                                                                            
                                                                            
                                                                            
                                                                            (336
                                                                            )
                                                                            (b)
                                                                            
                                                                            
                                                                            
                                                                            7,200
                                                                            
                                                                            
                                                                            
                                                                            113
                                                                            
                                                                            
                                                                            
                                                                            (59
                                                                            )
                                                                            (b)
                                                                            
                                                                            
                                                                            7,254Total revenues
                                                                            
                                                                            
                                                                            1,076
                                                                            
                                                                            
                                                                            
                                                                            418,969
                                                                            
                                                                            
                                                                            
                                                                            18,186
                                                                            
                                                                            
                                                                            
                                                                            (18,788
                                                                            )
                                                                            
                                                                            
                                                                            
                                                                            419,443
                                                                            
                                                                            
                                                                            
                                                                            10,892
                                                                            
                                                                            
                                                                            
                                                                            33,843
                                                                            
                                                                            
                                                                            
                                                                            (725
                                                                            )
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            463,453
                                                                            
                                                                            
                                                                            
                                                                            3,551
                                                                            
                                                                            
                                                                            
                                                                            (1,544
                                                                            )
                                                                            
                                                                            
                                                                            
                                                                            465,460Costs and expenses:Operating expenses
                                                                            
                                                                            
                                                                            2,055
                                                                            
                                                                            
                                                                            
                                                                            272,928
                                                                            
                                                                            
                                                                            
                                                                            1,978
                                                                            
                                                                            
                                                                            
                                                                            (18,788
                                                                            )
                                                                            (b)
                                                                            
                                                                            
                                                                            258,173
                                                                            
                                                                            
                                                                            
                                                                            4,203
                                                                            
                                                                            
                                                                            
                                                                            6,694
                                                                            
                                                                            
                                                                            
                                                                            (1,841
                                                                            )
                                                                            (b,c,d
                                                                            )
                                                                            
                                                                            
                                                                            267,229
                                                                            
                                                                            
                                                                            
                                                                            1,957
                                                                            
                                                                            
                                                                            
                                                                            (212
                                                                            )
                                                                            (g)
                                                                            
                                                                            
                                                                            268,974Commission expenses
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            39,252
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            39,252
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            39,252
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            (689
                                                                            )
                                                                            (b)
                                                                            
                                                                            
                                                                            38,563Cost of sales
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            26,165
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            26,165
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            26,165
                                                                            
                                                                            
                                                                            
                                                                            512
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            26,677Benefits and losses
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            4,419
                                                                            
                                                                            
                                                                            
                                                                            19,419
                                                                            
                                                                            
                                                                            
                                                                            1,452
                                                                            
                                                                            (c)
                                                                            
                                                                            
                                                                            
                                                                            25,290
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            25,290Amortization of deferred policy acquisition
      costs
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            4
                                                                            
                                                                            
                                                                            
                                                                            2,683
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            2,687
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            2,687Lease expense
                                                                            
                                                                            
                                                                            24
                                                                            
                                                                            
                                                                            
                                                                            34,264
                                                                            
                                                                            
                                                                            
                                                                            2
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            34,290
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            (300
                                                                            )
                                                                            (b)
                                                                            
                                                                            
                                                                            
                                                                            33,990
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            (59
                                                                            )
                                                                            (b)
                                                                            
                                                                            
                                                                            33,931Depreciation, net of (gains) losses on
      disposals
                                                                            
                                                                            
                                                                            187
                                                                            
                                                                            
                                                                            
                                                                            57,737
                                                                            
                                                                            
                                                                            
                                                                            2,907
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            60,831
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            60,831
                                                                            
                                                                            
                                                                            
                                                                            231
                                                                            
                                                                            
                                                                            
                                                                            (47
                                                                            )
                                                                            (e)
                                                                            
                                                                            
                                                                            61,015Total costs and expenses
                                                                            
                                                                            
                                                                            2,266
                                                                            
                                                                            
                                                                            
                                                                            430,346
                                                                            
                                                                            
                                                                            
                                                                            4,887
                                                                            
                                                                            
                                                                            
                                                                            (18,788
                                                                            )
                                                                            
                                                                            
                                                                            
                                                                            418,711
                                                                            
                                                                            
                                                                            
                                                                            8,626
                                                                            
                                                                            
                                                                            
                                                                            28,796
                                                                            
                                                                            
                                                                            
                                                                            (689
                                                                            )
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            455,444
                                                                            
                                                                            
                                                                            
                                                                            2,700
                                                                            
                                                                            
                                                                            
                                                                            (1,007
                                                                            )
                                                                            
                                                                            
                                                                            
                                                                            457,137Equity in earnings of subsidiaries
                                                                            
                                                                            
                                                                            (23,675
                                                                            )
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            28,511
                                                                            
                                                                            (f)
                                                                            
                                                                            
                                                                            4,836
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            (4,836
                                                                            )
                                                                            (f)
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            -Equity in earnings of SAC Holding II
                                                                            
                                                                            
                                                                            (133
                                                                            )
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            (133
                                                                            )
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            (133
                                                                            )
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            133
                                                                            
                                                                            (f)
                                                                            
                                                                            
                                                                            -Total - equity in earnings of subsidiaries and SAC Holding
      II
                                                                            
                                                                            
                                                                            (23,808
                                                                            )
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            28,511
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            4,703
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            (4,836
                                                                            )
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            (133
                                                                            )
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            133
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            -Earnings (loss) from operations
                                                                            
                                                                            
                                                                            (24,998
                                                                            )
                                                                            
                                                                            
                                                                            (11,377
                                                                            )
                                                                            
                                                                            
                                                                            13,299
                                                                            
                                                                            
                                                                            
                                                                            28,511
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            5,435
                                                                            
                                                                            
                                                                            
                                                                            2,266
                                                                            
                                                                            
                                                                            
                                                                            5,047
                                                                            
                                                                            
                                                                            
                                                                            (4,872
                                                                            )
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            7,876
                                                                            
                                                                            
                                                                            
                                                                            851
                                                                            
                                                                            
                                                                            
                                                                            (404
                                                                            )
                                                                            
                                                                            
                                                                            
                                                                            8,323Interest income (expense)
                                                                            
                                                                            
                                                                            22,780
                                                                            
                                                                            
                                                                            
                                                                            (34,328
                                                                            )
                                                                            
                                                                            
                                                                            (13,193
                                                                            )
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            (24,741
                                                                            )
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            36
                                                                            
                                                                            (d)
                                                                            
                                                                            
                                                                            
                                                                            (24,705
                                                                            )
                                                                            
                                                                            
                                                                            (1,070
                                                                            )
                                                                            
                                                                            
                                                                            584
                                                                            
                                                                            (d)
                                                                            
                                                                            
                                                                            (25,191
                                                                            )Pretax earnings (loss)
                                                                            
                                                                            
                                                                            (2,218
                                                                            )
                                                                            
                                                                            
                                                                            (45,705
                                                                            )
                                                                            
                                                                            
                                                                            106
                                                                            
                                                                            
                                                                            
                                                                            28,511
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            (19,306
                                                                            )
                                                                            
                                                                            
                                                                            2,266
                                                                            
                                                                            
                                                                            
                                                                            5,047
                                                                            
                                                                            
                                                                            
                                                                            (4,836
                                                                            )
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            (16,829
                                                                            )
                                                                            
                                                                            
                                                                            (219
                                                                            )
                                                                            
                                                                            
                                                                            180
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            (16,868
                                                                            )Income tax benefit (expense)
                                                                            
                                                                            
                                                                            (8,205
                                                                            )
                                                                            
                                                                            
                                                                            17,441
                                                                            
                                                                            
                                                                            
                                                                            (353
                                                                            )
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            8,883
                                                                            
                                                                            
                                                                            
                                                                            (792
                                                                            )
                                                                            
                                                                            
                                                                            (1,685
                                                                            )
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            6,406
                                                                            
                                                                            
                                                                            
                                                                            86
                                                                            
                                                                            
                                                                            
                                                                            (18
                                                                            )
                                                                            (e)
                                                                            
                                                                            
                                                                            6,474Net earnings (loss)
                                                                            
                                                                            
                                                                            (10,423
                                                                            )
                                                                            
                                                                            
                                                                            (28,264
                                                                            )
                                                                            
                                                                            
                                                                            (247
                                                                            )
                                                                            
                                                                            
                                                                            28,511
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            (10,423
                                                                            )
                                                                            
                                                                            
                                                                            1,474
                                                                            
                                                                            
                                                                            
                                                                            3,362
                                                                            
                                                                            
                                                                            
                                                                            (4,836
                                                                            )
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            (10,423
                                                                            )
                                                                            
                                                                            
                                                                            (133
                                                                            )
                                                                            
                                                                            
                                                                            162
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            (10,394
                                                                            )Less:  Preferred stock dividends
                                                                            
                                                                            
                                                                            (3,241
                                                                            )
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            (3,241
                                                                            )
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            (3,241
                                                                            )
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            (3,241
                                                                            )Earnings (loss) available to common
      shareholders
                                                                            
                                                                            $
                                                                            (13,664
                                                                            )
                                                                            
                                                                            $
                                                                            (28,264
                                                                            )
                                                                            
                                                                            $
                                                                            (247
                                                                            )
                                                                            
                                                                            $
                                                                            28,511
                                                                            
                                                                            
                                                                            
                                                                            $
                                                                            (13,664
                                                                            )
                                                                            
                                                                            $
                                                                            1,474
                                                                            
                                                                            
                                                                            $
                                                                            3,362
                                                                            
                                                                            
                                                                            $
                                                                            (4,836
                                                                            )
                                                                            
                                                                            
                                                                            
                                                                            $
                                                                            (13,664
                                                                            )
                                                                            
                                                                            $
                                                                            (133
                                                                            )
                                                                            
                                                                            $
                                                                            162
                                                                            
                                                                            
                                                                            
                                                                            $
                                                                            (13,635
                                                                            )(a) Balances for the quarter ended September 30,
      2007(b) Eliminate intercompany lease income and commission
      income(c ) Eliminate intercompany premiums(d) Eliminate intercompany interest on debt(e) Eliminate gain on sale of surplus property from U-Haul to
      SAC Holding II(f) Eliminate equity in earnings of subsidiaries and equity in
      earnings of SAC Holding II(g) Eliminate management fees charged to SAC Holding II and
      other intercompany operating expenses(h) Activity for the month of October 2007, prior to
      deconsolidation


25


AMERCO AND CONSOLIDATED ENTITIES




NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS –
(CONTINUED)






Consolidating statements of operations by industry for the nine
months ended December 31, 2008 are as follows:




Moving & Storage
                                                        
                                                        
                                                        AMERCO Legal GroupAMERCO
                                                        
                                                        
                                                        U-Haul
                                                        
                                                        
                                                        Real Estate
                                                        
                                                        
                                                        Eliminations
                                                        
                                                        
                                                        
                                                        Moving & Storage
                                                          Consolidated
                                                        
                                                        
                                                        Property & Casualty Insurance (a)
                                                        
                                                        
                                                        Life
                                                          Insurance (a)
                                                        
                                                        
                                                        Eliminations
                                                        
                                                        
                                                        
                                                        AMERCO
                                                          Consolidated(Unaudited)(In thousands)Revenues:Self-moving equipment rentals
                                                        
                                                        $
                                                        -
                                                        
                                                        
                                                        $
                                                        1,140,870
                                                        
                                                        
                                                        $
                                                        -
                                                        
                                                        
                                                        $
                                                        -
                                                        
                                                        
                                                        
                                                        $
                                                        1,140,870
                                                        
                                                        
                                                        $
                                                        -
                                                        
                                                        
                                                        $
                                                        -
                                                        
                                                        
                                                        $
                                                        60
                                                        
                                                        (c)
                                                        
                                                        $
                                                        1,140,930Self-storage revenues
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        81,527
                                                        
                                                        
                                                        
                                                        1,322
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        
                                                        82,849
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        
                                                        82,849Self-moving & self-storage products & service
      sales
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        159,515
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        
                                                        159,515
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        
                                                        159,515Property management fees
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        15,496
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        
                                                        15,496
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        
                                                        15,496Life insurance premiums
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        81,525
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        
                                                        81,525Property and casualty insurance premiums
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        21,612
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        (100
                                                        )
                                                        (c)
                                                        
                                                        
                                                        21,512Net investment and interest income
                                                        
                                                        
                                                        3,326
                                                        
                                                        
                                                        
                                                        19,708
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        
                                                        23,034
                                                        
                                                        
                                                        
                                                        7,280
                                                        
                                                        
                                                        
                                                        15,209
                                                        
                                                        
                                                        
                                                        (1,031
                                                        )
                                                        (b,d
                                                        )
                                                        
                                                        44,492Other revenue
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        31,886
                                                        
                                                        
                                                        
                                                        52,935
                                                        
                                                        
                                                        
                                                        (57,215
                                                        )
                                                        (b)
                                                        
                                                        
                                                        27,606
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        4,187
                                                        
                                                        
                                                        
                                                        (1,239
                                                        )
                                                        (b)
                                                        
                                                        
                                                        30,554Total revenues
                                                        
                                                        
                                                        3,326
                                                        
                                                        
                                                        
                                                        1,449,002
                                                        
                                                        
                                                        
                                                        54,257
                                                        
                                                        
                                                        
                                                        (57,215
                                                        )
                                                        
                                                        
                                                        
                                                        1,449,370
                                                        
                                                        
                                                        
                                                        28,892
                                                        
                                                        
                                                        
                                                        100,921
                                                        
                                                        
                                                        
                                                        (2,310
                                                        )
                                                        
                                                        
                                                        
                                                        1,576,873Costs and expenses:Operating expenses
                                                        
                                                        
                                                        6,551
                                                        
                                                        
                                                        
                                                        817,813
                                                        
                                                        
                                                        
                                                        7,085
                                                        
                                                        
                                                        
                                                        (57,215
                                                        )
                                                        (b)
                                                        
                                                        
                                                        774,234
                                                        
                                                        
                                                        
                                                        7,900
                                                        
                                                        
                                                        
                                                        16,879
                                                        
                                                        
                                                        
                                                        (6,212
                                                        )
                                                        (b,c,d
                                                        )
                                                        
                                                        792,801Commission expenses
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        138,711
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        
                                                        138,711
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        
                                                        138,711Cost of sales
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        90,856
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        
                                                        90,856
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        
                                                        90,856Benefits and losses
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        13,961
                                                        
                                                        
                                                        
                                                        63,504
                                                        
                                                        
                                                        
                                                        4,838
                                                        
                                                        (c)
                                                        
                                                        
                                                        82,303Amortization of deferred policy acquisition
      costs
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        22
                                                        
                                                        
                                                        
                                                        7,147
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        
                                                        7,169Lease expense
                                                        
                                                        
                                                        70
                                                        
                                                        
                                                        
                                                        112,631
                                                        
                                                        
                                                        
                                                        5
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        
                                                        112,706
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        (903
                                                        )
                                                        (b)
                                                        
                                                        
                                                        111,803Depreciation, net of (gains) losses on
      disposals
                                                        
                                                        
                                                        13
                                                        
                                                        
                                                        
                                                        191,416
                                                        
                                                        
                                                        
                                                        8,618
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        
                                                        200,047
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        
                                                        200,047Total costs and expenses
                                                        
                                                        
                                                        6,634
                                                        
                                                        
                                                        
                                                        1,351,427
                                                        
                                                        
                                                        
                                                        15,708
                                                        
                                                        
                                                        
                                                        (57,215
                                                        )
                                                        
                                                        
                                                        
                                                        1,316,554
                                                        
                                                        
                                                        
                                                        21,883
                                                        
                                                        
                                                        
                                                        87,530
                                                        
                                                        
                                                        
                                                        (2,277
                                                        )
                                                        
                                                        
                                                        
                                                        1,423,690Equity in earnings of subsidiaries
                                                        
                                                        
                                                        7,735
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        5,480
                                                        
                                                        (e)
                                                        
                                                        
                                                        13,215
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        (13,215
                                                        )
                                                        (e)
                                                        
                                                        
                                                        -Earnings from operations
                                                        
                                                        
                                                        4,427
                                                        
                                                        
                                                        
                                                        97,575
                                                        
                                                        
                                                        
                                                        38,549
                                                        
                                                        
                                                        
                                                        5,480
                                                        
                                                        
                                                        
                                                        
                                                        146,031
                                                        
                                                        
                                                        
                                                        7,009
                                                        
                                                        
                                                        
                                                        13,391
                                                        
                                                        
                                                        
                                                        (13,248
                                                        )
                                                        
                                                        
                                                        
                                                        153,183Interest income (expense)
                                                        
                                                        
                                                        69,375
                                                        
                                                        
                                                        
                                                        (112,318
                                                        )
                                                        
                                                        
                                                        (31,864
                                                        )
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        
                                                        (74,807
                                                        )
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        33
                                                        
                                                        (d)
                                                        
                                                        
                                                        (74,774
                                                        )Pretax earnings (loss)
                                                        
                                                        
                                                        73,802
                                                        
                                                        
                                                        
                                                        (14,743
                                                        )
                                                        
                                                        
                                                        6,685
                                                        
                                                        
                                                        
                                                        5,480
                                                        
                                                        
                                                        
                                                        
                                                        71,224
                                                        
                                                        
                                                        
                                                        7,009
                                                        
                                                        
                                                        
                                                        13,391
                                                        
                                                        
                                                        
                                                        (13,215
                                                        )
                                                        
                                                        
                                                        
                                                        78,409Income tax benefit (expense)
                                                        
                                                        
                                                        (25,104
                                                        )
                                                        
                                                        
                                                        6,227
                                                        
                                                        
                                                        
                                                        (3,649
                                                        )
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        
                                                        (22,526
                                                        )
                                                        
                                                        
                                                        (2,453
                                                        )
                                                        
                                                        
                                                        (4,732
                                                        )
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        
                                                        (29,711
                                                        )Net earnings (loss)
                                                        
                                                        
                                                        48,698
                                                        
                                                        
                                                        
                                                        (8,516
                                                        )
                                                        
                                                        
                                                        3,036
                                                        
                                                        
                                                        
                                                        5,480
                                                        
                                                        
                                                        
                                                        
                                                        48,698
                                                        
                                                        
                                                        
                                                        4,556
                                                        
                                                        
                                                        
                                                        8,659
                                                        
                                                        
                                                        
                                                        (13,215
                                                        )
                                                        
                                                        
                                                        
                                                        48,698Less:  Preferred stock dividends
                                                        
                                                        
                                                        (9,723
                                                        )
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        
                                                        (9,723
                                                        )
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        -
                                                        
                                                        
                                                        
                                                        
                                                        (9,723
                                                        )Earnings (loss) available to common
      shareholders
                                                        
                                                        $
                                                        38,975
                                                        
                                                        
                                                        $
                                                        (8,516
                                                        )
                                                        
                                                        $
                                                        3,036
                                                        
                                                        
                                                        $
                                                        5,480
                                                        
                                                        
                                                        
                                                        $
                                                        38,975
                                                        
                                                        
                                                        $
                                                        4,556
                                                        
                                                        
                                                        $
                                                        8,659
                                                        
                                                        
                                                        $
                                                        (13,215
                                                        )
                                                        
                                                        
                                                        $
                                                        38,975(a) Balances for the nine months ended September 30,
      2008(b) Eliminate intercompany lease income(c) Eliminate intercompany premiums(d) Eliminate intercompany interest on debt(e) Eliminate equity in earnings of
      subsidiaries







26




AMERCO AND CONSOLIDATED ENTITIES




NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS –
(CONTINUED)






Consolidating statements of operations by industry for the nine
months ended December 31, 2007 are as follows:







Moving & Storage
                                                                    
                                                                    
                                                                    AMERCO Legal Group
                                                                    
                                                                    
                                                                    AMERCO
      as ConsolidatedAMERCO
                                                                    
                                                                    
                                                                    U-Haul
                                                                    
                                                                    
                                                                    Real Estate
                                                                    
                                                                    
                                                                    Eliminations
                                                                    
                                                                    
                                                                    
                                                                    Moving & Storage
                                                                      Consolidated
                                                                    
                                                                    
                                                                    Property & Casualty Insurance (a)
                                                                    
                                                                    
                                                                    Life
                                                                      Insurance (a)
                                                                    
                                                                    
                                                                    Eliminations
                                                                    
                                                                    
                                                                    
                                                                    AMERCO
                                                                      Consolidated
                                                                    
                                                                    
                                                                    SAC Holding II (h)
                                                                    
                                                                    
                                                                    Eliminations
                                                                    
                                                                    
                                                                    
                                                                    Total Consolidated(Unaudited)(In thousands)Revenues:Self-moving equipment rentals
                                                                    
                                                                    $
                                                                    -
                                                                    
                                                                    
                                                                    $
                                                                    1,155,240
                                                                    
                                                                    
                                                                    $
                                                                    -
                                                                    
                                                                    
                                                                    $
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    $
                                                                    1,155,240
                                                                    
                                                                    
                                                                    $
                                                                    -
                                                                    
                                                                    
                                                                    $
                                                                    -
                                                                    
                                                                    
                                                                    $
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    $
                                                                    1,155,240
                                                                    
                                                                    
                                                                    $
                                                                    5,846
                                                                    
                                                                    
                                                                    $
                                                                    (5,846
                                                                    )
                                                                    (b)
                                                                    
                                                                    $
                                                                    1,155,240Self-storage revenues
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    81,924
                                                                    
                                                                    
                                                                    
                                                                    1,361
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    83,285
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    83,285
                                                                    
                                                                    
                                                                    
                                                                    11,469
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    94,754Self-moving & self-storage products & service
      sales
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    164,381
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    164,381
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    164,381
                                                                    
                                                                    
                                                                    
                                                                    10,039
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    174,420Property management fees
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    16,565
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    16,565
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    16,565
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    (1,700
                                                                    )
                                                                    (g)
                                                                    
                                                                    
                                                                    14,865Life insurance premiums
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    84,881
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    84,881
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    84,881Property and casualty insurance premiums
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    20,986
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    20,986
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    20,986Net investment and interest income
                                                                    
                                                                    
                                                                    3,353
                                                                    
                                                                    
                                                                    
                                                                    23,524
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    26,877
                                                                    
                                                                    
                                                                    
                                                                    9,315
                                                                    
                                                                    
                                                                    
                                                                    15,946
                                                                    
                                                                    
                                                                    
                                                                    (1,393
                                                                    )
                                                                    (b,d
                                                                    )
                                                                    
                                                                    50,745
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    (4,050
                                                                    )
                                                                    (d)
                                                                    
                                                                    
                                                                    46,695Other revenue
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    24,827
                                                                    
                                                                    
                                                                    
                                                                    52,390
                                                                    
                                                                    
                                                                    
                                                                    (55,957
                                                                    )
                                                                    (b)
                                                                    
                                                                    
                                                                    21,260
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    3,659
                                                                    
                                                                    
                                                                    
                                                                    (1,017
                                                                    )
                                                                    (b)
                                                                    
                                                                    
                                                                    23,902
                                                                    
                                                                    
                                                                    
                                                                    748
                                                                    
                                                                    
                                                                    
                                                                    (414
                                                                    )
                                                                    (b)
                                                                    
                                                                    
                                                                    24,236Total revenues
                                                                    
                                                                    
                                                                    3,353
                                                                    
                                                                    
                                                                    
                                                                    1,466,461
                                                                    
                                                                    
                                                                    
                                                                    53,751
                                                                    
                                                                    
                                                                    
                                                                    (55,957
                                                                    )
                                                                    
                                                                    
                                                                    
                                                                    1,467,608
                                                                    
                                                                    
                                                                    
                                                                    30,301
                                                                    
                                                                    
                                                                    
                                                                    104,486
                                                                    
                                                                    
                                                                    
                                                                    (2,410
                                                                    )
                                                                    
                                                                    
                                                                    
                                                                    1,599,985
                                                                    
                                                                    
                                                                    
                                                                    28,102
                                                                    
                                                                    
                                                                    
                                                                    (12,010
                                                                    )
                                                                    
                                                                    
                                                                    
                                                                    1,616,077Costs and expenses:Operating expenses
                                                                    
                                                                    
                                                                    7,924
                                                                    
                                                                    
                                                                    
                                                                    831,978
                                                                    
                                                                    
                                                                    
                                                                    7,126
                                                                    
                                                                    
                                                                    
                                                                    (55,957
                                                                    )
                                                                    (b)
                                                                    
                                                                    
                                                                    791,071
                                                                    
                                                                    
                                                                    
                                                                    10,711
                                                                    
                                                                    
                                                                    
                                                                    19,533
                                                                    
                                                                    
                                                                    
                                                                    (6,093
                                                                    )
                                                                    (b,c,d
                                                                    )
                                                                    
                                                                    815,222
                                                                    
                                                                    
                                                                    
                                                                    13,510
                                                                    
                                                                    
                                                                    
                                                                    (1,700
                                                                    )
                                                                    (g)
                                                                    
                                                                    
                                                                    827,032Commission expenses
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    138,194
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    138,194
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    138,194
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    (5,846
                                                                    )
                                                                    (b)
                                                                    
                                                                    
                                                                    132,348Cost of sales
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    90,076
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    90,076
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    90,076
                                                                    
                                                                    
                                                                    
                                                                    5,192
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    95,268Benefits and losses
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    11,103
                                                                    
                                                                    
                                                                    
                                                                    64,337
                                                                    
                                                                    
                                                                    
                                                                    4,719
                                                                    
                                                                    (c)
                                                                    
                                                                    
                                                                    80,159
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    80,159Amortization of deferred policy acquisition
      costs
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    183
                                                                    
                                                                    
                                                                    
                                                                    9,687
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    9,870
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    9,870Lease expense
                                                                    
                                                                    
                                                                    72
                                                                    
                                                                    
                                                                    
                                                                    102,162
                                                                    
                                                                    
                                                                    
                                                                    46
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    102,280
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    (899
                                                                    )
                                                                    (b)
                                                                    
                                                                    
                                                                    101,381
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    (414
                                                                    )
                                                                    (b)
                                                                    
                                                                    
                                                                    100,967Depreciation, net of (gains) losses on
      disposals
                                                                    
                                                                    
                                                                    509
                                                                    
                                                                    
                                                                    
                                                                    160,841
                                                                    
                                                                    
                                                                    
                                                                    (1,471
                                                                    )
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    159,879
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    159,879
                                                                    
                                                                    
                                                                    
                                                                    1,474
                                                                    
                                                                    
                                                                    
                                                                    (327
                                                                    )
                                                                    (e)
                                                                    
                                                                    
                                                                    161,026Total costs and expenses
                                                                    
                                                                    
                                                                    8,505
                                                                    
                                                                    
                                                                    
                                                                    1,323,251
                                                                    
                                                                    
                                                                    
                                                                    5,701
                                                                    
                                                                    
                                                                    
                                                                    (55,957
                                                                    )
                                                                    
                                                                    
                                                                    
                                                                    1,281,500
                                                                    
                                                                    
                                                                    
                                                                    21,997
                                                                    
                                                                    
                                                                    
                                                                    93,557
                                                                    
                                                                    
                                                                    
                                                                    (2,273
                                                                    )
                                                                    
                                                                    
                                                                    
                                                                    1,394,781
                                                                    
                                                                    
                                                                    
                                                                    20,176
                                                                    
                                                                    
                                                                    
                                                                    (8,287
                                                                    )
                                                                    
                                                                    
                                                                    
                                                                    1,406,670Equity in earnings of subsidiaries
                                                                    
                                                                    
                                                                    43,482
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    (30,906
                                                                    )
                                                                    (f)
                                                                    
                                                                    
                                                                    12,576
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    (12,576
                                                                    )
                                                                    (f)
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    -Equity in earnings of SAC Holding II
                                                                    
                                                                    
                                                                    222
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    222
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    222
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    (222
                                                                    )
                                                                    (f)
                                                                    
                                                                    
                                                                    -Total - equity in earnings of subsidiaries and SAC Holding
      II
                                                                    
                                                                    
                                                                    43,704
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    (30,906
                                                                    )
                                                                    
                                                                    
                                                                    
                                                                    12,798
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    (12,576
                                                                    )
                                                                    
                                                                    
                                                                    
                                                                    222
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    (222
                                                                    )
                                                                    
                                                                    
                                                                    
                                                                    -Earnings from operations
                                                                    
                                                                    
                                                                    38,552
                                                                    
                                                                    
                                                                    
                                                                    143,210
                                                                    
                                                                    
                                                                    
                                                                    48,050
                                                                    
                                                                    
                                                                    
                                                                    (30,906
                                                                    )
                                                                    
                                                                    
                                                                    
                                                                    198,906
                                                                    
                                                                    
                                                                    
                                                                    8,304
                                                                    
                                                                    
                                                                    
                                                                    10,929
                                                                    
                                                                    
                                                                    
                                                                    (12,713
                                                                    )
                                                                    
                                                                    
                                                                    
                                                                    205,426
                                                                    
                                                                    
                                                                    
                                                                    7,926
                                                                    
                                                                    
                                                                    
                                                                    (3,945
                                                                    )
                                                                    
                                                                    
                                                                    
                                                                    209,407Interest income (expense)
                                                                    
                                                                    
                                                                    66,321
                                                                    
                                                                    
                                                                    
                                                                    (99,870
                                                                    )
                                                                    
                                                                    
                                                                    (39,457
                                                                    )
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    (73,006
                                                                    )
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    137
                                                                    
                                                                    (d)
                                                                    
                                                                    
                                                                    (72,869
                                                                    )
                                                                    
                                                                    
                                                                    (7,537
                                                                    )
                                                                    
                                                                    
                                                                    4,050
                                                                    
                                                                    (d)
                                                                    
                                                                    
                                                                    (76,356
                                                                    )Pretax earnings
                                                                    
                                                                    
                                                                    104,873
                                                                    
                                                                    
                                                                    
                                                                    43,340
                                                                    
                                                                    
                                                                    
                                                                    8,593
                                                                    
                                                                    
                                                                    
                                                                    (30,906
                                                                    )
                                                                    
                                                                    
                                                                    
                                                                    125,900
                                                                    
                                                                    
                                                                    
                                                                    8,304
                                                                    
                                                                    
                                                                    
                                                                    10,929
                                                                    
                                                                    
                                                                    
                                                                    (12,576
                                                                    )
                                                                    
                                                                    
                                                                    
                                                                    132,557
                                                                    
                                                                    
                                                                    
                                                                    389
                                                                    
                                                                    
                                                                    
                                                                    105
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    133,051Income tax expense
                                                                    
                                                                    
                                                                    (23,244
                                                                    )
                                                                    
                                                                    
                                                                    (16,485
                                                                    )
                                                                    
                                                                    
                                                                    (4,542
                                                                    )
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    (44,271
                                                                    )
                                                                    
                                                                    
                                                                    (2,906
                                                                    )
                                                                    
                                                                    
                                                                    (3,751
                                                                    )
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    (50,928
                                                                    )
                                                                    
                                                                    
                                                                    (167
                                                                    )
                                                                    
                                                                    
                                                                    (124
                                                                    )
                                                                    (e)
                                                                    
                                                                    
                                                                    (51,219
                                                                    )Net earnings
                                                                    
                                                                    
                                                                    81,629
                                                                    
                                                                    
                                                                    
                                                                    26,855
                                                                    
                                                                    
                                                                    
                                                                    4,051
                                                                    
                                                                    
                                                                    
                                                                    (30,906
                                                                    )
                                                                    
                                                                    
                                                                    
                                                                    81,629
                                                                    
                                                                    
                                                                    
                                                                    5,398
                                                                    
                                                                    
                                                                    
                                                                    7,178
                                                                    
                                                                    
                                                                    
                                                                    (12,576
                                                                    )
                                                                    
                                                                    
                                                                    
                                                                    81,629
                                                                    
                                                                    
                                                                    
                                                                    222
                                                                    
                                                                    
                                                                    
                                                                    (19
                                                                    )
                                                                    
                                                                    
                                                                    
                                                                    81,832Less:  Preferred stock dividends
                                                                    
                                                                    
                                                                    (9,723
                                                                    )
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    (9,723
                                                                    )
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    (9,723
                                                                    )
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    -
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    (9,723
                                                                    )Earnings available to common shareholders
                                                                    
                                                                    $
                                                                    71,906
                                                                    
                                                                    
                                                                    $
                                                                    26,855
                                                                    
                                                                    
                                                                    $
                                                                    4,051
                                                                    
                                                                    
                                                                    $
                                                                    (30,906
                                                                    )
                                                                    
                                                                    
                                                                    $
                                                                    71,906
                                                                    
                                                                    
                                                                    $
                                                                    5,398
                                                                    
                                                                    
                                                                    $
                                                                    7,178
                                                                    
                                                                    
                                                                    $
                                                                    (12,576
                                                                    )
                                                                    
                                                                    
                                                                    $
                                                                    71,906
                                                                    
                                                                    
                                                                    $
                                                                    222
                                                                    
                                                                    
                                                                    $
                                                                    (19
                                                                    )
                                                                    
                                                                    
                                                                    $
                                                                    72,109(a) Balances for the nine months ended September 30,
      2007(b) Eliminate intercompany lease income and commission
      income(c ) Eliminate intercompany premiums(d) Eliminate intercompany interest on debt(e) Eliminate gain on sale of surplus property from U-Haul to
      SAC Holding II(f) Eliminate equity in earnings of subsidiaries and equity in
      earnings of SAC Holding II(g) Eliminate management fees charged to SAC Holding II and
      other intercompany operating expenses(h) Activity for the seven months ended October 2007, prior to
      deconsolidation


27


AMERCO AND CONSOLIDATED ENTITIES




NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS –
(CONTINUED)






Consolidating cash flow statements by industry segment for the nine
months ended December 31, 2008 are as follows:




Moving & Storage
                            
                            
                            AMERCO Legal GroupAMERCO
                            
                            
                            U-Haul
                            
                            
                            Real Estate
                            
                            
                            Elimination
                            
                            
                            Moving & Storage
                              Consolidated
                            
                            
                            Property &
                              Casualty
                              Insurance (a)
                            
                            
                            Life
                              Insurance (a)
                            
                            
                            Elimination
                            
                            
                            AMERCO
                              Consolidated(Unaudited)Cash flows from operating activities:
                            
                            (In thousands)Net earnings
                            
                            $
                            48,698
                            
                            
                            $
                            (8,516
                            )
                            
                            $
                            3,036
                            
                            
                            $
                            5,480
                            
                            
                            $
                            48,698
                            
                            
                            $
                            4,556
                            
                            
                            $
                            8,659
                            
                            
                            $
                            (13,215
                            )
                            
                            $
                            48,698Earnings from consolidated entities
                            
                            
                            (7,735
                            )
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            (5,480
                            )
                            
                            
                            (13,215
                            )
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            13,215
                            
                            
                            
                            -Adjustments to reconcile net earnings to cash provided by
      operations:Depreciation
                            
                            
                            13
                            
                            
                            
                            175,857
                            
                            
                            
                            9,157
                            
                            
                            
                            -
                            
                            
                            
                            185,027
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            185,027Amortization of deferred policy acquisition
      costs
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            22
                            
                            
                            
                            7,147
                            
                            
                            
                            -
                            
                            
                            
                            7,169Change in allowance for losses on trade
      receivables
                            
                            
                            -
                            
                            
                            
                            (207
                            )
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            (207
                            )
                            
                            
                            -
                            
                            
                            
                            69
                            
                            
                            
                            -
                            
                            
                            
                            (138
                            )Change in allowance for losses on mortgage
      notes
                            
                            
                            -
                            
                            
                            
                            (308
                            )
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            (308
                            )
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            (308
                            )Change in allowance for inventory reserve
                            
                            
                            -
                            
                            
                            
                            1,488
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            1,488
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            1,488Net (gain) loss on sale of real and personal
      property
                            
                            
                            -
                            
                            
                            
                            15,559
                            
                            
                            
                            (539
                            )
                            
                            
                            -
                            
                            
                            
                            15,020
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            15,020Net (gain) loss on sale of investments
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            (99
                            )
                            
                            
                            252
                            
                            
                            
                            -
                            
                            
                            
                            153Deferred income taxes
                            
                            
                            19,043
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            19,043
                            
                            
                            
                            1,755
                            
                            
                            
                            1,310
                            
                            
                            
                            -
                            
                            
                            
                            22,108Net change in other operating assets and
      liabilities:Reinsurance recoverables and trade
    receivables
                            
                            
                            -
                            
                            
                            
                            4,432
                            
                            
                            
                            (1
                            )
                            
                            
                            -
                            
                            
                            
                            4,431
                            
                            
                            
                            (11,221
                            )
                            
                            
                            (157
                            )
                            
                            
                            -
                            
                            
                            
                            (6,947
                            )Inventories
                            
                            
                            -
                            
                            
                            
                            (11,573
                            )
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            (11,573
                            )
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            (11,573
                            )Prepaid expenses
                            
                            
                            4,488
                            
                            
                            
                            2,442
                            
                            
                            
                            (204
                            )
                            
                            
                            -
                            
                            
                            
                            6,726
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            6,726Capitalization of deferred policy acquisition
      costs
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            8
                            
                            
                            
                            (7,517
                            )
                            
                            
                            -
                            
                            
                            
                            (7,509
                            )Other assets
                            
                            
                            -
                            
                            
                            
                            (6,212
                            )
                            
                            
                            1,260
                            
                            
                            
                            -
                            
                            
                            
                            (4,952
                            )
                            
                            
                            1,112
                            
                            
                            
                            156
                            
                            
                            
                            -
                            
                            
                            
                            (3,684
                            )Related party assets
                            
                            
                            3,675
                            
                            
                            
                            (4,501
                            )
                            
                            
                            (68
                            )
                            
                            
                            -
                            
                            
                            
                            (894
                            )
                            
                            
                            4,680
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            3,786Accounts payable and accrued expenses
                            
                            
                            1,643
                            
                            
                            
                            (9,224
                            )
                            
                            
                            864
                            
                            
                            
                            -
                            
                            
                            
                            (6,717
                            )
                            
                            
                            -
                            
                            
                            
                            (207
                            )
                            
                            
                            -
                            
                            
                            
                            (6,924
                            )Policy benefits and losses, claims and loss expenses
      payable
                            
                            
                            -
                            
                            
                            
                            1,718
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            1,718
                            
                            
                            
                            (3,344
                            )
                            
                            
                            (2,144
                            )
                            
                            
                            -
                            
                            
                            
                            (3,770
                            )Other policyholders' funds and liabilities
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            (816
                            )
                            
                            
                            (1,783
                            )
                            
                            
                            -
                            
                            
                            
                            (2,599
                            )Deferred income
                            
                            
                            -
                            
                            
                            
                            10,675
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            10,675
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            10,675Related party liabilities
                            
                            
                            -
                            
                            
                            
                            (1,244
                            )
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            (1,244
                            )
                            
                            
                            (60
                            )
                            
                            
                            (3,189
                            )
                            
                            
                            -
                            
                            
                            
                            (4,493
                            )Net cash provided (used) by operating
      activities
                            
                            
                            69,825
                            
                            
                            
                            170,386
                            
                            
                            
                            13,505
                            
                            
                            
                            -
                            
                            
                            
                            253,716
                            
                            
                            
                            (3,407
                            )
                            
                            
                            2,596
                            
                            
                            
                            -
                            
                            
                            
                            252,905Cash flows from investing activities:Purchases of:Property, plant and equipment
                            
                            
                            (1
                            )
                            
                            
                            (296,094
                            )
                            
                            
                            (20,875
                            )
                            
                            
                            -
                            
                            
                            
                            (316,970
                            )
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            (316,970
                            )Short term investments
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            (86,175
                            )
                            
                            
                            (167,611
                            )
                            
                            
                            -
                            
                            
                            
                            (253,786
                            )Fixed maturities investments
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            (11,206
                            )
                            
                            
                            (115,169
                            )
                            
                            
                            -
                            
                            
                            
                            (126,375
                            )Preferred stock
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            (2,000
                            )
                            
                            
                            -
                            
                            
                            
                            (2,000
                            )Real estate
                            
                            
                            -
                            
                            
                            
                            (8
                            )
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            (8
                            )
                            
                            
                            (404
                            )
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            (412
                            )Mortgage loans
                            
                            
                            -
                            
                            
                            
                            (1,358
                            )
                            
                            
                            (195
                            )
                            
                            
                            -
                            
                            
                            
                            (1,553
                            )
                            
                            
                            -
                            
                            
                            
                            (10,593
                            )
                            
                            
                            -
                            
                            
                            
                            (12,146
                            )Proceeds from sales of:Property, plant and equipment
                            
                            
                            -
                            
                            
                            
                            105,009
                            
                            
                            
                            1,426
                            
                            
                            
                            -
                            
                            
                            
                            106,435
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            106,435Short term investments
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            73,380
                            
                            
                            
                            171,019
                            
                            
                            
                            -
                            
                            
                            
                            244,399Fixed maturities investments
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            56,179
                            
                            
                            
                            139,272
                            
                            
                            
                            -
                            
                            
                            
                            195,451Equity securities
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            28
                            
                            
                            
                            -
                            
                            
                            
                            28Real estate
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            704
                            
                            
                            
                            -
                            
                            
                            
                            704
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            704Mortgage loans
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            19
                            
                            
                            
                            5,146
                            
                            
                            
                            -
                            
                            
                            
                            5,165Payments from notes and mortgage
receivables
                            
                            
                            -
                            
                            
                            
                            816
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            816
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            816Net cash provided (used) by investing
      activities
                            
                            
                            (1
                            )
                            
                            
                            (191,635
                            )
                            
                            
                            (18,940
                            )
                            
                            
                            -
                            
                            
                            
                            (210,576
                            )
                            
                            
                            31,793
                            
                            
                            
                            20,092
                            
                            
                            
                            -
                            
                            
                            
                            (158,691
                            )(page 1 of 2)(a) Balance for the period ended September 30,
      2008





28


AMERCO AND CONSOLIDATED ENTITIES




NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS –
(CONTINUED)






Continuation of consolidating cash flow statements by industry
segment for the nine months ended December 31, 2008 are as
follows:




Moving & Storage
                            
                            
                            AMERCO Legal GroupAMERCO
                            
                            
                            U-Haul
                            
                            
                            Real Estate
                            
                            
                            Elimination
                            
                            
                            Moving & Storage
                              Consolidated
                            
                            
                            Property &
                              Casualty
                              Insurance (a)
                            
                            
                            Life
                              Insurance (a)
                            
                            
                            Elimination
                            
                            
                            AMERCO
                              Consolidated(Unaudited)Cash flows from financing activities:
                            
                            (In thousands)Borrowings from credit facilities
                            
                            
                            -
                            
                            
                            
                            83,098
                            
                            
                            
                            82,232
                            
                            
                            
                            -
                            
                            
                            
                            165,330
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            165,330Principal repayments on credit facilities
                            
                            
                            -
                            
                            
                            
                            (92,248
                            )
                            
                            
                            (24,959
                            )
                            
                            
                            -
                            
                            
                            
                            (117,207
                            )
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            (117,207
                            )Debt issuance costs
                            
                            
                            -
                            
                            
                            
                            (360
                            )
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            (360
                            )
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            (360
                            )Capital lease payments
                            
                            
                            -
                            
                            
                            
                            (561
                            )
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            (561
                            )
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            (561
                            )Leveraged Employee Stock Ownership Plan - repayments from
      loan
                            
                            
                            -
                            
                            
                            
                            951
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            951
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            951Repurchase of stock
                            
                            
                            (963
                            )
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            (963
                            )
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            (963
                            )Proceeds from (repayment of) intercompany
    loans
                            
                            
                            (61,148
                            )
                            
                            
                            112,986
                            
                            
                            
                            (51,838
                            )
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -Preferred stock dividends paid
                            
                            
                            (9,723
                            )
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            (9,723
                            )
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            (9,723
                            )Net dividend from related party
                            
                            
                            2,010
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            2,010
                            
                            
                            
                            (2,010
                            )
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -Investment contract deposits
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            14,460
                            
                            
                            
                            -
                            
                            
                            
                            14,460Investment contract withdrawals
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            (39,867
                            )
                            
                            
                            -
                            
                            
                            
                            (39,867
                            )Net cash provided (used) by financing
      activities
                            
                            
                            (69,824
                            )
                            
                            
                            103,866
                            
                            
                            
                            5,435
                            
                            
                            
                            -
                            
                            
                            
                            39,477
                            
                            
                            
                            (2,010
                            )
                            
                            
                            (25,407
                            )
                            
                            
                            -
                            
                            
                            
                            12,060Effects of exchange rate on cash
                            
                            
                            -
                            
                            
                            
                            (1,379
                            )
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            (1,379
                            )
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            (1,379
                            )Increase (decrease) in cash and cash
      equivalents
                            
                            
                            -
                            
                            
                            
                            81,238
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            81,238
                            
                            
                            
                            26,376
                            
                            
                            
                            (2,719
                            )
                            
                            
                            -
                            
                            
                            
                            104,895Cash and cash equivalents at beginning of
      period
                            
                            
                            30
                            
                            
                            
                            191,220
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            191,250
                            
                            
                            
                            6,848
                            
                            
                            
                            8,524
                            
                            
                            
                            -
                            
                            
                            
                            206,622Cash and cash equivalents at end of period
                            
                            $
                            30
                            
                            
                            $
                            272,458
                            
                            
                            $
                            -
                            
                            
                            $
                            -
                            
                            
                            $
                            272,488
                            
                            
                            $
                            33,224
                            
                            
                            $
                            5,805
                            
                            
                            $
                            -
                            
                            
                            $
                            311,517(page 2 of 2)(a) Balance for the period ended September 30,
      2008





29


AMERCO AND CONSOLIDATED ENTITIES




NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS –
(CONTINUED)






Consolidating cash flow statements by industry segment for the nine
months ended December 31, 2007 are as follows:




Moving & Storage
                                                      
                                                      
                                                      AMERCO Legal Group
                                                      
                                                      
                                                      AMERCO
      as ConsolidatedAMERCO
                                                      
                                                      
                                                      U-Haul
                                                      
                                                      
                                                      Real Estate
                                                      
                                                      
                                                      Elimination
                                                      
                                                      
                                                      Moving & Storage
                                                        Consolidated
                                                      
                                                      
                                                      Property &
                                                        Casualty
                                                        Insurance (a)
                                                      
                                                      
                                                      Life
                                                        Insurance (a)
                                                      
                                                      
                                                      Elimination
                                                      
                                                      
                                                      AMERCO
                                                        Consolidated
                                                      
                                                      
                                                      SAC Holding II (b)
                                                      
                                                      
                                                      Elimination
                                                      
                                                      
                                                      Total
                                                        Consolidated(Unaudited)Cash flows from operating activities:
                                                      
                                                      (In thousands)Net earnings
                                                      
                                                      $
                                                      81,629
                                                      
                                                      
                                                      $
                                                      26,855
                                                      
                                                      
                                                      $
                                                      4,051
                                                      
                                                      
                                                      $
                                                      (30,906
                                                      )
                                                      
                                                      $
                                                      81,629
                                                      
                                                      
                                                      $
                                                      5,398
                                                      
                                                      
                                                      $
                                                      7,178
                                                      
                                                      
                                                      $
                                                      (12,576
                                                      )
                                                      
                                                      $
                                                      81,629
                                                      
                                                      
                                                      $
                                                      222
                                                      
                                                      
                                                      $
                                                      (19
                                                      )
                                                      
                                                      $
                                                      81,832Earnings from consolidated entities
                                                      
                                                      
                                                      (43,704
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      30,906
                                                      
                                                      
                                                      
                                                      (12,798
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      12,576
                                                      
                                                      
                                                      
                                                      (222
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      222
                                                      
                                                      
                                                      
                                                      -Adjustments to reconcile net earnings to cash provided by
      operations:Depreciation
                                                      
                                                      
                                                      509
                                                      
                                                      
                                                      
                                                      159,835
                                                      
                                                      
                                                      
                                                      8,533
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      168,877
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      168,877
                                                      
                                                      
                                                      
                                                      1,634
                                                      
                                                      
                                                      
                                                      (327
                                                      )
                                                      
                                                      
                                                      170,184Amortization of deferred policy acquisition
      costs
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      183
                                                      
                                                      
                                                      
                                                      9,687
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      9,870
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      9,870Change in allowance for losses on trade
      receivables
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      25
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      25
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      50
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      75
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      75Change in allowance for losses on mortgage
      notes
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (29
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (29
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (29
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (29
                                                      )Change in allowance for inventory reserve
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      2,371
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      2,371
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      2,371
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      2,371Net (gain) loss on sale of real and personal
      property
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      1,006
                                                      
                                                      
                                                      
                                                      (10,004
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (8,998
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (8,998
                                                      )
                                                      
                                                      
                                                      (160
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (9,158
                                                      )Net loss on sale of investments
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      172
                                                      
                                                      
                                                      
                                                      203
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      375
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      375Deferred income taxes
                                                      
                                                      
                                                      15,898
                                                      
                                                      
                                                      
                                                      76
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      15,974
                                                      
                                                      
                                                      
                                                      3,203
                                                      
                                                      
                                                      
                                                      (2,115
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      17,062
                                                      
                                                      
                                                      
                                                      146
                                                      
                                                      
                                                      
                                                      124
                                                      
                                                      
                                                      
                                                      17,332Net change in other operating assets and
      liabilities:Reinsurance recoverables and trade
    receivables
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      699
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      699
                                                      
                                                      
                                                      
                                                      3,901
                                                      
                                                      
                                                      
                                                      216
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      4,816
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      4,816Inventories
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      1,582
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      1,582
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      1,582
                                                      
                                                      
                                                      
                                                      4
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      1,586Prepaid expenses
                                                      
                                                      
                                                      11,173
                                                      
                                                      
                                                      
                                                      1,080
                                                      
                                                      
                                                      
                                                      (104
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      12,149
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      12,149
                                                      
                                                      
                                                      
                                                      47
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      12,196Capitalization of deferred policy acquisition
      costs
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (32
                                                      )
                                                      
                                                      
                                                      (3,862
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (3,894
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (3,894
                                                      )Other assets
                                                      
                                                      
                                                      4
                                                      
                                                      
                                                      
                                                      1,190
                                                      
                                                      
                                                      
                                                      1,077
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      2,271
                                                      
                                                      
                                                      
                                                      (344
                                                      )
                                                      
                                                      
                                                      121
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      2,048
                                                      
                                                      
                                                      
                                                      (1,008
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      1,040Related party assets
                                                      
                                                      
                                                      5,922
                                                      
                                                      
                                                      
                                                      8,579
                                                      
                                                      
                                                      
                                                      12,453
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      26,954
                                                      
                                                      
                                                      
                                                      3,004
                                                      
                                                      
                                                      
                                                      5,040
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      34,998
                                                      
                                                      
                                                      
                                                      5
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      35,003Accounts payable and accrued expenses
                                                      
                                                      
                                                      2,424
                                                      
                                                      
                                                      
                                                      (112
                                                      )
                                                      
                                                      
                                                      (3,684
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (1,372
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (1,514
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (2,886
                                                      )
                                                      
                                                      
                                                      680
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (2,206
                                                      )Policy benefits and losses, claims and loss expenses
      payable
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      25,884
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      25,884
                                                      
                                                      
                                                      
                                                      (20,508
                                                      )
                                                      
                                                      
                                                      (8,414
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (3,038
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (3,038
                                                      )Other policyholders' funds and liabilities
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      524
                                                      
                                                      
                                                      
                                                      (612
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (88
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (88
                                                      )Deferred income
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (6,198
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (6,198
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (6,198
                                                      )
                                                      
                                                      
                                                      (48
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (6,246
                                                      )Related party liabilities
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (3,582
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (3,582
                                                      )
                                                      
                                                      
                                                      (428
                                                      )
                                                      
                                                      
                                                      (5,408
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (9,418
                                                      )
                                                      
                                                      
                                                      287
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (9,131
                                                      )Net cash provided (used) by operating
      activities
                                                      
                                                      
                                                      73,855
                                                      
                                                      
                                                      
                                                      219,261
                                                      
                                                      
                                                      
                                                      12,322
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      305,438
                                                      
                                                      
                                                      
                                                      (4,927
                                                      )
                                                      
                                                      
                                                      570
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      301,081
                                                      
                                                      
                                                      
                                                      1,809
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      302,890Cash flows from investing activities:Purchases of:Property, plant and equipment
                                                      
                                                      
                                                      (2,466
                                                      )
                                                      
                                                      
                                                      (413,727
                                                      )
                                                      
                                                      
                                                      (22,754
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (438,947
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (438,947
                                                      )
                                                      
                                                      
                                                      (1,381
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (440,328
                                                      )Short term investments
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (48,130
                                                      )
                                                      
                                                      
                                                      (123,788
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (171,918
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (171,918
                                                      )Fixed maturities investments
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (14,876
                                                      )
                                                      
                                                      
                                                      (41,629
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (56,505
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (56,505
                                                      )Equity securities
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (27
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (27
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (27
                                                      )Real estate
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (3,196
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (3,196
                                                      )
                                                      
                                                      
                                                      (208
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (3,404
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (3,404
                                                      )Mortgage loans
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (346
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (346
                                                      )
                                                      
                                                      
                                                      (1,650
                                                      )
                                                      
                                                      
                                                      (10,526
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (12,522
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (12,522
                                                      )Proceeds from sales of:Property, plant and equipment
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      122,433
                                                      
                                                      
                                                      
                                                      11,275
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      133,708
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      133,708
                                                      
                                                      
                                                      
                                                      391
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      134,099Short term investments
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      50,071
                                                      
                                                      
                                                      
                                                      142,903
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      192,974
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      192,974Fixed maturities investments
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      16,149
                                                      
                                                      
                                                      
                                                      61,624
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      77,773
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      77,773Equity securities
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      46
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      46
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      46Preferred stock
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      5,000
                                                      
                                                      
                                                      
                                                      625
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      5,625
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      5,625Real estate
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      153
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      153
                                                      
                                                      
                                                      
                                                      631
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      784
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      784Mortgage loans
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      6,394
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      6,394
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      6,394Payments from notes and mortgage
receivables
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      89
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      89
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      89
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      89Net cash provided (used) by investing
      activities
                                                      
                                                      
                                                      (2,466
                                                      )
                                                      
                                                      
                                                      (291,052
                                                      )
                                                      
                                                      
                                                      (15,021
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (308,539
                                                      )
                                                      
                                                      
                                                      6,987
                                                      
                                                      
                                                      
                                                      35,622
                                                      
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (265,930
                                                      )
                                                      
                                                      
                                                      (990
                                                      )
                                                      
                                                      
                                                      -
                                                      
                                                      
                                                      
                                                      (266,920
                                                      )(page 1 of 2)(a) Balance for the period ended September 30,
      2007(b) Activity for the seven months ending October 31, 2007,
      prior to deconsolidation


30


AMERCO AND CONSOLIDATED ENTITIES




NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS –
(CONTINUED)






Continuation of consolidating cash flow statements by industry
segment for the nine months ended December 31, 2007 are as
follows:




Moving & Storage
                                                                                    
                                                                                    
                                                                                    AMERCO Legal Group
                                                                                    
                                                                                    AMERCO
      as ConsolidatedAMERCO
                                                                                    
                                                                                    
                                                                                    U-Haul
                                                                                    
                                                                                    
                                                                                    Real Estate
                                                                                    
                                                                                    
                                                                                    Elimination
                                                                                    
                                                                                    
                                                                                    Moving & Storage
                                                                                      Consolidated
                                                                                    
                                                                                    
                                                                                    Property &
                                                                                      Casualty
                                                                                      Insurance (a)
                                                                                    
                                                                                    
                                                                                    Life
                                                                                      Insurance (a)
                                                                                    
                                                                                    
                                                                                    Elimination
                                                                                    
                                                                                    
                                                                                    AMERCO
                                                                                      Consolidated
                                                                                    
                                                                                    SAC Holding II (b)
                                                                                    
                                                                                    
                                                                                    Elimination
                                                                                    
                                                                                    
                                                                                    Total
                                                                                      Consolidated(Unaudited)Cash flows from financing activities:
                                                                                    
                                                                                    (In thousands)Borrowings from credit facilities
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    409,800
                                                                                    
                                                                                    
                                                                                    
                                                                                    77,826
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    487,626
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    487,626
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    487,626Principal repayments on credit facilities
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    (168,653
                                                                                    )
                                                                                    
                                                                                    
                                                                                    (74,636
                                                                                    )
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    (243,289
                                                                                    )
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    (243,289
                                                                                    )
                                                                                    
                                                                                    (819
                                                                                    )
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    (244,108
                                                                                    )Debt issuance costs
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    (11,706
                                                                                    )
                                                                                    
                                                                                    
                                                                                    (170
                                                                                    )
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    (11,876
                                                                                    )
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    (11,876
                                                                                    )
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    (11,876
                                                                                    )Leveraged Employee Stock Ownership Plan - repayments from
      loan
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    923
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    923
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    923
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    923Treasury stock repurchases
                                                                                    
                                                                                    
                                                                                    (33,966
                                                                                    )
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    (33,966
                                                                                    )
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    (33,966
                                                                                    )
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    (33,966
                                                                                    )Securitization deposits
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    (60,764
                                                                                    )
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    (60,764
                                                                                    )
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    (60,764
                                                                                    )
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    (60,764
                                                                                    )Proceeds from (repayment of) intercompany
    loans
                                                                                    
                                                                                    
                                                                                    (27,679
                                                                                    )
                                                                                    
                                                                                    
                                                                                    28,783
                                                                                    
                                                                                    
                                                                                    
                                                                                    (1,104
                                                                                    )
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -Preferred stock dividends paid
                                                                                    
                                                                                    
                                                                                    (9,723
                                                                                    )
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    (9,723
                                                                                    )
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    (9,723
                                                                                    )
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    (9,723
                                                                                    )Investment contract deposits
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    13,864
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    13,864
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    13,864Investment contract withdrawals
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    (49,806
                                                                                    )
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    (49,806
                                                                                    )
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    (49,806
                                                                                    )Net cash provided (used) by financing
      activities
                                                                                    
                                                                                    
                                                                                    (71,368
                                                                                    )
                                                                                    
                                                                                    
                                                                                    198,383
                                                                                    
                                                                                    
                                                                                    
                                                                                    1,916
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    128,931
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    (35,942
                                                                                    )
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    92,989
                                                                                    
                                                                                    
                                                                                    (819
                                                                                    )
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    92,170Effects of exchange rate on cash
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    311
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    311
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    311
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    311Increase (decrease) in cash and cash
      equivalents
                                                                                    
                                                                                    
                                                                                    21
                                                                                    
                                                                                    
                                                                                    
                                                                                    126,903
                                                                                    
                                                                                    
                                                                                    
                                                                                    (783
                                                                                    )
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    126,141
                                                                                    
                                                                                    
                                                                                    
                                                                                    2,060
                                                                                    
                                                                                    
                                                                                    
                                                                                    250
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    128,451
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    128,451Cash and cash equivalents at beginning of
      period
                                                                                    
                                                                                    
                                                                                    9
                                                                                    
                                                                                    
                                                                                    
                                                                                    63,490
                                                                                    
                                                                                    
                                                                                    
                                                                                    807
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    64,306
                                                                                    
                                                                                    
                                                                                    
                                                                                    4,228
                                                                                    
                                                                                    
                                                                                    
                                                                                    6,738
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    75,272
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    -
                                                                                    
                                                                                    
                                                                                    
                                                                                    75,272Cash and cash equivalents at end of period
                                                                                    
                                                                                    $
                                                                                    30
                                                                                    
                                                                                    
                                                                                    $
                                                                                    190,393
                                                                                    
                                                                                    
                                                                                    $
                                                                                    24
                                                                                    
                                                                                    
                                                                                    $
                                                                                    -
                                                                                    
                                                                                    
                                                                                    $
                                                                                    190,447
                                                                                    
                                                                                    
                                                                                    $
                                                                                    6,288
                                                                                    
                                                                                    
                                                                                    $
                                                                                    6,988
                                                                                    
                                                                                    
                                                                                    $
                                                                                    -
                                                                                    
                                                                                    
                                                                                    $
                                                                                    203,723
                                                                                    
                                                                                    $
                                                                                    -
                                                                                    
                                                                                    
                                                                                    $
                                                                                    -
                                                                                    
                                                                                    
                                                                                    $
                                                                                    203,723(page 2 of 2)(a) Balance for the period ended September 30,
      2007(b) Activity for the seven months ending October 31, 2007,
      prior to deconsolidation


31


AMERCO AND CONSOLIDATED ENTITIES






NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -
(CONTINUED)









10. Industry Segment and Geographic Area Data




United States
                
                
                Canada
                
                
                Consolidated(Unaudited)(All amounts are in thousands of U.S. $'s)Quarter ended December 31, 2008Total revenues
                
                $
                420,215
                
                
                $
                22,369
                
                
                $
                442,584Depreciation and amortization, net of (gains) losses on
      disposals
                
                
                69,965
                
                
                
                1,453
                
                
                
                71,418Interest expense
                
                
                25,873
                
                
                
                127
                
                
                
                26,000Pretax earnings (loss)
                
                
                (40,206
                )
                
                
                205
                
                
                
                (40,001
                )Income tax expense (benefit)
                
                
                (15,118
                )
                
                
                69
                
                
                
                (15,049
                )Identifiable assets
                
                
                3,804,372
                
                
                
                91,988
                
                
                
                3,896,360Quarter ended December 31, 2007Total revenues
                
                $
                439,459
                
                
                $
                26,001
                
                
                $
                465,460Depreciation and amortization, net of (gains) losses on
      disposals
                
                
                61,207
                
                
                
                2,495
                
                
                
                63,702Interest expense
                
                
                24,976
                
                
                
                215
                
                
                
                25,191Pretax loss
                
                
                (16,633
                )
                
                
                (235
                )
                
                
                (16,868
                )Income tax benefit
                
                
                (6,395
                )
                
                
                (79
                )
                
                
                (6,474
                )Identifiable assets
                
                
                3,668,026
                
                
                
                121,317
                
                
                
                3,789,343







United States
                
                
                Canada
                
                
                Consolidated(Unaudited)(All amounts are in thousands of U.S. $'s)Nine months ended December 31, 2008Total revenues
                
                $
                1,483,062
                
                
                $
                93,811
                
                
                $
                1,576,873Depreciation and amortization, net of (gains) losses on
      disposals
                
                
                200,957
                
                
                
                6,259
                
                
                
                207,216Interest expense
                
                
                74,301
                
                
                
                473
                
                
                
                74,774Pretax earnings
                
                
                71,983
                
                
                
                6,426
                
                
                
                78,409Income tax expense
                
                
                27,526
                
                
                
                2,185
                
                
                
                29,711Identifiable assets
                
                
                3,804,372
                
                
                
                91,988
                
                
                
                3,896,360Nine months ended December 31, 2007Total revenues
                
                $
                1,526,439
                
                
                $
                89,638
                
                
                $
                1,616,077Depreciation and amortization, net of (gains) losses on
      disposals
                
                
                163,812
                
                
                
                7,084
                
                
                
                170,896Interest expense
                
                
                75,787
                
                
                
                569
                
                
                
                76,356Pretax earnings
                
                
                129,553
                
                
                
                3,498
                
                
                
                133,051Income tax expense
                
                
                50,028
                
                
                
                1,191
                
                
                
                51,219Identifiable assets
                
                
                3,668,026
                
                
                
                121,317
                
                
                
                3,789,343












32


AMERCO AND CONSOLIDATED ENTITIES






NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -
(CONTINUED)




11. Employee Benefit Plans




The components of net periodic benefit costs with respect to post
retirement benefits were as follows:




Quarter Ended December 31,2008
                  
                  
                  2007(Unaudited)(In thousands)Service cost for benefits earned during the
      period
                  
                  $
                  102
                  
                  
                  $
                  168Interest cost on accumulated postretirement
      benefit
                  
                  
                  135
                  
                  
                  
                  152Amortization of gain
                  
                  
                  (23
                  )
                  
                  
                  -Net periodic postretirement benefit cost
                  
                  $
                  214
                  
                  
                  $
                  320







Nine Months Ended December 31,2008
                  
                  
                  2007(Unaudited)(In thousands)Service cost for benefits earned during the
      period
                  
                  $
                  308
                  
                  
                  $
                  504Interest cost on accumulated postretirement
      benefit
                  
                  
                  403
                  
                  
                  
                  456Amortization of gain
                  
                  
                  (70
                  )
                  
                  
                  -Net periodic postretirement benefit cost
                  
                  $
                  641
                  
                  
                  $
                  960









12. Fair Value Measurements




Effective April 1, 2008, assets and liabilities recorded at fair
value on the condensed consolidated balance sheets were measured and classified
based upon a three tiered approach to valuation. Statement of Financial
Accounting Standard (“SFAS”) 157, Fair Value Measurements
(“SFAS 157”) requires that financial assets and liabilities recorded at fair
value be classified and disclosed in one of the following three
categories:




Level 1 - Unadjusted quoted prices in active markets that are
accessible at the measurement date for identical, unrestricted assets or
liabilities;




Level 2 – Quoted prices for identical or similar financial
instruments in markets that are not considered to be active, or similar
financial instruments for which all significant inputs are observable, either
directly or indirectly, or inputs other than quoted prices that are observable,
or inputs that are derived principally from or corroborated by observable market
data through correlation or other means; or




Level 3 – Prices or valuations that require inputs that are both
significant to the fair value measurement and are unobservable. These reflect
management’s assumptions about the assumptions a market participant would use in
pricing the asset or liability.







33


AMERCO AND CONSOLIDATED ENTITIES






NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -
(CONTINUED)




A financial instrument’s level within the fair value hierarchy is
based on the lowest level of any input that is significant to the fair value
measurement. The following table represents the financial assets and liabilities
on the condensed consolidated balance sheet that are subject to SFAS 157 and the
valuation approach applied to each of these items.




Total
                    
                    
                    Quoted Prices in Active Markets for Identical Assets (Level
      1)
                    
                    
                    Significant Other Observable Inputs (Level
    2)
                    
                    
                    Significant Unobservable Inputs (Level 3)(Unaudited)(In thousands)AssetsShort-term investments
                    
                    $
                    352,200
                    
                    
                    $
                    352,200
                    
                    
                    $
                    -
                    
                    
                    $
                    -Fixed maturities - available for sale
                    
                    
                    529,901
                    
                    
                    
                    509,701
                    
                    
                    
                    17,237
                    
                    
                    
                    2,963Preferred stock
                    
                    
                    8,406
                    
                    
                    
                    8,406
                    
                    
                    
                    -
                    
                    
                    
                    -Common stock
                    
                    
                    16
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    16Total
                    
                    $
                    890,523
                    
                    
                    $
                    870,307
                    
                    
                    $
                    17,237
                    
                    
                    $
                    2,979LiabilitiesGuaranteed residual values of TRAC leases
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -Derivatives
                    
                    $
                    84,978
                    
                    
                    $
                    -
                    
                    
                    $
                    84,978
                    
                    
                    $
                    -Total
                    
                    $
                    84,978
                    
                    
                    $
                    -
                    
                    
                    $
                    84,978
                    
                    
                    $
                    -









The following table represents the fair value measurements at
December 31, 2008 using significant unobservable inputs (Level
3).




Fair Value Measurements Using Significant Unobservable Inputs
      (Level 3)(Unaudited)(In thousands)Fixed Maturities - Auction Rate Securities
                      
                      
                      Common Stock - Newtek
                      
                      
                      TotalBalance at March 31, 2008
                      
                      $
                      -
                      
                      
                      $
                      31
                      
                      
                      $
                      31Common Stock - Newtek loss
      (realized/unrealized)
                      
                      
                      -
                      
                      
                      
                      (5
                      )
                      
                      
                      (5
                      )Balance at June 30, 2008
                      
                      $
                      -
                      
                      
                      $
                      26
                      
                      
                      $
                      26Common Stock - Newtek gain
      (realized/unrealized)
                      
                      
                      -
                      
                      
                      
                      1
                      
                      
                      
                      1Balance at September 30, 2008
                      
                      $
                      -
                      
                      
                      $
                      27
                      
                      
                      $
                      27Transfers in and/or out of Level 3 (a)
                      
                      
                      2,963
                      
                      
                      
                      -
                      
                      
                      
                      2,963Common Stock - Newtek loss
      (realized/unrealized)
                      
                      
                      -
                      
                      
                      
                      (11
                      )
                      
                      
                      (11
                      )Balance at December 31, 2008
                      
                      $
                      2,963
                      
                      
                      $
                      16
                      
                      
                      $
                      2,979




(a)
Reflects the transfer of adjustable rate securities for which no meaningful
market rate bids are currently available. The valuation of these assets was
based on a pricing matrix system as determined by the custodian of these
securities.


34




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






General




We begin Management’s Discussion and Analysis of Financial Condition
and Results of Operations (“MD&A”) with the overall strategy of AMERCO,
followed by a description of, and strategy related to, our operating segments to
give the reader an overview of the goals of our businesses and the direction in
which our businesses and products are moving. We then discuss our “Critical
Accounting Policies and Estimates” that we believe are important to
understanding the assumptions and judgments incorporated in our reported
financial results. We then discuss our results of operations for the third
quarter and first nine months of fiscal 2009, compared with the third quarter
and first nine months of fiscal 2008, which is followed by an analysis of
changes in our balance sheets and cash flows, and a discussion of our financial
commitments in the sections entitled “Liquidity and Capital Resources” and
“Disclosures about Contractual Obligations and Commercial Commitments.” We
conclude this MD&A by discussing our outlook for the remainder of fiscal
2009 and into fiscal 2010.




This MD&A should be read in conjunction with the other sections
of this Quarterly Report on Form 10-Q, including the Notes to Condensed
Consolidated Financial Statements. The various sections of this MD&A contain
a number of forward-looking statements, as discussed under the caption
“Cautionary Statements Regarding Forward-Looking Statements” all of which are
based on our current expectations and could be affected by the uncertainties and
risk factors described throughout this filing or in our most recent Annual
Report on Form 10-K and in our most recent Quarterly Report, Form 10-Q for the
quarter ended September 30, 2008. Our actual results may differ materially from
these forward-looking statements.




The third fiscal quarter for AMERCO ends on the 31st of
December for each year that is referenced. Our insurance company subsidiaries
have a third quarter that ends on the 30th of
September for each year that is referenced. They have been consolidated on that
basis. Our insurance companies’ financial reporting processes conform to
calendar year reporting as required by state insurance departments. Management
believes that consolidating their calendar year into our fiscal year financial
statements does not materially affect the financial position or results of
operations. The Company discloses any material events occurring during the
intervening period. Consequently, all references to our insurance subsidiaries’
years 2008 and 2007 correspond to fiscal 2009 and 2008 for
AMERCO.




Overall Strategy




Our overall strategy is to maintain our leadership position in the
North American “do-it-yourself” moving and storage industry. We accomplish this
by providing a seamless and integrated supply chain to the “do-it-yourself”
moving and storage market. As part of executing this strategy, we leverage the
brand recognition of U-Haul with our full line of moving and self-storage
related products and services and the convenience of our broad geographic
presence.




Our primary focus is to provide our customers with a wide selection
of moving rental equipment, convenient self-storage rental facilities and
related moving and self-storage products and services. We are able to expand our
distribution and improve customer service by increasing the amount of moving
equipment and storage rooms available for rent, expanding the number of
independent dealers in our network and expanding and taking advantage of our
growing eMove capabilities.




RepWest is focused on providing and administering property and
casualty insurance to U-Haul and its customers, its independent dealers and
affiliates.




Oxford is focused on long-term capital growth through direct writing
and reinsuring of life, Medicare supplement and annuity products in the senior
marketplace.




Description of Operating Segments




AMERCO’s four reportable segments are (or
      were):




(a)
            Moving and Storage, comprised of AMERCO, U-Haul, and Real
      Estate and the subsidiaries of U-Haul and Real
  Estate,




(b)
            Property and Casualty Insurance, comprised of RepWest and its
      subsidiaries,




(c)
            Life Insurance, comprised of Oxford and its subsidiaries,
      and




(d)
            SAC Holding II and its subsidiaries (through October
      2007).


35




Moving and Storage Operating Segment




Our Moving and Storage Operating Segment consists of the rental of
trucks, trailers, specialty rental items and self-storage spaces primarily to
the household mover as well as sales of moving supplies, towing accessories and
propane. Operations are conducted under the registered trade name U-Haul®
throughout the United States and Canada.




With respect to our truck, trailer, specialty rental items and
self-storage rental business, we are focused on expanding our dealer network,
which provides added convenience for our customers and expanding the selection
and availability of rental equipment to satisfy the needs of our
customers.




U-Haul brand self-moving related products and services, such as
boxes, pads and tape allow our customers to, among other things, protect their
belongings from potential damage during the moving process. We are committed to
providing a complete line of products selected with the “do-it-yourself” moving
and storage customer in mind.




For more than sixty years, U-Haul has incorporated sustainable
practices into its everyday operations. Our basic business premise of
truck-sharing helps reduce greenhouse gas emissions and reduces the need for
total large-capacity vehicles. Today, we remain focused on reducing waste and
are dedicated to manufacturing reusable components and recyclable products. This
commitment to sustainability, through our products and services, has helped us
to reduce our impact on the environment.




eMove is an online marketplace that connects consumers to over 3,700
independent Moving HelpTM service providers and over 3,800 independent
Self-Storage Affiliates. Our network of customer-rated affiliates provides pack
and load help, cleaning help, self-storage and similar services, all over North
America. Our goal is to further utilize our web-based technology platform to
increase service to consumers and businesses in the moving and storage
market.




Property and Casualty Insurance Operating Segment




RepWest provides loss adjusting and claims handling for U-Haul
through regional offices across North America. RepWest also underwrites
components of the Safemove, SafetowandSafestorprotection packages to
U-Haul customers. We continue to focus on increasing the penetration of these
products into the market. The business plan for RepWest includes offering
property and casualty products in other U-Haulrelated
programs.




Life Insurance Operating Segment




Oxford provides life and health insurance products primarily to the
senior market through the direct writing or reinsuring of life insurance,
Medicare supplement and annuity policies. Additionally, Oxford administered the
self-insured employee health and dental plans for Arizona employees of the
Company until December 31, 2008.




SAC Holding II Operating Segment




SAC Holding II Corporation and its subsidiaries own self-storage
properties that are managed by U-Haul under property management agreements and
act as independent U-Haul rental equipment dealers. AMERCO, through its
subsidiaries, has contractual interests in certain SAC Holding II properties
entitling AMERCO to potential future income based on the financial performance
of these properties. AMERCO was considered the primary beneficiary of these
contractual interests prior to November 2007. Consequently, for those reporting
periods prior to November 2007, we included the results of SAC Holding II in the
consolidated financial statements of AMERCO, as required by FIN 46(R). While the
deconsolidation affects AMERCO’s financial reporting, it has no operational or
financial impact on the Company’s relationship with SAC Holding
II.




Critical Accounting Policies and Estimates




The Company’s financial statements have been prepared in accordance
with the generally accepted accounting principles (“GAAP”) in the United States.
The methods, estimates and judgments we use in applying our accounting policies
can have a significant impact on the results we report in our financial
statements. Certain accounting policies require us to make difficult and
subjective judgments and assumptions, often as a result of the need to estimate
matters that are inherently uncertain.


36




Below we have set forth, with a detailed description, the accounting
policies that we deem most critical to us and that require management’s most
difficult and subjective judgments. These estimates are based on historical
experience, observance of trends in particular areas, information and valuations
available from outside sources and on various other assumptions that are
believed 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; such differences may be
material.




We also have other policies that we consider key accounting policies,
such as revenue recognition; however, these policies do not meet the definition
of critical accounting estimates, because they do not generally require us to
make estimates or judgments that are difficult or subjective. The accounting
policies that we deem most critical to us, and involve the most difficult,
subjective or complex judgments include the following:




Principles of Consolidation




The Company applies FIN 46(R), Consolidation of Variable Interest
Entities and ARB 51, Consolidated Financial
Statements in its principles of consolidation. FIN 46(R) addresses
arrangements where a company does not hold a majority of the voting or similar
interests of a variable interest entity (“VIE”). A company is required to
consolidate a VIE if it has determined it is the primary beneficiary. ARB 51
addresses the policy when a company owns a majority of the voting or similar
rights and exercises effective control.




As promulgated by FIN 46(R), a VIE is not self-supportive due to
having one or both of the following conditions: a) it has an insufficient amount
of equity for it to finance its activities without receiving additional
subordinated financial support or b) its owners do not hold the typical risks
and rights of equity owners. This determination is made upon the creation of a
variable interest and can be re-assessed should certain changes in the
operations of a VIE, or its relationship with the primary beneficiary trigger a
reconsideration under the provisions of FIN 46(R). After a triggering event
occurs the most recent facts and circumstances are utilized in determining
whether or not a company is a VIE, which other company(s) have a variable
interest in the entity, and whether or not the company’s interest is such that
it is the primary beneficiary.




In fiscal 2003 and fiscal 2002, SAC Holdings were considered special
purpose entities and were consolidated based on the provisions of Emerging
Issues Task Force (“EITF”) Issue No. 90-15. In fiscal 2004, the Company
evaluated its interests in SAC Holdings utilizing the guidance promulgated in
FIN 46(R). The Company concluded that SAC Holdings were VIE’s and that the
Company was the primary beneficiary. Accordingly, the Company continued to
include SAC Holdings in its consolidated financial statements.




In February and March 2004, SAC Holding Corporation triggered a
requirement to reassess AMERCO’s involvement in it, which led to the conclusion
SAC Holding Corporation was not a VIE and AMERCO ceased to be the primary
beneficiary and the Company no longer includes SAC Holding Corporation in its
consolidated financial statements.




In November 2007, Blackwater contributed additional capital to its
wholly-owned subsidiary, SAC Holding II. This contribution was determined by us
to be material with respect to the capitalization of SAC Holding II; therefore,
triggering a requirement under FIN 46(R) for us to reassess the Company’s
involvement with those subsidiaries. This required reassessment led to the
conclusion that SAC Holding II had the ability to fund its own operations and
execute its business plan without any future subordinated financial support;
therefore, the Company was no longer the primary beneficiary of SAC Holding II
as of the date of Blackwater’s contribution.




Accordingly, at the date AMERCO ceased to have a variable interest
and ceased to be the primary beneficiary of SAC Holding II and its current
subsidiaries, it deconsolidated those entities. The deconsolidation was
accounted for as a distribution of SAC Holding II’s interests to the sole
shareholder of the SAC entities. Because of AMERCO’s continuing involvement with
SAC Holding II and its subsidiaries, the distribution does not qualify as
discontinued operations as defined by SFAS 144, Accounting for the Impairment or
Disposal of Long-Lived Assets.




It is possible that SAC Holdings could take actions that would
require us to re-determine whether SAC Holdings has become a VIE or whether we
have become the primary beneficiary of SAC Holdings. Should this occur, we could
be required to consolidate some or all of SAC Holdings with our financial
statements.


37




The condensed consolidated balance sheets as of December 31, 2008 and
March 31, 2008 include the accounts of AMERCO and its wholly-owned subsidiaries.
The December 31, 2008 condensed consolidated statements of operations and cash
flows include the accounts of AMERCO and its wholly-owned subsidiaries. The
December 31, 2007 condensed consolidated statements of operations and cash flows
include the accounts of AMERCO and its wholly-owned subsidiaries and SAC Holding
II and its subsidiaries through October 2007.




Recoverability of Property, Plant and Equipment




Property, plant and equipment are stated at cost. Interest expense
incurred during the initial construction of buildings and rental equipment is
considered part of cost. Depreciation is computed for financial reporting
purposes using the straight-line or an accelerated method based on a declining
balance formula over the following estimated useful lives: rental equipment 2-20
years and buildings and non-rental equipment 3-55 years. The Company follows the
deferral method of accounting based in the AICPA’s Airline Guide for major
overhauls in which engine overhauls are capitalized and amortized over five
years and transmission overhauls are capitalized and amortized over three years.
Routine maintenance costs are charged to operating expense as they are incurred.
Gains and losses on dispositions of property, plant and equipment are netted
against depreciation expense when realized. Equipment depreciation is recognized
in amounts expected to result in the recovery of estimated residual values upon
disposal, i.e., minimize gains or losses. In determining the depreciation rate,
historical disposal experience, holding periods and trends in the market for
vehicles are reviewed.




We regularly perform reviews to determine whether facts and
circumstances exist which indicate that the carrying amount of assets, including
estimates of residual value, may not be recoverable or that the useful life of
assets are shorter or longer than originally estimated. Reductions in residual
values (i.e., the price at which we ultimately expect to dispose of revenue
earning equipment) or useful lives will result in an increase in depreciation
expense over the life of the equipment. Reviews are performed based on vehicle
class, generally subcategories of trucks and trailers. We assess the
recoverability of our assets by comparing the projected undiscounted net cash
flows associated with the related asset or group of assets over their estimated
remaining lives against their respective carrying amounts. We consider factors
such as current and expected future market price trends on used vehicles and the
expected life of vehicles included in the fleet. Impairment, if any, is based on
the excess of the carrying amount over the fair value of those assets. If asset
residual values are determined to be recoverable, but the useful lives are
shorter or longer than originally estimated, the net book value of the assets is
depreciated over the newly determined remaining useful lives.




In recent years, the Company has been acquiring a significant number
of moving trucks via purchase rather than lease. Management performed an
analysis of the expected economic value of new rental trucks and determined that
additions to the fleet resulting from purchase should be depreciated on an
accelerated method based upon a declining formula. The salvage value and useful
life assumptions of the rental truck fleet remain unchanged. Under the declining
balances method (2.4 times declining balance) the book value of a rental truck
is reduced 16%, 13%, 11%, 9%, 8%, 7%, and 6% during years one through seven,
respectively and then reduced on a straight line basis an additional 10% by the
end of year fifteen. Whereas, a standard straight line approach would reduce the
book value by approximately 5.3% per year over the life of the truck. For the
affected equipment, the accelerated depreciation was $14.1 million and $14.9
million greater than what it would have been if calculated under a straight line
approach for the third quarter of fiscal 2009 and 2008, and $42.1 million and
$41.6 million for the first nine months of fiscal 2009 and 2008,
respectively.




We typically sell our
used vehicles at one of our sales centers throughout North America, on our web
site at trucksales.uhaul.com or by phone at 1-866-404-0355. Although we intend
to sell our used vehicles for prices approximating book value, the extent to
which we realize a gain or loss on the sale of used vehicles is dependent upon
various factors including the general state of the used vehicle market, the age
and condition of the vehicle at the time of its disposal and depreciation rates
with respect to the vehicle.




Insurance Reserves




Liabilities for life insurance and certain annuity and health
policies are established to meet the estimated future obligations of policies in
force, and are based on mortality, morbidity and withdrawal assumptions from
recognized actuarial tables which contain margins for adverse deviation. In
addition, liabilities for health, disability and other policies include
estimates of payments to be made on insurance claims for reported losses and
estimates of losses incurred, but not yet reported. Liabilities for annuity
contracts consist of contract account balances that accrue to the benefit of the
policyholders.


38




Insurance reserves for RepWest and U-Haul take into account losses
incurred based upon actuarial estimates. 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.




Due to the long tailed nature of the assumed reinsurance and the
excess workers compensation lines of insurance that were written by RepWest it
may take a number of years for claims to be fully reported and finally
settled.




During the third quarter of fiscal 2009, the Company entered into an
excess of loss reinsurance agreement with a third-party reinsurer covering a
portion of expected accident liability losses for policy years 2001 through
2005. The Company recorded $13.8 million of projected recoveries as an Other
Asset and deferred this gain until actual recoveries, if any, are collected in
the future.




Impairment of Investments




For investments accounted for under SFAS 115, Accounting for Certain Investments
in Debt and Equity Securities in determining if and when a decline in
market value below amortized cost is other-than-temporary, management makes
certain assumptions or judgments in its assessment including but not limited to:
ability and intent to hold the security, quoted market prices, dealer quotes or
discounted cash flows, industry factors, financial factors, and issuer specific
information such as credit strength. Other-than-temporary impairment in value is
recognized in the current period operating results. The Company’s insurance
subsidiaries recognized $0.2 million in other-than-temporary impairments for the
third quarter of both fiscal 2009 and 2008 and $0.4 million for the first nine
months of both fiscal 2009 and 2008.




Income Taxes




The Company’s tax returns are periodically reviewed by various taxing
authorities. The final outcome of these audits may cause changes that could
materially impact our financial results.




AMERCO files a consolidated tax return with all of its legal
subsidiaries, except for Dallas General Life Insurance Company (“DGLIC”), a
subsidiary of Oxford, which will file on a stand alone basis until 2012. SAC
Holding Corporation and its legal subsidiaries and SAC Holding II Corporation
and its legal subsidiaries file consolidated tax returns, which are in no way
associated with AMERCO’s consolidated returns.




Adoption of New Accounting Pronouncements




Fair Value of Financial Instruments




The Company adopted SFAS 157 effective April 1, 2008, its required
effective date for AMERCO. SFAS 157 defines fair value, establishes a framework
for measuring fair value and expands disclosures about fair value measurements;
however, it does not change existing guidance about whether an asset or
liability is carried at fair value. The definition of fair value according to
SFAS 157 is the price that would be received for selling an asset or paid to
transfer a liability in an orderly transaction between market participants as of
the measurement date. The assets primarily affected by the adoption of SFAS 157
at the Company include the interest rate swaps held by U-Haul to fix interest
rates on its variable rate debt and the available for sale investment portfolios
at Oxford and RepWest. For more information please see Note 12 Fair Value
Measurements of the Notes to Condensed Consolidated Financial Statements. The
adoption of SFAS 157 did not have a material impact on the Company’s
consolidated financial statements.




The Company adopted SFAS 159, The Fair Value Option for Financial
Assets and Financial Liabilities (“SFAS 159”) effective April 1, 2008,
its required effective date for AMERCO. SFAS 159 provides the option to measure
certain financial assets and liabilities at fair value with any changes in fair
value recognized in earnings.  SFAS 159 allows for the application of
these rules on an instrument-by-instrument basis upon the initial recognition of
the asset or liability, or upon an event that gives rise to a new basis of
accounting for that instrument. The Company did not elect to measure any
additional financial assets or liabilities at fair value; therefore, the
adoption of SFAS 159 had no effect on the Company’s consolidated financial
statements.







39




Recent Accounting Pronouncements




In December 2007, the Financial Accounting Standards Board (“FASB”)
issued SFAS 141(R), Business
Combinations (“SFAS 141(R)”). SFAS 141(R) provides companies with
principles and requirements on how an acquirer recognizes and measures in its
financial statements the identifiable assets acquired, liabilities assumed, and
any noncontrolling interest in the acquiree as well as the recognition and
measurement of goodwill acquired in a business combination. SFAS 141(R) also
requires certain disclosures to enable users of the financial statements to
evaluate the nature and financial effects of the business combination.
Acquisition costs associated with the business combination will generally be
expensed as incurred. SFAS 141(R) is effective for business combinations
occurring in fiscal years beginning after December 15, 2008, which will
require us to adopt these provisions for business combinations occurring in
fiscal 2010 and thereafter. Early adoption of SFAS 141(R) is not
permitted.




In December 2007, the FASB issued SFAS 160,Noncontrolling Interests in
Consolidated Financial Statements — an amendment of ARB No. 51
(“SFAS 160”). This Statement clarifies that a noncontrolling interest in a
subsidiary is an ownership interest in the consolidated entity that should be
reported as equity in the consolidated financial statements. This Statement
changes the way the consolidated income statement is presented by requiring net
income to be reported at amounts that include the amounts attributable to both
the parent and the noncontrolling interest and to disclose those amounts on the
face of the income statement. SFAS 160 is effective for fiscal years beginning
after December 15, 2008. Early adoption of SFAS 160 is not permitted. The
Company does not believe that the adoption of this statement will have a
material impact on our financial statements.




In March 2008, the FASB issued SFAS 161, Disclosures about Derivative
Instruments and Hedging Activities (“SFAS 161”), which amends SFAS
133, Accounting for
Derivative Instruments and Hedging Activities to require expanded
disclosures about derivative instruments and hedging activities regarding (1)
the ways in which an entity uses derivatives, (2) the accounting for derivatives
and hedging activities, and (3) the impact that derivatives have (or could have)
on an entity's financial position, financial performance, and cash flows. SFAS
161 is effective for financial statements of fiscal years and interim periods
beginning after November 15, 2008, with early application encouraged. While
disclosures for earlier comparative periods presented at initial adoption are
not required, they are encouraged; following initial adoption, comparative
disclosures are required only for periods after such
adoption. The adoption of SFAS 161 is not expected to have a material impact on
the Company’s consolidated financial statements.




Results of Operations




AMERCO and Consolidated Entities




Quarter Ended December 31, 2008 compared with the Quarter Ended
December 31, 2007




Listed below on a consolidated basis are revenues for our major
product lines for the third quarter of fiscal 2009 and the third quarter of
fiscal 2008:




Quarter Ended December 31,2008
                  
                  
                  2007(Unaudited)(In thousands)Self-moving equipment rentals
                  
                  $
                  311,657
                  
                  
                  $
                  326,937Self-storage revenues
                  
                  
                  27,397
                  
                  
                  
                  29,630Self-moving and self-storage products and service
      sales
                  
                  
                  38,663
                  
                  
                  
                  43,211Property management fees
                  
                  
                  6,059
                  
                  
                  
                  6,925Life insurance premiums
                  
                  
                  27,509
                  
                  
                  
                  27,757Property and casualty insurance
    premiums
                  
                  
                  8,029
                  
                  
                  
                  7,738Net investment and interest income
                  
                  
                  14,913
                  
                  
                  
                  16,008Other revenue
                  
                  
                  8,357
                  
                  
                  
                  7,254Consolidated revenue
                  
                  $
                  442,584
                  
                  
                  $
                  465,460




Self-moving equipment rental revenues decreased $15.3 million during
the third quarter of fiscal 2009, compared with the third quarter of fiscal
2008. One-way rental transactions decreased for the quarter as compared with the
same period last year due in part to inclement weather.




Self-storage revenues decreased $2.2 million for the third quarter of
fiscal 2009, compared with the third quarter of fiscal 2008. The deconsolidation
of SAC Holding II, effective as of October 31, 2007 accounted for $1.7 million
of the decrease. At Company-owned locations, average occupied rooms during the
quarter decreased in proportion to the decline in revenue at these facilities.
The Company continues to add new rooms to the portfolio through acquisitions and
development at existing facilities.


40




Sales of self-moving and self-storage products and services decreased
$4.5 million for the third quarter of fiscal 2009, compared with the third
quarter of fiscal 2008. The deconsolidation of SAC Holding II accounted for $1.1
million of the decrease. Decreased self-moving transactions for the quarter also
negatively affected our product and service sales.




Premiums at RepWest increased $0.3 million due to increases in U-Haul
related business.




Oxford’s premium revenues decreased $0.2 million primarily as a
result of decreases in Medicare supplement premiums.




As a result of the items mentioned above, revenues for AMERCO and its
consolidated entities were $442.6 million in the third quarter of fiscal 2009,
compared with $465.5 million in the third quarter of fiscal
2008.




Listed below are revenues and earnings (loss) from operations at each
of our four operating segments for the third quarter of fiscal 2009 and the
third quarter of fiscal 2008. The insurance companies’ third quarters ended
September 30, 2008 and 2007.




Quarter Ended December 31,2008
                
                
                2007(Unaudited)(In thousands)Moving and storageRevenues
                
                $
                399,851
                
                
                $
                419,443Earnings (loss) from operations
                
                
                (16,505
                )
                
                
                5,435Property and casualty insuranceRevenues
                
                
                10,317
                
                
                
                10,892Earnings from operations
                
                
                2,609
                
                
                
                2,266Life insuranceRevenues
                
                
                33,342
                
                
                
                33,843Earnings from operations
                
                
                3,888
                
                
                
                5,047SAC Holding IIRevenues
                
                
                -
                
                
                
                3,551Earnings from operations
                
                
                -
                
                
                
                851EliminationsRevenues
                
                
                (926
                )
                
                
                (2,269
                )Earnings from operations
                
                
                (3,993
                )
                
                
                (5,276
                )Consolidated resultsRevenues
                
                
                442,584
                
                
                
                465,460Earnings (loss) from operations
                
                
                (14,001
                )
                
                
                8,323









Total costs and expenses decreased $0.6 million in the third quarter
of fiscal 2009, compared with the third quarter of fiscal 2008. The
deconsolidation of SAC Holding II accounted for a $1.7 million decrease.
Separately, variable costs including U-Move commissions and cost of sales
declined in relation to the related revenues. Additionally, the Company
continues to recognize positive prior year loss experience on its portion of
self-insured liability risk related to the rental fleet. These decreases were
largely offset by increased fleet-related costs including lease expense,
depreciation and loss on the disposal of rental equipment.




As a result of the aforementioned changes in revenues and expenses,
earnings (loss) from operations were ($14.0) million in the third quarter of
fiscal 2009, compared with $8.3 million in the third quarter of fiscal
2008.




Interest expense in the third quarter of fiscal 2009 was $26.0
million, compared with $25.2 million in the third quarter of fiscal 2008. The
increase in interest expense in fiscal 2009 is related to increased
debt.




Income tax benefit was $15.0 million in the third quarter of fiscal
2009, compared with $6.5 million in the third quarter of fiscal 2008 and
reflects larger pretax losses for the third quarter of fiscal
2009.




Dividends accrued on our Series A preferred stock were $3.2 million
in third quarter of fiscal 2009, unchanged from the third quarter of fiscal
2008.




As a result of the above mentioned items, losses applicable to common
shareholders were $28.2 million in the third quarter of fiscal 2009, compared
with $13.6 million in the third quarter of fiscal 2008.


41




The weighted average common shares outstanding basic and diluted were
19,347,660 in third quarter of fiscal 2009, compared with 19,746,237 in the
third quarter of fiscal 2008.




Basic and diluted losses per common share in the third quarter of
fiscal 2009 were $1.46, compared with $0.69 in the third quarter of fiscal
2008.




Moving and Storage




Quarter Ended December 31, 2008 compared with the Quarter Ended
December 31, 2007




Listed below are revenues for the major product lines at our Moving
and Storage operating segment for the third quarter of fiscal 2009 and the third
quarter of fiscal 2008:




Quarter Ended December 31,2008
                  
                  
                  2007(Unaudited)(In thousands)Self-moving equipment rentals
                  
                  $
                  311,597
                  
                  
                  $
                  326,937Self-storage revenues
                  
                  
                  27,397
                  
                  
                  
                  27,958Self-moving and self-storage products and service
      sales
                  
                  
                  38,663
                  
                  
                  
                  42,134Property management fees
                  
                  
                  6,059
                  
                  
                  
                  7,137Net investment and interest income
                  
                  
                  8,006
                  
                  
                  
                  9,029Other revenue
                  
                  
                  8,129
                  
                  
                  
                  6,248Moving and Storage revenue
                  
                  $
                  399,851
                  
                  
                  $
                  419,443




Self-moving equipment rental revenues decreased $15.3 million during
the third quarter of fiscal 2009, compared with the third quarter of fiscal
2008. One-way rental transactions decreased for the quarter as compared with the
same period last year due in part to inclement weather.




Self-storage revenues for Company-owned locations decreased $0.6
million for the third quarter of fiscal 2009, compared with the third quarter of
fiscal 2008. Average occupied rooms during the quarter decreased in proportion
to the decline in revenue. The Company continues to add new rooms to the
portfolio through acquisitions and development at existing
facilities.




Sales of self-moving and self-storage products and services decreased
$3.5 million for the third quarter of fiscal 2009, compared with the third
quarter of fiscal 2008. Decreased self-moving transactions for the quarter also
negatively affected our product and service sales.




The Company owns and manages self-storage facilities. Self-storage
revenues reported in the consolidated financial statements for Moving and
Storage represent Company-owned locations only. Self-storage data for our owned
storage locations is as follows:




Quarter Ended December 31,2008
                
                
                2007(Unaudited)(In thousands, except occupancy rate)Room count as of December 31
                
                
                137
                
                
                
                132Square footage as of December 31
                
                
                11,033
                
                
                
                10,529Average number of rooms occupied
                
                
                106
                
                
                
                108Average occupancy rate based on room count
                
                
                78.0
                %
                
                
                82.6
                %Average square footage occupied
                
                
                8,718
                
                
                
                8,740




Total costs and expenses increased $1.6 million in the third quarter
of fiscal 2009, compared with the third quarter of fiscal 2008. Variable costs
including U-Move commissions and cost of sales declined in relation to the
related revenues. Additionally, the Company continues to recognize positive
prior year loss experience on its portion of self-insured liability risk related
to the rental fleet. These decreases were offset by increased fleet-related
costs including lease expense, depreciation and loss on the disposal of rental
equipment.




Equity in the earnings of AMERCO’s insurance subsidiaries decreased
$0.8 million in the third quarter of fiscal 2009, compared with the third
quarter of fiscal 2008.




As a result of the above mentioned changes in revenues and expenses,
earnings (loss) from operations were ($16.5) million in the third quarter of
fiscal 2009, compared with $5.4 million in the third quarter of fiscal
2008.


42




Republic Western Insurance Company




Quarter Ended September 30, 2008 compared with the Quarter Ended
September 30, 2007




Net premiums were $8.1 million and $7.7 million for the third
quarters ended September 30, 2008 and 2007, respectively. The increased premiums
were a result of U-Haul customer related programs.




Net investment income was $2.2 million and $3.2 million for the third
quarters ended September 30, 2008 and 2007, respectively. The reduction was due
to a decrease in the overall size of the investment portfolio and lower rates on
short term investments.




Net operating expenses were $3.1 million and $4.2 million for the
third quarters ended September 30, 2008 and 2007, respectively. The decrease was
a result of lower professional fees and an overall reduction of operating
expense.




Benefits and losses incurred were $4.6 million and $4.4 million for
the third quarters ended September 30, 2008 and 2007,
respectively.




As a result of the above mentioned changes in revenues and expenses,
pretax earnings from operations were $2.6 million and $2.3 million for the third
quarters ended September 30, 2008 and 2007, respectively.




Oxford Life Insurance Company




Quarter Ended September 30, 2008 compared with the Quarter Ended
September 30, 2007




Net premiums were $27.5 million and $27.8 million for the third
quarters ended September 30, 2008 and 2007, respectively. Medicare supplement
premiums decreased by $1.4 million due to lapses in excess of new sales. Life
insurance premiums increased by $1.7 million due to increased sales. Credit life
and disability premiums decreased by $0.4 million.




Net investment income was $5.0 million and $4.8 million for the third
quarters ended September 30, 2008 and 2007, respectively. The increase was
primarily due to a higher investment yield in the current
period.




Other income was $0.8 million and $1.3 million for the third quarters
ended September 30, 2008 and 2007, respectively. The decrease was due to fewer
annuity surrenders in the quarter resulting in a decrease in fees
collected.




Net operating expenses were $5.7 million and $6.7 million for the
third quarters ended September 30, 2008 and 2007, respectively. The decrease was
primarily attributable to a reduction of expenses for the credit segment and
capitalization of life insurance acquisition expenses.




Benefits incurred were $21.1 million and $19.4 million for the third
quarters ended September 30, 2008 and 2007, respectively. The increase was
primarily the result of higher Medicare supplement benefits of $0.7 million and
an increase in reserves for the life business of $1.2 million due to the
increased sales volume.




Amortization of deferred acquisition costs (“DAC”) and the value of
business acquired (“VOBA”) was $2.7 million for each of the third quarters ended
September 30, 2008 and 2007.




As a result of the above mentioned changes in revenues and expenses,
pretax earnings from operations were $3.9 million and $5.0 million for the third
quarters ended September 30, 2008 and 2007, respectively.


43




AMERCO and Consolidated Entities




Nine Months Ended December 31, 2008 compared with the Nine Months
Ended December 31, 2007




Listed below on a consolidated basis are revenues for our major
product lines for the first nine months of fiscal 2009 and the first nine months
of fiscal 2008:




Nine Months Ended December 31,2008
                  
                  
                  2007(Unaudited)(In thousands)Self-moving equipment rentals
                  
                  $
                  1,140,930
                  
                  
                  $
                  1,155,240Self-storage revenues
                  
                  
                  82,849
                  
                  
                  
                  94,754Self-moving and self-storage products and service
      sales
                  
                  
                  159,515
                  
                  
                  
                  174,420Property management fees
                  
                  
                  15,496
                  
                  
                  
                  14,865Life insurance premiums
                  
                  
                  81,525
                  
                  
                  
                  84,881Property and casualty insurance
    premiums
                  
                  
                  21,512
                  
                  
                  
                  20,986Net investment and interest income
                  
                  
                  44,492
                  
                  
                  
                  46,695Other revenue
                  
                  
                  30,554
                  
                  
                  
                  24,236Consolidated revenue
                  
                  $
                  1,576,873
                  
                  
                  $
                  1,616,077









Self-moving equipment rental revenues decreased $14.3 million during
the first nine months of fiscal 2009, compared with the first nine months of
fiscal 2008. One-way rental transactions decreased over the last two months of
the third quarter as compared with the same period last year due in large part
to exceptionally poor weather leading to the overall decline in self-moving
equipment rental revenues for the nine months. In fiscal 2009, the average
number of trucks in the fleet has decreased slightly compared to the same period
last year. Average utilization for the rental truck fleet has increased over the
same time period.




Self-storage revenues decreased $11.9 million for the first nine
months of fiscal 2009, compared with the first nine months of fiscal 2008. The
deconsolidation of SAC Holding II, which was effective October 31, 2007,
accounted for $11.5 million of the decrease. Regarding the remaining $0.4
million decrease, declines in average occupied rooms at Company-owned locations
during the nine months were partially offset by improvements in pricing realized
in the first half of the year. The Company continues to add new rooms to the
portfolio through acquisitions and development at existing
facilities.




Sales of self-moving and self-storage products and services decreased
$14.9 million for the first nine months of fiscal 2009, compared with the first
nine months of fiscal 2008. The deconsolidation of SAC Holding II accounted for
$10.0 million of the decrease while the remaining portion was related primarily
to lower sales of hitches, towing accessories and rental support
items.




Premiums at RepWest increased $0.5 million due to U-Haul related
business.




Oxford’s premium revenues decreased $3.4 million primarily as a
result of decreases in Medicare supplement premiums.




As a result of the items mentioned above, revenues for AMERCO and its
consolidated entities were $1,576.9 million in the first nine months of fiscal
2009, compared with $1,616.1 million in the first nine months of fiscal
2008.


44




Listed below are revenues and earnings from operations at each of our
four operating segments for the first nine months of fiscal 2009 and the first
nine months of fiscal 2008. The insurance companies’ first nine months ended
September 30, 2008 and 2007.




Nine Months Ended December 31,2008
                
                
                2007(Unaudited)(In thousands)Moving and storageRevenues
                
                $
                1,449,370
                
                
                $
                1,467,608Earnings from operations
                
                
                146,031
                
                
                
                198,906Property and casualty insuranceRevenues
                
                
                28,892
                
                
                
                30,301Earnings from operations
                
                
                7,009
                
                
                
                8,304Life insuranceRevenues
                
                
                100,921
                
                
                
                104,486Earnings from operations
                
                
                13,391
                
                
                
                10,929SAC Holding IIRevenues
                
                
                -
                
                
                
                28,102Earnings from operations
                
                
                -
                
                
                
                7,926EliminationsRevenues
                
                
                (2,310
                )
                
                
                (14,420
                )Earnings from operations
                
                
                (13,248
                )
                
                
                (16,658
                )Consolidated resultsRevenues
                
                
                1,576,873
                
                
                
                1,616,077Earnings from operations
                
                
                153,183
                
                
                
                209,407









Total costs and expenses increased $17.0 million during the first
nine months of fiscal 2009, compared with the first nine months of fiscal 2008.
The deconsolidation of SAC Holding II accounted for an $11.9 million decrease.
The Company continues to recognize positive prior year loss experience on its
portion of self-insured liability risk related to the rental fleet. These
decreases were offset by increased fleet-related costs. The Company has
increased its allocation of fleet funding to operating leases in fiscal 2009
resulting in a $10.8 million increase in lease expense for the nine months,
compared with the same period last year. Depreciation related to the rental
fleet has increased $13.7 million and the loss on the disposal of equipment has
increased $14.0 million for the nine months, compared with the same period last
year.




As a result of the above mentioned changes in revenues and expenses,
earnings from operations decreased to $153.2 million in the first nine months of
fiscal 2009, compared with $209.4 million in the first nine months of fiscal
2008.




Interest expense in the first nine months of fiscal 2009 was $74.8
million, compared with $76.4 million in the first nine months of fiscal 2008.
The decrease in interest expense in fiscal 2009 is related to the
deconsolidation of SAC Holding II partially offset by increased interest expense
from the Company related to larger average outstanding balance of notes and
loans payable.




Income tax expense was $29.7 million in the first nine months of
fiscal 2009, compared with $51.2 million in first nine months of fiscal 2008 and
reflects lower pretax earnings for the first nine months of fiscal
2009.




Dividends accrued on our Series A preferred stock were $9.7 million
in first nine months of fiscal 2009, unchanged from the first nine months of
fiscal 2008.




As a result of the above mentioned items, earnings available to
common shareholders were $39.0 million in the first nine months of fiscal 2009,
compared with $72.1 million in the first nine months of fiscal
2008.




The weighted average common shares outstanding basic and diluted were
19,347,302 in first nine months of fiscal 2009, compared with 19,820,107 in the
first nine months of fiscal 2008.




Basic and diluted earnings per common share in the first nine months
of fiscal 2009 were $2.01, compared with $3.64 in the first nine months of
fiscal 2008.


45




Moving and Storage




Nine Months Ended December 31, 2008 compared with the Nine Months
Ended December 31, 2007




Listed below are revenues for the major product lines at our Moving
and Storage operating segment for the first nine months of fiscal 2009 and the
first nine months of fiscal 2008:




Nine Months Ended December 31,2008
                  
                  
                  2007(Unaudited)(In thousands)Self-moving equipment rentals
                  
                  $
                  1,140,870
                  
                  
                  $
                  1,155,240Self-storage revenues
                  
                  
                  82,849
                  
                  
                  
                  83,285Self-moving and self-storage products and service
      sales
                  
                  
                  159,515
                  
                  
                  
                  164,381Property management fees
                  
                  
                  15,496
                  
                  
                  
                  16,565Net investment and interest income
                  
                  
                  23,034
                  
                  
                  
                  26,877Other revenue
                  
                  
                  27,606
                  
                  
                  
                  21,260Moving and Storage revenue
                  
                  $
                  1,449,370
                  
                  
                  $
                  1,467,608




Self-moving equipment rental revenues decreased $14.4 million during
the first nine months of fiscal 2009, compared with the first nine months of
fiscal 2008. One-way rental transactions decreased over the last two months of
the third quarter as compared with the same period last year due in large part
to inclement weather leading to the overall decline in self-moving equipment
rental revenues for the nine months. In fiscal 2009, the average number of
trucks in the fleet has decreased slightly compared with the same period last
year. Average utilization for the rental truck fleet has increased over the same
time period.




Self-storage revenues for Company-owned locations decreased $0.4
million for the first nine months of fiscal 2009, compared with the first nine
months of fiscal 2008.  Declines in average occupied rooms during the
nine months were partially offset by improvements in pricing realized in the
first half of the year.  The Company continues to add new rooms to the
portfolio through acquisitions and development at existing
facilities.




Sales of self-moving and self-storage products and services decreased
$4.9 million for the first nine months of fiscal 2009, compared with the first
nine months of fiscal 2008, with the decline related primarily to lower sales of
hitches, towing accessories and rental support items.




The Company owns and manages self-storage facilities. Self-storage
revenues reported in the consolidated financial statements for Moving and
Storage represent Company-owned locations only. Self-storage data for our owned
storage locations is as follows:




Nine Months Ended December 31,2008
                
                
                2007(Unaudited)(In thousands, except occupancy rate)Room count as of December 31
                
                
                137
                
                
                
                132Square footage as of December 31
                
                
                11,033
                
                
                
                10,529Average number of rooms occupied
                
                
                107
                
                
                
                110Average occupancy rate based on room count
                
                
                80.2
                %
                
                
                84.9
                %Average square footage occupied
                
                
                8,808
                
                
                
                8,835




Total costs and expenses increased $35.1 million for the first nine
months of fiscal 2009, compared with the first nine months of fiscal 2008. The
Company continues to recognize positive prior year loss experience on its
portion of self-insured liability risk related to the rental fleet. These
decreases were offset by increased fleet-related costs. The Company has
increased its allocation of fleet funding to operating leases in fiscal 2009
resulting in a $10.4 increase in lease expense for the nine months, compared
with the same period last year. Depreciation related to the rental fleet has
increased $13.7 million and the loss on the disposal of equipment has increased
$14.0 million for the nine months, compared to the same period last
year.




Equity in the earnings of AMERCO’s insurance subsidiaries increased
$0.6 million in the first nine months of fiscal 2009, compared with the first
nine months of fiscal 2008.




As a result of the above mentioned changes in revenues and expenses,
earnings from operations decreased to $146.0 million in the first nine months of
fiscal 2009, compared with $198.9 million in the first nine months of fiscal
2008.


46




Republic Western Insurance Company




Nine Months Ended September 30, 2008 compared with the Nine Months
Ended September 30, 2007




Net premiums were $21.6 million and $21.0 million for the nine months
ended September 30, 2008 and 2007, respectively. The increased premiums were the
result of U-Haul customer related programs.




Net investment income was $7.3 million and $9.3 million for the nine
months ended September 30, 2008 and 2007, respectively. The reduction was due to
a decrease in the overall size of the investment portfolio and lower rates on
short-term investments.




Net operating expenses were $7.9 million and $10.7 million for the
nine months ended September 30, 2008 and 2007, respectively. The decrease was a
result of lower litigation related expenses and an overall reduction of
operating expenses.




Benefits and losses incurred were $14.0 million and $11.1 million for
the nine months ended September 30, 2008 and 2007, respectively. The increase
was a result of additional reserves recorded for discontinued
lines.




As a result of the above mentioned changes in revenues and expenses,
pretax earnings from operations were $7.0 million and $8.3 million for the nine
months ended September 30, 2008 and 2007, respectively.




Oxford Life Insurance Company




Nine Months Ended September 30, 2008 compared with the Nine Months
Ended September 30, 2007




Net premiums were $81.5 million and $84.9 million for the nine months
ended September 30, 2008 and 2007, respectively. Medicare supplement premiums
decreased by $4.6 million due to lapses in excess of new sales. Life insurance
premiums increased by $4.7 million due to increased sales. Credit life and
disability premiums decreased by $1.7 million as a result of no new sales.
Annuity premiums decreased by $0.9 million as a result of fewer contract holders
electing payouts during the period.




Net investment income was $15.2 million and $15.9 million for the
nine months ended September 30, 2008 and 2007, respectively. The decrease was
primarily due to a smaller invested asset base for the current
period.




Other income was $4.2 million and $3.7 million for the nine months
ended September 30, 2008 and 2007, respectively. The increase was due to the
settlement of an arbitration related to the acquisition of DGLIC offset by less
surrender fee income.




Net operating expenses were $16.9 million and $19.5 million for the
nine months ended September 30, 2008 and 2007, respectively. The decrease was
primarily attributable to a reduction of expenses related to the credit segment
and capitalization of life insurance acquisition expenses.




Benefits incurred were $63.5 million and $64.3 million for the nine
months ended September 30, 2008 and 2007, respectively. The decrease is
primarily the result of lower disability claims of $2.2 million and lower
Medicare supplement benefits of $2.1 million offset by a benefit increase in
reserves for the life business of $4.0 million due to the increased sales
volume.




Amortization of DAC and VOBA was $7.1 million and $9.7 million for
the nine months ended September 30, 2008 and 2007, respectively. The decrease
was the result of runoff of the credit business of $1.2 million, full
amortization of the Christian Fidelity Life Insurance Company VOBA in 2007 of
$1.1 million and a smaller base of annuity values and fewer contract surrenders
of $0.6 million.




As a result of the above mentioned changes in revenues and expenses,
pretax earnings from operations were $13.4 million and $10.9 million for the
nine months ended September 30, 2008 and 2007, respectively.




Liquidity and Capital Resources




We believe our current capital structure is a positive factor that
will enable us to pursue our operational plans and goals, and provide us with
sufficient liquidity for the next three to five years. The majority of the
obligations currently in place mature at the end of fiscal years 2014, 2015 or
2018. As a result, we believe that our liquidity is sufficient for our current
and foreseeable needs. However, there is no assurance that future cash flows
will be sufficient to meet our outstanding debt obligations and our future
capital needs.


47




At December 31, 2008, cash and cash equivalents totaled $311.5
million, compared with $206.6 million on March 31, 2008. The assets of our
insurance subsidiaries are generally unavailable to fulfill the obligations of
non-insurance operations (AMERCO, U-Haul and Real Estate). As of December 31,
2008 (or as otherwise indicated), cash and cash equivalents, other financial
assets (receivables, short-term investments, other investments, fixed
maturities, and related party assets) and obligations of each operating segment
were:




Moving & Storage
                
                
                RepWest (a)
                
                
                Oxford (a)(Unaudited)(In thousands)Cash and cash equivalents
                
                $
                272,488
                
                
                $
                33,224
                
                
                $
                5,805Other financial assets
                
                
                340,405
                
                
                
                369,833
                
                
                
                549,209Debt obligations
                
                
                1,560,557
                
                
                
                -
                
                
                
                -(a) As of September 30, 2008




At December 31, 2008, our Moving and Storage operations (AMERCO,
U-Haul and Real Estate) had cash available under existing credit facilities of
$42.7 million comprised of:




December 31, 2008(Unaudited)(In millions)Real estate loan (revolving credit)
                    
                    $
                    30.0Construction loan (revolving credit)
                    
                    
                    2.7Working capital loan (revolving credit)
                    
                    
                    10.0$
                    42.7




Cash provided by operating activities decreased by $50.0 million in
the first nine months of fiscal 2009, compared with fiscal 2008. Fiscal 2008
included a $20.0 million payment from SAC Holdings reducing their outstanding
note payable with AMERCO. The decrease in operating earnings in the Moving and
Storage segment has contributed to the decline in overall operating cash
flows.




Net cash used in investing activities decreased $108.2 million in the
first nine months of fiscal 2009, compared with fiscal 2008, largely due to a
shift in using operating leases for the majority of new truck acquisitions
instead of debt financing. Additionally, cash held at RepWest has increased from
investment maturities of which the proceeds have not yet been
reinvested.




Cash provided by financing activities decreased $80.1 million in the
first nine months of fiscal 2009, compared with fiscal 2008. As the allocation
of new truck financing has shifted from primarily debt to largely operating
leases, cash provided by debt financing has declined compared with the same
period last year.




Liquidity and Capital Resources and Requirements of Our Operating
Segments




Moving and Storage




To meet the needs of our customers, U-Haul maintains a large fleet of
rental equipment. Capital expenditures have primarily reflected new rental
equipment acquisitions and the buyouts of existing fleet from TRAC leases. The
capital to fund these expenditures has historically been obtained internally
from operations and the sale of used equipment, and externally from debt and
lease financing. In the future, we anticipate that our internally generated
funds will be used to service the existing debt and support operations. U-Haul
estimates that during fiscal 2009, the Company will reinvest in its truck and
trailer rental fleet up to approximately $350.0 million, net of equipment sales.
Through the first nine months of fiscal 2009, the Company has invested, net of
sales, approximately $336.0 million. Fleet investments beyond fiscal 2009 will
be dependent upon several factors including availability of capital, the truck
rental environment and the used-truck sales market. We anticipate that the
investments for the remainder of fiscal 2009 and into fiscal 2010 will be funded
largely through external lease financing, and supplemented with debt financing
and cash from operations. Management considers several factors including cost
and tax consequences when selecting a method to fund capital expenditures. Our
allocation between debt and lease financing can change from year to year based
upon financial market conditions which may alter the cost or availability of
financing options.


48




Real Estate has traditionally financed the acquisition of
self-storage properties to support U-Haul's growth through debt financing and
funds from operations and sales. The Company’s plan for the physical expansion
of owned storage properties includes the acquisition of existing self-storage
locations from third parties, the acquisition and development of bare land, and
the acquisition and redevelopment of existing buildings not currently used for
self-storage. The Company is funding these development projects through
construction loans and internally generated funds. For fiscal 2009, the Company
has committed nearly $80.0 million to new construction of which approximately
$45.6 million has not yet been spent and has allocated $70.0 million to new
acquisitions of which approximately $24.5 million has been spent and nearly
$14.0 million is in escrow. The timing of these projects is dependent upon
several factors including the entitlement process, availability of capital,
weather, and the identification and/or successful acquisition of target
properties. U-Haul's growth plan in self-storage also includes eMove, which does
not require significant capital.




Net capital expenditures (purchases of property, plant and equipment
less proceeds from the sale of property, plant and equipment and operating lease
fundings) were $210.5 million and $305.2 million in the first nine months of
fiscal 2009 and 2008, respectively. During the first nine months of fiscal 2009
and 2008, the Company entered into $265.5 million and $129.1 million,
respectively of new equipment operating leases.




Moving and Storage continues to hold significant cash and has access
to additional liquidity. Management may invest these funds in our existing
operations, expand our product lines or pursue external opportunities in the
self-moving and storage market place.




Property and Casualty Insurance




State insurance regulations restrict the amount of dividends that can
be paid to stockholders of insurance companies. As a result, RepWest’s assets
are generally not available to satisfy the claims of AMERCO or its legal
subsidiaries.




Stockholder’s equity was $146.4 million and $148.6 million at
September 30, 2008 and December 31, 2007, respectively. The decrease resulted
from earnings of $4.6 million offset by a dividend paid to AMERCO of $5.5
million, and a decrease in other comprehensive income of $4.8 million. RepWest
does not use debt or equity issues to increase capital and therefore has no
direct exposure to capital market conditions other than through its investment
portfolio.




Life Insurance




Oxford manages its financial assets to meet policyholder and other
obligations including investment contract withdrawals. Oxford’s net withdrawals
for the nine months ended September 30, 2008 was $25.4 million. State insurance
regulations restrict the amount of dividends that can be paid to stockholders of
insurance companies. As a result, Oxford’s funds are generally not available to
satisfy the claims of AMERCO or its legal subsidiaries.




Oxford’s stockholder’s equity was $154.1 million and $150.7 million
at September 30, 2008 and December 31, 2007, respectively. The increase resulted
from earnings of $8.7 million and a decrease in other comprehensive income of
$5.3 million. Oxford does not use debt or equity issues to increase capital and
therefore has no direct exposure to capital market conditions other than through
its investment portfolio.




Cash Provided from Operating Activities by Operating
Segments




Moving and Storage




Cash provided from operating activities were $253.7 million and
$305.4 million in the first nine months of fiscal 2009 and 2008, respectively.
Fiscal 2008 included a $20.0 million payment from SAC Holdings reducing their
outstanding note payable with AMERCO and the decrease in operating earnings for
the first nine months of fiscal 2009.




Property and Casualty Insurance




Cash flows used by operating activities were $3.4 million and $4.9
million for the nine months ended September 30, 2008 and 2007, respectively. The
decrease in cash flow used by operations is a result of the reduction of related
party assets and less of a reduction on reserves of terminated lines in 2008 in
comparison with 2007.




RepWest’s cash and cash equivalents and short-term investment
portfolio were $118.4 million and $79.3 million at September 30, 2008 and
December 31, 2007, respectively. This balance reflects funds in transition from
maturity proceeds to long term investments. Management believes this level of
liquid assets, combined with budgeted cash flow, is adequate to meet periodic
needs. Capital and operating budgets allow RepWest to schedule cash needs in
accordance with investment and underwriting proceeds


49




Life Insurance




Cash flows provided by operating activities were $2.6 million and
$0.6 million for the first nine months ended September 30, 2008 and 2007,
respectively. The increase was the result of an additional $2.0 million
principal payment in July 2007 to AMERCO on an intercompany surplus note as
compared with 2008.




In addition to cash flows from operating activities and financing
activities, a substantial amount of liquid funds are available through Oxford’s
short-term portfolio. At September 30, 2008 and December 31, 2007, cash and cash
equivalents and short-term investments amounted to $31.8 million and $37.7
million, respectively. Management believes that the overall sources of liquidity
will continue to meet foreseeable cash needs.




Liquidity and Capital Resources-Summary




We believe we have the financial resources needed to meet our
business plans and to meet our business requirements including capital
expenditures for the investment in and expansion of our rental fleet, rental
equipment and storage space, working capital requirements, and our preferred
stock dividend program.




Our borrowing strategy is primarily focused on asset-backed financing
and rental equipment operating leases. As part of this strategy, we seek to
ladder maturities and hedge floating rate loans through the use of interest rate
swaps. While each of these loans typically contain provisions governing the
amount that can be borrowed in relation to specific assets, the overall
structure is flexible with no limits on overall Company borrowings. Management
feels it has adequate liquidity between cash and cash equivalents and unused
borrowing capacity in existing facilities to meet the current and expected needs
of the Company over the next several years. At December 31, 2008, we had cash
availability under existing credit facilities of $42.7 million. It is possible
that circumstances beyond our control could alter the ability of the financial
institutions to lend us the unused lines of credit. Despite the current
financial market conditions, we believe that there are additional opportunities
for leverage in our existing capital structure. For a more detailed discussion
of our long-term debt and borrowing capacity, please see Note 3 Borrowings of
the Notes to Condensed Consolidated Financial Statements.




Fair Value of Financial Instruments




On April 1, 2008 we adopted SFAS 157. Effective on this date, assets
and liabilities recorded at fair value on the condensed consolidated balance
sheets were measured and classified based upon a three tiered approach to
valuation. SFAS 157 requires that financial assets and liabilities recorded at
fair value be classified and disclosed in a Level 1, Level 2 or Level 3
category. For more information, see Note 12 Fair Value Measurements of the Notes
to Condensed Consolidated Financial Statements.




The available-for-sale securities held by the Company are recorded at
fair value. These values are determined primarily from actively traded markets
where prices are based either on direct market quotes or observed transactions.
Liquidity is a factor considered during the determination of the fair value of
these securities. Market price quotes may not be readily available for certain
securities or the market for them has slowed or ceased. In situations where the
market is determined to be illiquid, fair value is determined based upon limited
available information and other factors including expected cash flows. At
December 31, 2008, we had $3.0 million of available-for-sale assets classified
in Level 3.




The interest rate swaps held by the Company as hedges against
interest rate risk for our variable rate debt are recorded at fair value. These
values are determined using pricing valuation models which include broker quotes
for which significant inputs are observable. They include adjustments for
counterparty credit quality and other deal-specific factors, where
appropriate.




Disclosures about Contractual Obligations and Commercial
Commitments




Our estimates as to future contractual obligations have not
materially changed from the disclosure included under the subheading
“Contractual Obligations” in Part II, Item 7, “Management’s Discussion and
Analysis of Financial Condition and Results of Operations,” of our Annual Report
on Form 10-K for the fiscal year ended March 31, 2008.




Off-Balance Sheet Arrangements




The Company uses off-balance sheet arrangements in situations where
management believes that the economics and sound business principles warrant
their use.




AMERCO utilizes operating leases for certain rental equipment and
facilities with terms expiring substantially through 2016, with the exception of
one land lease expiring in 2034. In the event of a shortfall in proceeds from
the sales of the underlying rental equipment assets, AMERCO has guaranteed
approximately $181.7 million of residual values at December 31, 2008 for these
assets at the end of their respective lease terms. AMERCO has been leasing
rental equipment since 1987. To date, we have not experienced residual value
shortfalls related to these leasing arrangements. Using the average cost of
fleet related debt as the discount rate, the present value of AMERCO’s minimum
lease payments and residual value guarantees was $629.3 million at December 31,
2008.


50




Historically, AMERCO used off-balance sheet arrangements in
connection with the expansion of our self-storage business. Refer to Note 8
Related Party Transactions of the Notes to Condensed Consolidated Financial
Statements. These arrangements were primarily used when the Company’s overall
borrowing structure was more limited. The Company does not face similar
limitations currently and off-balance sheet arrangements have not been utilized
in our self-storage expansion in recent years. In the future, the Company will
continue to identify and consider off-balance sheet opportunities to the extent
such arrangements would be economically advantageous to the Company and its
stockholders.




The Company currently manages the self-storage properties owned or
leased by SAC Holdings, Mercury, 4 SAC, 5 SAC, Galaxy, and Private Mini pursuant
to a standard form of management agreement, under which the Company receives a
management fee of between 4% and 10% of the gross receipts plus reimbursement
for certain expenses. The Company received management fees, exclusive of
reimbursed expenses, of $20.1 million and $19.4 million from the above mentioned
entities during the first nine months of fiscal 2009 and 2008, respectively.
This management fee is consistent with the fee received for other properties the
Company previously managed for third parties. SAC Holdings, 4 SAC, 5 SAC, Galaxy
and Private Mini are substantially controlled by Blackwater.  Mercury
is substantially controlled by Mark V. Shoen.  James P. Shoen, a
significant shareholder and director of AMERCO, has an interest in
Mercury.




The Company leases space for marketing company offices, vehicle
repair shops and hitch installation centers from subsidiaries of SAC Holdings, 5
SAC and Galaxy. Total lease payments pursuant to such leases were $1.8 million
and $1.5 million for the first nine months of fiscal 2009 and 2008,
respectively. The terms of the leases are similar to the terms of leases for
other properties owned by unrelated parties that are leased to the
Company.




At December 31, 2008, subsidiaries of SAC Holdings, 4 SAC, 5 SAC,
Galaxy and Private Mini acted as U-Haul independent dealers. The financial and
other terms of the dealership contracts with the aforementioned companies and
their subsidiaries are substantially identical to the terms of those with the
Company’s other independent dealers whereby commissions are paid by the Company
based on equipment rental revenues. The Company paid the above mentioned
entities $27.5 million and $28.7 million in commissions pursuant to such
dealership contracts during the first nine months of fiscal 2009 and 2008,
respectively.




These agreements along with notes with subsidiaries of SAC Holdings,
4 SAC, 5 SAC, Galaxy and Private Mini, excluding Dealer Agreements, provided
revenues of $30.2 million, expenses of $1.8 million and cash flows of $30.9
million during the first nine months of fiscal 2009. Revenues and commission
expenses related to the Dealer Agreements were $130.1 million and $27.5 million,
respectively.




During the first nine months of fiscal 2009, subsidiaries of the
Company held various junior unsecured notes of SAC Holdings. The Company does
not have an equity ownership interest in SAC Holdings. The Company recorded
interest income of $13.8 million and $14.0 million, and received cash interest
payments of $11.6 million and $14.9 million, from SAC Holdings during the first
nine months of fiscal 2009 and 2008, respectively. The largest aggregate amount
of notes receivable outstanding during the first nine months of fiscal 2009 was
$198.1 million and the aggregate notes receivable balance at December 31, 2008
was $197.7 million. In accordance with the terms of these notes, SAC Holdings
may repay the notes without penalty or premium at any time.




Fiscal 2010 Outlook




In the fourth quarter of fiscal 2009 and into fiscal 2010, we are
focused on increasing transaction volume and improving pricing, product mix and
utilization for self-moving equipment rentals. Investing in our truck fleet is a
key initiative to reach these goals. During the first nine months of fiscal
2009, we have added nearly 17,000 new trucks. Our plans include manufacturing
additional box trucks and maintaining our pickup and cargo van fleet. This
investment is expected to increase the availability of our equipment to meet our
customer demands and to reduce future spending on repair costs and equipment
downtime. Revenue in the U-Move program could continue to be adversely impacted
should we fail to execute in any of these areas. Even if we execute our plans we
could see declines in revenues primarily due to the adverse economic conditions
that are beyond our control.




We are also working towards increasing our storage occupancy at
existing sites, adding new eMove Storage Affiliates and building new locations.
We believe that occupancy gains in our current portfolio of locations can be
realized in fiscal 2010. While the Company saw increased storage revenue in
fiscal 2008 due to pricing, this trend may not continue. The Company continues
to evaluate new moving and storage opportunities in the market place including
the introduction of portable storage in selected markets.


51




RepWest will continue to provide loss adjusting and claims handling
for U-Haul and underwrite components of the Safemove, Safetow and Safestor
protection packages to U-Haul customers.




Oxford is pursuing its goals of expanding its presence in the senior
market through the sales of its Medicare supplement, life and annuity policies.
As part of this strategy, Oxford is focused on growing its agency force and
developing new product offerings.




Cautionary Statements Regarding Forward-Looking
Statements




This Quarterly Report on Form 10-Q, contains “forward-looking
statements” regarding future events and our future results. We may make
additional written or oral forward-looking statements from time to time in
filings with the SEC or otherwise. We believe such forward-looking statements
are within the meaning of the safe-harbor provisions of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. Such statements may include, but are not limited to,
projections of revenues, earnings or loss; estimates of capital expenditures,
plans for future operations, products or services; financing needs and plans;
our perceptions of our legal positions and anticipated outcomes of government
investigations and pending litigation against us; liquidity; goals and
strategies; plans for new business; storage occupancy; growth rate assumptions,
pricing, costs, and access to capital and leasing markets 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. Factors that
could significantly affect results include, without limitation, the risk factors
set forth in the section entitled “Item 1A. Risk Factors” contained in our
Annual Report on Form 10-K for the fiscal year ended March 31, 2008 and in this
Quarterly Report on Form 10-Q, as well as the following: the Company’s ability
to operate pursuant to the terms of its credit facilities; the Company’s ability
to maintain contracts that are critical to its operations; the costs and
availability of financing; the Company’s ability to execute its business plan;
the Company’s ability to attract, motivate and retain key employees; general
economic conditions; fluctuations in our costs to maintain and update our fleet
and facilities; our ability to refinance our debt; 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 report or the other documents we
file with the SEC. The above factors, the following disclosures, as well as
other statements in this report and in the Notes to Condensed Consolidated
Financial Statements, could contribute to or cause such risks or uncertainties,
or could cause our stock price to fluctuate dramatically. Consequently, the
forward-looking statements should not be regarded as representations or
warranties by the Company that such matters will be realized. The Company
assumes no obligation to update or revise any of the forward-looking statements,
whether in response to new information, unforeseen events, changed circumstances
or otherwise.




Item
3.                     Quantitative and Qualitative
Disclosures about Market Risk




We are
exposed to financial market risks, including changes in interest rates and
currency exchange rates. To mitigate these risks, we may utilize derivative
financial instruments, among other strategies. We do not use derivative
financial instruments for speculative purposes.


52




Interest
rate risk




The
exposure to market risk for changes in interest rates relates primarily to our
variable rate debt obligations. We have used interest rate swap agreements,
interest rate cap agreements and forward swaps to reduce our exposure to changes
in interest rates. The Company enters into these arrangements with
counterparties that are significant financial institutions with whom we
generally have other financial arrangements. We are exposed to credit risk
should these counterparties not be able to perform on their
obligations.




Notional
      Amount
                  
                  Fair
      Value
                  
                  Effective
      Date
                  Expiration
      Date
                  
                  Fixed
      Rate
                  
                  Floating
      Rate(Unaudited)(In
      thousands)$
                  78,793
                  
                  (a),
      (b)
                  
                  
                  (6,707
                  )
                  5/10/2006
                  4/10/2012
                  
                  
                  5.06
                  %
                  1
      Month LIBOR88,273
                  
                  (a),
      (b)
                  
                  
                  (8,564
                  )
                  10/10/2006
                  10/10/2012
                  
                  
                  5.57
                  %
                  1
      Month LIBOR29,360
                  
                  (a)
                  
                  
                  (3,407
                  )
                  7/10/2006
                  7/10/2013
                  
                  
                  5.67
                  %
                  1
      Month LIBOR276,667
                  
                  (a)
                  
                  
                  (56,940
                  )
                  8/18/2006
                  8/10/2018
                  
                  
                  5.43
                  %
                  1
      Month LIBOR20,250
                  
                  (a)
                  
                  
                  (2,136
                  )
                  2/12/2007
                  2/10/2014
                  
                  
                  5.24
                  %
                  1
      Month LIBOR13,750
                  
                  (a)
                  
                  
                  (1,366
                  )
                  3/10/2007
                  3/10/2014
                  
                  
                  4.99
                  %
                  1
      Month LIBOR13,750
                  
                  (a)
                  
                  
                  (1,355
                  )
                  3/10/2007
                  3/10/2014
                  
                  
                  4.99
                  %
                  1
      Month LIBOR18,000
                  
                  (a),
      (b)
                  
                  
                  (1,045
                  )
                  8/15/2008
                  6/15/2015
                  
                  
                  3.62
                  %
                  1
      Month LIBOR18,050
                  
                  (a)
                  
                  
                  (1,310
                  )
                  8/29/2008
                  7/10/2015
                  
                  
                  4.04
                  %
                  1
      Month LIBOR28,500
                  
                  (a)
                  
                  
                  (2,147
                  )
                  9/30/2008
                  9/10/2015
                  
                  
                  4.16
                  %
                  1
      Month LIBOR(a)
      interest rate swap agreement(b)
      forward swap









As of
December 31, 2008, the Company had approximately $787.0 million of variable rate
debt obligations. If LIBOR were to increase 100 basis points, the increase in
interest expense on the variable rate debt would decrease future earnings and
cash flows by approximately $2.0 million annually (after consideration of the
effect of the above derivative contracts).




Additionally,
our insurance subsidiaries’ fixed income investment portfolios expose the
Company to interest rate risk. This interest rate risk is the price sensitivity
of a fixed income security to a change in interest rates. As part of our
insurance companies’ asset and liability management, actuaries estimate the cash
flow patterns of our existing liabilities to determine their duration. These
outcomes are compared to the characteristics of the assets that are currently
supporting these liabilities assisting management in determining an asset
allocation strategy for future investments that management believes will
mitigate the overall effect of interest rates.




Foreign
Currency Exchange Rate Risk




The
exposure to market risk for changes in foreign currency exchange rates relates
primarily to our Canadian business. Approximately 6.0% and 5.6% of our revenue
in the first nine months of fiscal 2009 and 2008, respectively were generated in
Canada. The result of a 10.0% change in the value of the U.S. dollar relative to
the Canadian dollar would not be material. We typically do not hedge any foreign
currency risk since the exposure is not considered material.




Item
4.                      Controls and
Procedures






Attached
as exhibits to this Form 10-Q are certifications of the registrants’ Chief
Executive Officer (“CEO”) and Chief Accounting Officer (“CAO”), which are
required in accordance with Rule 13a-14 of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”). This "Controls and Procedures" section includes
information concerning the controls and procedures evaluation referred to in the
certifications and it should be read in conjunction with the certifications for
a more complete understanding of the topics presented in Evaluation of
Disclosure Controls and Procedures.


53




Evaluation
of Disclosure Controls and Procedures




The
Company’s management, with the participation of the CEO and CAO, conducted an
evaluation of the effectiveness of the design and operation of the Company’s
"disclosure controls and procedures" (as such term is defined in the Exchange
Act Rules 13a-15(e) and 15d-15(e)) (“Disclosure Controls”) as of the end of the
period covered by this Form 10-Q. Our Disclosure Controls are designed to
reasonably assure that information required to be disclosed in our reports filed
under the Exchange Act, such as this Form 10-Q, is recorded, processed,
summarized and reported within the time periods specified in the SEC's rules and
forms. Our Disclosure Controls are also designed to reasonably assure that such
information is accumulated and communicated to our management, including the CEO
and CAO, as appropriate to allow timely decisions regarding required disclosure.
Based upon the controls evaluation, our CEO and CAO have concluded that as of
the end of the period covered by this Form 10-Q, our Disclosure Controls were
effective related to the above stated design purposes.




Inherent
Limitations on the Effectiveness of Controls




The
Company's management, including the CEO and CAO, does not expect that our
Disclosure Controls or our internal control over financial reporting will
prevent or detect all error and all fraud. A control system, no matter how well
designed and operated, can provide only reasonable, not absolute, assurance that
the control system's objectives will be met. The design of a control system must
reflect the fact that there are resource constraints, and the benefits of
controls must be considered relative to their costs. Further, because of the
inherent limitations in all control systems, no evaluation of controls can
provide absolute assurance that misstatements due to error or fraud will not
occur or that all control issues and instances of fraud, if any, within the
Company have been detected. These inherent limitations include the realities
that judgments in decision-making can be faulty and that breakdowns can occur
because of simple error or mistake. Controls can also be circumvented by the
individual acts of some persons, by collusion of two or more people, or by
management override of the controls. The design of any system of controls is
based in part on certain assumptions about the likelihood of future events, and
there can be no assurance that any design will succeed in achieving its stated
goals under all potential future conditions. Projections of any evaluation of
controls effectiveness to future periods are subject to risks. Over time,
controls may become inadequate because of changes in conditions or deterioration
in the degree of compliance with policies or procedures.




Changes
in Internal Control over Financial Reporting




There
have not been any changes in the Company’s internal control over financial
reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the
Exchange Act) during the most recent fiscal quarter that have materially
affected, or are reasonably likely to materially affect, the Company’s internal
control over financial reporting.







54


PART
II. OTHER INFORMATION






Item 1. Legal Proceedings




Information regarding our legal proceedings can be found under Note
7 Contingencies of the Notes to Condensed Consolidated Financial
Statements.




Item 1A. Risk Factors




We are
not aware of any material updates to the risk factors described in the Company’s
previously filed Annual Report on Form 10-K for the fiscal year ended March 31,
2008 and Quarterly Report on Form 10-Q for the quarter ended September 30,
2008.




Item 2. Unregistered Sales of Equity Securities and Use of
Proceeds




On December 5, 2007, we announced that the
Board had authorized us to repurchase up to $50.0 million of our common stock.
The stock was repurchased by the Company from time to time on the open market
through December 31, 2008. The extent to which the Company repurchased its
shares and the timing of such purchases were dependent upon market conditions
and other corporate considerations. The purchases were funded from available
working capital. During the third quarter of fiscal 2009, no shares of our
common stock were repurchased, with the exception of the shares repurchased
under our Odd Lot Repurchase Program detailed below. This program terminated on
December 31, 2008.




Period
                  
                  Total
      # of Shares Repurchased
                  
                  
                  Average
      Price Paid per Share (1)
                  
                  
                  Total
      # of Shares Repurchased as Part of Publicly Announced Plan
                  
                  
                  Total
      $ of Shares Repurchased as Part of Publicly Announced Plan
                  
                  
                  Maximum
      $ of Shares That May Yet be Repurchased Under the Plan(Unaudited)Cumulative
      Plan Total
                  
                  
                  428,000
                  
                  
                  $
                  54.94
                  
                  
                  
                  428,000
                  
                  
                  $
                  23,512,380
                  
                  
                  $
                  26,487,620(1)
      Represents weighted average purchase price for the periods
      presented.









On August
8, 2008, we announced the Board had authorized us to initiate a no-fee Odd Lot
Repurchase Program to purchase AMERCO common stock held by persons who own less
than 100 shares of AMERCO common stock. The Program offer expired at 5:00 p.m.
Eastern Standard Time on December 31, 2008. The following table details the
shares purchased as part of the Program.




Period
                        
                        Total
      # of Shares Repurchased
                        
                        
                        Average
      Price Paid per Share (1)
                        
                        
                        Total
      $ of Shares Repurchased as Part of Odd Lot Program(Unaudited)Second
      Quarter Total
                        
                        
                        15,679
                        
                        
                        $
                        42.04
                        
                        
                        $
                        659,205October
      1 - 31, 2008
                        
                        
                        4,786
                        
                        
                        $
                        42.37
                        
                        
                        $
                        202,804November
      1 - 30, 2008
                        
                        
                        2,147
                        
                        
                        
                        38.26
                        
                        
                        
                        82,141December
      1 - 31, 2008
                        
                        
                        519
                        
                        
                        
                        35.68
                        
                        
                        
                        18,517Third
      Quarter Total
                        
                        
                        7,452
                        
                        
                        $
                        40.72
                        
                        
                        $
                        303,462Cumulative
      Plan Total
                        
                        
                        23,131
                        
                        
                        $
                        41.62
                        
                        
                        $
                        962,667(1)
      Represents weighted average purchase price for the periods
      presented.







55




On
December 3, 2008, the Board authorized and directed us to amend the Employee
Stock Ownership Plan (“ESOP”) to provide that distributions under the Plan with
respect to accounts valued at no more than $1,000 shall be in the form of cash
at the sole discretion of the advisory committee, subject to a participant’s or
beneficiary’s right to elect a distribution of AMERCO common stock. The Board
also authorized us, using management’s discretion, to buy back shares of former
employee ESOP participants whose respective ESOP account balances are valued at
more than $1,000 but who own less than 100 shares, at the then-prevailing market
prices. During the third quarter of fiscal 2009, no such shares were
purchased.




Item 3. Defaults upon Senior Securities




Not
applicable.




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




Not
applicable.




Item 5. Other Information




Not
applicable.




Item 6. Exhibits




The
following documents are filed as part of this report:







Exhibit
      Number
            Description
            Page
      or Method of Filing3.1
            Restated
      Articles of Incorporation of AMERCO
            Incorporated
      by reference to Exhibit 3.1 to AMERCO’s Registration Statement on form S-4
      filed March 30, 2004, file number 1-112553.2
            Restated
      By-Laws of AMERCO
            Incorporated
      by reference to AMERCO’s Current Report on Form 8-K filed on December 5,
      2007, file No. 1-1125531.1
            Rule
      13a-14(a)/15d-14(a) Certificate of Edward J. Shoen, President and Chairman
      of the Board of AMERCO
            Filed
      herewith31.2
            Rule
      13a-14(a)/15d-14(a) Certificate of Jason A. Berg, Chief Accounting Officer
      of AMERCO
            Filed
      herewith32.1
            Certificate
      of Edward J. Shoen, President and Chairman of the Board of AMERCO pursuant
      to Section 906 of the Sarbanes-Oxley Act of 2002
            Furnished
      herewith32.2
            Certificate
      of Jason A. Berg, Chief Accounting Officer of AMERCO pursuant to Section
      906 of the Sarbanes-Oxley Act of 2002
            Furnished
      herewith


56


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








Date:  February
4,
2009                                                                                  
  /s/
Edward J.
Shoen


Edward J. Shoen


President and Chairman of the Board


(Duly Authorized Officer)








Date:  February
4,
2009                                                                                                        
 /s/ Jason A.
Berg


Jason A. Berg


Chief Accounting Officer


(Principal Financial Officer)











57