##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

(X)  QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2002

OR

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

For the transition period from __________________ to __________________



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

|        |  |                              |  |           
|------- |  | ---------------------------- |  | ----------
|1-11255 |  | AMERCO                       |  | 88-0106815
|       
|       
|       
|       
|        |  | (A Nevada Corporation)       |  |           
|       
|       
|       
|       
|        |  | 1325 Airmotive Way, Ste. 100 |  |           
|       
|       
|       
|       
|        |  | Reno, Nevada 89502-3239      |  |           
|       
|       
|       
|       
|        |  | Telephone (775) 688-6300     |  |           
|       
|       
|       
|       
|        |  |                              |  |           
|       
|       
|       
|       
|2-38498 |  | U-Haul International, Inc.   |  | 86-0663060
|       
|       
|       
|       
|        |  | (A Nevada Corporation)       |  |           
|       
|       
|       
|       
|        |  | 2727 N. Central Avenue       |  |           
|       
|       
|       
|       
|        |  | Phoenix, Arizona 85004       |  |           
|       
|       
|       
|       
|        |  | Telephone (602) 263-6645     |  |           

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

20,566,308 shares of AMERCO Common Stock, $0.25 par value were outstanding at
August 16, 2002.

5,385 shares of U-Haul International, Inc. Common Stock, $0.01 par value, were
outstanding at August 12, 2002. U-Haul International, Inc. meets the conditions
set forth in General Instruction H(1)(a) and (b) of Form 10-Q and is therefore
filing this form with the reduced disclosure format.

1



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TABLE OF CONTENTS



|                              |                                                                                                                    |  |  |  |  |  |  | 
|----------------------------- | ------------------------------------------------------------------------------------------------------------------ |  |  |  |  |  |  | 
|                              | ITEM 1. FINANCIAL STATEMENTS                                                                                      
|PART I. FINANCIAL INFORMATION
|ITEM 1. FINANCIAL STATEMENTS 
|                              | ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL                      CONDITION AND RESULTS OF OPERATIONS
|                              | ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                                
|PART II. OTHER INFORMATION   
|                              | ITEM 1. LEGAL PROCEEDINGS                                                                                         
|                              | ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K                                                                          
|SIGNATURES                   
|Index of Exhibits            
|Exhibit 99.1                 
|Exhibit 99.2                 
|Exhibit 99.3                 
|Exhibit 99.4                 



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##### Table of Contents



TABLE OF CONTENTS

|         |  |                                                             |  |                                                                                                                                   |    |  |    | 
|-------- |  | ----------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------- | -- |  | -- | 
|PART I.  |  | FINANCIAL INFORMATION                                       |  |                                                                                                                                   |    | 
|        
|        
|        
|        
|Item 1.  |  | Financial Statements                                        |  |                                                                                                                                   |    | 
|        
|        
|        
|        
|         |  |                                                             |  | a) Condensed Consolidated Balance Sheets as of June 30, 2002 (unaudited)
and March 31, 2002                                       |    |  | 3  | 
|        
|        
|        
|        
|         |  |                                                             |  | b) Condensed Consolidated Statements of Earnings for the Quarters ended
June 30, 2002 and 2001 (unaudited)                        |    |  | 5  | 
|        
|        
|        
|        
|         |  |                                                             |  | c) Condensed Consolidated Statements of Comprehensive Income for the
Quarters ended June 30, 2002 and 2001 (unaudited)            |    |  | 6  | 
|        
|        
|        
|        
|         |  |                                                             |  | d) Condensed Consolidated Statements of Cash Flows for the Quarters
ended June 30, 2002 and 2001 (unaudited)                      |    |  | 7  | 
|        
|        
|        
|        
|         |  |                                                             |  | e) Notes to Condensed Consolidated Financial Statements -
June 30, 2002 (unaudited), March 31, 2002 and
June 30, 2001 (unaudited) |    |  | 8  | 
|        
|        
|        
|        
|Item 2.  |  | Managements Discussion and Analysis of Financial Condition |  |                                                                                                                                   |    | 
|        
|        
|        
|        
|         |  |                                                             |  | and Results of Operations                                                                                                         |    |  | 16 | 
|        
|        
|        
|        
|Item 3.  |  | Quantitative and Qualitative Disclosures About Market Risk  |  |                                                                                                                                   | 22 | 
|        
|        
|        
|        
|PART II. |  | OTHER INFORMATION                                           |  |                                                                                                                                   |    | 
|        
|        
|        
|        
|Item 1.  |  | Legal Proceedings                                           |  |                                                                                                                                   | 23 | 
|        
|        
|        
|        
|Item 6.  |  | Exhibits and Reports on Form 8-K                            |  |                                                                                                                                   | 24 | 

2



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##### Table of Contents









PART I. FINANCIAL INFORMATION




ITEM 1. FINANCIAL STATEMENTS

AMERCO AND CONSOLIDATED SUBSIDIARIES AND
SAC HOLDING CORPORATIONS AND CONSOLIDATED SUBSIDIARIES
Condensed Consolidated Balance Sheets

|                                        |                                      |      |             |            |           |  |                |            |  
|--------------------------------------- | ------------------------------------ | ---- | ----------- | ---------- | --------- |  | -------------- | ---------- | -
|                                        |                                      |      | June 30,    |            | March 31,
|Assets                                  |                                      | 2002 |             | 2002      
|                                        |                                      |      |             |           
|                                        |                                      |      | (Unaudited) |            |           |  |               
|                                        |                                      |      |             |            |           |  | (in thousands)
|Cash and cash equivalents               |                                      | $    | 38,204      |            |           |  | 47,651         |           
|                                       
|                                       
|                                       
|                                       
|Inventories, net                        |                                      |      | 66,075      |            |           |  | 76,519         |           
|                                       
|                                       
|                                       
|                                       
|Prepaid expenses                        |                                      |      | 35,988      |            |           |  | 31,069         |           
|                                       
|                                       
|                                       
|                                       
|Investments, fixed maturities           |                                      |      | 968,430     |            |           |  | 994,875        |           
|                                       
|                                       
|                                       
|                                       
|Investments, other                      |                                      |      | 255,438     |            |           |  | 250,458        |           
|                                       
|                                       
|                                       
|                                       
|Other assets                            |                                      |      | 456,899     |            |           |  | 457,980        |           
|                                        |                                      |      |             |            |           |  |                |           
|                                        |                                      |      | 1,821,034   |            |           |  | 1,858,552      |           
|                                        |                                      |      |             |            |           |  |                |           
|Property, plant and equipment, at cost: |                                      |      |             |            |           |  |                |           
|                                       
|                                       
|                                       
|                                       
|                                        | Buildings and improvements           |      |             | 1,173,582  |           |  |                | 1,161,918  |  
|                                       
|                                       
|                                       
|                                       
|                                        | Rental trucks                        |      |             | 1,111,053  |           |  |                | 1,071,604  |  
|                                       
|                                       
|                                       
|                                       
|                                        | Other property, plant, and equipment |      |             | 892,701    |           |  |                | 892,563    |  
|                                        |                                      |      |             |            |           |  |                |           
|                                        |                                      |      | 3,177,336   |            |           |  | 3,126,085      |           
|                                       
|                                       
|                                       
|                                       
|                                        | Less accumulated depreciation        |      |             | (1,235,435 | )         |  |                | (1,211,182 | )
|                                        |                                      |      |             |            |           |  |                |           
|Total property, plant and equipment     |                                      |      | 1,941,901   |            |           |  | 1,914,903      |           
|                                        |                                      |      |             |            |           |  |                |           
|Total Assets                            |                                      | $    | 3,762,935   |            |           |  | 3,773,455      |           
|                                        |                                      |      |             |            |           |  |                |           

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

3



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##### Table of Contents



AMERCO AND CONSOLIDATED SUBSIDIARIES
AND
SAC HOLDING CORPORATIONS AND CONSOLIDATED SUBSIDIARIES

Condensed Consolidated Balance Sheets, Continued

|                                           |                                                              |                          |                            |           |                |           |           |           |   |           | 
|------------------------------------------ | ------------------------------------------------------------ | ------------------------ | -------------------------- | --------- | -------------- | --------- | --------- | --------- | - | --------- | 
|Liabilities and                            |                                                              | June 30,                 |                            | March 31,
|Stockholders Equity                       |                                                              | 2002                     |                            | 2002     
|                                           |                                                              |                          |                            |          
|                                           |                                                              |                          |                            |           | (Unaudited)    |           |           |           |  
|                                           |                                                              |                          |                            |           | (in thousands)
|Liabilities:                               |                                                              |                          |                            |           |                |           |           |          
|                                          
|                                          
|                                          
|                                          
|                                           | AMERCOs notes and loans payable                             |                          | $                          | 898,517   |                |           |           | 1,045,802 |  
|                                          
|                                          
|                                          
|                                          
|                                           | SAC Holdings notes and loans payable                        |                          |                            | 588,648   |                |           |           | 557,761   |  
|                                          
|                                          
|                                          
|                                          
|                                           | Policy benefits and losses, claims and
loss expenses payable |                          |                            | 735,834   |                |           |           | 729,343   |  
|                                          
|                                          
|                                          
|                                          
|                                           | Liabilities from premium deposits                            |                          |                            | 590,523   |                |           |           | 572,793   |  
|                                          
|                                          
|                                          
|                                          
|                                           | Other liabilities                                            |                          |                            | 420,673   |                |           |           | 368,650   |  
|                                           |                                                              |                          |                            |           |                |           |           |          
|                                           |                                                              |                          | Total liabilities          |           |                | 3,234,195 |           |           |   | 3,274,349 | 
|                                          
|                                          
|                                          
|                                          
|Contingent liabilities and commitments     |                                                              |                          |                            |           |                |           |           |          
|                                          
|                                          
|                                          
|                                          
|Stockholders equity:                      |                                                              |                          |                            |           |                |           |           |          
|                                          
|                                          
|                                          
|                                          
|                                           | Serial
preferred stock -                                     |                          |                            |          |                |           |           |          |  
|                                          
|                                          
|                                          
|                                          
|                                           | Series A preferred stock                                     |                          |                            |           |                |           |           |           |  
|                                          
|                                          
|                                          
|                                          
|                                           |                                                              | Series B preferred stock |                            |           |               |           |           |           |  |          
|                                          
|                                          
|                                          
|                                          
|                                           | Serial common stock -                                        |                          |                            | 1,441     |                |           |           | 1,441     |  
|                                          
|                                          
|                                          
|                                          
|                                           | Series A common stock                                        |                          |                            |           |                |           |           |           |  
|                                          
|                                          
|                                          
|                                          
|                                           | Common stock                                                 |                          |                            | 9,122     |                |           |           | 9,122     |  
|                                          
|                                          
|                                          
|                                          
|                                           | Additional paid-in capital                                   |                          |                            | 263,045   |                |           |           | 267,712   |  
|                                          
|                                          
|                                          
|                                          
|                                           | Accumulated other comprehensive income                       |                          |                            | (34,687   | )              |           |           | (32,384   | )
|                                          
|                                          
|                                          
|                                          
|                                           | Retained earnings                                            |                          |                            | 755,037   |                |           |           | 716,614   |  
|                                          
|                                          
|                                          
|                                          
|                                           | Cost of common shares in treasury, net                       |                          |                            | (450,982  | )              |           |           | (449,247  | )
|                                          
|                                          
|                                          
|                                          
|                                           | Unearned ESOP shares                                         |                          |                            | (14,236   | )              |           |           | (14,152   | )
|                                           |                                                              |                          |                            |           |                |           |           |          
|                                           |                                                              |                          | Total stockholders equity |           |                | 528,740   |           |           |   | 499,106   | 
|                                           |                                                              |                          |                            |           |                |           |           |          
|Total Liabilities and Stockholders Equity |                                                              | $                        | 3,762,935                  |           |                |           | 3,773,455 |          
|                                           |                                                              |                          |                            |           |                |           |           |          

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

4



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##### Table of Contents



AMERCO AND CONSOLIDATED SUBSIDIARIES AND
SAC HOLDING CORPORATIONS AND CONSOLIDATED SUBSIDIARIES

Condensed Consolidated Statements of Earnings

Quarters ended June 30,
(Unaudited)

|                                                              |                                                   |                                 |            |                           |         |      |            |         |         |  
|------------------------------------------------------------- | ------------------------------------------------- | ------------------------------- | ---------- | ------------------------- | ------- | ---- | ---------- | ------- | ------- | -
|                                                              |                                                   |                                 |            | 2002                      |         | 2001
|                                                              |                                                   |                                 |            |                           |         |     
|                                                              |                                                   |                                 |            | (in thousands, except    
|                                                              |                                                   |                                 |            | share and per share data)
|                                                              |                                                   |                                 |            |                          
|Revenues                                                      |                                                   |                                 |            |                           |         |      |            |        
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Rental revenue                                    |                                 |            | 375,854                   |         |      |            | 356,440 |        
|                                                              | Net sales                                         |                                 |            | 68,188                    |         |      |            | 68,789  |        
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Premiums                                          |                                 |            | 87,550                    |         |      |            | 100,330 |        
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Net investment and interest income                |                                 |            | 13,765                    |         |      |            | 7,844   |        
|                                                              |                                                   |                                 |            |                           |         |      |            |        
|                                                              |                                                   | Total revenues                  |            |                           | 545,357 |      |            |         | 533,403 |  
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|Costs and expenses                                            |                                                   |                                 |            |                           |         |      |            |        
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Operating expenses                                |                                 | 262,786    |                           |         |      | 262,879    |        
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Cost of sales                                     |                                 |            | 33,303                    |         |      |            | 36,438  |        
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Benefits and losses                               |                                 |            | 76,418                    |         |      |            | 91,432  |        
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Amortization of deferred policy
acquisition costs |                                 |            | 10,328                    |         |      |            | 9,794   |        
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Lease expense                                     |                                 |            | 40,823                    |         |      |            | 46,641  |        
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Depreciation, net                                 |                                 |            | 32,084                    |         |      |            | 32,545  |        
|                                                              |                                                   |                                 |            |                           |         |      |            |        
|                                                              |                                                   | Total costs and expenses        |            |                           | 455,742 |      |            |         | 479,729 |  
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|Earnings from operations                                      |                                                   |                                 | 89,615     |                           |         |      | 53,674     |        
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Interest expense                                  |                                 |            | 26,932                    |         |      |            | 20,662  |        
|                                                              |                                                   |                                 |            |                           |         |      |            |        
|Pretax earnings                                               |                                                   |                                 | 62,683     |                           |         |      | 33,012     |        
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|Income tax expense                                            |                                                   |                                 | (22,144    | )                         |         |      | (12,111    | )      
|                                                              |                                                   |                                 |            |                           |         |      |            |        
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              |                                                   | Net earnings                    |            | $                         | 40,539  |      |            |         | 20,901  |  
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              |                                                   | Less:
preferred stock dividends |            |                           | (3,241  | )    |            |         | (3,241  | )
|                                                              |                                                   |                                 |            |                           |         |      |            |        
|Basic
and diluted earnings available to common share holders: |                                                   |                                 | 37,298     |                           |         |      | 17,660     |        
|                                                              |                                                   |                                 |            |                           |         |      |            |        
|Basic and diluted earnings per common share:                  |                                                   | $                               | 1.81       |                           |         |      | 0.83       |        
|                                                              |                                                   |                                 |            |                           |         |      |            |        
|Basic and diluted average common shares
outstanding:          |                                                   |                                 | 20,592,858 |                           |         |      | 21,280,361 |        
|                                                              |                                                   |                                 |            |                           |         |      |            |        

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

5



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##### Table of Contents



AMERCO AND CONSOLIDATED SUBSIDIARIES AND
SAC HOLDING CORPORATIONS AND CONSOLIDATED SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income

Quarters ended June 30,
(Unaudited)

|                      |                                        |                                      |        |                |        |      |        |  |        | 
|--------------------- | -------------------------------------- | ------------------------------------ | ------ | -------------- | ------ | ---- | ------ |  | ------ | 
|                      |                                        |                                      |        | 2002           |        | 2001
|                      |                                        |                                      |        |                |        |     
|                      |                                        |                                      |        | (in thousands)
|Comprehensive income: |                                        |                                      |        |                |        |      |        | 
|                     
|                     
|                     
|                     
|Net earnings          |                                        | $                                    | 40,539 |                |        |      | 20,901 | 
|                     
|                     
|                     
|                     
|                      | Changes in other comprehensive income: |                                      |        |                |        |      |        |  |       
|                     
|                     
|                     
|                     
|                      |                                        | Foreign currency translation         |        |                | 1,035  |      |        |  | 1,497  | 
|                     
|                     
|                     
|                     
|                      |                                        | Fair market value of cash flow hedge |        |                |        |      |        |  | 357    | 
|                     
|                     
|                     
|                     
|                      |                                        | Unrealized gain (loss)on investments |        |                | (3,338 | )    |        |  | 8,789  | 
|                      |                                        |                                      |        |                |        |      |        | 
|                      |                                        | Total comprehensive income           |        | $              | 38,236 |      |        |  | 31,544 | 
|                      |                                        |                                      |        |                |        |      |        | 

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

6



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##### Table of Contents



AMERCO AND CONSOLIDATED SUBSIDIARIES AND
SAC HOLDING CORPORATIONS AND CONSOLIDATED SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

Quarters ended June 30,
(Unaudited)

|                                                 |                                    |                                                                        |         |                |          |      |         |       |          |  
|------------------------------------------------ | ---------------------------------- | ---------------------------------------------------------------------- | ------- | -------------- | -------- | ---- | ------- | ----- | -------- | -
|                                                 |                                    |                                                                        |         | 2002           |          | 2001
|                                                 |                                    |                                                                        |         |                |          |     
|                                                 |                                    |                                                                        |         | (in thousands)
|Net cash provided
by operating activities        |                                    | $                                                                      | 100,347 |                |          |      | 54,107  |      
|                                                
|                                                
|                                                
|                                                
|Cash flows from investing activities:            |                                    |                                                                        |         |                |          |      |         |      
|                                                
|                                                
|                                                
|                                                
|                                                 | Purchases of investments:          |                                                                        |         |                |          |      |         |       |         
|                                                
|                                                
|                                                
|                                                
|                                                 |                                    | Property, plant and equipment                                          |         |                | (70,755  | )    |         |       | (106,484 | )
|                                                
|                                                
|                                                
|                                                
|                                                 |                                    | Fixed maturities                                                       |         |                | (60,986  | )    |         |       | (18,652  | )
|                                                
|                                                
|                                                
|                                                
|                                                 |                                    | Real estate

Mortgage loans                                            |         |                | (561     | )    |         |       | (561     | )
|                                                
|                                                
|                                                
|                                                
|                                                 | Proceeds from sale of investments: |                                                                        |         |                |          |      |         |       |         
|                                                
|                                                
|                                                
|                                                
|                                                 |                                    | Property, plant and equipment                                          |         |                | 16,688   |      |         |       | 13,887   |  
|                                                
|                                                
|                                                
|                                                
|                                                 |                                    | Fixed maturities                                                       |         |                | 70,324   |      |         |       | 31,696   |  
|                                                
|                                                
|                                                
|                                                
|                                                 |                                    | Mortgage loans                                                         |         |                |         |      |         |       | 3,817    |  
|                                                
|                                                
|                                                
|                                                
|                                                 | Changes in other investments       |                                                                        |         | 6,405          |          |      |         | 4,806 |         
|                                                 |                                    |                                                                        |         |                |          |      |         |      
|Net cash used by
investing activities            |                                    |                                                                        | (38,885 | )              |          |      | (71,491 | )    
|                                                 |                                    |                                                                        |         |                |          |      |         |      
|Cash flows from financing activities:            |                                    |                                                                        |         |                |          |      |         |      
|                                                
|                                                
|                                                
|                                                
|                                                 |                                    | Net change in short-term borrowings                                    |         |                | 17,015   |      |         |       | (13,578  | )
|                                                
|                                                
|                                                
|                                                
|                                                 |                                    | Principal payments on notes                                            |         |                | (129,539 | )    |         |       | 23,731   |  
|                                                
|                                                
|                                                
|                                                
|                                                 |                                    | Investment contract deposits                                           |         |                | 36,628   |      |         |       | 37,477   |  
|                                                
|                                                
|                                                
|                                                
|                                                 |                                    | Investment contract withdrawals                                        |         |                | (19,211  | )    |         |       | (35,713  | )
|                                                
|                                                
|                                                
|                                                
|                                                 |                                    | Proceeds from minority interest

Changes in other financing activities |         |                | 24,188   |      |         |       | (3,244   | )
|                                                 |                                    |                                                                        |         |                |          |      |         |      
|Net cash provided (used) by
financing activities |                                    |                                                                        | (70,919 | )              |          |      | 8,673   |      
|                                                 |                                    |                                                                        |         |                |          |      |         |      
|Decrease in cash and
cash equivalents            |                                    |                                                                        | (9,457  | )              |          |      | (8,711  | )    
|                                                
|                                                
|                                                
|                                                
|Cash and cash equivalents at
beginning of period |                                    |                                                                        | 47,661  |                |          |      | 52,788  |      
|                                                 |                                    |                                                                        |         |                |          |      |         |      
|Cash and cash equivalents at
end of period       |                                    | $                                                                      | 38,204  |                |          |      | 44,077  |      
|                                                 |                                    |                                                                        |         |                |          |      |         |      

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

7



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##### Table of Contents



AMERCO AND CONSOLIDATED SUBSIDIARIES AND
SAC HOLDING CORPORATIONS AND CONSOLIDATED SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

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

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION

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

SAC Holdings Corporation
(SAC Holdings), a Nevada corporation, is owned by
Mark V. Shoen. Mark V. Shoen is the beneficial owner of 15.6% of AMERCOs
common stock and is an executive officer of U-Haul.

PRINCIPLES OF CONSOLIDATION

The condensed consolidated financial statements presented here include the
accounts of AMERCO and its wholly-owned subsidiaries and SAC Holdings and its
consolidated subsidiaries. All material intercompany accounts and transactions
have been eliminated in consolidation. AMERCO has not, and has never had any,
ownership interest in SAC Holdings or any of SAC Holdings subsidiaries. The
condensed consolidated financial statements and notes are presented as
permitted by Form 10-Q and do not contain certain information included in
AMERCOs annual financial statements and notes. For a more detailed breakout
of the accounts of AMERCO, refer to AMERCOs Form 10-K.

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

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

The operating results and financial position of RepWest and Oxford have
been consolidated on the basis of a calendar year and, accordingly, are
determined on a one quarter lag for financial reporting purposes. There were
no effects related to intervening events, which would materially affect the
consolidated financial position or results of operations for the financial
statements presented herein.

Certain reclassifications have been made to the financial statements for
the quarter ended June 30, 2001 to conform with the current years
presentation.

8



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##### Table of Contents



AMERCO AND CONSOLIDATED SUBSIDIARIES AND
SAC HOLDING CORPORATIONS AND CONSOLIDATED SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements, Continued
(Unaudited)

2. INVESTMENTS

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

|                 |                                                     |           |         |            |  |            |                |        |  |           |        |        |   |  |         |         | 
|---------------- | --------------------------------------------------- | --------- | ------- | ---------- |  | ---------- | -------------- | ------ |  | --------- | ------ | ------ | - |  | ------- | ------- | 
|March 31, 2002   |                                                     |           |         |            |  | Gross      |                | Gross  |  | Estimated
|Consolidated     |                                                     | Amortized |         | unrealized |  | unrealized |                | market
|Held-to-Maturity |                                                     | cost      |         | gains      |  | losses     |                | value 
|                 |                                                     |           |         |            |  |            |                |       
|                 |                                                     |           |         |            |  |            | (in thousands) |        |  |           |       
|                 |                                                     |           |         |            |  |            |                |        |  |           |        |        |   |  |         |        
|                
|                
|                
|                
|                 | U.S. treasury
securities
and government
obligations |           | $       | 3,223      |  |            |                | 170    |  |           |        |       |   |  |         | 3,393   | 
|                
|                
|                
|                
|                 | U.S. government
agency mortgage-
backed securities  |           |         | 7,375      |  |            |                | 254    |  |           |        | (1     | ) |  |         | 7,628   | 
|                
|                
|                
|                
|                 | Corporate
securities                                |           |         | 38,416     |  |            |                | 587    |  |           |        | (749   | ) |  |         | 38,254  | 
|                
|                
|                
|                
|                 | Mortgage-backed
securities                          |           |         | 22,097     |  |            |                | 634    |  |           |        | (32    | ) |  |         | 22,699  | 
|                
|                
|                
|                
|                 | Redeemable preferred
stocks                         |           |         | 106,323    |  |            |                | 323    |  |           |        | (2,728 | ) |  |         | 103,918 | 
|                 |                                                     |           |         |            |  |            |                |        |  |           |        |        |   |  |         |        
|                 |                                                     |           | 177,434 |            |  |            | 1,968          |        |  |           | (3,510 | )      |   |  | 175,892 |        
|                 |                                                     |           |         |            |  |            |                |        |  |           |        |        |   |  |         |        

|                   |                                                     |           |         |            |         |            |        |        |        |           |         |                |         |   |         |         |         | 
|------------------ | --------------------------------------------------- | --------- | ------- | ---------- | ------- | ---------- | ------ | ------ | ------ | --------- | ------- | -------------- | ------- | - | ------- | ------- | ------- | 
|March 31, 2002     |                                                     |           |         |            |         | Gross      |        | Gross  |        | Estimated
|Consolidated       |                                                     | Amortized |         | unrealized |         | unrealized |        | market
|Available-for-Sale |                                                     | cost      |         | gains      |         | losses     |        | value 
|                   |                                                     |           |         |            |         |            |        |       
|                   |                                                     |           |         |            |         |            |        |        |        |           |         | (in thousands) |         |   |         |        
|                   |                                                     |           |         |            |         |            |        |        |        |           |         |                |         |   |         |        
|                  
|                  
|                  
|                  
|                   | U.S. treasury
securities
and government
obligations |           | $       | 40,100     |         |            |        | 1,702  |        |           |         | (363           | )       |   |         | 41,439  |        
|                  
|                  
|                  
|                  
|                   | U.S. government
agency mortgage-
backed securities  |           |         | 19,655     |         |            |        | 616    |        |           |         | (14            | )       |   |         | 20,257  |        
|                  
|                  
|                  
|                  
|                   | Obligations of
states and
political
subdivisions    |           |         | 6,595      |         |            |        | 233    |        |           |         | (7             | )       |   |         | 6,821   |        
|                  
|                  
|                  
|                  
|                   | Corporate
securities                                |           |         | 668,592    |         |            |        | 19,106 |        |           |         | (23,576        | )       |   |         | 664,122 |        
|                  
|                  
|                  
|                  
|                   | Mortgage-backed
securities                          |           |         | 27,336     |         |            |        | 2,244  |        |           |         | (152           | )       |   |         | 29,428  |        
|                  
|                  
|                  
|                  
|                   | Redeemable preferred
stocks                         |           |         | 27,415     |         |            |        | 966    |        |           |         | (836           | )       |   |         | 27,545  |        
|                  
|                  
|                  
|                  
|                   | Redeemable common
stocks                            |           |         | 2,060      |         |            |        |       |        |           |         | (676           | )       |   |         | 1,384   |        
|                   |                                                     |           |         |            |         |            |        |        |        |           |         |                |         |   |         |        
|                   |                                                     |           | 791,753 |            |         |            | 24,867 |        |        |           | (25,624 | )              |         |   | 790,996 |        
|                   |                                                     |           |         |            |         |            |        |        |        |           |         |                |         |   |         |        
|                   |                                                     | Total     |         | $          | 969,187 |            |        |        | 26,835 |           |         |                | (29,134 | ) |         |         | 966,888 | 
|                   |                                                     |           |         |            |         |            |        |        |        |           |         |                |         |   |         |        

9



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##### Table of Contents



AMERCO AND CONSOLIDATED SUBSIDIARIES AND
SAC HOLDING CORPORATIONS AND CONSOLIDATED SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements, Continued
(Unaudited)

3. SUMMARIZED CONSOLIDATED FINANCIAL INFORMATION OF INSURANCE SUBSIDIARIES

Summarized condensed consolidated balance sheets for RepWest are
presented below:

|                                           |                                            |   |         |         |                |  |         |         |  |  | 
|------------------------------------------ | ------------------------------------------ | - | ------- | ------- | -------------- |  | ------- | ------- |  |  | 
|                                           |                                            |   |         |         | March 31,     
|                                           |                                            |   |         |         |               
|                                           |                                            |   |         |         | 2002           |  | 2001   
|                                           |                                            |   |         |         |                |  |        
|                                           |                                            |   |         |         | (in thousands)
|Investments, fixed maturities              |                                            | $ | 338,489 |         |                |  | 409,210 |        
|                                          
|                                          
|                                          
|                                          
|Receivables                                |                                            |   | 243,033 |         |                |  | 210,051 |        
|                                          
|                                          
|                                          
|                                          
|Due from affiliate                         |                                            |   | 105,295 |         |                |  | 51,361  |        
|                                          
|                                          
|                                          
|                                          
|Other assets                               |                                            |   | 129,368 |         |                |  | 71,169  |        
|                                           |                                            |   |         |         |                |  |         |        
|                                           | Total assets                               |   | $       | 816,185 |                |  |         | 741,791 | 
|                                           |                                            |   |         |         |                |  |         |        
|Policy liabilities and accruals            |                                            | $ | 474,052 |         |                |  | 384,635 |        
|                                          
|                                          
|                                          
|                                          
|Unearned premiums                          |                                            |   | 84,242  |         |                |  | 106,203 |        
|                                          
|                                          
|                                          
|                                          
|Other policyholders funds and liabilities |                                            |   | 47,323  |         |                |  | 58,539  |        
|                                           |                                            |   |         |         |                |  |         |        
|                                           | Total liabilities                          |   |         | 605,617 |                |  |         | 549,377 | 
|                                          
|                                          
|                                          
|                                          
|Stockholders equity                       |                                            |   | 210,568 |         |                |  | 192,414 |        
|                                           |                                            |   |         |         |                |  |         |        
|                                           | Total liabilities and
stockholders equity |   | $       | 816,185 |                |  |         | 741,791 | 
|                                           |                                            |   |         |         |                |  |         |        

Summarized condensed consolidated income statements for RepWest are
presented below:

|                                                  |                |   |        |                |   |      |        |        |   | 
|------------------------------------------------- | -------------- | - | ------ | -------------- | - | ---- | ------ | ------ | - | 
|                                                  |                |   |        | Quarters ended
|                                                  |                |   |        | March 31,     
|                                                  |                |   |        |               
|                                                  |                |   |        | 2002           |   | 2001
|                                                  |                |   |        |                |   |     
|                                                  |                |   |        | (in thousands)
|Premiums                                          |                | $ | 46,609 |                |   |      | 62,178 |       
|                                                 
|                                                 
|                                                 
|                                                 
|Net investment income                             |                |   | 7,568  |                |   |      | 8,416  |       
|                                                  |                |   |        |                |   |      |        |       
|                                                  | Total revenue  |   |        | 54,177         |   |      |        | 70,594 |  
|                                                 
|                                                 
|                                                 
|                                                 
|Benefits and losses                               |                |   | 45,647 |                |   |      | 60,267 |       
|                                                 
|                                                 
|                                                 
|                                                 
|Amortization of deferred
policy acquisition costs |                |   | 5,303  |                |   |      | 5,040  |       
|                                                 
|                                                 
|                                                 
|                                                 
|Operating expenses                                |                |   | 6,014  |                |   |      | 10,870 |       
|                                                  |                |   |        |                |   |      |        |       
|                                                  | Total expenses |   | 56,964 |                |   |      | 76,177 |       
|                                                 
|                                                 
|                                                 
|                                                 
|Loss from operations                              |                |   | (2,787 | )              |   |      | (5,583 | )     
|                                                 
|                                                 
|                                                 
|                                                 
|Income tax benefit                                |                |   | 1,005  |                |   |      | 1,979  |       
|                                                  |                |   |        |                |   |      |        |       
|                                                  | Net loss       |   | $      | (1,782         | ) |      |        | (3,604 | )
|                                                  |                |   |        |                |   |      |        |       

10



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##### Table of Contents



AMERCO AND CONSOLIDATED SUBSIDIARIES AND
SAC HOLDING CORPORATIONS AND CONSOLIDATED SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements, Continued
(Unaudited)

3.     SUMMARIZED CONSOLIDATED FINANCIAL INFORMATION OF INSURANCE SUBSIDIARIES, continued

Summarized condensed consolidated balance sheets for Oxford are presented
below:

|                                           |                   |              |                       |                      |         |                |         |         |         |  |         | 
|------------------------------------------ | ----------------- | ------------ | --------------------- | -------------------- | ------- | -------------- | ------- | ------- | ------- |  | ------- | 
|                                           |                   |              |                       |                      |         | March 31,     
|                                           |                   |              |                       |                      |         |               
|                                           |                   |              |                       |                      |         | 2002           |         | 2001   
|                                           |                   |              |                       |                      |         |                |         |        
|                                           |                   |              |                       |                      |         | (in thousands)
|Investments, fixed maturities              |                   | $            | 629,941               |                      |         |                | 541,450 |        
|                                          
|                                          
|                                          
|                                          
|Investments, other                         |                   |              | 171,536               |                      |         |                | 190,048 |        
|                                          
|                                          
|                                          
|                                          
|Receivables                                |                   |              | 35,164                |                      |         |                | 28,200  |        
|                                          
|                                          
|                                          
|                                          
|Deferred policy acquisition costs          |                   |              | 89,005                |                      |         |                | 81,231  |        
|                                          
|                                          
|                                          
|                                          
|Due from affiliate                         |                   |              | (10,878               | )                    |         |                | (10,079 | )      
|                                          
|                                          
|                                          
|                                          
|Other assets                               |                   |              | 5,192                 |                      |         |                | 16,189  |        
|                                           |                   |              |                       |                      |         |                |         |        
|                                           |                   | Total assets |                       | $                    | 919,960 |                |         |         | 847,039 | 
|                                           |                   |              |                       |                      |         |                |         |        
|Policy liabilities and accruals            |                   | $            | 177,540               |                      |         |                | 183,936 |        
|                                          
|                                          
|                                          
|                                          
|Premium deposits                           |                   |              | 590,523               |                      |         |                | 523,772 |        
|                                          
|                                          
|                                          
|                                          
|Other policyholders funds and liabilities |                   |              | 20,242                |                      |         |                | 18,522  |        
|                                          
|                                          
|                                          
|                                          
|Deferred federal income taxes              |                   |              | 8,733                 |                      |         |                | 14,423  |        
|                                           |                   |              |                       |                      |         |                |         |        
|                                           | Total liabilities |              |                       | 797,038              |         |                |         | 740,653 |        
|                                          
|                                          
|                                          
|                                          
|Stockholders equity                       |                   |              | 122,922               |                      |         |                | 106,386 |        
|                                           |                   |              |                       |                      |         |                |         |        
|                                           |                   |              | Total liabilities and |                      |         |                |         |         |         |  |        
|                                          
|                                          
|                                          
|                                          
|                                           |                   |              |                       | stockholders equity |         | $              | 919,960 |         |         |  | 847,039 | 
|                                           |                   |              |                       |                      |         |                |         |        

Summarized condensed consolidated income statements for Oxford are
presented below:

|                                                  |                |               |            |        |                |     |        |        |        |       | 
|------------------------------------------------- | -------------- | ------------- | ---------- | ------ | -------------- | --- | ------ | ------ | ------ | ----- | 
|                                                  |                |               |            |        | Quarters ended
|                                                  |                |               |            |        | March 31,     
|                                                  |                |               |            |        |               
|                                                  |                |               |            |        | 2002           |     | 2001  
|                                                  |                |               |            |        |                |     |       
|                                                  |                |               |            |        | (in thousands)
|Premiums                                          |                | $             | 39,658     |        |                |     | 39,633 |       
|                                                 
|                                                 
|                                                 
|                                                 
|Net investment income                             |                |               | 5,331      |        |                |     | 6,208  |       
|                                                  |                |               |            |        |                |     |        |       
|                                                  |                | Total revenue |            |        | 44,989         |     |        |        | 45,841 |      
|                                                 
|                                                 
|                                                 
|                                                 
|Benefits and losses                               |                |               | 30,771     |        |                |     | 31,165 |       
|                                                 
|                                                 
|                                                 
|                                                 
|Amortization of deferred
policy acquisition costs |                |               | 5,025      |        |                |     | 4,754  |       
|                                                 
|                                                 
|                                                 
|                                                 
|Operating expenses                                |                |               | 8,311      |        |                |     | 7,239  |       
|                                                  |                |               |            |        |                |     |        |       
|                                                  | Total expenses |               |            | 44,107 |                |     |        | 43,158 |       
|                                                 
|                                                 
|                                                 
|                                                 
|Income from operations                            |                |               | 882        |        |                |     | 2,683  |       
|                                                 
|                                                 
|                                                 
|                                                 
|Income tax expense                                |                |               | (304       | )      |                |     | (960   | )     
|                                                  |                |               |            |        |                |     |        |       
|                                                  |                |               | Net income |        | $              | 578 |        |        |        | 1,723 | 
|                                                  |                |               |            |        |                |     |        |       

11



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##### Table of Contents



AMERCO AND CONSOLIDATED SUBSIDIARIES AND
SAC HOLDING CORPORATIONS AND CONSOLIDATED SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements, Continued
(Unaudited)

4. CONTINGENT LIABILITIES AND COMMITMENTS

During the quarter ended June 30, 2002, a subsidiary of U-Haul entered
into a transaction whereby the subsidiary sold rental trucks and trailers to an
unrelated third party, which were subsequently leased back. AMERCO has
guaranteed $2,075,000 of residual values at June 30, 2002 for these assets at
the end of the respective lease terms. Following are the lease commitments for
the leases executed during the quarter ended June 30, 2002, and after quarter
end which have a term of more than one year:

|               |  |  |             | 
|-------------- |  |  | ----------- | 
|Year ending    |  |  | Lease      
|March 31,      |  |  | Commitments
|               |  |  |            
|(in thousands)

|           |  |   |       | 
|---------- |  | - | ----- | 
|2003       |  | $ | 619  
|          
|          
|          
|          
|2004       |  |   | 825  
|          
|          
|          
|          
|2005       |  |   | 825  
|          
|          
|          
|          
|2006       |  |   | 825  
|          
|          
|          
|          
|2007       |  |   | 825  
|          
|          
|          
|          
|Thereafter |  |   | 2,683
|           |  |   |      
|           |  | $ | 6,602
|           |  |   |      

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

Compliance
with environmental requirements of federal, state and local
governments significantly affects Real Estates business operations. Among
other things, these requirements regulate the discharge of materials into the
water, air and land and govern the use and disposal of hazardous substances.
Real Estate is aware of issues regarding hazardous substances on some of its
properties. Real Estate regularly makes capital and operating expenditures to
stay in compliance with environmental laws and has put in place a remedial
plan at each site where it believes such a plan is necessary. Since 1988, Real
Estate has managed a testing and removal program for underground storage
tanks. Under this program, over 3,000 tanks have been removed at a cost of
$43.7 million.

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

Based upon the information currently available 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 have a material
adverse effect on AMERCOs financial position or operating results.

12



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##### Table of Contents



5. SUPPLEMENTAL CASH FLOWS INFORMATION

The (increase) decrease in cash flow for receivables, inventories and
accounts payable and accrued liabilities net of other operating and investing
activities follows:

|                                      |  |                |        |      |  |  |         |  
|------------------------------------- |  | -------------- | ------ | ---- |  |  | ------- | -
|                                      |  | Quarters ended
|                                      |  | June 30,      
|                                      |  |               
|                                      |  | 2002           |        | 2001
|                                      |  |                |        |     
|                                      |  | (in thousands)
|Receivables                           |  | $              | (4,197 | )    |  |  | (15,178 | )
|                                      |  |                |        |      |  |  |         |  
|Inventories                           |  | $              | 10,444 |      |  |  | 5,338   |  
|                                      |  |                |        |      |  |  |         |  
|Accounts payable and accrued expenses |  | $              | 32,881 |      |  |  | (16,520 | )
|                                      |  |                |        |      |  |  |         |  

Income taxes paid in cash amounted to $0 and $78,000 for the quarters
ended June 30, 2002 and 2001, respectively.

Interest paid in cash amounted to $31,782,000 and $26,273,000 for the
quarters ended June 30, 2002 and 2001, respectively.

6. EARNINGS PER SHARE OF AMERCO

The following table reflects the calculation of earnings per share:

|                             |                                 |                  |                  |        |                           |        |               |  |                  |            |  |   |      |      | 
|---------------------------- | ------------------------------- | ---------------- | ---------------- | ------ | ------------------------- | ------ | ------------- |  | ---------------- | ---------- |  | - | ---- | ---- | 
|                             |                                 |                  |                  |        |                           |        |               |  | Weighted Average |            |  |   |     
|                             |                                 |                  |                  |        |                           |        |               |  | Common Shares    |            |  |   |     
|                             |                                 |                  |                  |        | Income                    |        | Outstanding   |  | Per Share       
|                             |                                 |                  |                  |        | (Numerator)               |        | (Denominator) |  | Amount          
|                             |                                 |                  |                  |        |                           |        |               |  |                 
|                             |                                 |                  |                  |        | (in thousands, except    
|                             |                                 |                  |                  |        | share and per share data)
|Quarter ended June 30, 2002: |                                 |                  |                  |        |                           |        |               |  |                  |            |  |  
|                            
|                            
|                            
|                            
|                             | Net earnings                    |                  | $                | 40,539 |                           |        |               |  |                  |            |  |   |     
|                            
|                            
|                            
|                            
|                             | Less: preferred stock dividends |                  |                  | 3,241  |                           |        |               |  |                  |            |  |   |     
|                             |                                 |                  |                  |        |                           |        |               |  |                  |            |  |  
|                            
|                            
|                            
|                            
|                             | Basic and diluted earnings      |                  |                  |        |                           |        |               |  |                  |            |  |   |     
|                            
|                            
|                            
|                            
|                             |                                 |                  | per common share |        |                           | 37,298 |               |  |                  | 20,592,858 |  |   | $    | 1.81 | 
|                             |                                 |                  |                  |        |                           |        |               |  |                  |            |  |  
|Quarter ended June 30, 2001: |                                 |                  |                  |        |                           |        |               |  |                  |            |  |  
|                            
|                            
|                            
|                            
|                             | Net earnings                    |                  | $                | 20,901 |                           |        |               |  |                  |            |  |   |     
|                            
|                            
|                            
|                            
|                             | Less: preferred stock dividends |                  |                  | 3,241  |                           |        |               |  |                  |            |  |   |     
|                             |                                 |                  |                  |        |                           |        |               |  |                  |            |  |  
|                            
|                            
|                            
|                            
|                             | Basic and diluted earnings      |                  |                  |        |                           |        |               |  |                  |            |  |   |     
|                            
|                            
|                            
|                            
|                             |                                 | per common share |                  |        | 17,660                    |        |               |  | 21,280,361       |            |  | $ | 0.83 |     
|                             |                                 |                  |                  |        |                           |        |               |  |                  |            |  |  

7. NEW ACCOUNTING STANDARDS

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

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

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

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SFAS
No. 141 and 142 did not affect the consolidated financial
position or results of operations.

SFAS No. 143, Accounting for Asset Retirement Obligations, requires
recognition of the fair value of liabilities associated with the retirement of
long-lived assets when a legal obligation to incur such costs arises as a
result of the acquisition, construction, development and/or the normal
operation of a long-lived asset. Upon recognition of the liability, a
corresponding asset is recorded at present value and accreted over the life of
the asset and depreciated over the remaining life of the long-lived asset. The
Statement defines a legal obligation as one that a party is required to settle
as a result of an existing or enacted law, statute, ordinance, or written or
oral contract or by legal construction of a contract under the doctrine of
promissory estoppel. SFAS 143 is effective for fiscal years beginning after
June 15, 2002. We have not yet determined the effects of adopting this
Statement on our financial position or results of operations.

In October 2001, the FASB issued SFAS No. 144, Accounting for the
Impairment or Disposal of Long-Lived Assets. SFASB 144 requires that those
long-lived assets be measured at the lower of carrying amount or fair value
less cost to sell, whether reported in continuing operations or in discontinued
operations. Therefore, discontinued operations will no longer be measured at
net realizable value or include amounts for operating losses that have not yet
occurred. SFASB 144 is effective for financial statements issued for fiscal
years beginning after December 15, 2001 and, generally, are to be applied
prospectively. Management has not yet determined the effects of adopting this
Statement on the financial position or results of operations.

In April 2002, the FASB issued SFAS No. 145, Rescission of FASB Statements
No. 4, 44, and 64, Amendment of FASB Statement No.13, and Technical
Corrections. This statement eliminates the current requirement that gains and
losses on debt extinguishment must be classified as extraordinary items in the
income statement. Instead, such gains and losses will be classified as
extraordinary items only if they are deemed to be unusual and infrequent, in
accordance with the current GAAP criteria for extraordinary classification. In
addition, SFAS 145 eliminates an inconsistency in lease accounting by requiring
that modifications of capital leases that result in reclassification as
operating leases be accounted for consistent with sale-leaseback accounting
rules. The statement also contains other nonsubstantive corrections to
authoritative accounting literature. The changes related to debt extinguishment
will be effective for fiscal years beginning after May 15, 2002, and the
changes related to lease accounting will be effective for transactions
occurring after May 15, 2002. Management has not yet determined the effects of
adopting this Statement on the financial position or results of operations,
except for the need to reclassify debt extinguishments previously reported as
extraordinary.

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

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AMERCO AND CONSOLIDATED SUBSIDIARIES AND
SAC HOLDING CORPORATIONS AND CONSOLIDATED SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements, Continued
(Unaudited)

8. INDUSTRY SEGMENT AND GEOGRAPHIC AREA DATA

Information concerning operations by industry segment follows:

|                             |                |   |                |         |        |  |           |        |           |  |              |        |              |  |             |        |        |  |          |         |   |  |           |         | 
|---------------------------- | -------------- | - | -------------- | ------- | ------ |  | --------- | ------ | --------- |  | ------------ | ------ | ------------ |  | ----------- | ------ | ------ |  | -------- | ------- | - |  | --------- | ------- | 
|                             |                |   | Moving and     |         |        |  |           |        | Property/ |  |              |        |              |  | Adjustments |        | AMERCO
|                             |                |   | Storage        |         | Real   |  | Casualty  |        | Life      |  | and          |        | and         
|                             |                |   | Operations     |         | Estate |  | Insurance |        | Insurance |  | Eliminations |        | SAC Holdings
|                             |                |   |                |         |        |  |           |        |           |  |              |        |             
|                             |                |   | (in thousands)
|Quarter endedJune 30, 2002   |                |   |                |         |        |  |           |        |           |  |              |        |              |  |             |        |        |  |          |         |   |  |           |        
|Revenues:                    |                |   |                |         |        |  |           |        |           |  |              |        |              |  |             |        |        |  |          |         |   |  |           |        
|                            
|                            
|                            
|                            
|                             | Outside        |   | $              | 445,323 |        |  |           | 2,482  |           |  |              | 53,013 |              |  |             | 44,539 |        |  |          |        |   |  |           | 545,357 | 
|                            
|                            
|                            
|                            
|                             | Intersegment   |   |                |        |        |  |           | 15,695 |           |  |              | 1,164  |              |  |             | 450    |        |  |          | (17,309 | ) |  |           |        | 
|                             |                |   |                |         |        |  |           |        |           |  |              |        |              |  |             |        |        |  |          |         |   |  |           |         | 
|                             | Total revenues |   | $              | 445,323 |        |  |           | 18,177 |           |  |              | 54,177 |              |  |             | 44,989 |        |  |          | (17,309 | ) |  |           | 545,357 | 
|                            
|                            
|                            
|                            
|Depreciation/
amortization   |                | $ | 30,329         |         |        |  | 2,151     |        |           |  | 5,553        |        |              |  | 5,770       |        |        |  |         |         |   |  | 43,803    |        
|                            
|                            
|                            
|                            
|Interest expense             |                | $ | 26,932         |         |        |  | 5,303     |        |           |  |             |        |              |  |            |        |        |  | (5,303   | )       |   |  | 26,932    |        
|                            
|                            
|                            
|                            
|Pretax earnings
(loss)       |                | $ | 55,219         |         |        |  | 9,369     |        |           |  | (2,787       | )      |              |  | 882         |        |        |  |         |         |   |  | 62,683    |        
|                            
|                            
|                            
|                            
|Income tax
benefit
(expense) |                | $ | (19,566        | )       |        |  | (3,279    | )      |           |  | 1,005        |        |              |  | (304        | )      |        |  |         |         |   |  | (22,144   | )      
|                            
|                            
|                            
|                            
|Identifiable
assets          |                | $ | 1,881,536      |         |        |  | 597,118   |        |           |  | 816,185      |        |              |  | 919,960     |        |        |  | (451,864 | )       |   |  | 3,762,935 |        
|                            
|                            
|                            
|                            
|Quarter endedJune 30, 2001   |                |   |                |         |        |  |           |        |           |  |              |        |              |  |             |        |        |  |          |         |   |  |           |        
|Revenues:                    |                |   |                |         |        |  |           |        |           |  |              |        |              |  |             |        |        |  |          |         |   |  |           |        
|                            
|                            
|                            
|                            
|                             | Outside        |   | $              | 416,034 |        |  |           | 2,415  |           |  |              | 69,485 |              |  |             | 45,469 |        |  |          |        |   |  |           | 533,403 | 
|                            
|                            
|                            
|                            
|                             | Intersegment   |   |                |        |        |  |           | 17,329 |           |  |              | 1,109  |              |  |             | 372    |        |  |          | (18,810 | ) |  |           |        | 
|                             |                |   |                |         |        |  |           |        |           |  |              |        |              |  |             |        |        |  |          |         |   |  |           |         | 
|                             | Total revenues |   | $              | 416,034 |        |  |           | 19,744 |           |  |              | 70,594 |              |  |             | 45,841 |        |  |          | (18,810 | ) |  |           | 533,403 | 
|                            
|                            
|                            
|                            
|Depreciation/
amortization   |                | $ | 32,234         |         |        |  | 2,815     |        |           |  | 5,286        |        |              |  | 4,794       |        |        |  |         |         |   |  | 45,129    |        
|                            
|                            
|                            
|                            
|Interest expense             |                | $ | 20,662         |         |        |  | 10,207    |        |           |  |             |        |              |  |            |        |        |  | (10,207  | )       |   |  | 20,662    |        
|                            
|                            
|                            
|                            
|Pretax earnings
(loss)       |                | $ | 31,304         |         |        |  | 4,608     |        |           |  | (5,583       | )      |              |  | 2,683       |        |        |  |         |         |   |  | 33,012    |        
|                            
|                            
|                            
|                            
|Income tax
benefit
(expense) |                | $ | (11,517        | )       |        |  | (1,613    | )      |           |  | 1,979        |        |              |  | (960        | )      |        |  |         |         |   |  | (12,111   | )      
|                            
|                            
|                            
|                            
|Identifiable
assets          |                | $ | 1,744,325      |         |        |  | 713,085   |        |           |  | 741,791      |        |              |  | 847,039     |        |        |  | (362,998 | )       |   |  | 3,683,242 |        

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AMERCO AND CONSOLIDATED SUBSIDIARIES AND
SAC HOLDING CORPORATIONS AND CONSOLIDATED SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements, Continued
(Unaudited)

8. INDUSTRY SEGMENT AND GEOGRAPHIC AREA DATA, continued

|                              |  |                |           |        |  |              |         |     |  |        |           |  
|----------------------------- |  | -------------- | --------- | ------ |  | ------------ | ------- | --- |  | ------ | --------- | -
|                              |  |                |           |        |  |              |         |     |  | TOTAL 
|Geographic Area Data          |  |                |           |        |  |              |         |     |  | AMERCO
|(All amounts are in U.S. $'s) |  | United         |           |        |  |              |         | and
|                              |  | States         |           | Canada |  | SAC Holdings
|                              |  |                |           |        |  |             
|                              |  | (in thousands)
|Quarter endedJune 30, 2002    |  |                |           |        |  |              |         |     |  |        |           |  
|Total revenues                |  | $              | 529,965   |        |  |              | 15,392  |     |  |        | 545,357   |  
|                             
|                             
|                             
|                             
|Depreciation/amortization     |  | $              | 42,473    |        |  |              | 1,330   |     |  |        | 43,803    |  
|                             
|                             
|                             
|                             
|Interest expense              |  | $              | 25,794    |        |  |              | 1,138   |     |  |        | 26,932    |  
|                             
|                             
|                             
|                             
|Pretax earnings               |  | $              | 59,709    |        |  |              | 2,974   |     |  |        | 62,683    |  
|                             
|                             
|                             
|                             
|Income tax expense            |  | $              | (22,144   | )      |  |              |         |     |  |        | (22,144   | )
|                             
|                             
|                             
|                             
|Identifiable assets           |  | $              | 3,637,280 |        |  |              | 125,655 |     |  |        | 3,762,935 |  
|                             
|                             
|                             
|                             
|                             
|                             
|                             
|                             
|Quarter endedJune 30, 2001    |  |                |           |        |  |              |         |     |  |        |           |  
|Total revenues                |  | $              | 519,012   |        |  |              | 14,391  |     |  |        | 533,403   |  
|                             
|                             
|                             
|                             
|Depreciation/amortization     |  | $              | 43,920    |        |  |              | 1,209   |     |  |        | 45,129    |  
|                             
|                             
|                             
|                             
|Interest expense              |  | $              | 19,589    |        |  |              | 1,073   |     |  |        | 20,662    |  
|                             
|                             
|                             
|                             
|Pretax earnings               |  | $              | 29,975    |        |  |              | 3,037   |     |  |        | 33,012    |  
|                             
|                             
|                             
|                             
|Income tax expense            |  | $              | (12,111   | )      |  |              |         |     |  |        | (12,111   | )
|                             
|                             
|                             
|                             
|Identifiable assets           |  | $              | 3,567,013 |        |  |              | 116,229 |     |  |        | 3,683,242 |  

9. SUBSEQUENT EVENTS OF AMERCO

On August 6, 2002, AMERCO declared a cash dividend of $3,241,000 ($0.53125
per preferred share) to preferred stockholders of record as of August 16, 2002.

10. CERTAIN RELATIONSHIPS AND
RELATED TRANSACTIONS

Information
regarding certain relationships and related transactions of
management is set forth in the captions Certain Relationships and
Related Transactions in the 2002 Proxy Statement, which information
is incorporated herein by reference.

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ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements. We
may make additional written or oral forward-looking statements from time to
time in filings with the Securities and Exchange Commission or otherwise. We
believe such forward-looking statements are within the meaning of the
safe-harbor provisions of the Private Securities Litigation Reform Act of 1995.
Such statements may include, but are not limited to, projections of revenues,
income or loss, estimates of capital expenditures, plans for future operations,
products or services, financing needs or plans, and liquidity as well as
assumptions relating to the foregoing. The words believe, expect,
anticipate, estimate, project and similar expressions identify
forward-looking statements, which speak only as of the date the statement was
made. Forward-looking statements are inherently subject to risks and
uncertainties, some of which cannot be predicted or quantified. Future events
and actual results could differ materially from those set forth in,
contemplated by or underlying the forward-looking statements. Some of the
important factors that could cause our actual results, performance or financial
condition to differ materially from our expectations are: fluctuations in our
costs to maintain and update our fleet and facilities; 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; changes in
accounting standards; and other factors described in this Quarterly Report on
Form 10-Q or the other documents we file with the Securities and Exchange
Commission. The above factors, the following disclosures, as well as other
statements in this report and in the Notes to Consolidated Financial
Statements, could contribute to or cause such differences, or could cause
AMERCOs stock price to fluctuate dramatically.

GENERAL

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

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

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

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

Principles
of consolidation  The consolidated financial statements include
the accounts of AMERCO and its wholly-owned subsidiaries and SAC Holdings and
its wholly-owned subsidiaries. All material intercompany accounts and
transactions have been eliminated in consolidation. AMERCO does not and has
never had any equity ownership interest in SAC Holdings or any of SAC Holdings
subsidiaries.

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

Long-lived assets and intangible assets  We review carrying value
whenever events or circumstances indicate the carrying values may not be
recoverable through projected

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undiscounted future cash flows. The events could include significant
underperformance relative to expected, historical or projected future operating
results, significant changes in the manner of using the assets, overall
business strategy, significant negative industry or economic trends and an
unexpected non-compliance with significant debt agreements.

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

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

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

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

RESULTS OF OPERATIONS
QUARTER ENDED JUNE 30, 2002 VERSUS QUARTER ENDED JUNE 30, 2001

Consolidated Moving and Storage Operations

Revenues consist of rental revenues and net sales. Total rental revenue
was $375.9 million and $356.4 million for the quarters ended June 30, 2002 and
2001, respectively. Improved pricing has primarily attributed to the increase.
Storage revenues increased $5.9 million due to increased facility capacity
through the acquisition of new locations and increased storage rates.

Net sales revenues were $68.2 million and $68.8 million for the quarters
ended June 30, 2002 and 2001, respectively.

Cost of sales was $33.3 million and $36.4 million for the quarters ended
June 30, 2002 and 2001, respectively. The decrease results from static sales.

Operating expenses before intercompany eliminations were $266.2 million
and $267.4 million for the quarters ended June 30, 2002 and 2001, respectively.

Lease
expense was $38.8 million and $42.5 million for the quarters ended
June 30, 2002 and 2001, respectively. This decrease reflects a decline in the
number of leased rental trucks.

Net
depreciation expense was $30.0 million and $29.3 million for the
quarters ended June 30, 2002 and 2001, respectively.

AMERCOs Real Estate Operations

Rental revenue before intercompany eliminations was $15.4 million and
$17.9 million for the quarters ended June 30, 2002 and 2001, respectively.
Intercompany revenue was $14.7 and $17.3 million for the quarters ended June
30, 2002 and 2001, respectively.

Net investment and interest income was $2.8 million and $1.9 million for
the quarters ended June 30, 2002 and 2001, respectively. This decrease
correlates to a reduction in Real Estates average note and mortgage
receivables balance outstanding.

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Lease expense was $2.0 million and $4.1 million for the quarters ended
June 30, 2002 and 2001, respectively.

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

Operating profit before tax and intercompany elimination was $14.7 million
and $14.8 million for the quarters ended June 30, 2002 and 2001, respectively.

Property and Casualty

RepWests premiums were $46.6 million and $62.2 million for the quarters
ended March 31, 2002 and 2001, respectively. General agency premiums were
$20.2 million and $29.6 million for the quarters ended March 31, 2002 and 2001,
respectively. The decrease from 2001 to 2002 was the result of the
cancellation of RepWests direct Non-Standard Auto and Homeowners business, as
well as additional quota share reinsurance on Transportation business. Assumed
treaty reinsurance premium was $9.3 millions and $15.7 million for the quarters
ended March 31, 2002 and 2001, respectively. Rental industry premiums were
$9.2 million and $8.5 million for the quarters ended March 31, 2002 and 2001,
respectively.

Net investment income was $7.6 million and $8.4 million for the quarters
ended March 31, 2002 and 2001, respectively. The decrease is attributable to
lower annual average invested assets as well as reduced cash flow from
operations.

Benefits and losses incurred were $45.6 million and $60.3 million for the
quarters ended March 31, 2002 and 2001, respectively. This decrease is
attributable to lowered premium writings resulting in less exposure primarily
in the non-standard auto and home lines.

The amortization of deferred acquisition costs (DAC) was $5.3 million and
$5.0 million for the quarters ended March 31, 2002 and 2001, respectively.

Operating expenses were $6.0 million and $10.9 million for the quarters
ended March 31, 2002 and 2001, respectively. The decrease is a result of
decreased commissions on decreased premium writings as well as decreased
general and administrative expenses.

Operating loss before tax and intercompany elimination was $2.8 million
and $5.6 million for the quarters ended March 31, 2002 and 2001, respectively.
The decreased loss is the result of decreased expenses and the cancellation of
unprofitable lines of business.

Life Insurance

Net premiums were $39.7 million and $39.6 million for the quarters ended
March 31, 2002 and 2001, respectively. Oxford increased Medicare supplement
premiums by $1.0 million through direct writings and rate management activity.
Whole life sales increased $0.6 million from the same quarter of 2001. Credit
insurance premiums decreased $1.3 million for the quarter from the previous
year. Other business segments had premium decreases totaling $0.2 million.

Net investment income before intercompany eliminations decreased $0.9
million to $5.3 million from $6.2 million for the quarters ended March 31, 2002
and 2001, respectively, due to realized losses on fixed maturities.

Benefits incurred were $30.8 million and $31.2 million for the quarters
ended March 31, 2002 and 2001, respectively. This was primarily due to fewer
annuitizations.

Amortization of deferred acquisition costs (DAC) and the value of business
acquired (VOBA) was $5.0 million and $4.8 million for the quarters ended March
31, 2002 and 2001, respectively.

Operating expenses were $8.3 million and $7.2 million for the quarters
ended March 31, 2002 and 2001, respectively. Commissions have increased $0.4
million from 2001 primarily due to the increase in Medicare supplement
premiums. General and administrative expenses net of fees collected increased
$0.7 million.

Operating profit before tax and intercompany eliminations was $0.9 million
and $2.7 million for the quarters ended March 31, 2002 and 2001, respectively.
The decrease from 2001 is due primarily to realized investment losses and loss
experience in the credit insurance segments.

19



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##### Table of Contents



Interest Expense
Consolidated Group

Interest expense was $26.9 million and $20.7 million for the quarters
ended June 30, 2002 and 2001, respectively. The increase can be attributed to
a higher debt level outstanding for SAC Holdings due its the acquisition of
additional storage properties.

Consolidated Group

As a result of the foregoing, pretax earnings were $62.7 million and $33.0
million for the quarters ended June 30, 2002 and 2001, respectively. After
providing for income taxes, net earnings were $40.5 million and $20.9 million
for the quarters ended June 30, 2002 and 2001, respectively.

LIQUIDITY AND CAPITAL RESOURCES

Moving and Storage Operations

To meet the needs of its customers, U-Haul must maintain a large inventory
of fixed asset rental items. At June 30, 2002, net property, plant and
equipment represented approximately 97.3% of total assets from non-insurance
operations and approximately 52.4% of consolidated assets. In the quarters
ended June 30, 2002 and 2001, capital expenditures were $46.5 million and
$143.0 million, respectively. These expenditures primarily reflect the
replacement of the rental truck fleet.

Cash provided by operating activities was $71.0 million and $21.1 million
for the quarters ended June 30, 2002 and 2001, respectively. The increase
resulted primarily from a decrease in notes and mortgage receivable partially
offset by decreases in the accounts payable and intercompany payable balances
along with increased earnings.

AMERCOs Real Estate Operations

Cash used by operating activities was $0.2 million and $20.8 million for
the quarters ended June 30, 2002 and 2001, respectively. The reduction of the
amount used mainly resulted from a decrease in the intercompany payable
balance.

Property and Casualty

Cash used by operating activities was $28.0 million and $17.8 million for
quarters ended March 31, 2002 and 2001, respectively. This change resulted
from decreased unearned premium, a decrease in the change in premiums
receivable from period to period, along with an increase in due from affiliate.

RepWests cash and cash equivalents and short-term investment portfolio
were $11.6 million and $4.3 million at March 31, 2002 and 2001, respectively.
The increase is a result of a shifting of investments to cash and cash
equivalents to fund claim payments generated by new business.

RepWest maintains a diversified securities investment portfolio, primarily
in bonds, at varying maturity levels with 87.5% of the fixed-income securities
consisting of investment grade securities. The maturity distribution is
designed to provide sufficient liquidity to meet future cash needs. Current
liquidity remains stable with current invested assets equal to 71.4% of total
liabilities.

Life Insurance

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

Cash provided (used) by operating activities was $(5.6) million and $1.5
million for the quarters ended March 31, 2002 and 2001, respectively. The
decrease in cash flows from operating activities in 2002 relates to paid loss
experience. Cash flows provided by financing activities were $1.8 million and
$3.1 million for the quarters ended March 31, 2002 and 2001, respectively.
Cash flows from deferred annuity sales increase investment contract deposits,
which are a component of financing activities. The decrease in 2002 from 2001
is due to a higher ratio of annuity withdrawals versus deposits on our annuity
contracts.

In addition to cash flows from operating and financing activities, a
substantial amount of liquid funds is available through Oxfords short-term
portfolio. At March 31, 2002 and 2001, short-term investments were $67.0
million and $65.1 million, respectively. Management believes that the overall
sources of liquidity will continue to meet foreseeable cash needs.

20



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##### Table of Contents



Consolidated group

At June 30, 2002, total outstanding notes and mortgages payable for AMERCO
and wholly owned subsidiaries was $898.5 million compared to $1,045.8 million
at March 31, 2002. At June 30, 2002, total outstanding notes and mortgages
payable for SAC Holdings and consolidated subsidiaries was $960.7 million
compared to $957.4 million at March 31, 2002. SAC Holdings securitized loan
agreements have no guarantees, or triggers that could create a guarantee, from
AMERCO. With the exception of a Merrill Lynch transaction, a sellers warranty
of value, for $2.0 million, SAC Holdings creditors have no recourse to AMERCO.
The sellers warranty will be eliminated when occupancy reaches 74.9%. AMERCO
is not liable for the debts of SAC Holdings. Further, there are no cross
default provisions on indebtedness between AMERCO and SAC Holdings.

AMERCO
has no (and has never had any) ownership interest in SAC Holdings or
its subsidiaries. The presentation of the consolidated statements has
no bearing on the credit agreements or the operations of either
AMERCO or SAC Holdings. The accounts of AMERCO and SAC Holdings are
presented as consolidated due to a revised interpretation of EITF
90-15 by the Companys former independent public accountants
during the year ended March 31, 2002, which concluded that SAC
Holdings majority owner did not qualify as an independent third
party to AMERCO.

During each of the fiscal years ended March 31, 2003, 2004 and 2005, we
estimate gross capital expenditures will average approximately $289.0 million
primarily reflecting rental fleet rotation. This level of capital
expenditures, combined with a potential range of $150  $205 million in annual
long-term debt maturities, are expected to create annual average funding needs
of approximately $466.0 million. We estimate that U-Haul will fund these
requirements with leases, internally generated funds, including the proceeds
from the disposition of older trucks and other asset sales, and to a lesser
extent, by refinancing a portion of existing indebtedness. The sale of assets
is dependant upon economic conditions, the amount and nature of sale and
leaseback transactions and our fleet rotation program. Operating leases on
rental equipment result from sale-lease back transactions whereby as part of
the agreement, residual value guarantees were provided. We believe the market
value of the trucks upon the lease maturity will be greater than the residual
value guarantees. In many cases, a decline in asset sales is accompanied by a
decrease in capital expenditures. Depending on the results of our operations
and general economic and competitive conditions, many of which we cannot
control, we may take certain actions, including delaying or reducing capital
expenditures.

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

Credit Agreements

Our operations are funded by various credit and financing arrangements,
including unsecured long-term borrowings, unsecured medium-term notes,
revolving lines of credit with banks and operating leases. The operating
leases are primarily used to finance the Companys fleet of trucks and
trailers. As of June 30, 2002, we had $898.5 million in total notes and loans
payable outstanding and total unutilized lines of credit of
approximately $65.8
million. In addition to economic pressures, there has been a reduction in the
number of leasing companies and banks, which has had a negative impact on
financial markets. This has led to less availability of financing and higher
cost of credit. We believe there are enough leasing companies and banks to
meet our financing needs. However, no assurance can be provided that we will be able to secure
additional borrowings on satisfactory terms or in a timely manner.

Certain of our credit agreements contain restrictive financial and other
covenants, including, among others, covenants with respect to incurring
additional indebtedness, making third party guarantees, entering into
contingent obligations, maintaining certain financial ratios, placing certain
additional liens on our properties and assets, and restricting the issuance of
certain types of preferred stock. At June 30, 2002, AMERCO was in compliance
with these covenants.

21



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##### Table of Contents



SAC Holdings operations are funded by various mortgage loans and
unsecured notes, with interest rates ranging from 8.0% to 13.0%. SAC does not
utilize revolving lines of credit to finance its operations or acquisitions.
Certain of SACs agreements contain restrictive covenants including coverage
ratios and restrictions on incurring additional subsidiary indebtedness. At
June 30, 2002, SAC Holdings was in compliance with all of these covenants.

On June 28, 2002, AMERCO entered into an agreement replacing an existing
5 year $400.0 million revolver agreement with a 3 year $205.0 million revolver agreement.

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

Disclosures about Contractual Obligations and Commercial Commitments

|                                      |  |                        |           |           |  |        |         |       |  |         |         |       |  |  |         |  |  |  |         | 
|------------------------------------- |  | ---------------------- | --------- | --------- |  | ------ | ------- | ----- |  | ------- | ------- | ----- |  |  | ------- |  |  |  | ------- | 
|                                      |  | Payments due by Period
|Contractual Obligations               |  | Total                  |           | Less than |  | 1-3    |         | 4-5   |  | After 5
|                                      |  |                        |           |           |  | 1 year |         | years |  | years   |         | years
|                                      |  |                        |           |           |  |        |         |       |  |        
|AMERCOs notes and loans
payable      |  | $                      | 898,517   |           |  |        | 195,593 |       |  |         | 514,554 |       |  |  | 17,253  |  |  |  | 171,117 | 
|                                     
|                                     
|                                     
|                                     
|SAC Holdings notes and
loans payable |  | $                      | 588,659   |           |  |        | 144,919 |       |  |         | 135,286 |       |  |  | 13,762  |  |  |  | 294,692 | 
|                                     
|                                     
|                                     
|                                     
|Lease obligations                     |  | $                      | 503,369   |           |  |        | 107,892 |       |  |         | 219,996 |       |  |  | 137,722 |  |  |  | 37,759  | 
|                                      |  |                        |           |           |  |        |         |       |  |         |         |       |  |  |         |  |  |  |         | 
|Total Contractual
Obligations         |  | $                      | 1,990,545 |           |  |        | 448,404 |       |  |         | 869,836 |       |  |  | 168,737 |  |  |  | 503,568 | 
|                                      |  |                        |           |           |  |        |         |       |  |         |         |       |  |  |         |  |  |  |         | 

22



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##### Table of Contents








| |  | ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
| |  | ------------------------------------------------------------------

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

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##### Table of Contents











| |  | PART II. OTHER INFORMATION
| |  | --------------------------

ITEM 1. LEGAL PROCEEDINGS

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 the suits, claims or proceedings involving AMERCO, individually or
in the aggregate, are expected to result in a material loss.

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##### Table of Contents






ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a) Exhibits

|            |  |                                                                                                                                  
|----------- |  | ---------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Description                                                                                                                      
|            |  |                                                                                                                                  
|3.1         |  | Restated Articles of Incorporation (1)                                                                                           
|           
|           
|           
|           
|3.2         |  | Restated By-Laws of AMERCO as of August 27, 1997 (2)                                                                             
|           
|           
|           
|           
|99.1        |  | Certificate of Edward J. Shoen, President of AMERCO
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                    
|           
|           
|           
|           
|99.2        |  | Certificate of Gary B. Horton, Treasurer of AMERCO pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002                     
|           
|           
|           
|           
|99.3        |  | Certificate of Edward J. Shoen, President of U-Haul
International, Inc. pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002
|           
|           
|           
|           
|99.4        |  | Certificate of Gary B. Horton, Treasurer of U-Haul International, Inc.
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 

(b)  Reports on Form 8-K.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | On July 23, 2002 the Company filed a report on Form 8-K to disclose
the dismissal of PricewaterhouseCoopers. On August 12, 2002, the Company
filed a report on Form 8-K to disclose the engagement of BDO Seidman, LLP,
as the Companys new independent auditor. On August 14, 2002, the Company
filed a report on Form 8-K to disclose that the Principal Executive
Officer, Edward J. Shoen, and Principal Financial Officer, Gary B. Horton,
submitted to the SEC sworn statements pursuant to Securities and Exchange
Commission Order No. 4-460.



---

|(1) |  | Incorporated by reference to AMERCOs Quarterly Report on Form 10-Q for
the quarter ended December 31, 2002, file no. 1-11255.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------
|   
|   
|   
|   
|(2) |  | Incorporated by reference to AMERCOs Quarterly Report on Form 10-Q
for the quarter ended December 31, 1997, file no. 1-11255.

25



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##### Table of Contents






SIGNATURES

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

|                       |  |                                                         | 
|---------------------- |  | ------------------------------------------------------- | 
|                       |  | AMERCO                                                  | 
|                       |  |                                                         | 
|                       |  | (Registrant)                                            | 
|                      
|                      
|                      
|                      
|                       |  |                                                         | 
|                      
|                      
|                      
|                      
|Dated: August 16, 2002 |  | By: /S/ GARY B. HORTON                                  | 
|                       |  |                                                         | 
|                       |  | Gary B. Horton, Treasurer
(Principal Financial Officer) | 

26



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##### Table of Contents



SIGNATURES

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

|                       |  |                                                                   | 
|---------------------- |  | ----------------------------------------------------------------- | 
|                       |  | U-Haul International, Inc.                                        | 
|                       |  |                                                                   | 
|                       |  | (Registrant)                                                      | 
|                      
|                      
|                      
|                      
|                       |  |                                                                   | 
|                      
|                      
|                      
|                      
|Dated: August 16, 2002 |  | By:     /S/ GARY B. HORTON                                        | 
|                       |  |                                                                   | 
|                       |  | Gary B. Horton, Assistant Treasurer
(Principal Financial Officer) | 

27



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##### Table of Contents






INDEX OF EXHIBITS

|            |  |                                                                                                                                  
|----------- |  | ---------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Description                                                                                                                      
|            |  |                                                                                                                                  
|3.1         |  | Restated Articles of Incorporation (1)                                                                                           
|           
|           
|           
|           
|3.2         |  | Restated By-Laws of AMERCO as of August 27, 1997 (2)                                                                             
|           
|           
|           
|           
|99.1        |  | Certificate of Edward J. Shoen, President of AMERCO
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                    
|           
|           
|           
|           
|99.2        |  | Certificate of Gary B. Horton, Treasurer of AMERCO pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002                     
|           
|           
|           
|           
|99.3        |  | Certificate of Edward J. Shoen, President of U-Haul
International, Inc. pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002
|           
|           
|           
|           
|99.4        |  | Certificate of Gary B. Horton, Treasurer of U-Haul International, Inc.
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 



---

|(1) |  | Incorporated by reference to AMERCOs Quarterly Report on Form 10-Q for
the quarter ended December 31, 2002, file no. 1-11255.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------
|   
|   
|   
|   
|(2) |  | Incorporated by reference to AMERCOs Quarterly Report on Form 10-Q
for the quarter ended December 31, 1997, file no. 1-11255.

28