##### 









SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

|           |  |                                                                                                  
|---------- |  | -------------------------------------------------------------------------------------------------
|(Mark One) |  |                                                                                                  
|þ          |  | QUARTERLY REPORT PURSUANT TO SECTION 13
    or 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934. 
|          
|           |  | For the quarterly period ended June 30,
    2003                                                 
|          
|or        
|          
|          
|o          |  | 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 Address                                                                                               |  |                                   
|File Number |  | and Telephone Number                                                                                                                     |  | I.R.S. Employer Identification No.
|            |  |                                                                                                                                          |  |                                   
|1-11255     |  | AMERCO
    (A Nevada Corporation)
    1325 Airmotive Way, Ste. 100
    Reno, Nevada 89502-3239
    Telephone (775) 688-6300              |  | 88-0106815                        
|2-38498     |  | U-Haul International, Inc.
    (A Nevada Corporation)
    2727 N. Central Avenue
    Phoenix, Arizona 85004
    Telephone (602) 263-6645 |  | 86-0663060                        

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 þ          No o.

Indicate by check mark whether the registrant is
an accelerated filer (as defined in Rule 12b-2 of the
Exchange
Act).     Yes o          No þ.

20,514,958 shares of AMERCO Common Stock, $0.25
par value were outstanding at June 30, 2003.

5,385 shares of U-Haul International, Inc. Common
Stock, $0.01 par value, were outstanding at September 8,
2003.



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TABLE OF CONTENTS

|                             |          |  |  |                                                                                                                                |  |  |    | 
|---------------------------- | -------- |  |  | ------------------------------------------------------------------------------------------------------------------------------ |  |  | -- | 
|PART I FINANCIAL INFORMATION
|                             | Item  1. |  |  | Financial Statements                                                                                                           |  |  |    | 
|                             |          |  |  | a) Condensed Consolidated Balance Sheets as
    of June 30, 2003 (unaudited) and March 31, 2003                                |  |  | 2  | 
|                             |          |  |  | b) Condensed Consolidated Statements of
    Operations for the Quarters ended June 30, 2003 and 2002
    (unaudited)           |  |  | 3  | 
|                             |          |  |  | c) Condensed Consolidated Statements of
    Comprehensive Income for the Quarters ended June 30, 2003
    and 2002 (unaudited) |  |  | 4  | 
|                             |          |  |  | d) Condensed Consolidated Statements of Cash
    Flows for the Quarters ended June 30, 2003 and 2002
    (unaudited)           |  |  | 5  | 
|                             |          |  |  | e) Notes to Condensed Consolidated Financial
    Statements                                                                    |  |  | 6  | 
|                             | Item  2. |  |  | Managements Discussion and Analysis of
    Financial Condition and Results of Operations                                      |  |  | 24 | 
|                             | Item  3. |  |  | Quantitative and Qualitative Disclosures About
    Market Risk                                                                 |  |  | 39 | 
|                             | Item  4. |  |  | Controls and Procedures                                                                                                        |  |  | 39 | 
|PART II OTHER INFORMATION   
|                             | Item  1. |  |  | Legal Proceedings                                                                                                              |  |  | 40 | 
|                             | Item  2. |  |  | Not applicable                                                                                                                 |  |  |    | 
|                             | Item  3. |  |  | Defaults Upon Senior Securities                                                                                                |  |  | 42 | 
|                             | Item  5. |  |  | Not applicable                                                                                                                 |  |  |    | 
|                             | Item  6. |  |  | Exhibits and Reports on Form 8-K                                                                                               |  |  | 43 | 

1



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##### 



PART I.     FINANCIAL
INFORMATION



ITEM
1.Financial
Statements


AMERCO (Debtor in Possession) AND CONSOLIDATED
SUBSIDIARIES AND

SAC HOLDING CORPORATIONS AND CONSOLIDATED
SUBSIDIARIES




CONDENSED CONSOLIDATED BALANCE
SHEETS


|                                        |                                               |                                     |           |            |           |   |           |            |           | 
|--------------------------------------- | --------------------------------------------- | ----------------------------------- | --------- | ---------- | --------- | - | --------- | ---------- | --------- | 
|                                        |                                               | June 30,                            |           | March 31, 
|                                        |                                               | 2003                                |           | 2003      
|Assets                                  |                                               |                                     |           |           
|                                        |                                               | (Unaudited)                         |           |           
|                                        |                                               |                                    
|                                        |                                               | (In thousands)                     
|Cash and cash equivalents               |                                               | $                                   | 85,460    |            |           | $ | 66,834    |           
|Trade receivables, net                  |                                               |                                     | 262,208   |            |           |   | 263,737   |           
|Notes and mortgage receivables, net     |                                               |                                     | 10,531    |            |           |   | 2,868     |           
|Inventories, net                        |                                               |                                     | 54,250    |            |           |   | 53,270    |           
|Prepaid expenses                        |                                               |                                     | 20,360    |            |           |   | 21,846    |           
|Investments, fixed maturities           |                                               |                                     | 834,530   |            |           |   | 860,600   |           
|Investments, other                      |                                               |                                     | 440,769   |            |           |   | 389,252   |           
|Deferred policy acquisition costs, net  |                                               |                                     | 103,707   |            |           |   | 105,100   |           
|Deferred income taxes                   |                                               |                                     | 10,615    |            |           |   | 32,242    |           
|Other assets                            |                                               |                                     | 88,132    |            |           |   | 63,600    |           
|                                        |                                               |                                     |           |            |           |   |           |           
|                                        |                                               |                                     | 1,910,562 |            |           |   | 1,859,349 |           
|Property, plant and equipment, at cost: |                                               |                                     |           |            |           |   |           |           
|                                        | Land                                          |                                     |           | 158,583    |           |   |           | 157,987    |          
|                                        | Building and Improvements                     |                                     |           | 751,601    |           |   |           | 747,853    |          
|                                        | Furniture and Equipment                       |                                     |           | 292,218    |           |   |           | 291,383    |          
|                                        | Rental trailers and other rental equipment    |                                     |           | 152,573    |           |   |           | 149,707    |          
|                                        | Rental trucks                                 |                                     |           | 1,177,683  |           |   |           | 1,140,294  |          
|                                        | SAC Holdings property, plant and equipment(1) |                                     |           | 726,668    |           |   |           | 757,292    |          
|                                        |                                               |                                     |           |            |           |   |           |           
|                                        |                                               |                                     | 3,259,326 |            |           |   | 3,244,516 |           
|                                        | Less accumulated depreciation                 |                                     |           | (1,327,515 | )         |   |           | (1,298,199 | )        
|                                        |                                               |                                     |           |            |           |   |           |           
|                                        |                                               | Total property, plant and equipment |           |            | 1,931,811 |   |           |            | 1,946,317 | 
|                                        |                                               |                                     |           |            |           |   |           |           
|                                        |                                               | Total assets                        |           | $          | 3,842,373 |   |           | $          | 3,805,666 | 
|                                        |                                               |                                     |           |            |           |   |           |           

|                                     |                                                                  |                                                   |                                             |                                            |          |       |           |         |          |       |           | 
|------------------------------------ | ---------------------------------------------------------------- | ------------------------------------------------- | ------------------------------------------- | ------------------------------------------ | -------- | ----- | --------- | ------- | -------- | ----- | --------- | 
|Liabilities and Stockholders Equity |                                                                  |                                                   |                                             |                                           
|Liabilities:                         |                                                                  |                                                   |                                             |                                            |          |       |           |        
|                                     | Accounts payable and accrued expenses                            |                                                   |                                             | 379,773                                    |          |       |           | 387,017 |         
|                                     | AMERCOs notes and loans payable,
    non-recourse to AMERCO     |                                                   |                                             | 93,977                                     |          |       |           | 954,856 |         
|                                     | SAC Holdings notes and loans payable                            |                                                   |                                             | 589,641                                    |          |       |           | 589,019 |         
|                                     | Policy benefits and losses, claims and loss
    expenses Payable |                                                   |                                             | 847,005                                    |          |       |           | 836,632 |         
|                                     | Liabilities from investment contracts                            |                                                   |                                             | 641,257                                    |          |       |           | 639,998 |         
|                                     | Other policyholders funds and liabilities                       |                                                   |                                             | 24,432                                     |          |       |           | 30,309  |         
|                                     | Deferred income                                                  |                                                   |                                             | 37,072                                     |          |       |           | 40,387  |         
|                                     | Liabilities subject to compromise                                |                                                   |                                             | 861,058                                    |          |       |           |        |         
|                                     |                                                                  |                                                   |                                             |                                            |          |       |           |        
|                                     |                                                                  |                                                   |                                             | Total liabilities                          |          |       | 3,474,215 |         |          |       | 3,478,218 | 
|                                     | Commitments and Contingent Liabilities                           |                                                   |                                             |                                           |          |       |           |        |         
|                                     | Stockholders equity:                                            |                                                   |                                             |                                            |          |       |           |         |         
|                                     |                                                                  | Serial preferred stock, with or without par value |                                             |                                            |          |       |           |         |          |      
|                                     |                                                                  |                                                   | Series A preferred stock, with no par value |                                            |          |       |           |         |          |       |          
|                                     |                                                                  |                                                   | Series B preferred stock, with no par value |                                            |          |      |           |         |          |      |          
|                                     |                                                                  | Serial common stock, with or without par value    |                                             |                                            |          |       |           |         |          |      
|                                     |                                                                  |                                                   | Series A common stock of $0.25 par value    |                                            |          | 1,441 |           |         |          | 1,441 |          
|                                     |                                                                  | Common stock of $0.25 par value                   |                                             |                                            | 9,122    |       |           |         | 9,122    |      
|                                     |                                                                  | Additional paid-in capital                        |                                             |                                            | 238,983  |       |           |         | 238,983  |      
|                                     |                                                                  | Accumulated other comprehensive loss              |                                             |                                            | (39,927  | )     |           |         | (55,765  | )    
|                                     |                                                                  | Retained earnings                                 |                                             |                                            | 592,717  |       |           |         | 568,222  |      
|                                     |                                                                  | Cost of common shares in treasury, net            |                                             |                                            | (421,376 | )     |           |         | (421,378 | )    
|                                     |                                                                  | Unearned ESOP shares                              |                                             |                                            | (12,802  | )     |           |         | (13,177  | )    
|                                     |                                                                  |                                                   |                                             |                                            |          |       |           |        
|                                     |                                                                  |                                                   |                                             | Total stockholders equity                 |          |       | 368,158   |         |          |       | 327,448   | 
|                                     |                                                                  |                                                   |                                             |                                            |          |       |           |        
|                                     |                                                                  |                                                   |                                             | Total liabilities and stockholders equity |          | $     | 3,842,373 |         |          | $     | 3,805,666 | 
|                                     |                                                                  |                                                   |                                             |                                            |          |       |           |        



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|    |                                                                                                                                                                                              
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Property, plant and equipment totaled
    $984.9 million and $1,015.6 million before
    eliminations; intercompany eliminations were $258.3 million
    at June 30, 2003 and March 31, 2003.

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

2



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##### 



AMERCO (Debtor in Possession) AND CONSOLIDATED
SUBSIDIARIES AND

SAC HOLDING CORPORATIONS AND CONSOLIDATED
SUBSIDIARIES


CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS

|                                            |                                                   |                                 |                   |            |         |        |         |            |         |        | 
|------------------------------------------- | ------------------------------------------------- | ------------------------------- | ----------------- | ---------- | ------- | ------ | ------- | ---------- | ------- | ------ | 
|                                            |                                                   |                                
|                                            |                                                   | Quarters Ended                 
|                                            |                                                   | June 30,                       
|                                            |                                                   |                                
|                                            |                                                   | 2003                            |                   | 2002      
|                                            |                                                   |                                 |                   |           
|                                            |                                                   |                                 |                   | (Restated)
|                                            |                                                   |                                
|                                            |                                                   | (Unaudited)                    
|                                            |                                                   |                                
|                                            |                                                   | (In thousands, except per share
|                                            |                                                   | data)                          
|Revenues                                    |                                                   |                                 |                   |            |         |        |         |           
|                                            | Revenues Rental revenue                           |                                 | $                 | 435,042    |         |        | $       | 411,577    |        
|                                            | Net sales                                         |                                 |                   | 69,209     |         |        |         | 68,189     |        
|                                            | Premiums                                          |                                 |                   | 64,456     |         |        |         | 84,653     |        
|                                            | Net investment and interest income                |                                 |                   | 11,409     |         |        |         | 14,875     |        
|                                            |                                                   |                                 |                   |            |         |        |         |           
|                                            |                                                   | Total revenues                  |                   |            | 580,116 |        |         |            | 579,294 |       
|Costs and expenses                          |                                                   |                                 |                   |            |         |        |         |           
|                                            | Operating expense                                 |                                 |                   | 292,976    |         |        |         | 276,220    |        
|                                            | Commission expense                                |                                 |                   | 40,194     |         |        |         | 42,130     |        
|                                            | Cost of sales                                     |                                 |                   | 32,219     |         |        |         | 35,527     |        
|                                            | Benefits and losses                               |                                 |                   | 53,399     |         |        |         | 76,418     |        
|                                            | Amortization of deferred policy acquisition costs |                                 |                   | 9,100      |         |        |         | 10,334     |        
|                                            | Lease expense                                     |                                 |                   | 38,630     |         |        |         | 41,356     |        
|                                            |                                                   |                                 | Depreciation, net |            |         | 38,038 |         |            |         | 33,712 | 
|                                            |                                                   |                                 |                   |            |         |        |         |           
|Total costs and expenses                    |                                                   |                                 | 504,556           |            |         |        | 515,697 |           
|                                            |                                                   |                                 |                   |            |         |        |         |           
|Earnings from operations                    |                                                   |                                 | 75,560            |            |         |        | 63,597  |           
|                                            | Interest expense                                  |                                 |                   | 30,898     |         |        |         | 28,695     |        
|                                            |                                                   |                                 |                   |            |         |        |         |           
|Pretax earnings                             |                                                   |                                 | 44,662            |            |         |        | 34,902  |           
|Income tax expense                          |                                                   |                                 | (16,926           | )          |         |        | (11,123 | )         
|                                            |                                                   |                                 |                   |            |         |        |         |           
|                                            |                                                   | Net earnings                    |                   | $          | 27,736  |        |         | $          | 23,779  |       
|Less: Preferred stock dividends             |                                                   |                                 | (3,241            | )          |         |        | (3,241  | )         
|                                            |                                                   |                                 |                   |            |         |        |         |           
|Earnings available to common shareholders   |                                                   | $                               | 24,495            |            |         | $      | 20,538  |           
|                                            |                                                   |                                 |                   |            |         |        |         |           
|Basic and diluted earnings per common share |                                                   | $                               | 1.24              |            |         | $      | 1.00    |           
|                                            |                                                   |                                 |                   |            |         |        |         |           
|Weighted average common shares              |                                                   |                                 |                   |            |         |        |         |           
|                                            | Outstanding: Basic and diluted                    |                                 |                   | 19,825,852 |         |        |         | 20,592,858 |        
|                                            |                                                   |                                 |                   |            |         |        |         |           

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

3



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AMERCO (Debtor in Possession) AND CONSOLIDATED
SUBSIDIARIES AND

SAC HOLDING CORPORATIONS AND CONSOLIDATED
SUBSIDIARIES


CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME

|                      |              |                                        |   |            |        |  |   |        |        |  
|--------------------- | ------------ | -------------------------------------- | - | ---------- | ------ |  | - | ------ | ------ | -
|                      |              |                                       
|                      |              | Quarters Ended                        
|                      |              | June 30,                              
|                      |              |                                       
|                      |              | 2003                                   |   | 2002      
|                      |              |                                        |   |           
|                      |              |                                        |   | (Restated)
|                      |              |                                       
|                      |              | (Unaudited)                           
|                      |              |                                       
|                      |              | (In thousands)                        
|Comprehensive income: |              |                                        |   |            |        |  |   |       
|                      | Net earnings |                                        | $ | 27,736     |        |  | $ | 23,779 |       
|                      |              | Changes in other comprehensive income: |   |            |        |  |   |        |        |  
|                      |              | Foreign currency translation           |   |            | 5,751  |  |   |        | (2,277 | )
|                      |              | Unrealized gain/(loss) on investments  |   |            | 10,087 |  |   |        | (322   | )
|                      |              |                                        |   |            |        |  |   |       
|                      |              | Total comprehensive income             |   | $          | 43,574 |  |   | $      | 21,180 |  
|                      |              |                                        |   |            |        |  |   |       

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

4



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AMERCO (Debtor in Possession) AND CONSOLIDATED
SUBSIDIARIES AND

SAC HOLDING CORPORATIONS AND CONSOLIDATED
SUBSIDIARIES




CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS


|                                                 |                                          |                               |         |            |         |   |         |          |         |  
|------------------------------------------------ | ---------------------------------------- | ----------------------------- | ------- | ---------- | ------- | - | ------- | -------- | ------- | -
|                                                 |                                          |                              
|                                                 |                                          | Quarters Ended June 30,      
|                                                 |                                          |                              
|                                                 |                                          | 2003                          |         | 2002      
|                                                 |                                          |                               |         |           
|                                                 |                                          |                               |         | (Restated)
|                                                 |                                          |                              
|                                                 |                                          | (Unaudited)                  
|                                                 |                                          | (In thousands)               
|Net cash provided by operating activities        |                                          | $                             | 42,628  |            |         | $ | 117,328 |         
|Cash flows from investing activities:            |                                          |                               |         |            |         |   |         |         
|                                                 | Purchases of investments:                |                               |         |            |         |   |         |          |        
|                                                 |                                          | Property, plant and equipment |         |            | (48,137 | ) |         |          | (61,215 | )
|                                                 |                                          | Investments, fixed maturities |         |            | (13,917 | ) |         |          | (60,986 | )
|                                                 |                                          | Other asset investment        |         |            | (25,474 | ) |         |          | (362    | )
|                                                 | Proceeds from sale of investments:       |                               |         |            |         |   |         |          |        
|                                                 |                                          | Property, plant and equipment |         |            | 3,157   |   |         |          | 3       |  
|                                                 |                                          | Investments, fixed maturities |         |            | 53,150  |   |         |          | 70,324  |  
|                                                 |                                          | Preferred stock               |         |            |        |   |         |          | 2,578   |  
|                                                 |                                          | Real estate                   |         |            | 6,344   |   |         |          | 4,545   |  
|                                                 |                                          | Mortgage loans                |         |            | 203     |   |         |          | 560     |  
|                                                 |                                          | Other investments             |         |            | 1,114   |   |         |          | 7,348   |  
|                                                 |                                          |                               |         |            |         |   |         |         
|Net cash used by investing activities            |                                          |                               | (23,560 | )          |         |   | (37,205 | )       
|                                                 |                                          |                               |         |            |         |   |         |         
|Cash flows from financing activities:            |                                          |                               |         |            |         |   |         |         
|                                                 | Net change in short-term borrowings      |                               |         |           |         |   |         | (100,485 | )      
|                                                 | Proceeds from notes                      |                               |         |           |         |   |         | 99,991   |        
|                                                 | Leveraged employee stock ownership plan: |                               |         |            |         |   |         |          |        
|                                                 |                                          | Purchase of shares            |         |            |        |   |         |          | (84     | )
|                                                 |                                          | Payments on loan              |         |            | 375     |   |         |          |        |  
|                                                 | Principal payments on notes              |                               |         | (1,595     | )       |   |         | (105,837 | )      
|                                                 | Treasury stock acquisitions, net         |                               |         |           |         |   |         | (572     | )      
|                                                 | Investment contract deposits             |                               |         | 20,334     |         |   |         | 36,628   |        
|                                                 | Investment contract withdrawals          |                               |         | (19,556    | )       |   |         | (19,211  | )      
|                                                 |                                          |                               |         |            |         |   |         |         
|Net cash used by financing activities            |                                          |                               | (442    | )          |         |   | (89,570 | )       
|                                                 |                                          |                               |         |            |         |   |         |         
|Increase (decrease) in cash and cash equivalents |                                          |                               | 18,626  |            |         |   | (9,447  | )       
|Cash and cash equivalents at beginning of period |                                          |                               | 66,834  |            |         |   | 41,446  |         
|                                                 |                                          |                               |         |            |         |   |         |         
|Cash and cash equivalents at end of period       |                                          | $                             | 85,460  |            |         | $ | 31,999  |         
|                                                 |                                          |                               |         |            |         |   |         |         

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

5



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AMERCO (Debtor in Possession) AND CONSOLIDATED
SUBSIDIARIES AND

SAC HOLDING CORPORATIONS AND CONSOLIDATED
SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS

June 30, 2003, March 31, 2003 and
June 30, 2002

(Unaudited)




|   |                                                        
|-- | -------------------------------------------------------
|1. | Proceedings Under Chapter 11 of the
    Bankruptcy Code

On June 20, 2003, AMERCO (the
Debtor) filed a petition for relief under
Chapter 11 of the federal bankruptcy laws in the United
States Bankruptcy Court for the District of Nevada. On
August 13, 2003, the companys wholly owned subsidiary
Amerco Real Estate Company (AREC) filed a petition
for relief under Chapter 11 of the federal bankruptcy laws
of the United States Bankruptcy Court for the District of
Nevada. Under Chapter 11, certain claims against the Debtor
in existence prior to the filing of the petition for relief
under the federal bankruptcy laws are stayed while the Debtor
continues business operations as Debtorin-possession.
These claims are reflected in the June 30, 2003, balance
sheet as liabilities subject to compromise.
Additional claims (liabilities subject to compromise) may arise
subsequent to the filing date resulting from rejection of
executory contracts, including leases, and from the
determination by the court (or agreed to by parties in interest)
of allowed claims for contingencies and other disputed amounts.
Claims secured against the Debtors assets (secured
claims) also are stayed, although the holders of such
claims have the right to move the court for relief from the
stay. Secured claims are secured primarily by liens of the
Debtors property, plant and equipment.



|   |                                                 
|-- | ------------------------------------------------
|2. | Organization and Principles of
    Consolidation



| |             
| | ------------
| | Organization

AMERCO, a Nevada corporation
(AMERCO), is the holding company for U-Haul
International, Inc. (U-Haul), Amerco Real Estate
Company (Real Estate), Republic Western Insurance
Company (RepWest) and Oxford Life Insurance Company
(Oxford). Throughout this Form 10-Q, unless the
context otherwise requires, the term Company refers
to AMERCO and all of its legal subsidiaries. The Company has
four industry segments represented by Moving and Storage
Operations (U-Haul), Real Estate, Property and Casualty
Insurance (RepWest) and Life Insurance (Oxford).

SAC Holding Corporation and SAC Holding
Corporation II, Nevada corporations (collectively, SAC
Holdings), are the holding companies for several
individual corporations that own self-storage properties managed
by AMERCO subsidiaries in the ordinary course of business. Mark
V. Shoen, a significant shareholder and executive officer of
AMERCO, owns all of the equity interest of SAC Holdings.



| |                            
| | ---------------------------
| | Principles of Consolidation

The condensed consolidated financial statements
presented here include the accounts of AMERCO and its wholly
owned subsidiaries and SAC Holdings and their subsidiaries. All
material intercompany accounts and transactions have been
eliminated in consolidation. SAC Holdings has been classified as
a special purpose entity that meets the criteria for
consolidation and therefore the accounts of SAC Holdings are
included in the consolidated financial statements. AMERCO has
concluded that SAC Holdings qualifies as a Variable Interest
Entity, as defined by FIN 46, and will continue to be included
in the consolidation. SAC Holdings are not legal subsidiaries of
AMERCO. AMERCO is not liable for the debts of SAC Holdings and
there are no default provisions in AMERCO indebtedness that
cross-default to SAC Holdings obligations. The condensed
consolidated financial statements and notes are presented as
permitted by Form 10-Q and do not contain certain
information included in AMERCOs annual financial
statements and notes. For a more detailed presentation of the
accounts and transactions of AMERCO, refer to AMERCOs
Form 10-K.

The condensed consolidated balance sheet as of
June 30, 2003 and the related condensed consolidated
statements of operations, comprehensive income, and cash flows
for the quarters ended June 30, 2003 and 2002 are
unaudited. In our opinion, all adjustments necessary for a fair
presentation of such condensed

6



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##### 



AMERCO (Debtor in Possession) AND CONSOLIDATED SUBSIDIARIES
AND


SAC HOLDING CORPORATIONS AND CONSOLIDATED SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)
(Unaudited)

consolidated financial statements have been
included. Such adjustments consist only of normal recurring
items. Interim results are not necessarily indicative of results
for a full year.

The 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, with the exception of
various Agreements of Exchange entered into between SAC Holdings
and RepWest and SAC Holdings and Oxford. The exchanges were
effective June 30, 2003, were non-monetary and were
recorded on the basis of the book values of the assets
exchanged. Under the terms of these Agreements of Exchange,
RepWest and Oxford exchanged their respective interests in
Private Mini Storage Realty, L.P., a Texas based self-storage
operator, for real estate owned by SAC Holdings. For the
purposes of consolidating the operations of RepWest and Oxford
and to facilitate proper eliminations among the various entities
as of and for the quarter ended June 30, 2003, the
transaction was accounted for as if it were effective
March 31, 2003 with respect to RepWest and Oxford.

Revenues, expenses (including professional fees),
realized gains and losses, and provisions for losses directly
associated with the reorganization and restructuring of the
business are reported as part of operating expenses in the
Condensed Consolidated Statements of Operations. The Condensed
Consolidated Balance Sheets distinguish pre-petition liabilities
subject to compromise from both those pre-petition liabilities
that are not subject to compromise and from post-petition
liabilities. Liabilities subject to compromise are reported at
the amounts expected to be allowed, even if they may be settled
for lesser amounts.



| |                    
| | -------------------
| | Going Concern Basis

On June 20, 2003 (the Petition
Date), AMERCO filed a voluntary petition for relief under
Chapter 11 of the United States Bankruptcy Code (the
Bankruptcy Code) in the United States Bankruptcy
Court, District of Nevada (the Bankruptcy Court)
(Case No. 0352103). AMERCO will continue to manage its
properties and operate its businesses as
debtor-in-possession under the jurisdiction of the
Bankruptcy Court and in accordance with the applicable
provisions of the Bankruptcy Code. In general, as
debtor-in-possession, AMERCO is authorized under Chapter 11
to continue to operate as an ongoing business, but may not
engage in transactions outside the ordinary course of business
without the prior approval of the Bankruptcy Court. Specific
information pertaining to the bankruptcy filing may be obtained
from the website www.amerco.com. The Bankruptcy filing and the
events of default on substantially all of the Companys
debt raises substantial doubt about the ability of the Company
to continue as a going concern. The consolidated financial
statements do not include any adjustments to reflect future
effects on the recoverability and classification of assets or
the amount and classification of liabilities that might result
from these uncertainties.



| |                                       
| | --------------------------------------
| | Restatements and
    Reclassifications

In connection with the recently completed audit
of the Companys financial statement for the year ended
March 31, 2003, it was determined that there was a need for
the Company to record adjustments that resulted in the
restatement of the Companys financial statements,
including financial statements for the quarter ended
June 30, 2002. The condensed consolidated statement of
operations, comprehensive income and cash flows for the quarter
ended June 30, 2002 contained in this report have been
restated. Net income for the three months ended June 30,
2002 as originally reported was $40.5 million, or $1.81 per
basic and diluted share. Net income for this period as restated
is $23.8 million or $1.00 per basic and diluted share. The
major components of the restatement were related to an
adjustment to accrue for fully-developed actuarial estimates of
the Companys insurance reserves and to recognize
equity-method losses relating to the Companys investments
in Private Mini Storage Realty, L.P. For a detailed discussion
of the adjustments to our financial statements for the fiscal

7



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##### 



AMERCO (Debtor in Possession) AND CONSOLIDATED SUBSIDIARIES
AND


SAC HOLDING CORPORATIONS AND CONSOLIDATED SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)
(Unaudited)

years ended March 31, 2002 and 2001, see
footnote 2 to the consolidated financial statements
contained in our Annual Report on Form 10-K.



|   |            
|-- | -----------
|3. | Investments

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

|                                                  |  |                |        |            |  |            |     |              |  |   |     |   |  |   |        | 
|------------------------------------------------- |  | -------------- | ------ | ---------- |  | ---------- | --- | ------------ |  | - | --- | - |  | - | ------ | 
|                                                  |  |                |        | Gross      |  | Gross      |     |             
|March 31, 2003                                    |  | Amortized      |        | Unrealized |  | Unrealized |     | Estimated   
|Consolidated Held-to-Maturity                     |  | Cost           |        | Gains      |  | Losses     |     | Market Value
|                                                  |  |                |        |            |  |            |     |             
|                                                  |  |               
|                                                  |  | (In thousands)
|U.S. government agency mortgage-backed Securities |  | $              | 510    |            |  | $          | 173 |              |  | $ |    |   |  | $ | 683    | 
|Mortgage-backed securities                        |  |                | 12,549 |            |  |            | 420 |              |  |   | (49 | ) |  |   | 12,920 | 
|                                                  |  |                |        |            |  |            |     |              |  |   |     |   |  |   |        | 
|                                                  |  | $              | 13,059 |            |  | $          | 593 |              |  | $ | (49 | ) |  | $ | 13,603 | 
|                                                  |  |                |        |            |  |            |     |              |  |   |     |   |  |   |        | 

|                                                        |       |                |         |            |  |            |        |              |  |   |         |         |   |   |         |         | 
|------------------------------------------------------- | ----- | -------------- | ------- | ---------- |  | ---------- | ------ | ------------ |  | - | ------- | ------- | - | - | ------- | ------- | 
|                                                        |       |                |         | Gross      |  | Gross      |        |             
|March 31, 2003                                          |       | Amortized      |         | Unrealized |  | Unrealized |        | Estimated   
|Consolidated Available-for-Sale                         |       | Cost           |         | Gains      |  | Losses     |        | Market Value
|                                                        |       |                |         |            |  |            |        |             
|                                                        |       |               
|                                                        |       | (In thousands)
|U.S. treasury securities and government
    Obligations |       | $              | 27,343  |            |  | $          | 3,176  |              |  | $ |        |         |   | $ | 30,519  |        
|U.S. government agency mortgage-backed
    securities   |       |                | 10,915  |            |  |            | 588    |              |  |   |        |         |   |   | 11,503  |        
|Obligations of states and political subdivisions        |       |                | 2,625   |            |  |            | 172    |              |  |   |        |         |   |   | 2,797   |        
|Corporate securities                                    |       |                | 565,750 |            |  |            | 29,533 |              |  |   | (27,825 | )       |   |   | 567,458 |        
|Mortgage-backed securities                              |       |                | 84,809  |            |  |            | 3,147  |              |  |   | (3,423  | )       |   |   | 84,533  |        
|Redeemable preferred stocks                             |       |                | 123,305 |            |  |            | 1,721  |              |  |   | (1,377  | )       |   |   | 123,649 |        
|Common stocks                                           |       |                | 1,012   |            |  |            |       |              |  |   |        |         |   |   | 1,012   |        
|                                                        |       |                |         |            |  |            |        |              |  |   |         |         |   |   |         |        
|                                                        |       |                | 815,759 |            |  |            | 38,337 |              |  |   | (32,625 | )       |   |   | 821,471 |        
|                                                        |       |                |         |            |  |            |        |              |  |   |         |         |   |   |         |        
|                                                        | Total |                | $       | 828,818    |  |            | $      | 38,930       |  |   | $       | (32,674 | ) |   | $       | 835,074 | 
|                                                        |       |                |         |            |  |            |        |              |  |   |         |         |   |   |         |        



|   |                                           
|-- | ------------------------------------------
|4. | Contingent Liabilities and
    Commitments

Following are the lease commitments which have a
term of more than one year:

|                        |  |                |         | 
|----------------------- |  | -------------- | ------- | 
|                        |  | Lease         
|                        |  | Commitments   
|Quarter Ending June 30, |  |               
|                        |  |               
|                        |  | (In thousands)
|2004                    |  | $              | 236,793 | 
|2005                    |  |                | 100,740 | 
|2006                    |  |                | 85,503  | 
|2007                    |  |                | 66,892  | 
|2008                    |  |                | 21,941  | 
|Thereafter              |  |                | 7,522   | 
|                        |  |                |         | 
|                        |  | $              | 519,391 | 
|                        |  |                |         | 

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.

8



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##### 



AMERCO (Debtor in Possession) AND CONSOLIDATED SUBSIDIARIES
AND


SAC HOLDING CORPORATIONS AND CONSOLIDATED SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)
(Unaudited)

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 we have spent
$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 as 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 $5.0 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 $750,000 to
$1.25 million.

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

In connection with the resolution of litigation
with certain members of the Shoen family and their corporations,
AMERCO has deducted for income tax purposes approximately
$372.0 million of the payments made to plaintiffs in a
lawsuit. While AMERCO believes that such income tax deductions
are appropriate, there can be no assurance that such deductions
ultimately will be allowed in full. The IRS has proposed
adjustments to the Companys 1997 and 1996 tax returns.
Nearly all of the adjustments are attributable to denials of
deductions claimed for certain payments made in connection with
this litigation. We believe these income tax deductions are
appropriate and are vigorously contesting the IRS adjustments.
No additional taxes have been provided in the accompanying
financial statements, as management believes that none will
result.

On July 20, 2000, Charles Kocher
(Kocher) filed suit in Wetzel County, West Virginia,
Civil Action No. 00-C-51-K, entitled Charles Kocher v.
Oxford Life Insurance Co. (Oxford) seeking
compensatory and punitive damages for breach of contract, bad
faith and unfair claims settlement practices arising from an
alleged failure of Oxford to properly and timely pay a claim
under a disability and dismemberment policy. On March 22,
2002, the jury returned a verdict of $5 million in
compensatory damages and $34 million in punitive damages.
On November 5, 2002, the trial court entered an Order
(Order) affirming the $39 million jury verdict
and denying Oxfords motion for New Trial Or, in The
Alternative, Remittitur. Oxford has perfected its appeal to the
West Virginia Supreme Court. Oral argument on the appeal
petition occurred on September 9, 2003. Management does not
believe that the Order is sustainable and expects the Order to
be overturned by the West Virginia Supreme Court, in part
because the jury award has no reasonable nexus to the actual
harm suffered by Kocher. The Company has accrued $725,000, which
represents managements best estimate of the costs
associated with legal fees to appeal and re-try the case and the
companys uninsured exposure to an unfavorable outcome.

As previously discussed, on June 20, 2003,
AMERCO filed a voluntary petition for relief under
Chapter 11 of the Bankruptcy Code. As debtor-in-possession,
AMERCO is authorized under Chapter 11 to continue to
operate as an ongoing business, but may not engage in
transactions outside the ordinary course of business without the
prior approval of the Bankruptcy Court. As of the Petition Date,
virtually all pending litigation against AMERCO is stayed, and
absent further order of the Bankruptcy Court, no party, subject
to certain exceptions, may take any action, again subject to
certain exceptions, to recover on pre-petition claims against
AMERCO. The automatic stay, however, does not apply to
AMERCOs subsidiaries, other than Amerco Real Estate
Company, which filed for protection under Chapter 11, on
August 13, 2003.

9



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##### 



AMERCO (Debtor in Possession) AND CONSOLIDATED SUBSIDIARIES
AND


SAC HOLDING CORPORATIONS AND CONSOLIDATED SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)
(Unaudited)

On September 24, 2002, Paul F. Shoen filed a
derivative action in the Second Judicial District Court of the
State of Nevada, Washoe County, captioned Paul F. Shoen vs. SAC
Holding Corporation et al, CV02-05602, seeking damages and
equitable relief on behalf of AMERCO from SAC Holdings and
certain current and former members of the AMERCO Board of
Directors, including Edward J. Shoen, Mark V. Shoen and James P.
Shoen as defendants. AMERCO is named a nominal defendant for
purposes of the derivative action. The complaint alleges breach
of fiduciary duty, self-dealing, usurpation of corporate
opportunities, wrongful interference with prospective economic
advantage and unjust enrichment and seeks the unwinding of sales
of self-storage properties by subsidiaries of AMERCO to SAC
Holdings over the last several years. The complaint seeks a
declaration that such transfers are void as well as unspecified
damages. On October 28, 2002, AMERCO, the Shoen directors,
the non-Shoen directors and SAC Holdings filed Motions to
Dismiss the complaint. In addition, on October 28, 2002,
Ron Belec filed a derivative action in the Second Judicial
District Court of the State of Nevada, Washoe County, captioned
Ron Belec vs. William E. Carty, et al, CV 02-06331 and on
January 16, 2003, M.S. Management Company, Inc. filed
a derivative action in the Second Judicial District Court of the
State of Nevada, Washoe County, captioned M.S. Management
Company, Inc. vs. William E. Carty, et. al, CV 03-00386.
Two additional derivative suits were also filed against these
parties. These additional suits are substantially similar to the
Paul F. Shoen derivative action. The five suits assert virtually
identical claims. In fact, three of the five plaintiffs are
parties who are working closely together and chose to file the
same claims multiple times. The court consolidated all five
complaints before dismissing them on May 8, 2003.
Plaintiffs have filed a notice of appeal. These lawsuits falsely
alleged that the AMERCO Board lacked independence. In reaching
his decision to dismiss these claims, the court determined that
the AMERCO Board of Directors had the requisite level of
independence required in order to have these claims resolved by
the Board.

The Securities and Exchange Commission
(SEC) has issued a formal order of investigation to
determine whether the Company has violated the Federal
securities laws. On January 7, 2003, the Company received
the first of four subpoenas issued by the SEC. SAC Holdings, the
Companys current and former auditors, and others have also
received one or more subpoenas relating to this matter. The
Company is cooperating fully with the SEC and is facilitating
the expeditious review of its financial statements and any other
issues that may arise. The Company has produced a large volume
of documents and other materials in response to the subpoenas,
and the Company is continuing to assemble and produce additional
documents and materials for the SEC. Although the Company has
fully cooperated with the SEC in this matter and intends to
continue to fully cooperate, the SEC may determine that the
Company has violated Federal securities laws. We cannot predict
when this investigation will be completed or its outcome. If the
SEC makes a determination that we have violated Federal
securities laws, we may face sanctions, including, but not
limited to, significant monetary penalties and injunctive relief.

AMERCO is a defendant in four putative class
action lawsuits. Article Four Trust v. AMERCO, et al.,
District of Nevada, United States District Court, Case
No. CV-N-03-0050-DWH-VPC. Article Four Trust, a
purported AMERCO shareholder, commenced this action on
January 28, 2003 on behalf of all persons and entities who
purchased or acquired AMERCO securities between
February 12, 1998 and September 26, 2002. The
Article Four Trustaction alleges one claim for violation of
Section 10(b) of the Securities Exchange Act and
Rule 10b-5 thereunder. Mates v. AMERCO, et al.,United States District Court, District of Nevada, Case
No. CV-N-03-0107. Maxine Mates, an AMERCO shareholder,
commenced this putative class action on behalf of all persons
and entities who purchased or acquired AMERCO securities between
February 12, 1998 and September 26, 2002. The Matesaction asserts claims under section 10(b) and
Rule 10b-5, and section 20(a) of the Securities
Exchange Act. Klug v. AMERCO, et al., United States
District Court of Nevada, Case No. CV-S-03-0380. Edward
Klug, an AMERCO shareholder, commenced this putative class
action on behalf of all persons and entities who purchased or
acquired AMERCO securities between

10



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##### 



AMERCO (Debtor in Possession) AND CONSOLIDATED SUBSIDIARIES
AND


SAC HOLDING CORPORATIONS AND CONSOLIDATED SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)
(Unaudited)

February 12, 1998 and September 26,
2002. The Klugaction asserts claims under
section 10(b) and Rule 10b-5 and section 20(a) of
the Securities Exchange Act. IG Holdingsv. AMERCO, et
al., United States District Court, District of Nevada, Case
No. CV-N-03-0199. IG Holdings, an AMERCO bondholder,
commenced this putative class action on behalf of all persons
and entities who purchased, acquired, or traded AMERCO bonds
between February 12, 1998 and September 26, 2002,
alleging claims under section 11 and section 12 of the
Securities Act of 1933 and section 10(b) and
Rule 10b-5, and section 20(a) of the Securities
Exchange Act. Each of these four securities class actions allege
that AMERCO engaged in transactions with SAC entities that
falsely improved AMERCOs financial statements, and that
AMERCO failed to disclose the transactions properly. The actions
are at a very early stage. The Klugaction has not been
served. In the other three actions, AMERCO does not currently
have a deadline by which it must respond to the complaints.
Management has stated that it intends to defend these cases
vigorously. We have filed a notice of AMERCOs bankruptcy
petition and the automatic stay in each of the Courts where
these cases are pending.

The United States Department of Labor
(DOL) is presently investigating whether there were
violations of the Employee Retirement Income Security Act of
1974 (ERISA) involving the AMERCO Employee Savings,
Profit Sharing, and Employee Stock Ownership Plan (the
Plan). The DOL has interviewed a number of Company
representatives as well as the Plan fiduciaries and has issued a
subpoena to the Company and a subpoena to SAC Holdings. At the
present time, the Company is unable to determine whether the DOL
will assert any claims against the Company, SAC Holdings, or the
Plan fiduciaries. The DOL has asked AMERCO and its current
directors as well as the Plan Trustees to sign an agreement
tolling the statute of limitations with respect to any claims
arising out of certain transactions between AMERCO or any
affiliate of AMERCO and SAC Holdings or any of its affiliates
and such persons have done so. The DOL recently asked such
parties to extend the tolling agreement. The DOL has not advised
the Company that it believes that any violations of ERISA have
in fact occurred. Instead, the DOL is simply investigating
potential violations. The Company intends to take any corrective
action that may be needed in light of the DOLs ultimate
findings. Although the Company has fully cooperated with the DOL
in this matter and intends to continue to fully cooperate, the
DOL may determine that the Company has violated ERISA. In that
event, the Company may face sanctions, including, but not
limited to, significant monetary penalties and injunctive relief.



|   |                         
|-- | ------------------------
|5. | New Accounting Standards

Statement of Financial Accounting Standards
No. 143 (SFAS 143), Accounting for Asset
Retirement Obligations, requires recognition of the fair value
of liabilities associated with the retirement of long-lived
assets when a legal obligation to incur such costs arises as a
result of the acquisition, construction, development and/or the
normal operation of a long-lived asset. Upon recognition of the
liability, a corresponding asset is recorded at present value
and accreted over the life of the asset and depreciated over the
remaining life of the long-lived asset. SFAS 143 defines a legal
obligation as one that a party is required to settle as a result
of an existing or enacted law, statute, ordinance, or written or
oral contract or by legal construction of a contract under the
doctrine of promissory estoppel. SFAS 143 is effective for
fiscal years beginning after June 15, 2002. We adopted this
statement effective April 1, 2003, and it did not affect
our consolidated financial position or results of operations.

In April 2002, the FASB issued SFAS No. 145
(SFAS 145), Rescission of No. 4, (Reporting
Gains and Losses from Extinguishment of Debt), No. 44
(Accounting for Intangible Assets of Motor Carriers),
No. 64, (Extinguishments of Debt Made to Satisfy
Sinking-Fund Requirements), Amendment of FASB Statement
No. 13 (Accounting for Leases) and Technical Corrections.
This statement eliminates the current requirement that gains and
losses on debt 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

11



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##### 



AMERCO (Debtor in Possession) AND CONSOLIDATED SUBSIDIARIES
AND


SAC HOLDING CORPORATIONS AND CONSOLIDATED SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)
(Unaudited)

deemed to be unusual and infrequent, in
accordance with the current GAAP criteria for extraordinary
classification. In addition, SFAS 145 eliminates an
inconsistency in lease accounting by requiring that modification
of capital leases that result in reclassification as operating
leases be accounted for consistent with sale-leaseback
accounting rules. The statement also contains other
nonsubstantive corrections to authoritative accounting
literature. The changes related to debt extinguishment will be
effective for fiscal years beginning after May 15, 2002. We
previously reclassified all extraordinary loss on debt
extinguishment to interest expense. The changes related to lease
accounting will be effective for transactions occurring after
May 15, 2002. We have adopted the lease accounting
provisions effective May 16, 2002 and it did not affect our
consolidated financial position or results of operations.

In June 2002, the FASB issued Statement of
Financial Accounting Standards No. 146, (SFAS
146) Accounting for Costs Associated with Exit or Disposal
Activities, which addresses accounting for restructuring and
similar costs. SFAS 146 supersedes previous accounting guidance,
principally Emerging Issues Task Force (EITF) Issue
No. 94-3. SFAS 146 requires that the liability for costs
associated with an exit or disposal activity be recognized when
the liability is incurred. Under EITF No. 94-3, a liability
for an exit cost was recognized at the date of a companys
commitment to an exit plan. SFAS 146 also establishes that
the liability should initially be measured and recorded at fair
value. Accordingly, SFAS 146 may affect the timing of
recognizing future restructuring costs as well as the amount
recognized. The provisions of this Statement are effective for
exit or disposal activities that are initiated after
December 31, 2002. We have adopted the Statement effective
January 1, 2003 and it did not affect our consolidated
financial position or results of operations.

In November 2002, the FASB issued FASB
Interpretation No. 45 (FIN 45),
Guarantors Accounting for Disclosure Requirements for
Guarantees, Including Indirect Guarantees of Indebtedness of
Others, an interpretation of FASB Statements No. 5, 57, and
107 and rescission of FASB Interpretation No. 34,
Disclosure of Indirect Guarantees of Indebtedness of Others. FIN
45 clarifies the requirements for a guarantors accounting
for and disclosure of certain guarantees issued and outstanding.
It also requires a guarantor to recognize, at the inception of a
guarantee, a liability for the fair value of the obligation
undertaken in issuing the guarantee. This Interpretation also
incorporates without reconsideration the guidance in FASB
Interpretation No. 34, which is being superseded. As a
result of FIN 45, the Company has recorded a
$70 million liability at March 31, 2003 and
June 30, 2003, which is managements estimate of the
liability associated with the guarantee of the indebtedness of
an affiliate of Private Mini Storage Realty, L.P. which was
entered into in February 2003.

In December 2002, the FASB issued Statement of
Financial Accounting Standards No. 148
(SFAS 148), Accounting for Stock-Based
Compensation  Transition and Disclosure, which
amends Statement of Financial Accounting Standards No. 123
(SFAS 123), Accounting for Stock-Based
Compensation. SFAS 148 provides alternative methods
of transition for a voluntary change to the fair value based
method of accounting for stock-based employee compensation. In
addition, SFAS 148 amends the disclosure requirement of
SFAS 123 to require more prominent and more frequent
disclosures in financial statements of the effects of
stock-based compensation. The transition guidance and annual
disclosure provisions of SFAS 148 are effective for fiscal
years ending after December 15, 2002. The interim
disclosure provisions are effective for financial reports
containing condensed financial statements for interim periods
beginning after December 15, 2002. We have adopted this
statement and it did have a material impact on the
Companys consolidated balance sheet or results of
operations.

In April 2003, the FASB issued Statement of
Financial Accounting Standards No. 149
(SFAS 149), Amendment of
Statement 133 on Derivative Instruments and Hedging
Activities. This Statement amends and clarifies the
accounting for derivative instruments, including certain
derivative instruments embedded in

12



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##### 



AMERCO (Debtor in Possession) AND CONSOLIDATED SUBSIDIARIES
AND


SAC HOLDING CORPORATIONS AND CONSOLIDATED SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)
(Unaudited)

other contracts and for hedging activities under
SFAS No. 133. In particular, SFAS 149
(1) clarifies under what circumstances a contract with an
initial net investment meets the characteristic of a derivative
as discussed in SFAS No. 133, (2) clarifies when a
derivative contains a financing component, (3) amends the
definition of an underlying derivative to conform it to the
language used in FIN 45, and (4) amends certain other
existing pronouncements. SFAS 149 is generally effective
for contracts entered into or modified after June 30, 2003.
The Company does not believe the adoption of SFAS No. 149
will have a material impact on the Companys financial
position, results of operations or cash flows.

In May 2003, the FASB issued SFAS 150
(SFAS 150), Accounting for Certain
Financial Instruments with Characteristics of both Liabilities
and Equity. This Statement establishes standards for
classifying and measuring as liabilities certain financial
instruments that embody obligations of the issuer and have
characteristics of both liabilities and equity. SFAS
No. 150 is effective at the beginning of the first interim
period beginning after June 15, 2003; including all
financial instruments created or modified after May 31,
2003. SFAS 150 currently has no impact on the Company.

In January 2003, the FASB issued FASB
Interpretation No. 46 (FIN 46),
Consolidation of Variable Interest Entities, an interpretation
of Accounting Research Bulletins (ARB) No. 51,
Consolidated Financial Statements). FIN 46 applies
immediately to variable interest entities created after
January 31, 2003, and in the first interim period beginning
after June 15, 2003 for variable interest entities created
prior to January 31, 2003. The interpretation explains how
to identify variable interest entities and how an enterprise
assesses its interests in a variable interest entity to decide
whether to consolidate that entity. The interpretation requires
existing unconsolidated variable interest entities to be
consolidated by their primary beneficiaries if the entities do
not effectively disperse risks among parties involved. Variable
interest entities that effectively disperse risks will not be
consolidated unless a single party holds an interest or
combination of interests that effectively recombines risks that
were previously dispersed. SAC Holdings has determined that
Private Mini is a Variable Interest Entity and will need to be
consolidated beginning in July 2003. Based on December 31,
2002 financial information for Private Mini, the impact of this
on the consolidated financial statements is to increase assets
by approximately $320.0 million and increase debt by
approximately $308.0 million.

13



---



##### 



CONSOLIDATING BALANCE SHEETS BY INDUSTRY
SEGMENT AND GEOGRAPHIC AREA DATA

AMERCO has four industry segments represented
by moving and storage operations (AMERCO and U-Haul), real
estate (Real Estate), property and casualty insurance (RepWest),
and life insurance (Oxford). SAC Holdings consist of one moving
and storage industry segment.


AMERCO (Debtor in Possession) AND CONSOLIDATED
SUBSIDIARIES AND SAC HOLDING CORPORATIONS AND CONSOLIDATED
SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

(Unaudited)


6. Consolidating balance sheets by
industry segment as of June 30, 2003 are as
follows:

|                                        |                                             |                                     |           |            |     |             |           |              |         |              |         |              |         |  |         |   |   |  |         |   |   |  |            |   |   | 
|--------------------------------------- | ------------------------------------------- | ----------------------------------- | --------- | ---------- | --- | ----------- | --------- | ------------ | ------- | ------------ | ------- | ------------ | ------- |  | ------- | - | - |  | ------- | - | - |  | ---------- | - | - | 
|                                        |                                             |                                     |           | U-Haul     |     |             |           |              |         |              |         |             
|                                        |                                             |                                     |           | Moving and |     |             |           | Property and |         |              |         |             
|                                        |                                             |                                     |           | Storage    |     |             |           | Casualty     |         | Life         |         |             
|                                        |                                             | AMERCO                              |           | Operations |     | Real Estate |           | Insurance(1) |         | Insurance(1) |         | Eliminations
|                                        |                                             |                                     |           |            |     |             |           |              |         |              |         |             
|                                        |                                             |                                    
|                                        |                                             | (In thousands)                     
|ASSETS                                  |                                             |                                     |           |            |     |             |           |              |         |              |         |              |         |  |         |   |   |  |         |   |   |  |            |  
|Cash and cash equivalents               |                                             | $                                   | 32,741    |            |     |             | 41,245    |              |         |              | 272     |              |         |  | 3,310   |   |   |  | 2,687   |   |   |  |           |  
|Trade receivables, net                  |                                             |                                     |          |            |     |             | 16,339    |              |         |              | 13,739  |              |         |  | 229,145 |   |   |  | 22,827  |   |   |  |           |  
|Notes and mortgages receivables, net    |                                             |                                     |          |            |     |             | 34,887    |              |         |              | 5,771   |              |         |  |        |   |   |  |        |   |   |  |           |  
|Inventories, net                        |                                             |                                     |          |            |     |             | 49,944    |              |         |              | 4       |              |         |  |        |   |   |  |        |   |   |  |           |  
|Prepaid expenses                        |                                             |                                     | 84        |            |     |             | 24,512    |              |         |              | 11      |              |         |  |        |   |   |  |        |   |   |  |           |  
|Investments, fixed maturities           |                                             |                                     |          |            |     |             |          |              |         |              |        |              |         |  | 238,291 |   |   |  | 601,278 |   |   |  |           |  
|Investments, other                      |                                             |                                     | 135,000   |            |     |             | 171,241   |              |         |              | 217,618 |              |         |  | 110,706 |   |   |  | 255,224 |   |   |  | (50,027    | )
|Deferred policy acquisition costs, net  |                                             |                                     |          |            |     |             |          |              |         |              |        |              |         |  | 12,815  |   |   |  | 90,892  |   |   |  |           |  
|Other assets                            |                                             |                                     | 514,578   |            |     |             | 212,435   |              |         |              | 3,990   |              |         |  | 105,586 |   |   |  | 1,476   |   |   |  | (773,922   | )
|                                        |                                             |                                     |           |            |     |             |           |              |         |              |         |              |         |  |         |   |   |  |         |   |   |  |            |  
|                                        |                                             |                                     | 682,403   |            |     |             | 550,603   |              |         |              | 241,405 |              |         |  | 699,853 |   |   |  | 974,384 |   |   |  | (823,949   | )
|Investment in Subsidiaries              |                                             |                                     | 1,066,859 |            |     |             |          |              |         |              |        |              |         |  |        |   |   |  |        |   |   |  | (1,066,859 | )
|Investment in SAC                       |                                             |                                     | (43,771   | )          |     |             |          |              |         |              |        |              |         |  |        |   |   |  |        |   |   |  |           |  
|Property, plant and equipment, at cost: |                                             |                                     |           |            |     |             |           |              |         |              |         |              |         |  |         |   |   |  |         |   |   |  |            |  
|                                        | Land                                        |                                     |           |           |     |             |           | 19,418       |         |              |         | 139,165      |         |  |         |  |   |  |         |  |   |  |            |  |  
|                                        | Buildings and improvements                  |                                     |           |           |     |             |           | 148,359      |         |              |         | 603,242      |         |  |         |  |   |  |         |  |   |  |            |  |  
|                                        | Furniture and equipment                     |                                     |           | 460        |     |             |           | 273,718      |         |              |         | 18,040       |         |  |         |  |   |  |         |  |   |  |            |  |  
|                                        | Rental trailers and other rental equipment  |                                     |           |           |     |             |           | 152,573      |         |              |         |             |         |  |         |  |   |  |         |  |   |  |            |  |  
|                                        | Rental trucks                               |                                     |           |           |     |             |           | 1,177,683    |         |              |         |             |         |  |         |  |   |  |         |  |   |  |            |  |  
|                                        | SAC Holdings property, plant and equipment |                                     |           |           |     |             |           |             |         |              |         |             |         |  |         |  |   |  |         |  |   |  |            |  |  
|                                        |                                             |                                     |           |            |     |             |           |              |         |              |         |              |         |  |         |   |   |  |         |   |   |  |            |  
|                                        |                                             |                                     | 460       |            |     |             | 1,771,751 |              |         |              | 760,447 |              |         |  |        |   |   |  |        |   |   |  |           |  
|                                        | Less accumulated depreciation               |                                     |           | (318       | )   |             |           | (1,012,129   | )       |              |         | (256,559     | )       |  |         |  |   |  |         |  |   |  |            |  |  
|                                        |                                             |                                     |           |            |     |             |           |              |         |              |         |              |         |  |         |   |   |  |         |   |   |  |            |  
|                                        |                                             | Total property, plant and equipment |           |            | 142 |             |           |              | 759,622 |              |         |              | 503,888 |  |         |   |  |  |         |   |  |  |            |   |  | 
|                                        |                                             |                                     |           |            |     |             |           |              |         |              |         |              |         |  |         |   |   |  |         |   |   |  |            |  
|TOTAL ASSETS                            |                                             |                                     | 1,705,633 |            |     |             | 1,310,225 |              |         |              | 745,293 |              |         |  | 699,853 |   |   |  | 974,384 |   |   |  | (1,890,808 | )
|                                        |                                             |                                     |           |            |     |             |           |              |         |              |         |              |         |  |         |   |   |  |         |   |   |  |            |  
|(1) Balance as of March 31, 2003        |                                             |                                     |           |            |     |             |           |              |         |              |         |              |         |  |         |   |   |  |         |   |   |  |            |  

[Additional columns below]

[Continued from above table, first column(s) repeated]

|                                        |                                             |                                     |           |             |           |              |         |              |         |  |          |          |          |   |           |            |           | 
|--------------------------------------- | ------------------------------------------- | ----------------------------------- | --------- | ----------- | --------- | ------------ | ------- | ------------ | ------- |  | -------- | -------- | -------- | - | --------- | ---------- | --------- | 
|                                        |                                             |                                     |           | SAC Moving  |           |              |         |             
|                                        |                                             | AMERCO                              |           | and Storage |           |              |         | Total       
|                                        |                                             | Consolidated                        |           | Operations  |           | Eliminations |         | Consolidated
|                                        |                                             |                                     |           |             |           |              |         |             
|                                        |                                             |                                    
|                                        |                                             | (In thousands)                     
|ASSETS                                  |                                             |                                     |           |             |           |              |         |              |         |  |          |          |          |   |           |           
|Cash and cash equivalents               |                                             |                                     | 80,255    |             |           |              | 5,205   |              |         |  |         |          |          |   | 85,460    |           
|Trade receivables, net                  |                                             |                                     | 282,050   |             |           |              |        |              |         |  | (19,842  | )        |          |   | 262,208   |           
|Notes and mortgages receivables, net    |                                             |                                     | 40,658    |             |           |              |        |              |         |  | (30,127  | )        |          |   | 10,531    |           
|Inventories, net                        |                                             |                                     | 49,948    |             |           |              | 4,302   |              |         |  |         |          |          |   | 54,250    |           
|Prepaid expenses                        |                                             |                                     | 24,607    |             |           |              | 973     |              |         |  | (5,220   | )        |          |   | 20,360    |           
|Investments, fixed maturities           |                                             |                                     | 839,569   |             |           |              |        |              |         |  | (5,039   | )        |          |   | 834,530   |           
|Investments, other                      |                                             |                                     | 839,762   |             |           |              | 1,701   |              |         |  | (400,694 | )        |          |   | 440,769   |           
|Deferred policy acquisition costs, net  |                                             |                                     | 103,707   |             |           |              |        |              |         |  |         |          |          |   | 103,707   |           
|Other assets                            |                                             |                                     | 64,143    |             |           |              | 55,574  |              |         |  | (31,585  | )        |          |   | 88,132    |           
|                                        |                                             |                                     |           |             |           |              |         |              |         |  |          |          |          |   |           |           
|                                        |                                             |                                     | 2,324,699 |             |           |              | 67,755  |              |         |  | (492,507 | )        |          |   | 1,899,947 |           
|Investment in Subsidiaries              |                                             |                                     |          |             |           |              |        |              |         |  |         |          |          |   |          |           
|Investment in SAC                       |                                             |                                     | (43,771   | )           |           |              |        |              |         |  | 43,771   |          |          |   |          |           
|Property, plant and equipment, at cost: |                                             |                                     |           |             |           |              |         |              |         |  |          |          |          |   |           |           
|                                        | Land                                        |                                     |           | 158,583     |           |              |         |             |         |  |          |         |          |   |           | 158,583    |          
|                                        | Buildings and improvements                  |                                     |           | 751,601     |           |              |         |             |         |  |          |         |          |   |           | 751,601    |          
|                                        | Furniture and equipment                     |                                     |           | 292,218     |           |              |         |             |         |  |          |         |          |   |           | 292,218    |          
|                                        | Rental trailers and other rental equipment  |                                     |           | 152,573     |           |              |         |             |         |  |          |         |          |   |           | 152,573    |          
|                                        | Rental trucks                               |                                     |           | 1,177,683   |           |              |         |             |         |  |          |         |          |   |           | 1,177,683  |          
|                                        | SAC Holdings property, plant and equipment |                                     |           |            |           |              |         | 984,939      |         |  |          | (258,271 | )        |   |           | 726,668    |          
|                                        |                                             |                                     |           |             |           |              |         |              |         |  |          |          |          |   |           |           
|                                        |                                             |                                     | 2,532,658 |             |           |              | 984,939 |              |         |  | (258,271 | )        |          |   | 3,259,326 |           
|                                        | Less accumulated depreciation               |                                     |           | (1,269,006  | )         |              |         | (65,607      | )       |  |          | 7,098    |          |   |           | (1,327,515 | )        
|                                        |                                             |                                     |           |             |           |              |         |              |         |  |          |          |          |   |           |           
|                                        |                                             | Total property, plant and equipment |           |             | 1,263,652 |              |         |              | 919,332 |  |          |          | (251,173 | ) |           |            | 1,931,811 | 
|                                        |                                             |                                     |           |             |           |              |         |              |         |  |          |          |          |   |           |           
|TOTAL ASSETS                            |                                             |                                     | 3,544,580 |             |           |              | 987,087 |              |         |  | (699,909 | )        |          |   | 3,831,758 |           
|                                        |                                             |                                     |           |             |           |              |         |              |         |  |          |          |          |   |           |           
|(1) Balance as of March 31, 2003        |                                             |                                     |           |             |           |              |         |              |         |  |          |          |          |   |           |           

14



---



##### 



AMERCO (Debtor in Possession) AND CONSOLIDATED
SUBSIDIARIES AND

SAC HOLDING CORPORATIONS AND CONSOLIDATED
SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

(Unaudited)

6.     Consolidating
Balance Sheets by Industry Segment and Geographic Area Data,
Continued:

Consolidating balance sheets by industry
segment as of June 30, 2003 are as follows 
Continued:

|                                                                 |                            |                |           |            |  |             |           |              |  |              |         |              |  |  |         |         |  |  |         |         |  |  |            |            |  
|---------------------------------------------------------------- | -------------------------- | -------------- | --------- | ---------- |  | ----------- | --------- | ------------ |  | ------------ | ------- | ------------ |  |  | ------- | ------- |  |  | ------- | ------- |  |  | ---------- | ---------- | -
|                                                                 |                            |                |           | Moving     |  |             |           |              |  |              |         |             
|                                                                 |                            |                |           | and        |  |             |           |              |  |              |         |             
|                                                                 |                            |                |           | Storage    |  |             |           | Property and |  |              |         |             
|                                                                 |                            |                |           | Operations |  |             |           | Casualty     |  | Life         |         |             
|                                                                 |                            | AMERCO         |           | U-Haul     |  | Real Estate |           | Insurance(1) |  | Insurance(1) |         | Eliminations
|                                                                 |                            |                |           |            |  |             |           |              |  |              |         |             
|                                                                 |                            |               
|                                                                 |                            | (In thousands)
|LIABILITIES                                                      |                            |                |           |            |  |             |           |              |  |              |         |              |  |  |         |         |  |  |         |         |  |  |            |           
|Accounts payable and accrued expenses                            |                            | $              | 181,545   |            |  |             | 295,656   |              |  |              | 3,800   |              |  |  |        |         |  |  | 666     |         |  |  | (101,326   | )         
|AMERCOs notes and loans payable                                 |                            |                |          |            |  |             | 31,693    |              |  |              | 101,503 |              |  |  |        |         |  |  |        |         |  |  | (39,219    | )         
|SAC Holdings notes and loans payable                            |                            |                |          |            |  |             |          |              |  |              |        |              |  |  |        |         |  |  |        |         |  |  |           |           
|Policy benefits and losses, claims and loss
    expenses payable |                            |                |          |            |  |             | 182,254   |              |  |              |        |              |  |  | 483,128 |         |  |  | 181,623 |         |  |  |           |           
|Liabilities from investment contracts                            |                            |                |          |            |  |             |          |              |  |              |        |              |  |  |        |         |  |  | 641,257 |         |  |  |           |           
|Other policyholders funds and liabilities                       |                            |                |          |            |  |             |          |              |  |              |        |              |  |  | 17,105  |         |  |  | 7,327   |         |  |  |           |           
|Deferred income                                                  |                            |                |          |            |  |             | 31,214    |              |  |              | 1,009   |              |  |  | 17,306  |         |  |  | 14,279  |         |  |  |           |           
|Deferred income taxes                                            |                            |                | 125,686   |            |  |             | 222,519   |              |  |              | 94,914  |              |  |  |        |         |  |  | 11,730  |         |  |  | (346,669   | )         
|Other liabilities                                                |                            |                |          |            |  |             |          |              |  |              | 325,565 |              |  |  |        |         |  |  | 11,170  |         |  |  | (336,735   | )         
|Liabilities subject to compromise                                |                            |                | 861,058   |            |  |             |          |              |  |              |        |              |  |  |        |         |  |  |        |         |  |  |           |           
|                                                                 |                            |                |           |            |  |             |           |              |  |              |         |              |  |  |         |         |  |  |         |         |  |  |            |           
|                                                                 | Total liabilities          |                |           | 1,168,289  |  |             |           | 763,336      |  |              |         | 526,791      |  |  |         | 517,539 |  |  |         | 868,052 |  |  |            | (823,949   | )
|Minority Interest                                                |                            |                |          |            |  |             |          |              |  |              |        |              |  |  |        |         |  |  |        |         |  |  |           |           
|STOCKHOLDERS EQUITY                                             |                            |                |           |            |  |             |           |              |  |              |         |              |  |  |         |         |  |  |         |         |  |  |            |           
|Serial preferred stock-                                          |                            |                |          |            |  |             |          |              |  |              |        |              |  |  |        |         |  |  |        |         |  |  |           |           
|                                                                 | Series A preferred stock   |                |           |           |  |             |           |             |  |              |         |             |  |  |         |        |  |  |         |        |  |  |            |           |  
|                                                                 | Series B preferred stock   |                |           |           |  |             |           |             |  |              |         |             |  |  |         |        |  |  |         |        |  |  |            |           |  
|Serial common stock-                                             |                            |                |          |            |  |             |          |              |  |              |        |              |  |  |        |         |  |  |        |         |  |  |           |           
|                                                                 | Series A common stock      |                |           | 1,441      |  |             |           |             |  |              |         |             |  |  |         |        |  |  |         |        |  |  |            |           |  
|Common stock                                                     |                            |                | 9,122     |            |  |             | 540       |              |  |              | 1       |              |  |  | 3,300   |         |  |  | 2,500   |         |  |  | (6,341     | )         
|Additional paid-in- capital                                      |                            |                | 396,048   |            |  |             | 121,230   |              |  |              | 147,481 |              |  |  | 70,023  |         |  |  | 16,435  |         |  |  | (355,169   | )         
|Additional paid-in- capital-SAC                                  |                            |                | 3,199     |            |  |             |          |              |  |              |        |              |  |  |        |         |  |  |        |         |  |  |           |           
|Accumulated other comprehensive loss                             |                            |                | (40,139   | )          |  |             | (35,796   | )            |  |              |        |              |  |  | (3,058  | )       |  |  | (1,308  | )       |  |  | 40,162     |           
|Accumulated other comprehensive loss-                            |                            |                |           |            |  |             |           |              |  |              |         |              |  |  |         |         |  |  |         |         |  |  |            |           
|                                                                 | SAC Holdings               |                |           | 212        |  |             |           |             |  |              |         |             |  |  |         |        |  |  |         |        |  |  |            |           |  
|Retained earnings                                                |                            |                | 585,619   |            |  |             | 473,737   |              |  |              | 71,020  |              |  |  | 112,049 |         |  |  | 88,705  |         |  |  | (745,511   | )         
|Cost of common shares in treasury, net                           |                            |                | (418,178  | )          |  |             |          |              |  |              |        |              |  |  |        |         |  |  |        |         |  |  |           |           
|Unearned ESOP shares                                             |                            |                | 20        |            |  |             | (12,822   | )            |  |              |        |              |  |  |        |         |  |  |        |         |  |  |           |           
|                                                                 |                            |                |           |            |  |             |           |              |  |              |         |              |  |  |         |         |  |  |         |         |  |  |            |           
|                                                                 | Total stockholders equity |                |           | 537,344    |  |             |           | 546,889      |  |              |         | 218,502      |  |  |         | 182,314 |  |  |         | 106,332 |  |  |            | (1,066,859 | )
|                                                                 |                            |                |           |            |  |             |           |              |  |              |         |              |  |  |         |         |  |  |         |         |  |  |            |           
|Total Liabilities and Stockholders Equity                       |                            |                | 1,705,633 |            |  |             | 1,310,225 |              |  |              | 745,293 |              |  |  | 699,853 |         |  |  | 974,384 |         |  |  | (1,890,808 | )         
|                                                                 |                            |                |           |            |  |             |           |              |  |              |         |              |  |  |         |         |  |  |         |         |  |  |            |           
|(1) Balance as of March 31, 2003                                 |                            |                |           |            |  |             |           |              |  |              |         |              |  |  |         |         |  |  |         |         |  |  |            |           

[Additional columns below]

[Continued from above table, first column(s) repeated]

|                                                                 |                            |                |           |             |  |              |         |              |   |  |          |          |   |  |           |           | 
|---------------------------------------------------------------- | -------------------------- | -------------- | --------- | ----------- |  | ------------ | ------- | ------------ | - |  | -------- | -------- | - |  | --------- | --------- | 
|                                                                 |                            |                |           | SAC Moving  |  |              |         |             
|                                                                 |                            | AMERCO         |           | and Storage |  |              |         | Total       
|                                                                 |                            | Consolidated   |           | Operations  |  | Eliminations |         | Consolidated
|                                                                 |                            |                |           |             |  |              |         |             
|                                                                 |                            |               
|                                                                 |                            | (In thousands)
|LIABILITIES                                                      |                            |                |           |             |  |              |         |              |   |  |          |          |   |  |           |          
|Accounts payable and accrued expenses                            |                            |                | 380,341   |             |  |              | 49,403  |              |   |  | (49,971  | )        |   |  | 379,773   |          
|AMERCOs notes and loans payable                                 |                            |                | 93,977    |             |  |              |        |              |   |  |         |          |   |  | 93,977    |          
|SAC Holdings notes and loans payable                            |                            |                |          |             |  |              | 982,728 |              |   |  | (393,087 | )        |   |  | 589,641   |          
|Policy benefits and losses, claims and loss
    expenses payable |                            |                | 847,005   |             |  |              |        |              |   |  |         |          |   |  | 847,005   |          
|Liabilities from investment contracts                            |                            |                | 641,257   |             |  |              |        |              |   |  |         |          |   |  | 641,257   |          
|Other policyholders funds and liabilities                       |                            |                | 24,432    |             |  |              |        |              |   |  |         |          |   |  | 24,432    |          
|Deferred income                                                  |                            |                | 63,808    |             |  |              | 10,069  |              |   |  | (36,805  | )        |   |  | 37,072    |          
|Deferred income taxes                                            |                            |                | 108,180   |             |  |              | (20,790 | )            |   |  | (98,005  | )        |   |  | (10,615   | )        
|Other liabilities                                                |                            |                |          |             |  |              |        |              |   |  |         |          |   |  |          |          
|Liabilities subject to compromise                                |                            |                | 861,058   |             |  |              |        |              |   |  |         |          |   |  | 861,058   |          
|                                                                 |                            |                |           |             |  |              |         |              |   |  |          |          |   |  |           |          
|                                                                 | Total liabilities          |                |           | 3,020,058   |  |              |         | 1,021,410    |   |  |          | (577,868 | ) |  |           | 3,463,600 | 
|Minority Interest                                                |                            |                |          |             |  |              | 12,646  |              |   |  | (12,646  | )        |   |  |          |          
|STOCKHOLDERS EQUITY                                             |                            |                |           |             |  |              |         |              |   |  |          |          |   |  |           |          
|Serial preferred stock-                                          |                            |                |          |             |  |              |        |              |   |  |         |          |   |  |          |          
|                                                                 | Series A preferred stock   |                |           |            |  |              |         |             |   |  |          |         |   |  |           |          | 
|                                                                 | Series B preferred stock   |                |           |            |  |              |         |             |   |  |          |         |   |  |           |          | 
|Serial common stock-                                             |                            |                |          |             |  |              |        |              |   |  |         |          |   |  |          |          
|                                                                 | Series A common stock      |                |           | 1,441       |  |              |         |             |   |  |          |         |   |  |           | 1,441     | 
|Common stock                                                     |                            |                | 9,122     |             |  |              |        |              |   |  |         |          |   |  | 9,122     |          
|Additional paid-in- capital                                      |                            |                | 396,048   |             |  |              |        |              |   |  | (160,264 | )        |   |  | 235,784   |          
|Additional paid-in- capital-SAC                                  |                            |                | 3,199     |             |  |              | 3,199   |              |   |  | (3,199   | )        |   |  | 3,199     |          
|Accumulated other comprehensive loss                             |                            |                | (40,139   | )           |  |              |        |              |   |  |         |          |   |  | (40,139   | )        
|Accumulated other comprehensive loss-                            |                            |                |           |             |  |              |         |              |   |  |          |          |   |  |           |          
|                                                                 | SAC Holdings               |                |           | 212         |  |              |         | 212          |   |  |          | (212     | ) |  |           | 212       | 
|Retained earnings                                                |                            |                | 585,619   |             |  |              | (47,182 | )            |   |  | 54,280   |          |   |  | 592,717   |          
|Cost of common shares in treasury, net                           |                            |                | (418,178  | )           |  |              | (3,198  | )            |   |  |         |          |   |  | (421,376  | )        
|Unearned ESOP shares                                             |                            |                | (12,802   | )           |  |              |        |              |   |  |         |          |   |  | (12,802   | )        
|                                                                 |                            |                |           |             |  |              |         |              |   |  |          |          |   |  |           |          
|                                                                 | Total stockholders equity |                |           | 524,522     |  |              |         | (46,969      | ) |  |          | (109,395 | ) |  |           | 368,158   | 
|                                                                 |                            |                |           |             |  |              |         |              |   |  |          |          |   |  |           |          
|Total Liabilities and Stockholders Equity                       |                            |                | 3,544,580 |             |  |              | 987,087 |              |   |  | (699,909 | )        |   |  | 3,831,758 |          
|                                                                 |                            |                |           |             |  |              |         |              |   |  |          |          |   |  |           |          
|(1) Balance as of March 31, 2003                                 |                            |                |           |             |  |              |         |              |   |  |          |          |   |  |           |          

15



---



##### 



AMERCO (Debtor in Possession) AND CONSOLIDATED
SUBSIDIARIES AND

SAC HOLDING CORPORATIONS AND CONSOLIDATED
SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)



|   |                                                                        
|-- | -----------------------------------------------------------------------
|6. | Consolidating Industry Segment and Geographic
    Area Data, Continued:

Consolidating balance sheets by industry
segment as of March 31, 2003 are as follows:

|                                        |                                                  |                                     |           |            |     |             |           |              |         |              |         |              |         |  |         |   |   |  |         |   |   |  |            |   |   | 
|--------------------------------------- | ------------------------------------------------ | ----------------------------------- | --------- | ---------- | --- | ----------- | --------- | ------------ | ------- | ------------ | ------- | ------------ | ------- |  | ------- | - | - |  | ------- | - | - |  | ---------- | - | - | 
|                                        |                                                  |                                     |           | U-Haul     |     |             |           |              |         |              |         |             
|                                        |                                                  |                                     |           | Moving     |     |             |           |              |         |              |         |             
|                                        |                                                  |                                     |           | and        |     |             |           | Property and |         |              |         |             
|                                        |                                                  |                                     |           | Storage    |     |             |           | Casualty     |         | Life         |         |             
|                                        |                                                  | AMERCO                              |           | Operations |     | Real Estate |           | Insurance(1) |         | Insurance(1) |         | Eliminations
|                                        |                                                  |                                     |           |            |     |             |           |              |         |              |         |             
|                                        |                                                  |                                    
|                                        |                                                  | (Unaudited)                        
|                                        |                                                  |                                    
|                                        |                                                  | (In thousands)                     
|ASSETS                                  |                                                  |                                     |           |            |     |             |           |              |         |              |         |              |         |  |         |   |   |  |         |   |   |  |            |  
|Cash and cash equivalents               |                                                  | $                                   | 18,524    |            |     |             | 30,046    |              |         |              | 174     |              |         |  | 4,108   |   |   |  | 9,320   |   |   |  |           |  
|Trade receivables, net                  |                                                  |                                     |          |            |     |             | 22,444    |              |         |              | 1,558   |              |         |  | 224,427 |   |   |  | 23,062  |   |   |  |           |  
|Notes and mortgage receivable, net      |                                                  |                                     |          |            |     |             | 10,462    |              |         |              | 17,285  |              |         |  |        |   |   |  |        |   |   |  |           |  
|Inventories, net                        |                                                  |                                     |          |            |     |             | 49,229    |              |         |              | 4       |              |         |  |        |   |   |  |        |   |   |  |           |  
|Prepaid expenses                        |                                                  |                                     | 87        |            |     |             | 27,400    |              |         |              | 11      |              |         |  |        |   |   |  |        |   |   |  |           |  
|Investments, fixed maturities           |                                                  |                                     |          |            |     |             |          |              |         |              |        |              |         |  | 253,871 |   |   |  | 613,206 |   |   |  |           |  
|Investments, other                      |                                                  |                                     | 135,000   |            |     |             | 170,886   |              |         |              | 217,619 |              |         |  | 120,372 |   |   |  | 224,604 |   |   |  | (79,707    | )
|Deferred policy acquisition costs       |                                                  |                                     |           |            |     |             |           |              |         |              |         |              |         |  | 13,206  |   |   |  | 91,894  |   |   |  |           |  
|Other assets                            |                                                  |                                     | 471,884   |            |     |             | 161,825   |              |         |              | 3,991   |              |         |  | 88,660  |   |   |  | 2,289   |   |   |  | (689,684   | )
|                                        |                                                  |                                     |           |            |     |             |           |              |         |              |         |              |         |  |         |   |   |  |         |   |   |  |            |  
|                                        |                                                  |                                     | 625,495   |            |     |             | 472,292   |              |         |              | 240,642 |              |         |  | 704,644 |   |   |  | 964,375 |   |   |  | (769,391   | )
|Investment in Subsidiaries              |                                                  |                                     | 1,037,756 |            |     |             |          |              |         |              |        |              |         |  |        |   |   |  |        |   |   |  | (1,037,756 | )
|Investment in SAC                       |                                                  |                                     | (41,938   | )          |     |             |          |              |         |              |        |              |         |  |        |   |   |  |        |   |   |  |           |  
|Property, plant and equipment, at cost: |                                                  |                                     |           |            |     |             |           |              |         |              |         |              |         |  |         |   |   |  |         |   |   |  |            |  
|                                        | Land                                             |                                     |           |           |     |             |           | 18,849       |         |              |         | 139,138      |         |  |         |  |   |  |         |  |   |  |            |  |  
|                                        | Buildings and improvements                       |                                     |           |           |     |             |           | 145,177      |         |              |         | 602,676      |         |  |         |  |   |  |         |  |   |  |            |  |  
|                                        | Furniture and equipment                          |                                     |           | 459        |     |             |           | 272,884      |         |              |         | 18,040       |         |  |         |  |   |  |         |  |   |  |            |  |  
|                                        | Rental trailers and other rental equipment       |                                     |           |           |     |             |           | 149,707      |         |              |         |              |         |  |         |  |   |  |         |  |   |  |            |  |  
|                                        | Rental trucks                                    |                                     |           |           |     |             |           | 1,140,294    |         |              |         |             |         |  |         |  |   |  |         |  |   |  |            |  |  
|                                        | SAC Holdings  property, plant and
    equipment |                                     |           |           |     |             |           |             |         |              |         |             |         |  |         |  |   |  |         |  |   |  |            |  |  
|                                        |                                                  |                                     |           |            |     |             |           |              |         |              |         |              |         |  |         |   |   |  |         |   |   |  |            |  
|                                        |                                                  |                                     | 459       |            |     |             | 1,726,911 |              |         |              | 759,854 |              |         |  |        |   |   |  |        |   |   |  |           |  
|                                        | Less accumulated depreciation                    |                                     |           | (315       | )   |             |           | (990,412     | )       |              |         | (254,409     | )       |  |         |  |   |  |         |  |   |  |            |  |  
|                                        |                                                  |                                     |           |            |     |             |           |              |         |              |         |              |         |  |         |   |   |  |         |   |   |  |            |  
|                                        |                                                  | Total property, plant and equipment |           |            | 144 |             |           |              | 736,499 |              |         |              | 505,445 |  |         |   |  |  |         |   |  |  |            |   |  | 
|                                        |                                                  |                                     |           |            |     |             |           |              |         |              |         |              |         |  |         |   |   |  |         |   |   |  |            |  
|TOTAL ASSETS                            |                                                  |                                     | 1,621,457 |            |     |             | 1,208,791 |              |         |              | 746,087 |              |         |  | 704,644 |   |   |  | 964,375 |   |   |  | (1,807,147 | )
|                                        |                                                  |                                     |           |            |     |             |           |              |         |              |         |              |         |  |         |   |   |  |         |   |   |  |            |  

[Additional columns below]

[Continued from above table, first column(s) repeated]

|                                        |                                                  |                                     |           |             |           |              |           |              |         |  |          |          |          |   |           |            |           | 
|--------------------------------------- | ------------------------------------------------ | ----------------------------------- | --------- | ----------- | --------- | ------------ | --------- | ------------ | ------- |  | -------- | -------- | -------- | - | --------- | ---------- | --------- | 
|                                        |                                                  |                                     |           | SAC Moving  |           |              |           |             
|                                        |                                                  | AMERCO                              |           | and Storage |           |              |           | Total       
|                                        |                                                  | Consolidated                        |           | Operations  |           | Eliminations |           | Consolidated
|                                        |                                                  |                                     |           |             |           |              |           |             
|                                        |                                                  |                                    
|                                        |                                                  | (Unaudited)                        
|                                        |                                                  |                                    
|                                        |                                                  | (In thousands)                     
|ASSETS                                  |                                                  |                                     |           |             |           |              |           |              |         |  |          |          |          |   |           |           
|Cash and cash equivalents               |                                                  |                                     | 62,172    |             |           |              | 4,662     |              |         |  |         |          |          |   | 66,834    |           
|Trade receivables, net                  |                                                  |                                     | 271,491   |             |           |              |          |              |         |  | (7,754   | )        |          |   | 263,737   |           
|Notes and mortgage receivable, net      |                                                  |                                     | 27,747    |             |           |              |          |              |         |  | (24,879  | )        |          |   | 2,868     |           
|Inventories, net                        |                                                  |                                     | 49,233    |             |           |              | 4,037     |              |         |  |         |          |          |   | 53,270    |           
|Prepaid expenses                        |                                                  |                                     | 27,498    |             |           |              | 811       |              |         |  | (6,463   | )        |          |   | 21,846    |           
|Investments, fixed maturities           |                                                  |                                     | 867,077   |             |           |              |          |              |         |  | (6,477   | )        |          |   | 860,600   |           
|Investments, other                      |                                                  |                                     | 788,774   |             |           |              |          |              |         |  | (399,522 | )        |          |   | 389,252   |           
|Deferred policy acquisition costs       |                                                  |                                     | 105,100   |             |           |              |          |              |         |  |         |          |          |   | 105,100   |           
|Other assets                            |                                                  |                                     | 38,965    |             |           |              | 24,635    |              |         |  |         |          |          |   | 63,600    |           
|                                        |                                                  |                                     |           |             |           |              |           |              |         |  |          |          |          |   |           |           
|                                        |                                                  |                                     | 2,238,057 |             |           |              | 34,145    |              |         |  | (445,095 | )        |          |   | 1,827,107 |           
|Investment in Subsidiaries              |                                                  |                                     |          |             |           |              |          |              |         |  |         |          |          |   |          |           
|Investment in SAC                       |                                                  |                                     | (41,938   | )           |           |              |          |              |         |  | 41,938   |          |          |   |          |           
|Property, plant and equipment, at cost: |                                                  |                                     |           |             |           |              |           |              |         |  |          |          |          |   |           |           
|                                        | Land                                             |                                     |           | 157,987     |           |              |           |             |         |  |          |         |          |   |           | 157,987    |          
|                                        | Buildings and improvements                       |                                     |           | 747,853     |           |              |           |             |         |  |          |         |          |   |           | 747,853    |          
|                                        | Furniture and equipment                          |                                     |           | 291,383     |           |              |           |             |         |  |          |         |          |   |           | 291,383    |          
|                                        | Rental trailers and other rental equipment       |                                     |           | 149,707     |           |              |           |             |         |  |          |         |          |   |           | 149,707    |          
|                                        | Rental trucks                                    |                                     |           | 1,140,294   |           |              |           |             |         |  |          |         |          |   |           | 1,140,294  |          
|                                        | SAC Holdings  property, plant and
    equipment |                                     |           |            |           |              |           | 1,015,563    |         |  |          | (258,271 | )        |   |           | 757,292    |          
|                                        |                                                  |                                     |           |             |           |              |           |              |         |  |          |          |          |   |           |           
|                                        |                                                  |                                     | 2,487,224 |             |           |              | 1,015,563 |              |         |  | (258,271 | )        |          |   | 3,244,516 |           
|                                        | Less accumulated depreciation                    |                                     |           | (1,245,136  | )         |              |           | (59,679      | )       |  |          | 6,616    |          |   |           | (1,298,199 | )        
|                                        |                                                  |                                     |           |             |           |              |           |              |         |  |          |          |          |   |           |           
|                                        |                                                  | Total property, plant and equipment |           |             | 1,242,088 |              |           |              | 955,884 |  |          |          | (251,655 | ) |           |            | 1,946,317 | 
|                                        |                                                  |                                     |           |             |           |              |           |              |         |  |          |          |          |   |           |           
|TOTAL ASSETS                            |                                                  |                                     | 3,438,207 |             |           |              | 990,029   |              |         |  | (654,812 | )        |          |   | 3,773,424 |           
|                                        |                                                  |                                     |           |             |           |              |           |              |         |  |          |          |          |   |           |           

(1)     Balances as of
December 31, 2002

16



---



##### 



AMERCO (Debtor in Possession) AND CONSOLIDATED
SUBSIDIARIES AND

SAC HOLDING CORPORATIONS AND CONSOLIDATED
SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

6.     Consolidating
Balance Sheets By Industry Segment And Geographic Area Data,
Continued:

Consolidating balance sheets by industry
segment as of March 31, 2003 are as
follows  Continued:

|                                                                 |                            |                |           |            |  |             |           |              |  |              |         |              |  |  |         |         |  |  |         |         |  |  |            |            |  
|---------------------------------------------------------------- | -------------------------- | -------------- | --------- | ---------- |  | ----------- | --------- | ------------ |  | ------------ | ------- | ------------ |  |  | ------- | ------- |  |  | ------- | ------- |  |  | ---------- | ---------- | -
|                                                                 |                            |                |           | Moving and |  |             |           |              |  |              |         |             
|                                                                 |                            |                |           | Storage    |  |             |           | Property and |  |              |         |             
|                                                                 |                            |                |           | Operations |  |             |           | Casualty     |  | Life         |         |             
|                                                                 |                            | AMERCO         |           | U-Haul     |  | Real Estate |           | Insurance(1) |  | Insurance(1) |         | Eliminations
|                                                                 |                            |                |           |            |  |             |           |              |  |              |         |             
|                                                                 |                            |               
|                                                                 |                            | (Unaudited)   
|                                                                 |                            |               
|                                                                 |                            | (In thousands)
|LIABILITIES                                                      |                            |                |           |            |  |             |           |              |  |              |         |              |  |  |         |         |  |  |         |         |  |  |            |           
|Accounts payable and accrued expenses                            |                            | $              | 139,496   |            |  |             | 263,394   |              |  |              | 7,892   |              |  |  |        |         |  |  | 570     |         |  |  | (39,735    | )         
|AMERCOs notes and loans payable                                 |                            |                | 861,158   |            |  |             | 31,693    |              |  |              | 101,505 |              |  |  |        |         |  |  |        |         |  |  | (39,500    | )         
|SAC Holdings notes and loans payable                            |                            |                |          |            |  |             |          |              |  |              |        |              |  |  |        |         |  |  |        |         |  |  |           |           
|Policy benefits and losses, claims and loss
    expenses payable |                            |                |          |            |  |             | 168,666   |              |  |              |        |              |  |  | 485,383 |         |  |  | 182,583 |         |  |  |           |           
|Liabilities from investment contracts                            |                            |                |          |            |  |             |          |              |  |              |        |              |  |  |        |         |  |  | 639,998 |         |  |  |           |           
|Other policyholders funds and liabilities                       |                            |                |          |            |  |             |          |              |  |              |        |              |  |  | 20,164  |         |  |  | 10,145  |         |  |  |           |           
|Deferred income                                                  |                            |                | 2,863     |            |  |             | 30,943    |              |  |              | 1,011   |              |  |  |        |         |  |  |        |         |  |  |           |           
|Deferred income taxes                                            |                            |                | 120,446   |            |  |             | 214,715   |              |  |              | 94,914  |              |  |  |        |         |  |  | 8,664   |         |  |  | (353,058   | )         
|Other liabilities                                                |                            |                |          |            |  |             |          |              |  |              | 325,783 |              |  |  |        |         |  |  | 11,315  |         |  |  | (337,098   | )         
|                                                                 |                            |                |           |            |  |             |           |              |  |              |         |              |  |  |         |         |  |  |         |         |  |  |            |           
|                                                                 | Total liabilities          |                |           | 1,123,963  |  |             |           | 709,411      |  |              |         | 531,105      |  |  |         | 505,547 |  |  |         | 853,275 |  |  |            | (769,391   | )
|Minority Interest                                                |                            |                |          |            |  |             |          |              |  |              |        |              |  |  |        |         |  |  |        |         |  |  |           |           
|STOCKHOLDERS EQUITY                                             |                            |                |           |            |  |             |           |              |  |              |         |              |  |  |         |         |  |  |         |         |  |  |            |           
|Serial preferred stock                                          |                            |                |          |            |  |             |          |              |  |              |        |              |  |  |        |         |  |  |        |         |  |  |           |           
|                                                                 | Series A preferred stock   |                |           |           |  |             |           |             |  |              |         |             |  |  |         |        |  |  |         |        |  |  |            |           |  
|                                                                 | Series B preferred stock   |                |           |           |  |             |           |             |  |              |         |             |  |  |         |        |  |  |         |        |  |  |            |           |  
|Serial common stock                                             |                            |                |          |            |  |             |          |              |  |              |        |              |  |  |        |         |  |  |        |         |  |  |           |           
|                                                                 | Series A common stock      |                |           | 1,441      |  |             |           |             |  |              |         |             |  |  |         |        |  |  |         |        |  |  |            |           |  
|Common stock                                                     |                            |                | 9,122     |            |  |             | 540       |              |  |              | 1       |              |  |  | 3,300   |         |  |  | 2,500   |         |  |  | (6,341     | )         
|Additional paid-in- capital                                      |                            |                | 396,050   |            |  |             | 121,230   |              |  |              | 147,481 |              |  |  | 70,023  |         |  |  | 16,435  |         |  |  | (355,169   | )         
|Additional paid-in- capital  SAC                                |                            |                | 3,199     |            |  |             |          |              |  |              |        |              |  |  |        |         |  |  |        |         |  |  |           |           
|Accumulated other comprehensive loss                             |                            |                | (54,278   | )          |  |             | (39,849   | )            |  |              |        |              |  |  | 13,589  |         |  |  | 4,166   |         |  |  | 22,094     |           
|Accumulated other comprehensive loss 
    SAC                   |                            |                | (1,487    | )          |  |             |          |              |  |              |        |              |  |  |        |         |  |  |        |         |  |  |           |           
|Retained earnings                                                |                            |                | 561,606   |            |  |             | 430,656   |              |  |              | 67,500  |              |  |  | 112,185 |         |  |  | 87,999  |         |  |  | (698,340   | )         
|Cost of common shares in treasury                                |                            |                | (418,179  | )          |  |             |          |              |  |              |        |              |  |  |        |         |  |  |        |         |  |  |           |           
|Unearned ESOP shares                                             |                            |                | 20        |            |  |             | (13,197   | )            |  |              |        |              |  |  |        |         |  |  |        |         |  |  |           |           
|                                                                 |                            |                |           |            |  |             |           |              |  |              |         |              |  |  |         |         |  |  |         |         |  |  |            |           
|                                                                 | Total stockholders equity |                |           | 497,494    |  |             |           | 499,380      |  |              |         | 214,982      |  |  |         | 199,097 |  |  |         | 111,100 |  |  |            | (1,037,756 | )
|                                                                 |                            |                |           |            |  |             |           |              |  |              |         |              |  |  |         |         |  |  |         |         |  |  |            |           
|Total Liabilities and stockholders equity                       |                            | $              | 1,621,457 |            |  |             | 1,208,791 |              |  |              | 746,087 |              |  |  | 704,644 |         |  |  | 964,375 |         |  |  | (1,087,147 | )         
|                                                                 |                            |                |           |            |  |             |           |              |  |              |         |              |  |  |         |         |  |  |         |         |  |  |            |           

[Additional columns below]

[Continued from above table, first column(s) repeated]

|                                                                 |                            |                |           |            |  |              |         |              |   |  |          |          |   |  |           |           | 
|---------------------------------------------------------------- | -------------------------- | -------------- | --------- | ---------- |  | ------------ | ------- | ------------ | - |  | -------- | -------- | - |  | --------- | --------- | 
|                                                                 |                            |                |           | SAC Moving |  |              |         |             
|                                                                 |                            |                |           | and        |  |              |         |             
|                                                                 |                            | AMERCO         |           | Storage    |  |              |         | Total       
|                                                                 |                            | Consolidated   |           | Operations |  | Eliminations |         | Consolidated
|                                                                 |                            |                |           |            |  |              |         |             
|                                                                 |                            |               
|                                                                 |                            | (Unaudited)   
|                                                                 |                            |               
|                                                                 |                            | (In thousands)
|LIABILITIES                                                      |                            |                |           |            |  |              |         |              |   |  |          |          |   |  |           |          
|Accounts payable and accrued expenses                            |                            |                | 371,617   |            |  |              | 48,033  |              |   |  | (32,633  | )        |   |  | 387,017   |          
|AMERCOs notes and loans payable                                 |                            |                | 954,856   |            |  |              |        |              |   |  |         |          |   |  | 954,856   |          
|SAC Holdings notes and loans payable                            |                            |                |          |            |  |              | 983,190 |              |   |  | (394,171 | )        |   |  | 589,019   |          
|Policy benefits and losses, claims and loss
    expenses payable |                            |                | 836,632   |            |  |              |        |              |   |  |         |          |   |  | 836,632   |          
|Liabilities from investment contracts                            |                            |                | 639,998   |            |  |              |        |              |   |  |         |          |   |  | 639,998   |          
|Other policyholders funds and liabilities                       |                            |                | 30,309    |            |  |              |        |              |   |  |         |          |   |  | 30,309    |          
|Deferred income                                                  |                            |                | 34,817    |            |  |              | 12,033  |              |   |  | (6,463   | )        |   |  | 40,387    |          
|Deferred income taxes                                            |                            |                | 85,681    |            |  |              | (19,918 | )            |   |  | (98,005  | )        |   |  | (32,242   | )        
|Other liabilities                                                |                            |                |          |            |  |              |        |              |   |  |         |          |   |  |          |          
|                                                                 |                            |                |           |            |  |              |         |              |   |  |          |          |   |  |           |          
|                                                                 | Total liabilities          |                |           | 2,953,910  |  |              |         | 1,023,338    |   |  |          | (531,272 | ) |  |           | 3,445,976 | 
|Minority Interest                                                |                            |                |          |            |  |              | 11,828  |              |   |  | (11,828  | )        |   |  |          |          
|STOCKHOLDERS EQUITY                                             |                            |                |           |            |  |              |         |              |   |  |          |          |   |  |           |          
|Serial preferred stock                                          |                            |                |          |            |  |              |        |              |   |  |         |          |   |  |          |          
|                                                                 | Series A preferred stock   |                |           |           |  |              |         |             |   |  |          |         |   |  |           |          | 
|                                                                 | Series B preferred stock   |                |           |           |  |              |         |             |   |  |          |         |   |  |           |          | 
|Serial common stock                                             |                            |                |          |            |  |              |        |              |   |  |         |          |   |  |          |          
|                                                                 | Series A common stock      |                |           | 1,441      |  |              |         |             |   |  |          |         |   |  |           | 1,441     | 
|Common stock                                                     |                            |                | 9,122     |            |  |              |        |              |   |  |         |          |   |  | 9,122     |          
|Additional paid-in- capital                                      |                            |                | 396,050   |            |  |              |        |              |   |  | (160,266 | )        |   |  | 235,784   |          
|Additional paid-in- capital  SAC                                |                            |                | 3,199     |            |  |              | 3,199   |              |   |  | (3,199   | )        |   |  | 3,199     |          
|Accumulated other comprehensive loss                             |                            |                | (54,278   | )          |  |              |        |              |   |  |         |          |   |  | (54,278   | )        
|Accumulated other comprehensive loss 
    SAC                   |                            |                | (1,487    | )          |  |              | (1,487  | )            |   |  | 1,487    |          |   |  | (1,487    | )        
|Retained earnings                                                |                            |                | 561,606   |            |  |              | (43,650 | )            |   |  | 50,266   |          |   |  | 568,222   |          
|Cost of common shares in treasury                                |                            |                | (418,179  | )          |  |              | (3,199  | )            |   |  |         |          |   |  | (421,378  | )        
|Unearned ESOP shares                                             |                            |                | (13,177   | )          |  |              |        |              |   |  |         |          |   |  | (13,177   | )        
|                                                                 |                            |                |           |            |  |              |         |              |   |  |          |          |   |  |           |          
|                                                                 | Total stockholders equity |                |           | 484,297    |  |              |         | (45,137      | ) |  |          | (111,712 | ) |  |           | 327,448   | 
|                                                                 |                            |                |           |            |  |              |         |              |   |  |          |          |   |  |           |          
|Total Liabilities and stockholders equity                       |                            |                | 3,438,207 |            |  |              | 990,029 |              |   |  | (654,812 | )        |   |  | 3,773,424 |          
|                                                                 |                            |                |           |            |  |              |         |              |   |  |          |          |   |  |           |          



---



|    |                                 
|--- | --------------------------------
|(1) | Balances as of December 31, 2002

17



---



##### 



AMERCO (Debtor in Possession) AND CONSOLIDATED
SUBSIDIARIES AND

SAC HOLDING CORPORATIONS AND CONSOLIDATED
SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

6.     Consolidating
Industry Segment and Geographic Area Data, Continued:

Consolidating statements of operations by
industry segment for the quarter ended June 30, 2003 are as
follows:

|                                                     |                                                   |                          |        |               |        |             |         |              |         |              |        |              |        |  |      |        |        |  |       |        |        |  |         |         |         |  
|---------------------------------------------------- | ------------------------------------------------- | ------------------------ | ------ | ------------- | ------ | ----------- | ------- | ------------ | ------- | ------------ | ------ | ------------ | ------ |  | ---- | ------ | ------ |  | ----- | ------ | ------ |  | ------- | ------- | ------- | -
|                                                     |                                                   |                          |        | U-Haul Moving |        |             |         | Property and |         |              |        |             
|                                                     |                                                   |                          |        | and Storage   |        |             |         | Casualty     |         | Life         |        |             
|                                                     |                                                   | AMERCO                   |        | Operations    |        | Real Estate |         | Insurance(1) |         | Insurance(1) |        | Eliminations
|                                                     |                                                   |                          |        |               |        |             |         |              |         |              |        |             
|                                                     |                                                   |                         
|                                                     |                                                   | (Unaudited)             
|                                                     |                                                   |                         
|                                                     |                                                   | (In thousands)          
|Revenues                                             |                                                   |                          |        |               |        |             |         |              |         |              |        |              |        |  |      |        |        |  |       |        |        |  |         |        
|                                                     | Rental revenue                                    |                          | $      |              |        |             |         | 407,047      |         |              |        | 14,828       |        |  |      |       |        |  |       |       |        |  |         | (15,319 | )      
|                                                     | Net sales                                         |                          |        |              |        |             |         | 54,276       |         |              |        | 15           |        |  |      |       |        |  |       |       |        |  |         |        |        
|                                                     | Premiums                                          |                          |        |              |        |             |         |             |         |              |        |             |        |  |      | 28,567 |        |  |       | 38,084 |        |  |         | (2,195  | )      
|                                                     | Net investment and interest income                |                          |        | 244           |        |             |         | 8,028        |         |              |        | 1,992        |        |  |      | 5,804  |        |  |       | 5,353  |        |  |         |        |        
|                                                     |                                                   |                          |        |               |        |             |         |              |         |              |        |              |        |  |      |        |        |  |       |        |        |  |         |        
|                                                     |                                                   | Total revenues           |        |               | 244    |             |         |              | 469,351 |              |        |              | 16,835 |  |      |        | 34,371 |  |       |        | 43,437 |  |         |         | (17,514 | )
|Costs and expenses                                   |                                                   |                          |        |               |        |             |         |              |         |              |        |              |        |  |      |        |        |  |       |        |        |  |         |        
|                                                     | Operating expenses                                |                          |        | 11,530        |        |             |         | 262,735      |         |              |        | (2,534       | )      |  |      | 5,278  |        |  |       | 8,650  |        |  |         | (17,514 | )      
|                                                     | Commission expenses                               |                          |        |              |        |             |         | 47,153       |         |              |        |             |        |  |      |       |        |  |       |       |        |  |         |        |        
|                                                     | Cost of sales                                     |                          |        |              |        |             |         | 25,627       |         |              |        | 6            |        |  |      |       |        |  |       |       |        |  |         |        |        
|                                                     | Benefits and losses                               |                          |        |              |        |             |         |             |         |              |        |             |        |  |      | 25,582 |        |  |       | 27,817 |        |  |         |        |        
|                                                     | Amortization of deferred policy acquisition costs |                          |        |              |        |             |         |             |         |              |        |             |        |  |      | 3,710  |        |  |       | 5,390  |        |  |         |        |        
|                                                     | Lease expense                                     |                          |        | 230           |        |             |         | 37,520       |         |              |        | 4,444        |        |  |      |       |        |  |       |       |        |  |         |        |        
|                                                     | Depreciation, net                                 |                          |        | 3             |        |             |         | 30,580       |         |              |        | 2,171        |        |  |      |       |        |  |       |       |        |  |         |        |        
|                                                     |                                                   |                          |        |               |        |             |         |              |         |              |        |              |        |  |      |        |        |  |       |        |        |  |         |        
|                                                     |                                                   | Total costs and expenses |        |               | 11,763 |             |         |              | 403,615 |              |        |              | 4,087  |  |      |        | 34,570 |  |       |        | 41,857 |  |         |         | (17,514 | )
|                                                     |                                                   |                          |        |               |        |             |         |              |         |              |        |              |        |  |      |        |        |  |       |        |        |  |         |        
|Equity in Earnings of Subsidiary                     |                                                   |                          | 47,171 |               |        |             |        |              |         |              |       |              |        |  |     |        |        |  |      |        |        |  | (47,171 | )      
|Equity in Earning of SAC                             |                                                   |                          | (3,532 | )             |        |             |        |              |         |              |       |              |        |  |     |        |        |  |      |        |        |  |        |        
|                                                     |                                                   |                          |        |               |        |             |         |              |         |              |        |              |        |  |      |        |        |  |       |        |        |  |         |        
|Earnings (loss) from operations                      |                                                   |                          | 32,120 |               |        |             | 65,736  |              |         |              | 12,748 |              |        |  | (199 | )      |        |  | 1,580 |        |        |  | (47,171 | )      
|                                                     | Interest expense                                  |                          |        | 14,375        |        |             |         | (1,069       | )       |              |        | 6,797        |        |  |      |       |        |  |       |       |        |  |         |        |        
|                                                     |                                                   |                          |        |               |        |             |         |              |         |              |        |              |        |  |      |        |        |  |       |        |        |  |         |        
|Pretax earnings (loss)                               |                                                   |                          | 17,745 |               |        |             | 66,805  |              |         |              | 5,951  |              |        |  | (199 | )      |        |  | 1,580 |        |        |  | (47,171 | )      
|Income tax benefit (expense)                         |                                                   |                          | 9,509  |               |        |             | (23,724 | )            |         |              | (2,431 | )            |        |  | 63   |        |        |  | (874  | )      |        |  |        |        
|                                                     |                                                   |                          |        |               |        |             |         |              |         |              |        |              |        |  |      |        |        |  |       |        |        |  |         |        
|                                                     | Net earnings/(loss)                               |                          |        | 27,254        |        |             |         | 43,081       |         |              |        | 3,520        |        |  |      | (136   | )      |  |       | 706    |        |  |         | (47,171 | )      
|                                                     |                                                   |                          |        |               |        |             |         |              |         |              |        |              |        |  |      |        |        |  |       |        |        |  |         |        
|Less: Preferred stock dividends                      |                                                   |                          | (3,241 | )             |        |             |        |              |         |              |       |              |        |  |     |        |        |  |      |        |        |  |        |        
|                                                     |                                                   |                          |        |               |        |             |         |              |         |              |        |              |        |  |      |        |        |  |       |        |        |  |         |        
|Earnings (loss) available to common
    shareholders |                                                   | $                        | 24,013 |               |        |             | 43,081  |              |         |              | 3,520  |              |        |  | (136 | )      |        |  | 706   |        |        |  | (47,171 | )      
|                                                     |                                                   |                          |        |               |        |             |         |              |         |              |        |              |        |  |      |        |        |  |       |        |        |  |         |        

[Additional columns below]

[Continued from above table, first column(s) repeated]

|                                                     |                                                   |                          |         |             |         |              |        |              |        |  |        |         |         |   |         |         |         | 
|---------------------------------------------------- | ------------------------------------------------- | ------------------------ | ------- | ----------- | ------- | ------------ | ------ | ------------ | ------ |  | ------ | ------- | ------- | - | ------- | ------- | ------- | 
|                                                     |                                                   |                          |         | SAC Moving  |         |              |        |             
|                                                     |                                                   | AMERCO                   |         | and Storage |         |              |        | Total       
|                                                     |                                                   | Consolidated             |         | Operations  |         | Eliminations |        | Consolidated
|                                                     |                                                   |                          |         |             |         |              |        |             
|                                                     |                                                   |                         
|                                                     |                                                   | (Unaudited)             
|                                                     |                                                   |                         
|                                                     |                                                   | (In thousands)          
|Revenues                                             |                                                   |                          |         |             |         |              |        |              |        |  |        |         |         |   |         |        
|                                                     | Rental revenue                                    |                          |         | 406,556     |         |              |        | 42,300       |        |  |        | (13,814 | )       |   |         | 435,042 |        
|                                                     | Net sales                                         |                          |         | 54,291      |         |              |        | 14,918       |        |  |        |        |         |   |         | 69,209  |        
|                                                     | Premiums                                          |                          |         | 64,456      |         |              |        |             |        |  |        |        |         |   |         | 64,456  |        
|                                                     | Net investment and interest income                |                          |         | 21,421      |         |              |        |             |        |  |        | (10,012 | )       |   |         | 11,409  |        
|                                                     |                                                   |                          |         |             |         |              |        |              |        |  |        |         |         |   |         |        
|                                                     |                                                   | Total revenues           |         |             | 546,724 |              |        |              | 57,218 |  |        |         | (23,826 | ) |         |         | 580,116 | 
|Costs and expenses                                   |                                                   |                          |         |             |         |              |        |              |        |  |        |         |         |   |         |        
|                                                     | Operating expenses                                |                          |         | 268,145     |         |              |        | 28,122       |        |  |        | (3,291  | )       |   |         | 292,976 |        
|                                                     | Commission expenses                               |                          |         | 47,153      |         |              |        |             |        |  |        | (6,959  | )       |   |         | 40,194  |        
|                                                     | Cost of sales                                     |                          |         | 25,633      |         |              |        | 6,586        |        |  |        |        |         |   |         | 32,219  |        
|                                                     | Benefits and losses                               |                          |         | 53,399      |         |              |        |             |        |  |        |        |         |   |         | 53,399  |        
|                                                     | Amortization of deferred policy acquisition costs |                          |         | 9,100       |         |              |        |             |        |  |        |        |         |   |         | 9,100   |        
|                                                     | Lease expense                                     |                          |         | 42,194      |         |              |        |             |        |  |        | (3,564  | )       |   |         | 38,630  |        
|                                                     | Depreciation, net                                 |                          |         | 32,754      |         |              |        | 5,766        |        |  |        | (482    | )       |   |         | 38,038  |        
|                                                     |                                                   |                          |         |             |         |              |        |              |        |  |        |         |         |   |         |        
|                                                     |                                                   | Total costs and expenses |         |             | 478,378 |              |        |              | 40,474 |  |        |         | (14,296 | ) |         |         | 504,556 | 
|                                                     |                                                   |                          |         |             |         |              |        |              |        |  |        |         |         |   |         |        
|Equity in Earnings of Subsidiary                     |                                                   |                          |        |             |         |              |       |              |        |  |       |         |         |   |        |        
|Equity in Earning of SAC                             |                                                   |                          | (3,532  | )           |         |              |       |              |        |  | 3,532  |         |         |   |        |        
|                                                     |                                                   |                          |         |             |         |              |        |              |        |  |        |         |         |   |         |        
|Earnings (loss) from operations                      |                                                   |                          | 64,814  |             |         |              | 16,744 |              |        |  | (5,998 | )       |         |   | 75,560  |        
|                                                     | Interest expense                                  |                          |         | 20,103      |         |              |        | 20,807       |        |  |        | (10,012 | )       |   |         | 30,898  |        
|                                                     |                                                   |                          |         |             |         |              |        |              |        |  |        |         |         |   |         |        
|Pretax earnings (loss)                               |                                                   |                          | 44,711  |             |         |              | (4,063 | )            |        |  | 4,014  |         |         |   | 44,662  |        
|Income tax benefit (expense)                         |                                                   |                          | (17,457 | )           |         |              | 531    |              |        |  |       |         |         |   | (16,926 | )      
|                                                     |                                                   |                          |         |             |         |              |        |              |        |  |        |         |         |   |         |        
|                                                     | Net earnings/(loss)                               |                          |         | 27,254      |         |              |        | (3,532       | )      |  |        | 4,014   |         |   |         | 27,736  |        
|                                                     |                                                   |                          |         |             |         |              |        |              |        |  |        |         |         |   |         |        
|Less: Preferred stock dividends                      |                                                   |                          | (3,241  | )           |         |              |       |              |        |  |       |         |         |   | (3,241  | )      
|                                                     |                                                   |                          |         |             |         |              |        |              |        |  |        |         |         |   |         |        
|Earnings (loss) available to common
    shareholders |                                                   |                          | 24,013  |             |         |              | (3,532 | )            |        |  | 4,014  |         |         |   | 24,495  |        
|                                                     |                                                   |                          |         |             |         |              |        |              |        |  |        |         |         |   |         |        



|    |                                     
|--- | ------------------------------------
|(1) | For the quarter ended March 31, 2003

18



---



##### 



AMERCO (Debtor in Possession) AND CONSOLIDATED
SUBSIDIARIES AND

SAC HOLDING CORPORATIONS AND CONSOLIDATED
SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

6.     Consolidating
Industry Segment and Geographic Area Data, Continued:

Consolidating statements of operations by
industry segment for the restated quarter ended June 30,
2002 are as follows:

|                                                     |                                            |                          |        |               |       |             |         |              |         |              |        |              |        |  |        |        |        |  |      |        |        |  |         |         |         |  
|---------------------------------------------------- | ------------------------------------------ | ------------------------ | ------ | ------------- | ----- | ----------- | ------- | ------------ | ------- | ------------ | ------ | ------------ | ------ |  | ------ | ------ | ------ |  | ---- | ------ | ------ |  | ------- | ------- | ------- | -
|                                                     |                                            |                          |        | U-Haul Moving |       |             |         | Property and |         |              |        |             
|                                                     |                                            |                          |        | and Storage   |       |             |         | Casualty     |         | Life         |        |             
|                                                     |                                            | AMERCO                   |        | Operations    |       | Real Estate |         | Insurance(1) |         | Insurance(1) |        | Eliminations
|                                                     |                                            |                          |        |               |       |             |         |              |         |              |        |             
|                                                     |                                            |                         
|                                                     |                                            | (Unaudited)             
|                                                     |                                            |                         
|                                                     |                                            | (In thousands)          
|Revenues                                             |                                            |                          |        |               |       |             |         |              |         |              |        |              |        |  |        |        |        |  |      |        |        |  |         |        
|                                                     | Rental revenue                             |                          | $      |              |       |             |         | 383,709      |         |              |        | 15,384       |        |  |        |       |        |  |      |       |        |  |         | (15,695 | )      
|                                                     | Net sales                                  |                          |        |              |       |             |         | 53,624       |         |              |        | 16           |        |  |        |       |        |  |      |       |        |  |         |        |        
|                                                     | Premiums                                   |                          |        |              |       |             |         |             |         |              |        |             |        |  |        | 46,609 |        |  |      | 39,658 |        |  |         | (1,614  | )      
|                                                     | Net investment and interest income         |                          |        | 811           |       |             |         | 7,589        |         |              |        | 2,777        |        |  |        | 7,568  |        |  |      | 5,384  |        |  |         |        |        
|                                                     |                                            |                          |        |               |       |             |         |              |         |              |        |              |        |  |        |        |        |  |      |        |        |  |         |        
|                                                     |                                            | Total revenues           |        |               | 811   |             |         |              | 444,922 |              |        |              | 18,177 |  |        |        | 54,177 |  |      |        | 45,042 |  |         |         | (17,309 | )
|Costs and expenses                                   |                                            |                          |        |               |       |             |         |              |         |              |        |              |        |  |        |        |        |  |      |        |        |  |         |        
|                                                     | Operating expenses                         |                          |        | 1,079         |       |             |         | 257,788      |         |              |        | (588         | )      |  |        | 5,210  |        |  |      | 8,363  |        |  |         | (17,309 | )      
|                                                     | Commission expenses                        |                          |        |              |       |             |         | 49,039       |         |              |        |             |        |  |        |       |        |  |      |       |        |  |         |        |        
|                                                     | Cost of sales                              |                          |        |              |       |             |         | 29,448       |         |              |        | 7            |        |  |        |       |        |  |      |       |        |  |         |        |        
|                                                     | Benefits and losses                        |                          |        |              |       |             |         |             |         |              |        |             |        |  |        | 45,647 |        |  |      | 30,771 |        |  |         |        |        
|                                                     | Amortization of deferred acquisition costs |                          |        |              |       |             |         |             |         |              |        |             |        |  |        | 5,309  |        |  |      | 5,025  |        |  |         |        |        
|                                                     | Lease expense                              |                          |        | 230           |       |             |         | 41,219       |         |              |        | 1,962        |        |  |        |       |        |  |      |       |        |  |         |        |        
|                                                     | Depreciation, net                          |                          |        | 4             |       |             |         | 27,421       |         |              |        | 2,125        |        |  |        |       |        |  |      |       |        |  |         |        |        
|                                                     |                                            |                          |        |               |       |             |         |              |         |              |        |              |        |  |        |        |        |  |      |        |        |  |         |        
|                                                     |                                            | Total costs and expenses |        |               | 1,313 |             |         |              | 404,915 |              |        |              | 3,506  |  |        |        | 56,166 |  |      |        | 44,159 |  |         |         | (17,309 | )
|                                                     |                                            |                          |        |               |       |             |         |              |         |              |        |              |        |  |        |        |        |  |      |        |        |  |         |        
|Equity in Earnings of Subsidiary                     |                                            |                          | 30,024 |               |       |             |        |              |         |              |       |              |        |  |       |        |        |  |     |        |        |  | (30,024 | )      
|Equity in Earning of SAC                             |                                            |                          | (389   | )             |       |             |        |              |         |              |       |              |        |  |       |        |        |  |     |        |        |  |        |        
|Earnings (loss) from operations                      |                                            |                          | 29,133 |               |       |             | 40,007  |              |         |              | 14,671 |              |        |  | (1,989 | )      |        |  | 883  |        |        |  | (30,024 | )      
|                                                     | Interest expense                           |                          |        | 9,249         |       |             |         | 3,751        |         |              |        | 5,302        |        |  |        |       |        |  |      |       |        |  |         |        |        
|                                                     |                                            |                          |        |               |       |             |         |              |         |              |        |              |        |  |        |        |        |  |      |        |        |  |         |        
|Pretax earnings (loss)                               |                                            |                          | 19,884 |               |       |             | 36,256  |              |         |              | 9,369  |              |        |  | (1,989 | )      |        |  | 883  |        |        |  | (30,024 | )      
|Income tax benefit (expense)                         |                                            |                          | 3,413  |               |       |             | (11,917 | )            |         |              | (3,279 | )            |        |  | 1,005  |        |        |  | (304 | )      |        |  |        |        
|                                                     |                                            |                          |        |               |       |             |         |              |         |              |        |              |        |  |        |        |        |  |      |        |        |  |         |        
|                                                     | Net earnings/(loss)                        |                          |        | 23,297        |       |             |         | 24,339       |         |              |        | 6,090        |        |  |        | (984   | )      |  |      | 579    |        |  |         | (30,024 | )      
|                                                     |                                            |                          |        |               |       |             |         |              |         |              |        |              |        |  |        |        |        |  |      |        |        |  |         |        
|Less: Preferred stock dividends                      |                                            |                          | (3,241 | )             |       |             |        |              |         |              |       |              |        |  |       |        |        |  |     |        |        |  |        |        
|                                                     |                                            |                          |        |               |       |             |         |              |         |              |        |              |        |  |        |        |        |  |      |        |        |  |         |        
|Earnings (loss) available to common
    shareholders |                                            | $                        | 20,056 |               |       |             | 24,339  |              |         |              | 6,090  |              |        |  | (984   | )      |        |  | 579  |        |        |  | (30,024 | )      
|                                                     |                                            |                          |        |               |       |             |         |              |         |              |        |              |        |  |        |        |        |  |      |        |        |  |         |        

[Additional columns below]

[Continued from above table, first column(s) repeated]

|                                                     |                                            |                          |         |            |         |              |        |              |        |  |        |         |         |   |         |         |         | 
|---------------------------------------------------- | ------------------------------------------ | ------------------------ | ------- | ---------- | ------- | ------------ | ------ | ------------ | ------ |  | ------ | ------- | ------- | - | ------- | ------- | ------- | 
|                                                     |                                            |                          |         | SAC Moving |         |              |        |             
|                                                     |                                            |                          |         | and        |         |              |        |             
|                                                     |                                            | AMERCO                   |         | Storage    |         |              |        | Total       
|                                                     |                                            | Consolidated             |         | Operations |         | Eliminations |        | Consolidated
|                                                     |                                            |                          |         |            |         |              |        |             
|                                                     |                                            |                         
|                                                     |                                            | (Unaudited)             
|                                                     |                                            |                         
|                                                     |                                            | (In thousands)          
|Revenues                                             |                                            |                          |         |            |         |              |        |              |        |  |        |         |         |   |         |        
|                                                     | Rental revenue                             |                          |         | 383,398    |         |              |        | 40,198       |        |  |        | (12,019 | )       |   |         | 411,577 |        
|                                                     | Net sales                                  |                          |         | 53,640     |         |              |        | 14,549       |        |  |        |        |         |   |         | 68,189  |        
|                                                     | Premiums                                   |                          |         | 84,653     |         |              |        |             |        |  |        |        |         |   |         | 84,653  |        
|                                                     | Net investment and interest income         |                          |         | 24,129     |         |              |        |             |        |  |        | (9,254  | )       |   |         | 14,875  |        
|                                                     |                                            |                          |         |            |         |              |        |              |        |  |        |         |         |   |         |        
|                                                     |                                            | Total revenues           |         |            | 545,820 |              |        |              | 54,747 |  |        |         | (21,273 | ) |         |         | 579,294 | 
|Costs and expenses                                   |                                            |                          |         |            |         |              |        |              |        |  |        |         |         |   |         |        
|                                                     | Operating expenses                         |                          |         | 254,543    |         |              |        | 24,732       |        |  |        | (3,055  | )       |   |         | 276,220 |        
|                                                     | Commission expenses                        |                          |         | 49,039     |         |              |        |             |        |  |        | (6,909  | )       |   |         | 42,130  |        
|                                                     | Cost of sales                              |                          |         | 29,455     |         |              |        | 6,072        |        |  |        |        |         |   |         | 35,527  |        
|                                                     | Benefits and losses                        |                          |         | 76,418     |         |              |        |             |        |  |        |        |         |   |         | 76,418  |        
|                                                     | Amortization of deferred acquisition costs |                          |         | 10,334     |         |              |        |             |        |  |        |        |         |   |         | 10,334  |        
|                                                     | Lease expense                              |                          |         | 43,411     |         |              |        |             |        |  |        | (2,055  | )       |   |         | 41,356  |        
|                                                     | Depreciation, net                          |                          |         | 29,550     |         |              |        | 4,644        |        |  |        | (482    | )       |   |         | 33,712  |        
|                                                     |                                            |                          |         |            |         |              |        |              |        |  |        |         |         |   |         |        
|                                                     |                                            | Total costs and expenses |         |            | 492,750 |              |        |              | 35,448 |  |        |         | (12,501 | ) |         |         | 515,697 | 
|                                                     |                                            |                          |         |            |         |              |        |              |        |  |        |         |         |   |         |        
|Equity in Earnings of Subsidiary                     |                                            |                          |        |            |         |              |       |              |        |  |       |         |         |   |        |        
|Equity in Earning of SAC                             |                                            |                          | (389    | )          |         |              |       |              |        |  | 389    |         |         |   |        |        
|Earnings (loss) from operations                      |                                            |                          | 52,681  |            |         |              | 19,299 |              |        |  | (8,383 | )       |         |   | 63,597  |        
|                                                     | Interest expense                           |                          |         | 18,302     |         |              |        | 19,647       |        |  |        | (9,254  | )       |   |         | 28,695  |        
|                                                     |                                            |                          |         |            |         |              |        |              |        |  |        |         |         |   |         |        
|Pretax earnings (loss)                               |                                            |                          | 34,379  |            |         |              | (348   | )            |        |  | 871    |         |         |   | 34,902  |        
|Income tax benefit (expense)                         |                                            |                          | (11,082 | )          |         |              | (41    | )            |        |  |       |         |         |   | (11,123 | )      
|                                                     |                                            |                          |         |            |         |              |        |              |        |  |        |         |         |   |         |        
|                                                     | Net earnings/(loss)                        |                          |         | 23,297     |         |              |        | (389         | )      |  |        | 871     |         |   |         | 23,779  |        
|                                                     |                                            |                          |         |            |         |              |        |              |        |  |        |         |         |   |         |        
|Less: Preferred stock dividends                      |                                            |                          | (3,241  | )          |         |              |       |              |        |  |       |         |         |   | (3,241  | )      
|                                                     |                                            |                          |         |            |         |              |        |              |        |  |        |         |         |   |         |        
|Earnings (loss) available to common
    shareholders |                                            |                          | 20,056  |            |         |              | (389   | )            |        |  | 871    |         |         |   | 20,538  |        
|                                                     |                                            |                          |         |            |         |              |        |              |        |  |        |         |         |   |         |        



---

(1)     For the quarter
ended March 31, 2002

19



---



##### 



AMERCO (Debtor in Possession) AND CONSOLIDATED
SUBSIDIARIES AND

SAC HOLDING CORPORATIONS AND CONSOLIDATED
SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

6.     Consolidating
Industry Segment and Geographic Area Data, Continued:

Consolidating cash flow statements by industry
segment for the quarter ended June 30, 2003 are as
follows:

|                                                              |                                     |                               |        |               |   |             |         |              |         |              |      |              |      |   |         |   |        |   |        |         |         |   |   |   |   | 
|------------------------------------------------------------- | ----------------------------------- | ----------------------------- | ------ | ------------- | - | ----------- | ------- | ------------ | ------- | ------------ | ---- | ------------ | ---- | - | ------- | - | ------ | - | ------ | ------- | ------- | - | - | - | - | 
|                                                              |                                     |                               |        | U-Haul Moving |   |             |         | Property and |         |              |      |             
|                                                              |                                     |                               |        | and Storage   |   |             |         | Casualty     |         | Life         |      |             
|                                                              |                                     | AMERCO                        |        | Operations    |   | Real Estate |         | Insurance(1) |         | Insurance(1) |      | Eliminations
|                                                              |                                     |                               |        |               |   |             |         |              |         |              |      |             
|                                                              |                                     |                              
|                                                              |                                     | (Unaudited)                  
|                                                              |                                     |                              
|                                                              |                                     | (In thousands)               
|Net cash flows provided by (used in) operating
    activities |                                     | $                             | 14,217 |               |   |             | 48,133  |              |         |              | 604  |              |      |   | (28,193 | ) |        |   | (1,233 | )       |         |   |  |  
|                                                              |                                     |                               |        |               |   |             |         |              |         |              |      |              |      |   |         |   |        |   |        |         |         |   |   |  
|Cash flows from investing activities:                         |                                     |                               |        |               |   |             |         |              |         |              |      |              |      |   |         |   |        |   |        |         |         |   |   |  
|                                                              | Purchases of investments:           |                               |        |               |   |             |         |              |         |              |      |              |      |   |         |   |        |   |        |         |         |   |   |   |  
|                                                              |                                     | Property, plant and equipment |        |               |  |             |         |              | (41,895 | )            |      |              |     |   |         |   |       |   |        |         |        |   |   |   |  | 
|                                                              |                                     | Fixed maturities              |        |               |  |             |         |              |        |              |      |              |     |   |         |   | (70    | ) |        |         | (13,847 | ) |   |   |  | 
|                                                              |                                     | Common Stock                  |        |               |  |             |         |              |        |              |      |              |     |   |         |   |       |   |        |         |        |   |   |   |  | 
|                                                              |                                     | Preferred Stock               |        |               |  |             |         |              |        |              |      |              |     |   |         |   |       |   |        |         |        |   |   |   |  | 
|                                                              |                                     | Other asset investment        |        |               |  |             |         |              |        |              |      |              |     |   |         |   | 9,386  |   |        |         | (34,860 | ) |   |   |  | 
|                                                              |                                     | Real estate                   |        |               |  |             |         |              |        |              |      |              |     |   |         |   |       |   |        |         |        |   |   |   |  | 
|                                                              |                                     | Mortgage loans                |        |               |  |             |         |              |        |              |      |              |     |   |         |   |       |   |        |         |        |   |   |   |  | 
|                                                              | Proceeds from sale of investments:  |                               |        |               |   |             |         |              |         |              |      |             |      |   |         |  |        |   |        |        |         |   |   |   |  
|                                                              |                                     | Property, plant and equipment |        |               |  |             |         |              | 4,513   |              |      |              | (634 | ) |         |   |       |   |        |         |        |   |   |   |  | 
|                                                              |                                     | Fixed maturities              |        |               |  |             |         |              |        |              |      |              |     |   |         |   | 17,597 |   |        |         | 35,553  |   |   |   |  | 
|                                                              |                                     | Common Stock                  |        |               |  |             |         |              |        |              |      |              |     |   |         |   |       |   |        |         |        |   |   |   |  | 
|                                                              |                                     | Preferred Stock               |        |               |  |             |         |              |        |              |      |              |     |   |         |   |       |   |        |         |        |   |   |   |  | 
|                                                              |                                     | Real estate                   |        |               |  |             |         |              |        |              |      |              |     |   |         |   | 482    |   |        |         | 5,862   |   |   |   |  | 
|                                                              |                                     | Mortgage loans                |        |               |  |             |         |              | 73      |              |      |              | 130  |   |         |   |       |   |        |         |        |   |   |   |  | 
|                                                              | Changes in other investments        |                               |        |              |   |             |         |             |         |              |      |             |      |   |         |  |        |   |        | 1,114   |         |   |   |  |  
|                                                              |                                     |                               |        |               |   |             |         |              |         |              |      |              |      |   |         |   |        |   |        |         |         |   |   |  
|Net cash provided by (used in) investing
    activities       |                                     |                               |       |               |   |             | (37,309 | )            |         |              | (504 | )            |      |   | 27,395  |   |        |   | (6,178 | )       |         |   |  |  
|                                                              |                                     |                               |        |               |   |             |         |              |         |              |      |              |      |   |         |   |        |   |        |         |         |   |   |  
|Cash flows from financing activities:                         |                                     |                               |        |               |   |             |         |              |         |              |      |              |      |   |         |   |        |   |        |         |         |   |   |  
|                                                              | Net change in short-term borrowings |                               |        |              |   |             |         |             |         |              |      |             |      |   |         |  |        |   |        |        |         |   |   |  |  
|                                                              | Proceeds from notes                 |                               |        |              |   |             |         |             |         |              |      |             |      |   |         |  |        |   |        |        |         |   |   |  |  
|                                                              | Debt issuance costs                 |                               |        |              |   |             |         |             |         |              |      |             |      |   |         |  |        |   |        |        |         |   |   |  |  
|                                                              | Leveraged ESOP:                     |                               |        |              |   |             |         |             |         |              |      |             |      |   |         |  |        |   |        |        |         |   |   |  |  
|                                                              |                                     | Purchase of shares            |        |               |  |             |         |              |         |              |      |              |     |   |         |   |       |   |        |         |        |   |   |   |  | 
|                                                              |                                     | Payments on loans             |        |               |  |             |         |              | 375     |              |      |              |     |   |         |   |       |   |        |         |        |   |   |   |  | 
|                                                              | Principal payments on notes         |                               |        |              |   |             |         |             |         |              |      | (2           | )    |   |         |  |        |   |        |        |         |   |   |  |  
|                                                              | Preferred stock dividends paid      |                               |        |              |   |             |         |             |         |              |      |             |      |   |         |  |        |   |        |        |         |   |   |  |  
|                                                              | Treasury stock acquisitions, net    |                               |        |              |   |             |         |             |         |              |      |             |      |   |         |  |        |   |        |        |         |   |   |  |  
|                                                              | Dividends paid                      |                               |        |              |   |             |         |             |         |              |      |             |      |   |         |  |        |   |        |        |         |   |   |  |  
|                                                              | Investment contract deposits        |                               |        |              |   |             |         |             |         |              |      |             |      |   |         |  |        |   |        | 20,334  |         |   |   |  |  
|                                                              | Investment contract withdrawals     |                               |        |              |   |             |         |             |         |              |      |             |      |   |         |  |        |   |        | (19,556 | )       |   |   |  |  
|                                                              |                                     |                               |        |               |   |             |         |              |         |              |      |              |      |   |         |   |        |   |        |         |         |   |   |  
|Net cash provided by (used in) financing
    activities       |                                     |                               |       |               |   |             | 375     |              |         |              | (2   | )            |      |   |        |   |        |   | 778    |         |         |   |  |  
|                                                              |                                     |                               |        |               |   |             |         |              |         |              |      |              |      |   |         |   |        |   |        |         |         |   |   |  
|Increase (decrease) in cash and cash
    equivalents          |                                     |                               | 14,217 |               |   |             | 11,199  |              |         |              | 98   |              |      |   | (798    | ) |        |   | (6,633 | )       |         |   |  |  
|Cash and cash equivalents at the beginning of
    period      |                                     |                               | 18,524 |               |   |             | 30,046  |              |         |              | 174  |              |      |   | 4,108   |   |        |   | 9,320  |         |         |   |  |  
|                                                              |                                     |                               |        |               |   |             |         |              |         |              |      |              |      |   |         |   |        |   |        |         |         |   |   |  
|Cash and cash equivalents at the end of period                |                                     | $                             | 32,741 |               |   |             | 41,245  |              |         |              | 272  |              |      |   | 3,310   |   |        |   | 2,687  |         |         |   |  |  
|                                                              |                                     |                               |        |               |   |             |         |              |         |              |      |              |      |   |         |   |        |   |        |         |         |   |   |  

[Additional columns below]

[Continued from above table, first column(s) repeated]

|                                                              |                                     |                               |         |            |         |              |         |              |        |   |         |       |         |   |         |         |         |  
|------------------------------------------------------------- | ----------------------------------- | ----------------------------- | ------- | ---------- | ------- | ------------ | ------- | ------------ | ------ | - | ------- | ----- | ------- | - | ------- | ------- | ------- | -
|                                                              |                                     |                               |         | SAC Moving |         |              |         |             
|                                                              |                                     |                               |         | and        |         |              |         |             
|                                                              |                                     | AMERCO                        |         | Storage    |         |              |         | Total       
|                                                              |                                     | Consolidated                  |         | Operations |         | Eliminations |         | Consolidated
|                                                              |                                     |                               |         |            |         |              |         |             
|                                                              |                                     |                              
|                                                              |                                     | (Unaudited)                  
|                                                              |                                     |                              
|                                                              |                                     | (In thousands)               
|Net cash flows provided by (used in) operating
    activities |                                     |                               | 33,528  |            |         |              | (27,569 | )            |        |   | 36,669  |       |         |   | 42,628  |        
|                                                              |                                     |                               |         |            |         |              |         |              |        |   |         |       |         |   |         |        
|Cash flows from investing activities:                         |                                     |                               |         |            |         |              |         |              |        |   |         |       |         |   |         |        
|                                                              | Purchases of investments:           |                               |         |            |         |              |         |              |        |   |         |       |         |   |         |         |        
|                                                              |                                     | Property, plant and equipment |         |            | (41,895 | )            |         |              | (6,242 | ) |         |       |        |   |         |         | (48,137 | )
|                                                              |                                     | Fixed maturities              |         |            | (13,917 | )            |         |              |       |   |         |       |        |   |         |         | (13,917 | )
|                                                              |                                     | Common Stock                  |         |            |        |              |         |              |       |   |         |       |        |   |         |         |        |  
|                                                              |                                     | Preferred Stock               |         |            |        |              |         |              |       |   |         |       |        |   |         |         |        |  
|                                                              |                                     | Other asset investment        |         |            | (25,474 | )            |         |              |       |   |         |       |        |   |         |         | (25,474 | )
|                                                              |                                     | Real estate                   |         |            |        |              |         |              |       |   |         |       |        |   |         |         |        |  
|                                                              |                                     | Mortgage loans                |         |            |        |              |         |              |       |   |         |       |        |   |         |         |        |  
|                                                              | Proceeds from sale of investments:  |                               |         |           |         |              |         |              |        |   |         |       |         |   |         |         |        
|                                                              |                                     | Property, plant and equipment |         |            | 3,879   |              |         |              | 37,029 |   |         |       | (37,751 | ) |         |         | 3,157   |  
|                                                              |                                     | Fixed maturities              |         |            | 53,150  |              |         |              |       |   |         |       |        |   |         |         | 53,150  |  
|                                                              |                                     | Common Stock                  |         |            |        |              |         |              |       |   |         |       |        |   |         |         |        |  
|                                                              |                                     | Preferred Stock               |         |            |        |              |         |              |       |   |         |       |        |   |         |         |        |  
|                                                              |                                     | Real estate                   |         |            | 6,344   |              |         |              |       |   |         |       |        |   |         |         | 6,344   |  
|                                                              |                                     | Mortgage loans                |         |            | 203     |              |         |              |       |   |         |       |        |   |         |         | 203     |  
|                                                              | Changes in other investments        |                               |         | 1,114      |         |              |         |             |        |   |         |       |         |   |         | 1,114   |        
|                                                              |                                     |                               |         |            |         |              |         |              |        |   |         |       |         |   |         |        
|Net cash provided by (used in) investing
    activities       |                                     |                               | (16,596 | )          |         |              | 30,787  |              |        |   | (37,751 | )     |         |   | (23,560 | )      
|                                                              |                                     |                               |         |            |         |              |         |              |        |   |         |       |         |   |         |        
|Cash flows from financing activities:                         |                                     |                               |         |            |         |              |         |              |        |   |         |       |         |   |         |        
|                                                              | Net change in short-term borrowings |                               |         |           |         |              |         |             |        |   |         |      |         |   |         |        |        
|                                                              | Proceeds from notes                 |                               |         |           |         |              |         | 357          |        |   |         | (357  | )       |   |         |        |        
|                                                              | Debt issuance costs                 |                               |         |           |         |              |         |             |        |   |         |      |         |   |         |        |        
|                                                              | Leveraged ESOP:                     |                               |         |           |         |              |         |             |        |   |         |      |         |   |         |        |        
|                                                              |                                     | Purchase of shares            |         |            |         |              |         |              |        |   |         |       |         |   |         |         |         |  
|                                                              |                                     | Payments on loans             |         |            | 375     |              |         |              |       |   |         |       |        |   |         |         | 375     |  
|                                                              | Principal payments on notes         |                               |         | (2         | )       |              |         | (3,032       | )      |   |         | 1,439 |         |   |         | (1,595  | )      
|                                                              | Preferred stock dividends paid      |                               |         |           |         |              |         |             |        |   |         |      |         |   |         |        |        
|                                                              | Treasury stock acquisitions, net    |                               |         |           |         |              |         |             |        |   |         |      |         |   |         |        |        
|                                                              | Dividends paid                      |                               |         |           |         |              |         |             |        |   |         |      |         |   |         |        |        
|                                                              | Investment contract deposits        |                               |         | 20,334     |         |              |         |             |        |   |         |      |         |   |         | 20,334  |        
|                                                              | Investment contract withdrawals     |                               |         | (19,556    | )       |              |         |             |        |   |         |      |         |   |         | (19,556 | )      
|                                                              |                                     |                               |         |            |         |              |         |              |        |   |         |       |         |   |         |        
|Net cash provided by (used in) financing
    activities       |                                     |                               | 1,151   |            |         |              | (2,675  | )            |        |   | 1,082   |       |         |   | (442    | )      
|                                                              |                                     |                               |         |            |         |              |         |              |        |   |         |       |         |   |         |        
|Increase (decrease) in cash and cash
    equivalents          |                                     |                               | 18,083  |            |         |              | 543     |              |        |   |        |       |         |   | 18,626  |        
|Cash and cash equivalents at the beginning of
    period      |                                     |                               | 62,172  |            |         |              | 4,662   |              |        |   |        |       |         |   | 66,834  |        
|                                                              |                                     |                               |         |            |         |              |         |              |        |   |         |       |         |   |         |        
|Cash and cash equivalents at the end of period                |                                     |                               | 80,255  |            |         |              | 5,205   |              |        |   |        |       |         |   | 85,460  |        
|                                                              |                                     |                               |         |            |         |              |         |              |        |   |         |       |         |   |         |        






|    |                                     
|--- | ------------------------------------
|(1) | For the quarter ended March 31, 2003

20



---



##### 



AMERCO (Debtor in Possession) AND
CONSOLIDATED SUBSIDIARIES AND

SAC HOLDING CORPORATIONS AND CONSOLIDATED
SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)



|   |                                                                        
|-- | -----------------------------------------------------------------------
|6. | Consolidating Industry Segment and Geographic
    Area Data, Continued:

Consolidating cash flow statements by industry
segment for the quarter ended June 30, 2002 are as
follows:

|                                                              |                                     |                               |          |               |   |             |         |              |         |              |         |              |      |   |         |        |        |  |         |         |         |   |   |   |   | 
|------------------------------------------------------------- | ----------------------------------- | ----------------------------- | -------- | ------------- | - | ----------- | ------- | ------------ | ------- | ------------ | ------- | ------------ | ---- | - | ------- | ------ | ------ |  | ------- | ------- | ------- | - | - | - | - | 
|                                                              |                                     |                               |          | U-Haul Moving |   |             |         | Property and |         |              |         |             
|                                                              |                                     |                               |          | and Storage   |   |             |         | Casualty     |         | Life         |         |             
|                                                              |                                     | AMERCO                        |          | Operations    |   | Real Estate |         | Insurance(1) |         | Insurance(1) |         | Eliminations
|                                                              |                                     |                               |          |               |   |             |         |              |         |              |         |             
|                                                              |                                     |                              
|                                                              |                                     | (Unaudited)                  
|                                                              |                                     |                              
|                                                              |                                     | (In thousands)               
|Net cash flows provided by (used in) operating
    activities |                                     | $                             | 208,844  |               |   |             | 49,252  |              |         |              | (99,525 | )            |      |   | (27,956 | )      |        |  | (16,869 | )       |         |   |  |  
|                                                              |                                     |                               |          |               |   |             |         |              |         |              |         |              |      |   |         |        |        |  |         |         |         |   |   |  
|Cash flows from investing activities:                         |                                     |                               |          |               |   |             |         |              |         |              |         |              |      |   |         |        |        |  |         |         |         |   |   |  
|                                                              | Purchases of investments:           |                               |          |               |   |             |         |              |         |              |         |              |      |   |         |        |        |  |         |         |         |   |   |   |  
|                                                              |                                     | Property, plant and equipment |          |               |  |             |         |              | (55,735 | )            |         |              | (445 | ) |         |        |       |  |         |         |        |   |   |   |  | 
|                                                              |                                     | Fixed maturities              |          |               |  |             |         |              |        |              |         |              |     |   |         |        |       |  |         |         | (60,986 | ) |   |   |  | 
|                                                              |                                     | Common Stock                  |          |               |  |             |         |              |        |              |         |              |     |   |         |        |       |  |         |         |        |   |   |   |  | 
|                                                              |                                     | Preferred Stock               |          |               |  |             |         |              |        |              |         |              |     |   |         |        |       |  |         |         |        |   |   |   |  | 
|                                                              |                                     | Other asset investment        |          |               |  |             |         |              |        |              |         |              |     |   |         |        |       |  |         |         | (362    | ) |   |   |  | 
|                                                              |                                     | Real estate                   |          |               |  |             |         |              |        |              |         |              |     |   |         |        |       |  |         |         |        |   |   |   |  | 
|                                                              |                                     | Mortgage loans                |          |               |  |             |         |              |        |              |         |              |     |   |         |        |       |  |         |         |        |   |   |   |  | 
|                                                              | Proceeds from sale of investments:  |                               |          |               |   |             |         |              |         |              |         |              |      |   |         |       |        |  |         |        |         |   |   |   |  
|                                                              |                                     | Property, plant and equipment |          |               | 3 |             |         |              |        |              |         |              |     |   |         |        |       |  |         |         |        |   |   |   |  | 
|                                                              |                                     | Fixed maturities              |          |               |  |             |         |              |        |              |         |              |     |   |         |        | 20,745 |  |         |         | 49,579  |   |   |   |  | 
|                                                              |                                     | Common Stock                  |          |               |  |             |         |              |        |              |         |              |     |   |         |        |       |  |         |         |        |   |   |   |  | 
|                                                              |                                     | Preferred Stock               |          |               |  |             |         |              |        |              |         |              |     |   |         |        |       |  |         |         | 2,578   |   |   |   |  | 
|                                                              |                                     | Real estate                   |          |               |  |             |         |              |        |              |         |              |     |   |         |        |       |  |         |         | 4,545   |   |   |   |  | 
|                                                              |                                     | Mortgage loans                |          |               |  |             |         |              |        |              |         |              |     |   |         |        | 560    |  |         |         |        |   |   |   |  | 
|                                                              | Changes in other investments        |                               |          |              |   |             |         |             |         |              |         |             |      |   |         | 11,376 |        |  |         | (4,028  | )       |   |   |  |  
|                                                              |                                     |                               |          |               |   |             |         |              |         |              |         |              |      |   |         |        |        |  |         |         |         |   |   |  
|Net cash provided by (used in) investing
    activities       |                                     |                               | 3        |               |   |             | (55,735 | )            |         |              | (445    | )            |      |   | 32,681  |        |        |  | (8,674  | )       |         |   |  |  
|                                                              |                                     |                               |          |               |   |             |         |              |         |              |         |              |      |   |         |        |        |  |         |         |         |   |   |  
|Cash flows from financing activities:                         |                                     |                               |          |               |   |             |         |              |         |              |         |              |      |   |         |        |        |  |         |         |         |   |   |  
|                                                              | Net change in short-term borrowings |                               |          | (100,485      | ) |             |         |             |         |              |         |             |      |   |         |       |        |  |         |        |         |   |   |  |  
|                                                              | Proceeds from notes                 |                               |          |              |   |             |         |             |         |              |         | 99,991       |      |   |         |       |        |  |         |        |         |   |   |  |  
|                                                              | Debt issuance costs                 |                               |          |              |   |             |         |             |         |              |         |             |      |   |         |       |        |  |         |        |         |   |   |  |  
|                                                              | Leveraged ESOP:                     |                               |          |              |   |             |         |             |         |              |         |             |      |   |         |       |        |  |         |        |         |   |   |  |  
|                                                              |                                     | Purchase of shares            |          |               |  |             |         |              | (84     | )            |         |              |     |   |         |        |       |  |         |         |        |   |   |   |  | 
|                                                              |                                     | Payments on loans             |          |               |  |             |         |              |        |              |         |              |     |   |         |        |       |  |         |         |        |   |   |   |  | 
|                                                              | Principal payments on notes         |                               |          | (107,290      | ) |             |         |             |         |              |         |             |      |   |         |       |        |  |         |        |         |   |   |  |  
|                                                              | Preferred stock dividends paid      |                               |          |              |   |             |         |             |         |              |         |             |      |   |         |       |        |  |         |        |         |   |   |  |  
|                                                              | Treasury stock acquisitions, net    |                               |          | (572          | ) |             |         |             |         |              |         |             |      |   |         |       |        |  |         |        |         |   |   |  |  
|                                                              | Dividends paid                      |                               |          |              |   |             |         |             |         |              |         |             |      |   |         |       |        |  |         |        |         |   |   |  |  
|                                                              | Investment contract deposits        |                               |          |              |   |             |         |             |         |              |         |             |      |   |         |       |        |  |         | 36,628  |         |   |   |  |  
|                                                              | Investment contract withdrawals     |                               |          |              |   |             |         |             |         |              |         |             |      |   |         |       |        |  |         | (19,211 | )       |   |   |  |  
|                                                              |                                     |                               |          |               |   |             |         |              |         |              |         |              |      |   |         |        |        |  |         |         |         |   |   |  
|Net cash provided by (used in) financing
    activities       |                                     |                               | (208,347 | )             |   |             | (84     | )            |         |              | 99,991  |              |      |   |        |        |        |  | 17,417  |         |         |   |  |  
|                                                              |                                     |                               |          |               |   |             |         |              |         |              |         |              |      |   |         |        |        |  |         |         |         |   |   |  
|Increase (decrease) in cash and cash
    equivalents          |                                     |                               | 500      |               |   |             | (6,567  | )            |         |              | 21      |              |      |   | 4,725   |        |        |  | (8,126  | )       |         |   |  |  
|Cash and cash equivalents at the beginning of
    period      |                                     |                               | 71       |               |   |             | 25,719  |              |         |              | 576     |              |      |   | 5,912   |        |        |  | 9,158   |         |         |   |  |  
|                                                              |                                     |                               |          |               |   |             |         |              |         |              |         |              |      |   |         |        |        |  |         |         |         |   |   |  
|Cash and cash equivalents at the end of period                |                                     | $                             | 571      |               |   |             | 19,152  |              |         |              | 597     |              |      |   | 10,637  |        |        |  | 1,032   |         |         |   |  |  
|                                                              |                                     |                               |          |               |   |             |         |              |         |              |         |              |      |   |         |        |        |  |         |         |         |   |   |  

[Additional columns below]

[Continued from above table, first column(s) repeated]

|                                                              |                                     |                               |         |             |         |              |        |              |        |   |        |       |   |  |         |          |         |  
|------------------------------------------------------------- | ----------------------------------- | ----------------------------- | ------- | ----------- | ------- | ------------ | ------ | ------------ | ------ | - | ------ | ----- | - |  | ------- | -------- | ------- | -
|                                                              |                                     |                               |         | SAC Moving  |         |              |        |             
|                                                              |                                     | AMERCO                        |         | and Storage |         |              |        | Total       
|                                                              |                                     | Consolidated                  |         | Operations  |         | Eliminations |        | Consolidated
|                                                              |                                     |                               |         |             |         |              |        |             
|                                                              |                                     |                              
|                                                              |                                     | (Unaudited)                  
|                                                              |                                     |                              
|                                                              |                                     | (In thousands)               
|Net cash flows provided by (used in) operating
    activities |                                     |                               | 113,746 |             |         |              | 5,146  |              |        |   | (1,564 | )     |   |  | 117,328 |         
|                                                              |                                     |                               |         |             |         |              |        |              |        |   |        |       |   |  |         |         
|Cash flows from investing activities:                         |                                     |                               |         |             |         |              |        |              |        |   |        |       |   |  |         |         
|                                                              | Purchases of investments:           |                               |         |             |         |              |        |              |        |   |        |       |   |  |         |          |        
|                                                              |                                     | Property, plant and equipment |         |             | (56,180 | )            |        |              | (5,035 | ) |        |       |  |  |         |          | (61,215 | )
|                                                              |                                     | Fixed maturities              |         |             | (60,986 | )            |        |              |       |   |        |       |  |  |         |          | (60,986 | )
|                                                              |                                     | Common Stock                  |         |             |        |              |        |              |       |   |        |       |  |  |         |          |        |  
|                                                              |                                     | Preferred Stock               |         |             |        |              |        |              |       |   |        |       |  |  |         |          |        |  
|                                                              |                                     | Other asset investment        |         |             | (362    | )            |        |              |       |   |        |       |  |  |         |          | (362    | )
|                                                              |                                     | Real estate                   |         |             |        |              |        |              |       |   |        |       |  |  |         |          |        |  
|                                                              |                                     | Mortgage loans                |         |             |        |              |        |              |       |   |        |       |  |  |         |          |        |  
|                                                              | Proceeds from sale of investments:  |                               |         |            |         |              |        |              |        |   |        |       |   |  |         |         |        
|                                                              |                                     | Property, plant and equipment |         |             | 3       |              |        |              |       |   |        |       |  |  |         |          | 3       |  
|                                                              |                                     | Fixed maturities              |         |             | 70,324  |              |        |              |       |   |        |       |  |  |         |          | 70,324  |  
|                                                              |                                     | Common Stock                  |         |             |        |              |        |              |       |   |        |       |  |  |         |          |        |  
|                                                              |                                     | Preferred Stock               |         |             | 2,578   |              |        |              |       |   |        |       |  |  |         |          | 2,578   |  
|                                                              |                                     | Real estate                   |         |             | 4,545   |              |        |              |       |   |        |       |  |  |         |          | 4,545   |  
|                                                              |                                     | Mortgage loans                |         |             | 560     |              |        |              |       |   |        |       |  |  |         |          | 560     |  
|                                                              | Changes in other investments        |                               |         | 7,348       |         |              |        |             |        |   |        |      |   |  |         | 7,348    |        
|                                                              |                                     |                               |         |             |         |              |        |              |        |   |        |       |   |  |         |         
|Net cash provided by (used in) investing
    activities       |                                     |                               | (32,170 | )           |         |              | (5,035 | )            |        |   |       |       |   |  | (37,205 | )       
|                                                              |                                     |                               |         |             |         |              |        |              |        |   |        |       |   |  |         |         
|Cash flows from financing activities:                         |                                     |                               |         |             |         |              |        |              |        |   |        |       |   |  |         |         
|                                                              | Net change in short-term borrowings |                               |         | (100,485    | )       |              |        |             |        |   |        |      |   |  |         | (100,485 | )      
|                                                              | Proceeds from notes                 |                               |         | 99,991      |         |              |        | (1,564       | )      |   |        | 1,564 |   |  |         | 99,991   |        
|                                                              | Debt issuance costs                 |                               |         |            |         |              |        |             |        |   |        |      |   |  |         |         |        
|                                                              | Leveraged ESOP:                     |                               |         |            |         |              |        |             |        |   |        |      |   |  |         |         |        
|                                                              |                                     | Purchase of shares            |         |             | (84     | )            |        |              |       |   |        |       |  |  |         |          | (84     | )
|                                                              |                                     | Payments on loans             |         |             |        |              |        |              |       |   |        |       |  |  |         |          |        |  
|                                                              | Principal payments on notes         |                               |         | (107,290    | )       |              |        | 1,453        |        |   |        |      |   |  |         | (105,837 | )      
|                                                              | Preferred stock dividends paid      |                               |         |            |         |              |        |             |        |   |        |      |   |  |         |         |        
|                                                              | Treasury stock acquisitions, net    |                               |         | (572        | )       |              |        |             |        |   |        |      |   |  |         | (572     | )      
|                                                              | Dividends paid                      |                               |         |            |         |              |        |             |        |   |        |      |   |  |         |         |        
|                                                              | Investment contract deposits        |                               |         | 36,628      |         |              |        |             |        |   |        |      |   |  |         | 36,628   |        
|                                                              | Investment contract withdrawals     |                               |         | (19,211     | )       |              |        |             |        |   |        |      |   |  |         | (19,211  | )      
|                                                              |                                     |                               |         |             |         |              |        |              |        |   |        |       |   |  |         |         
|Net cash provided by (used in) financing
    activities       |                                     |                               | (91,023 | )           |         |              | (111   | )            |        |   | 1,564  |       |   |  | (89,570 | )       
|                                                              |                                     |                               |         |             |         |              |        |              |        |   |        |       |   |  |         |         
|Increase (decrease) in cash and cash
    equivalents          |                                     |                               | (9,447  | )           |         |              |       |              |        |   |       |       |   |  | (9,447  | )       
|Cash and cash equivalents at the beginning of
    period      |                                     |                               | 41,436  |             |         |              | 10     |              |        |   |       |       |   |  | 41,446  |         
|                                                              |                                     |                               |         |             |         |              |        |              |        |   |        |       |   |  |         |         
|Cash and cash equivalents at the end of period                |                                     |                               | 31,989  |             |         |              | 10     |              |        |   |       |       |   |  | 31,999  |         
|                                                              |                                     |                               |         |             |         |              |        |              |        |   |        |       |   |  |         |         



---



|    |                                     
|--- | ------------------------------------
|(1) | For the quarter ended March 31, 2002

21



---



##### 



AMERCO (Debtor in Possession) AND
CONSOLIDATED SUBSIDIARIES AND

SAC HOLDING CORPORATIONS AND CONSOLIDATED
SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)

6.     Industry
Segment and Geographic Area Data, Continued:

|                              |  |                |           |        |  |              |         |  |  |   |           |  
|----------------------------- |  | -------------- | --------- | ------ |  | ------------ | ------- |  |  | - | --------- | -
|Geographic Area Data         |  |                |           |        |  |             
|(All amounts are in U.S. $s) |  | United States  |           | Canada |  | Consolidated
|                              |  |                |           |        |  |             
|                              |  |               
|                              |  | Quarter Ended 
|                              |  |               
|                              |  |               
|                              |  | (Unaudited)   
|                              |  |               
|                              |  | (In thousands)
|June 30, 2003                 |  |                |           |        |  |              |         |  |  |   |           |  
|Total revenues                |  | $              | 561,570   |        |  | $            | 18,546  |  |  | $ | 580,116   |  
|Depreciation/amortization     |  |                | 45,606    |        |  |              | 1,532   |  |  |   | 47,138    |  
|Interest expense              |  |                | 29,532    |        |  |              | 1,366   |  |  |   | 30,898    |  
|Pretax earnings               |  |                | 40,251    |        |  |              | 4,411   |  |  |   | 44,662    |  
|Income tax benefit (expense)  |  |                | (16,926   | )      |  |              |        |  |  |   | (16,926   | )
|Identifiable assets           |  |                | 3,699,208 |        |  |              | 143,165 |  |  |   | 3,842,373 |  
|                             
|June 30, 2002                 |  |                |           |        |  |              |         |  |  |   |           |  
|Total revenues                |  |                | 564,107   |        |  |              | 15,392  |  |  |   | 579,499   |  
|Depreciation/amortization     |  |                | 42,716    |        |  |              | 1,330   |  |  |   | 44,046    |  
|Interest expense              |  |                | 27,587    |        |  |              | 1,108   |  |  |   | 28,695    |  
|Pretax earnings               |  |                | 31,922    |        |  |              | 2,980   |  |  |   | 34,902    |  
|Income tax benefit (expense)  |  |                | (11,123   | )      |  |              |        |  |  |   | (11,123   | )
|Identifiable assets           |  |                | 3,499,642 |        |  |              | 130,082 |  |  |   | 3,629,724 |  

7.     Liabilities
Subject to Compromise

Under the Bankruptcy Code certain claims against
AMERCO in existence prior to the Petition Date are stayed while
AMERCO continues operating as a debtor-in-possession. AMERCO has
received approval from the Court to (a) pay pre-petition
and post-petition employee wages, salaries, benefits and other
employee obligations; (b) pay vendors and other providers
in the ordinary course for goods and services received from and
after the Petition Date. Substantially all other pre-petition
liabilities of AMERCO have been classified as liabilities
subject to compromise in the unaudited Condensed Consolidated
Balance Sheets. Adjustments to these liabilities may result from
negotiations, payments authorized by Court order, additional
rejection of executory contracts including leases, or other
events.

Shortly after the Chapter 11 filing, AMERCO
began notifying all known or potential creditors of the filing
for the purpose of identifying all pre-petition claims against
the Company. Amounts that AMERCO has recorded may be different
than amounts filed by its creditors. The number and amount of
allowable claims cannot be presently ascertained. The claims
reconciliation process may result in adjustments to allowable
claims.

The following table summarizes the components of
Liabilities subject to compromise included in AMERCOs
Condensed Consolidated Balance Sheets as of June 30, 2003
(in thousands):

|                 |                                         |   |         |         | 
|---------------- | --------------------------------------- | - | ------- | ------- | 
|Debt             |                                         | $ | 860,873 |        
|Accounts payable |                                         |   | 185     |        
|                 |                                         |   |         |        
|                 | Total liabilities subject to compromise |   | $       | 861,058 | 
|                 |                                         |   |         |        

Reorganization items represent amounts incurred
as a direct result of the Companys Chapter 11 filing
and are included in operating expenses and interest expense in
the Companys Statement of Operations. Professional fees of
$8.8 million and default interest payments of
$4.4 million were paid during the quarter ended
June 30, 2003.

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7.     Certain
Relationships and Related Transactions

During the quarter ended June 30, 2003, the
Company purchased $140,280, of printing from Form Builders,
Inc. Mark V. Shoen, his daughter and Edward J. Shoens
sons are major stockholders of Form Builders, Inc. The
Company ceased doing business with Form Builders on
April 18, 2003.

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

Cautionary Statements Regarding
Forward-Looking Statements

This Quarterly Report on Form 10-Q contains
forward-looking statements. We may make additional written or
oral forward-looking statements from time to time in filings
with the Securities and Exchange Commission or otherwise. We
believe such forward-looking statements are within the meaning
of the safe-harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such statements may include, but
are not limited to, projections of revenues, income or loss,
estimates of capital expenditures, our plans and intentions
regarding the recapitalization of our balance sheet and the
payment of dividends arrearages, plans for future operations,
products or services and financing needs and plans, our
perceptions of our legal positions and anticipated outcomes of
pending litigation against us, liquidity, expected outcomes of
the Chapter 11 proceeding as well as assumptions relating
to the foregoing. The words believe,
expect, anticipate,
estimate, project and similar
expressions identify forward-looking statements, which speak
only as of the date the statement was made. Forward-looking
statements are inherently subject to risks and uncertainties,
some of which cannot be predicted or quantified. Factors that
could significantly affect results include, without limitation,
the risk factors enumerated at the end of this section, as well
as the following: the Companys ability to operate pursuant
to the terms of its DIP facility; the Companys ability to
obtain court approval with respect to motions in the
Chapter 11 proceeding prosecuted by it from time to time;
the Companys ability to develop, prosecute, confirm, and
consummate a plan of reorganization with respect to the
Chapter 11 case; risks associated with third parties
seeking and obtaining court approval to terminate or shorten the
exclusivity period for the Company to propose and confirm a plan
of reorganization, for the appointment of a Chapter 11
trustee or to convert the case to a Chapter 7 case; the
Companys ability to obtain and maintain normal terms with
vendors and service providers; the Companys ability to
maintain contracts that are critical to its operations; the
potential adverse impact of the Chapter 11 case on the
Companys liquidity or results of operations; the costs and
availability of financing; the Companys ability to execute
its business plan; the Companys ability to attract,
motivate and retain key employees; general economic conditions;
weather conditions; fluctuations in our costs to maintain and
update our fleet and facilities; our ability to refinance our
debt; our ability to successfully recapitalize our balance sheet
and cure existing defaults of our debt agreements; our ability
to continue as a going concern; changes in government
regulations, particularly environmental regulations; our credit
ratings; the availability of credit; changes in demand for our
products; changes in the general domestic economy; degree and
nature of our competition; the resolution of pending litigation
against the company; changes in accounting standards and other
factors described in this report or the other documents we file
with the Securities Exchange Commission. The above factors, the
following disclosures, as well as other statements in this
report and in the Notes to AMERCOs Consolidated Financial
Statements, could contribute to or cause such differences, or
could cause AMERCOs stock price to fluctuate dramatically.
Consequently, the forward-looking statements should not be
regarded as representations or warranties by the Company that
such matters will be realized. The Company disclaims any intent
or obligation to update or revise any of the forward-looking
statements, whether in response to new information, unforeseen
events, changed circumstances or otherwise.

General

Information on industry segments is incorporated
by reference from  Notes 1 and 6 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 of America. The preparation of our financial
statements requires the use of estimates and judgments that
affect the reported amounts of assets, liabilities, revenues and
expenses,

24



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and related disclosure of contingent assets and
liabilities. On an ongoing basis, estimates are reevaluated,
including those related to areas that require a significant
level of judgment or are otherwise subject to an inherent degree
of uncertainty. These areas include allowances for doubtful
accounts, depreciation of revenue earning vehicles and
buildings, self-insured liabilities, impairments of assets,
insurance reserves, premiums and acquisition cost amortization,
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. Such differences may be
material.


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

Principles of
Consolidation

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. SAC
Holdings has been classified as a special purpose entity that
meets the criteria for consolidation and therefore the accounts
of SAC Holdings are included in the consolidated financial
statements. AMERCO has concluded that SAC Holdings qualifies as
a Variable Interest Entity, as defined by FIN 46, and will
continue to be included in the consolidation. AMERCO does not
have an equity ownership interest in SAC Holdings or any of SAC
Holdings subsidiaries, except for investments made by
RepWest and Oxford in a SAC Holdings-controlled limited
partnership, which holds Canadian self-storage properties. SAC
Holdings are not legal subsidiaries of AMERCO. AMERCO is not
liable for the debts of SAC Holdings and there are no default
provisions in AMERCO indebtedness that cross-default to SAC
Holdings obligations. SAC Holdings has concluded that a
conglomerate of entities, known as Private Mini Storage Realty,
L.P. (Private Mini), qualifies as a Variable
Interest Entity and will be included in the consolidation
beginning July 1, 2003. As of June 30, 2003 and for
the period then ended, Private Mini is accounted for on the
equity method of accounting.

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, historical disposal experience and holding
periods, and trends in the market for vehicles are reviewed. 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  The carrying value is reviewed whenever
events or circumstances indicate the carrying values may not be
recoverable through projected undiscounted future cash flows.
The events could include significant underperformance relative
to expected, historical or projected future operating results,
significant changes in the manner of using the assets, overall
business strategy, significant negative industry or economic
trends and an unexpected non-compliance with significant debt
agreements.

Investments  For investments accounted
for under SFAS 115, in determining if and when a decline in
market value below amortized cost is other than temporary,
quoted market prices, dealer quotes or discounted cash flows are
reviewed. Other-than-temporary 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 and
earned over the terms of the respective policies. Benefits and
expenses are matched with recognized premiums to result in
revenue and expense 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.

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Unearned premiums represent the portion of
premiums written which relate 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.

U-Haul insurance expense  Expense is
recognized annually based on reported claims and an estimate of
future claims. A reserve is booked for unpaid losses.
U-Hauls self-insured retention is paid out over time as
claims are settled, relieving the reserve for unpaid losses.

Results of Operations



| |                                                                   
| | ------------------------------------------------------------------
| | Quarter Ended June 30, 2003 Versus
    Quarter Ended June 30, 2002



| |                                     
| | ------------------------------------
| | U-HAUL Moving and Storage Operations

Revenues consist of rental revenues, net sales
and investment earnings. Rental revenue was $407.0 million
and $383.7 million for the quarter ended June 30, 2003
and 2002. The increase was due to a 6% increase in the rental
transactions of trucks and trailers.

Net sales revenues were $54.3 million and
$53.6 million for the quarter ended June 30, 2003 and
2002. The increase in sales was due to increased volume.

Cost of sales were $25.6 million and
$29.4 million for the quarter ended June 30, 2003 and
2002. The decrease was due to better material cost margins and
increased labor efficiency.

Operating expenses before inter-company
eliminations were $262.7 million and $257.8 million
for the quarter ended June 30, 2003 and 2002.

Lease expense was $37.5 million and
$41.2 million for the quarter ended June 30, 2003 and
2002. This decrease reflects a decline in the number of leased
rental trucks.

Net depreciation expense was $30.6 million
and $27.4 million for the quarter ended June 30, 2003
and 2002.

Operating profit before inter-company
eliminations was $65.7 million and $40.0 million for
the quarter ended June 30, 2003 and 2002.



| |                                  
| | ---------------------------------
| | SAC Moving and Storage Operations

Total revenues consist of storage rental
revenues, vehicle rental commissions and net sales. Total rental
revenue was $42.3 million and $40.2 million for the
quarter ended June 30, 2003 and 2002. The increase is due
to a 9% increase in storage rental transactions.

Net sales revenues were $14.9 million and
$14.5 million for the quarter ended June 30, 2003 and
2002. Net sales stayed about constant for the same time period.

Operating expenses before inter-company
eliminations were $28.1 million and $24.7 million for
the quarter ended June 30, 2003 and 2002. Increased
expenses were the result of increased property taxes, management
fees, and utilities.

Cost of sales were $6.6 million and
$6.1 million for the quarter ended June 30, 2003 and
2002. The increase is proportional to increases in net sales.

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Net depreciation expense was $5.8 million
and $4.6 million for the quarter ended June 30, 2003
and 2002.

Operating profits were $16.7 million and
$19.3 million for the quarter ended June 30, 2003 and
2002.



| |                                
| | -------------------------------
| | Amercos Real Estate Operations

Rental revenue before inter-company eliminations
was $14.8 million and $15.4 million for the quarter
ended June 30, 2003 and 2002. Intercompany revenue was
$14.0 and $14.7 million for the quarter ended June 30,
2003 and 2002.

Net investment and interest income was
$2.0 million and $2.8 million for the quarter ended
June 30, 2003 and 2002.

Lease expense was $4.4 million and $2.0 for
the quarter ended June 30, 2003 and 2002. The increase is a
result of the increase in synthetic lease expense.

Net depreciation expense was $2.2 million
and $2.1 million for the quarter ended June 30, 2003
and 2002. The increase in net depreciation expense is the result
of a decline in gross profits recognized on the sales of surplus
properties.

Operating profit before inter-company
eliminations was $12.7 million and $14.7 million for
the quarter ended June 30, 2003 and 2002.

Property and Casualty

RepWests earned premiums were
$28.6 million and $46.6 million for the quarter ended
March 31, 2003 and 2002 respectively. General agency
premiums were $21.0 million and 28.1 million for the
quarters ended March 31, 2003 and March 31, 2002,
respectively. The decrease in 2003 is due to the reduction of
the Companys non-core lines of business. Assumed treaty
reinsurance premium was $2.0 million and $9.3 million
for the quarters ended March 31, 2003 and March 31,
2002, respectively. The decrease from 2002 to 2003 is due to the
non-renewal and cancellation of Companys assumed treaty
business. Rental industry earnings were $5.5 million and
$9.2 million for the quarters ended March 31, 2003 and
March 31, 2002, respectively. The 2003 decrease was from a
change in policy structure on U-Haul business effective
April 1, 2002. Under the new policy U-Haul is now
responsible for the losses from $0  $2,000,000.

Net investment income was $5.8 million and
$7.6 million for the quarter ended March 31, 2003 and
2002. The decrease is primarily attributable to lower annual
average invested assets.

Operating expenses were $5.3 million and
$5.2 million for the quarter ended March 31, 2003 and
2002.

Benefits and losses incurred were
$25.6 million and $45.6 million for the quarter ended
March 31, 2003 and 2002. The decrease in 2003 is due to
decreased underwritings in all segments of the Companys
business.

The amortization of deferred acquisition costs
(DAC) was $3.7 million and $5.3 million for the
quarter ended March 31, 2003 and 2002. The 2003 decrease is
due to the Companys premium writings.

Operating loss before inter-company eliminations
was $0.2 million and $2.0 million for the quarter
ended March 31, 2003 and 2002. The decrease is due to the
cancellation of multiple unprofitable lines of business.

In April 2003, RepWest announced that in
connection with the Companys overall restructuring
efforts, it is redirecting its operating focus. In particular,
RepWest is exiting non-U-Haul related lines of business.
Management estimates that approximately 78% of net earned
premium and balance sheet reserves relate to the operations
being discontinued. The process will be conducted in a fashion
to help insure an orderly transition and minimize related costs.
However, this exit may result in near term losses.

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REPUBLIC WESTERN BUSINESS BREAKDOWN

|                 |  |               |            |               |  |                |            |                |  |  |             |  |  |  |             | 
|---------------- |  | ------------- | ---------- | ------------- |  | -------------- | ---------- | -------------- |  |  | ----------- |  |  |  | ----------- | 
|                 |  | Net Earned    |            | Net Earned    |  | Outstanding    |            | Outstanding   
|                 |  | Premium 03/03 |            | Premium 03/02 |  | Reserves 03/03 |            | Reserves 12/02
|                 |  |               |            |               |  |                |            |               
|Total Company    |  |               | 28,566,943 |               |  |                | 46,609,350 |                |  |  | 405,398,104 |  |  |  | 399,448,036 | 
|                 |  |               |            |               |  |                |            |                |  |  |             |  |  |  |             | 
|U-Haul business  |  |               | 584,004    |               |  |                | 3,108,917  |                |  |  | 77,956,115  |  |  |  | 85,196,799  | 
|Safes            |  |               | 3,184,075  |               |  |                | 3,291,201  |                |  |  | 2,821,145   |  |  |  | 2,698,114   | 
|Storage          |  |               | 1,464,553  |               |  |                | 1,871,330  |                |  |  | 6,784,737   |  |  |  | 6,871,358   | 
|NAFCIC           |  |               | 1,071,216  |               |  |                | 1,114,400  |                |  |  | 3,238,375   |  |  |  | 3,627,634   | 
|                 |  |               |            |               |  |                |            |                |  |  |             |  |  |  |             | 
|Total U-Haul     |  |               | 6,303,848  |               |  |                | 9,385,848  |                |  |  | 90,800,372  |  |  |  | 98,393,905  | 
|                 |  |               |            |               |  |                |            |                |  |  |             |  |  |  |             | 
|Agency           |  |               | 21,209,852 |               |  |                | 28,943,746 |                |  |  | 244,681,534 |  |  |  | 227,776,323 | 
|Assumed business |  |               | 1,053,243  |               |  |                | 8,279,756  |                |  |  | 69,916,198  |  |  |  | 73,277,808  | 
|                 |  |               |            |               |  |                |            |                |  |  |             |  |  |  |             | 
|Total non-U-Haul |  |               | 22,263,095 |               |  |                | 37,223,502 |                |  |  | 314,597,732 |  |  |  | 301,054,131 | 
|                 |  |               |            |               |  |                |            |                |  |  |             |  |  |  |             | 

Life Insurance

Net premiums were $38.1 million and
$39.7 million for the quarter ended March 31, 2003 and
2002, respectively. Oxford increased Medicare supplement
premiums by $0.3 million through direct writings and rate
management activity. Credit insurance premiums decreased
$1.0 million for the quarter. Other health premiums
decreased $0.6 million from terminated programs. Other
lines had premium decreases totaling $0.3 million.

Net investment income before inter-company
eliminations increased $0.02 million to $5.4 million from
$5.4.

Operating expenses were $8.7 million and
$8.4 million for the quarter ended March 31, 2003 and
2002. Non-deferrable commissions have increased
$0.9 million from 2002 primarily due to the increase in
Medicare supplement and life premiums. General and
administrative expenses net of fees collected decreased
$0.6 million.

Benefits incurred were $27.8 million and
$30.8 million for the quarter ended March 31, 2003 and
2002. Medicare supplement incurred claims decreased
$1.4 million for the quarter and Credit incurred claims
decreased $1.3 million. Other lines had decreases of
$0.3 million.

Amortization of deferred acquisition cost
(DAC) and the value of business acquired
(VOBA) was $5.4 million and $5.0 million
for the quarter ended March 31, 2003 and 2002.

Operating profit/(loss) before tax and
inter-company eliminations was $1.6 million and
$0.9 million for the quarter ended March 31, 2003 and
2002. The increase from 2002 is due primarily to improved loss
ratios in Medicare supplement.

Consolidated Group

Interest Expense

Interest expense was $30.9 million and
$28.7 million for the quarter ended June 30, 2003 and
2002, respectively.

Interest expense of SAC Holdings on third party
debt was $10.8 million and $10.4 million for the
quarter ended June 30, 2003 and 2002, respectively.
AMERCOs interest expense on third party debt was $20.1 and
$18.3 million for the quarter ended June 30, 2003 and
2002, respectively.

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Earnings

Pretax earnings were $44.7 million and
$34.9 million for the quarter ended June 30, 2003 and
2002, respectively. After providing for income taxes, net
earnings were $27.7 million and $23.8 million for the
quarter ended June 30, 2003 and 2002, respectively.

Liquidity and Capital Resources

The matters described in Liquidity and
Capital Resources to the extent that they relate to future
events or expectations, may be significantly affected by the
Chapter 11 case. That proceeding will involve, or may
result in, various restrictions on the Companys
activities, limitations on financing, the need to obtain
Bankruptcy Court approval for various matters and uncertainty as
to relationships with vendors, suppliers, customers and others
with whom the Company may conduct or seek to conduct business.

Generally, under the Bankruptcy Code, most of a
debtors liabilities must be satisfied in full in order to
preserve the value of the debtors preferred and common
stock. The rights and claims of the Companys various
creditors and security holders will be determined by the plan of
reorganization to be filed by AMERCO. Although AMERCO expects to
file and consummate a full value plan of
reorganization that provides creditors with a combination of
cash and new debt securities equal to the full amount of their
allowed claims and also preserves the value of AMERCOs
common and preferred stock, no assurance can be given as to what
values, if any, will be ascribed in the bankruptcy proceedings
to each of these constituencies.

The Companys total of cash, cash
equivalents and short-term investments was $85.5 million at
June 30, 2003, compared to $66.8 million at
March 31, 2003.

U-Haul Moving and Storage Operations

To meet the needs of its customers, U-Haul must
maintain a large inventory of fixed asset rental items. In
fiscal year 2003, capital expenditures were $182.4 million,
as compared to $248.7 million and $411.9 million in
fiscal years 2002 and 2001, respectively. These expenditures
primarily reflect the renewal of the rental truck fleet. The
capital required to fund these expenditures was obtained through
internally generated funds from operations and lease financings.

During each of the fiscal years ending
March 31, 2004, 2005 and 2006, U-Haul estimates gross
capital expenditures will average approximately
$150 million to maintain the rental fleet at current
levels. This level of capital expenditures, combined with a
potential level of debt amortization of approximately
$100 million, are expected to create average annual funding
needs of approximately $250 million. Management estimates
that U-Haul will fund these requirements entirely with
internally generated funds and proceeds from the sale of trucks
and surplus assets. The level of capital expenditures will be
dependent upon the amount of internally generated funds and
proceeds from the sale of assets.

DIP Facility

The DIP Facility consists of a $300 million
credit facility with an interest rate option of LIBOR plus 3.5%
or the prime rate plus 1.0%. The DIP Facility will mature on the
earlier of (i) 12 months following the Bankruptcy
Courts order approving the facility; (ii) ten days
following the date of entry of an order confirming AMERCOs
plan of reorganization; and (iii) the conversion of the
Chapter 11 case to a case under Chapter 7. In order to
facilitate a drawing on the DIP Facility, Real Estate filed for
Chapter 11. This filing was needed to facilitate granting
security to the lending group in the real estate assets owned by
Real Estate. The DIP Facility was approved on an interim basis
by the Bankruptcy Court on August 14, 2003.

The terms of the DIP Facility include covenants
that require AMERCO to maintain agreed upon minimum levels of
EBITDA, EBITDAR and fixed charge coverage ratios. The DIP
Facility also contains a limitation on capital expenditures. All
such financial covenants will be tested quarterly. Other
customary covenants (both positive and negative) are included in
the DIP Facility.

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In addition, AMERCO has entered into a
restructuring agreement with the revolver lenders and Amerco
Real Estate Company has entered into a restructuring agreement
with the holders of $100 million of its notes. Both
agreements govern the consensual treatment of such creditors
under AMERCOs contemplated Plan of Reorganization and such
creditors have agreed to support confirmation of the Plan. These
agreements are filed as exhibits to this report.

Credit Agreements

AMERCOs operations were previously funded
by various credit and financing arrangements, including
unsecured long-term borrowings, unsecured medium-term notes and
revolving lines of credit with domestic and foreign banks. To
finance its fleet of trucks and trailers, U-Haul routinely
enters into sale and leaseback transactions. As of June 30,
2003, AMERCO had $954.9 million in total notes and loans
outstanding.

Certain of AMERCOs credit agreements
contained 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 and
placing certain additional liens on its properties and assets
and restricting the issuance of certain types of preferred stock
AMERCOs various credit and financing arrangements are
affected by its credit ratings. When AMERCO experienced the
credit downgrade, certain interest rates that were being charged
were increased.

On October 15, 2002, AMERCO failed to make a
$100 million principal payment due to the
Series 1997-C Bond Backed Asset Trust. On that date, AMERCO
also failed to pay a $26.6 million obligation to Citibank
and Bank of America in connection with the BBATs. As a result of
the foregoing, AMERCO is in default with respect to its other
credit arrangements that contain cross-default provisions,
including its Revolver in the amount of $205 million. In
addition to the cross-default under the Revolver, AMERCO is also
in default under that agreement as a result of its failure to
obtain incremental net cash proceeds and/or availability from
additional financings in the aggregate amount of at least
$150 million prior to October 15, 2002. In addition,
Amerco Real Estate Company has defaulted on a $100 million
loan by failing to grant mortgages required by the loan
agreement in a timely manner. The obligations of AMERCO
currently in default (either directly or as a result of a
cross-default) are approximately $1,178.1 million.

Support Agreements

In February 1997, AMERCO, through its insurance
subsidiaries, invested in the equity of Private Mini. During
1997, Private Mini secured a line of credit in the amount of
$225 million with a financial institution, which was
subsequently reduced in accordance with its terms to
$125 million in December 2001. Under the terms of this
credit facility AMERCO entered into a support party agreement
with Private Mini and the financial institution whereby upon
certain defaults or noncompliance with debt covenants by Private
Mini, AMERCO could be required to assume responsibility in
fulfilling all payment obligations and certain covenant
obligations related to this credit facility. Private Mini
defaulted on the credit facility due to AMERCOs default
under the support party agreement, which support party agreement
default was triggered by virtue of cross-defaults to certain
other AMERCO obligations. Additionally, Private Mini defaulted
under the credit facility by virtue of non-payment of the
outstanding balance at maturity. In December 2002, the financing
institution exercised its option to require AMERCO to purchase
all commitments under the credit facility. In March, 2003 AMERCO
and the financial institution entered a standstill agreement
with respect to this obligation, which standstill agreement
expired by its terms on April 30, 2003. Since
April 30, 2003, the financial institution has not re-issued
any default notices to AMERCO with respect to this obligation or
otherwise required AMERCO to purchase all commitments under the
credit facility. AMERCO has not purchased any commitments under
the credit facility and, as of March 31, 2003, AMERCO has
recorded a liability for the $55 million remaining balance
under the credit facility with a corresponding increase to its
receivable from Private Mini.

In February 2003, an entity affiliated with
Private Mini closed on a $255 million financing and
$70 million of these proceeds were used to pay down the
$125 million line of credit described above. The aggregate
amount of support provided by AMERCO remains unchanged at
$125 million ($55 million to the

30



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lenders under the Amended and Restated loan
agreement with the 1997 lenders and $70 million under the
new $255 million financing). Under the terms of the support
party agreement for the $255 million financing, following
certain events of default, AMERCO would assume responsibility
for $70 million of the obligations under this financing.
AMERCO has recorded a liability for the $70 million
obligation with a corresponding increase to its receivable from
Private Mini.


SAC Holdings

SAC Holdings intends to meet its current debt
obligations through cash flows, generated from its operating
activities. SAC Holdings intends to continue to purchase storage
properties during the next year using financing arrangements.

U-Haul Moving and Storage Operations

At June 30, 2003, U-Haul Moving and Storage
notes and loans payable due in less than one year total
$31.7 million and its accounts payable and accrued expenses
total $295.7 million. U-Haul Moving and Storage financial
assets (cash, receivables, inventories, and short term
investments) at June 30, 2003 were $142.4 million.
These assets, if converted to cash, are available to meet the
financial obligations of AMERCO.

SAC Moving and Storage Operations

At June 30, 2003, SAC Holdings notes and
loans payable due in less than one year total $80.0 million
and its accounts payable and accrued expenses total
$49.4 million. SAC Holdings financial assets (cash,
receivables, inventories, and short term investments) at
June 30, 2003 were $9.5 million. Because AMERCO does
not have any equity ownership in SAC Holdings (other than
investments made by RepWest and Oxford in a SAC
Holdings-controlled limited partnership which holds Canadian
self-storage properties), these assets are not available to meet
the obligations of AMERCO.

Real Estate Operations

At June 30, 2003, Real Estate had
$101.5 million of notes and loans payable due in less than
one year and its accounts payable and accrued expenses total
$3.8 million. Real Estate financial assets (cash,
receivables, inventories, and short term investments) at
June 30, 2003 were $19.8 million. These assets, if
converted to cash, are available to meet the obligations of
AMERCO to the extent such cash exceeds current obligations of
Real Estate.

Property and Casualty

At March 31, 2003, Property and Casualty had
no notes and loans due in less than one year and its accounts
payable and accrued expenses were $17.1 million. Property
and Casualty financial assets (cash, receivables, inventories,
and short term investments) at March 31, 2003 were
$343.2 million. Because of state insurance regulations that
restrict the amount of dividends that can be paid to
stockholders of insurance companies, these assets are generally
not available to meet the obligations of AMERCO. Reference is
made to Managements Discussion and Analysis of
Financial Condition and Results of Operations 
Insurance Operations.

Life Insurance

At March 31, 2003, Life Insurance had no
notes and loans payable due in less than one year and its
accounts payable and accrued expenses total $0.7 million.
Life Insurance financial assets (cash, receivables, inventories,
and short term investments) at March 31, 2003 were
$280.7 million. Because of state insurance regulations that
restrict the amount of dividends that can be paid to
stockholders of insurance companies, these assets are generally
not available to meet the obligations of AMERCO. Reference is
made to Managements Discussion and Analysis of
Financial Condition and Results of Operations 
Insurance Operations.

31



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Consolidated group

At June 30, 2003, total outstanding notes
and mortgages payable for AMERCO and consolidated subsidiaries
was $955.0 million compared to $954.9 million at
March 31, 2003.

At June 30, 2003, total outstanding notes
and mortgages payable for SAC Holdings and consolidated
subsidiaries, before intercompany eliminations were
$982.7 million as compared to $983.2 million at
March 31, 2003. SAC Holdings creditors have no
recourse to AMERCO. AMERCO is not liable for the debts of SAC
Holdings. Further, there are no cross default provisions on
indebtedness between AMERCO and SAC Holdings.

Due to the defaults and various cross defaults,
the consolidated group has notes, loans and lease obligations
due in one year of $1.2 billion. The group also had
accounts payable and accrued expenses of $380.0 million.
Liquid assets for the group totaled $412.5 million. AMERCO
is in the process of refinancing and restructuring its debt to
meet its liquidity needs.

U-HAUL Moving and Storage Operations

Cash provided by operating activities was
$48.1 million and $49.2 million for the quarter ended
June 30, 2003 and 2002, respectively.

SAC Moving and Storage Operations

SAC Holdings operations are funded by
various mortgage loans and unsecured notes, with interest rates
ranging from 7.5% to 13.0%. SAC Holdings does not utilize
revolving lines of credit to finance its operations or
acquisitions. Certain of SAC Holdings agreements contain
restrictive covenants including coverage ratios and restrictions
on incurring additional subsidiary indebtedness. At
June 30, 2003, SAC Holdings was in compliance with all of
these covenants.

Property and Casualty

Cash used by operating activities was
$28.2 million and $28.0 million for the quarter ended
March 31, 2003 and 2002, respectively. The decrease is due
to less change in unearned premiums offset by increased
receivables.

RepWests cash and cash equivalents and
short-term investment portfolio was $25.1 million and
$11.6 million at March 31, 2003 and 2002, respectively.

RepWest maintains a diversified securities
investment portfolio, primarily in bonds, at varying maturity
levels with 71.2% 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 72.9% of total liabilities.

The liability for reported and unreported losses
based upon RepWests historical results and industry
averages. Unpaid loss adjustment expenses are based on
historical ratios of loss adjustment expenses paid to losses
paid. Unpaid loss and loss expenses are not discounted.

Stockholders equity was $183.1 million
and $199.1 million at March 31, 2003 and 2002,
respectively. RepWest considers current shareholders
equity to be adequate to support future growth and absorb
unforeseen risk events.

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.

32



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Cash flows used by operating activities was
$1.2 million, and $16.9 million for the quarters ended
March 31, 2003 and March 31, 2002. Cash flows provided
by financing activities were $0.8 million, and
$17.4 million for the quarters ended March 31, 2003
and 2002. Cash flows from deferred annuity sales increased
investment contract deposits, which are a component of financing
activities.

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, 2003 and 2002 short-term investments amounted to
$115.2 million and $57.5 million respectively.
Management believes that the overall sources of liquidity will
continue to meet foreseeable cash needs.

Stockholders equity of Oxford decreased to
$106.3 million from $111.1 for the quarters ended
March 31, 2003 and March 31, 2002, respectively.

Applicable laws and regulations of the State of
Arizona require the Companys insurance subsidiaries to
maintain minimum capital and surplus determined in accordance
with statutory accounting practices. With respect to Oxford, the
amount is $0.4 million. In addition, the amount of
dividends that can be paid to shareholders by insurance
companies domiciled in the State of Arizona is limited. Any
dividends in excess of the limit requires prior regulatory
approval. As of March 31, 2003, Oxford must receive
regulatory approval before any statutory surplus can be
distributed as dividends. These restrictions are not expected to
have a material adverse effect on the ability of the Company to
meet its cash obligations.

Consolidated Group

Cash provided by operating activities was
$42.6 million and $117.3 million for the quarter ended
June 30, 2003 and 2002, respectively.

On June 20, 2003 (the Petition
Date), AMERCO filed a voluntary petition for relief under
Chapter 11 of the United States Bankruptcy Code (the
Bankruptcy Code) in the United States Bankruptcy
Court, District of Nevada (the Bankruptcy Court)
(Case No. 0352103). AMERCO will continue to manage its
properties and operate its businesses as
debtor-in-possession under the jurisdiction of the
Bankruptcy Court and in accordance with the applicable
provisions of the Bankruptcy Code. In general, as
debtor-in-possession, AMERCO is authorized under Chapter 11
to continue to operate as an ongoing business, but may not
engage in transactions outside the ordinary course of business
without the prior approval of the Bankruptcy Court. Specific
information pertaining to the bankruptcy filing may be obtained
from the website www.amerco.com. The Bankruptcy filing and the
events of default on substantially all of the Companys
debt raises substantial doubt about the ability of the Company
to continue as a going concern. The consolidated financial
statements do not include any adjustments to reflect future
effects on the recoverability and classification of assets or
the amount and classification of liability that might result
from these uncertainties. The Companys independent
auditors qualified their opinion on the companys March 31,
2003 financial statements by including an explanatory paragraph
in which they expressed substantial doubt about the
Companys ability to continue as a going concern.

At June 30, 2003, total outstanding notes
and mortgages payable for AMERCO and wholly owned subsidiaries
was $955.0 million compared to $954.9 million at
March 31, 2003. At June 30, 2003, total outstanding
notes and mortgages payable for SAC Holdings and consolidated
subsidiaries was $982.7 million compared to
$983.2 million at March 31, 2003. SAC Holdings
securitized loan agreements have no guarantees, or triggers that
could create a guarantee, from AMERCO. There are no cross
default provisions on indebtedness between AMERCO and SAC
Holdings.

On October 15, 2002 the AMERCO failed to
make a $100 million principal payment and a
$3.6 million interest payment due to the Series 1997-C
Bond Backed Asset Trust (BBAT) holders. On that
date, the AMERCO also failed to pay a $26.6 million
obligation, in the aggregate, to Citibank and Bank of America in
connection with the BBATs. This expense was recognized in the
third quarter of fiscal year 2003.

33



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As a result of the foregoing, the AMERCO is in
default with respect to its other credit arrangements that
contain cross-default provisions, including its 3-Year Credit
Agreement dated June 28, 2002 (the Revolver) in
the amount of $205.0 million. In addition to the
cross-default under the Revolver, the Company is also in default
under that agreement as a result of the Companys failure
to obtain incremental net cash proceeds and/or availability from
additional financings in the aggregate amount of at least
$150 million prior to October 15, 2002. In addition,
Amerco Real Estate Company has defaulted on a $100 million
loan by failing to grant mortgages required by the loan
agreement in a timely manner. The obligations of the Company
currently in default (either directly or as a result of a
cross-default) are approximately $1,178.1 million.

AMERCO does not have any ownership interest in
SAC Holdings or its subsidiaries, except for investments made by
RepWest and Oxford in a SAC Holdings  controlled
limited partnership which holds Canadian self-storage
properties. The presentation of the consolidated statements has
no bearing on the credit agreements or the operations of either
AMERCO or SAC Holdings.

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

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, 2003, we had $954.8 million
in total notes and loans payable outstanding.

On June 28, 2002, AMERCO entered into an
agreement replacing an existing five year $400.0 million
revolving credit agreement with the Revolver.

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

Disclosures About Contractual Obligations and
Commercial Commitments

|                                                       |  |                                              |           |          |  |          |           |          |  |              |         |   |  |   |        |  |  |   |          |  
|------------------------------------------------------ |  | -------------------------------------------- | --------- | -------- |  | -------- | --------- | -------- |  | ------------ | ------- | - |  | - | ------ |  |  | - | -------- | -
|                                                       |  |                                             
|                                                       |  | Payments Due by Period (as of June 30, 2003)
|                                                       |  |                                             
|                                                       |  |                                              |           | Prior to |  | 07-01-04 |           | 07-01-06 |  | 07-01-08 and
|Financial Obligations                                  |  | Total                                        |           | 06-03-04 |  | 06/01/06 |           | 06-01-08 |  | thereafter  
|                                                       |  |                                              |           |          |  |          |           |          |  |             
|                                                       |  |                                             
|                                                       |  | (in thousands)                              
|AMERCOs notes and loans                               |  | $                                            | 954,850   |          |  | $        | 954,850   |          |  | $            |        |   |  | $ |       |  |  | $ |         |  
|AMERCOs operating leases                              |  |                                              | 519,391   |          |  |          | 519,391   |          |  |              |        |   |  |   |       |  |  |   |         |  
|SAC Holdings financed lease obligations               |  |                                              | 122,238   |          |  |          | 48,893    |          |  |              | 73,345  |   |  |   |       |  |  |   |         |  
|SAC Holdings notes and loans                          |  |                                              | 861,929   |          |  |          | 36,466    |          |  |              | 46,123  |   |  |   | 18,580 |  |  |   | 760,760  |  
|Elimination of SAC Holdings Obligations to
    AMERCO |  |                                              | (394,526  | )        |  |          |          |          |  |              | (23,618 | ) |  |   |       |  |  |   | (370,908 | )
|                                                       |  |                                              |           |          |  |          |           |          |  |              |         |   |  |   |        |  |  |   |          |  
|Total Contractual Obligations                          |  | $                                            | 2,063,882 |          |  | $        | 1,559,600 |          |  | $            | 95,850  |   |  | $ | 18,580 |  |  | $ | 389,852  |  
|                                                       |  |                                              |           |          |  |          |           |          |  |              |         |   |  |   |        |  |  |   |          |  

As discussed above and in Part II,
Item III Defaults Upon Senior Securities, on
October 15, 2002 we defaulted on our BBATs and related
obligations. This default triggered cross-default provisions in
most of

34



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AMERCOs other debt agreements. As a result,
approximately $1,178.1 million of AMERCOs contractual
obligations and commercial commitments listed below are
classified as current.


|                                  |  |               |         | 
|--------------------------------- |  | ------------- | ------- | 
|                                  |  | (In millions)
|                                  |  |              
|Bank of Montreal synthetic lease  |  | $             | 149.0   | 
|Citibank synthetic lease          |  |               | 101.7   | 
|3yr Credit Agreement              |  |               | 205.0   | 
|Royal Bank of Canada lease        |  |               | 5.7     | 
|Amerco Real Estate Notes          |  |               | 100.0   | 
|03 Notes                         |  |               | 175.0   | 
|05 Notes                         |  |               | 200.0   | 
|Medium Term Notes                 |  |               | 109.5   | 
|BBAT                              |  |               | 100.0   | 
|Bank of America Obligation (BBAT) |  |               | 11.3    | 
|Citicorp Obligation (BBAT)        |  |               | 15.3    | 
|Bank of America Swap              |  |               | 2.1     | 
|JP Morgan Swap                    |  |               | 3.5     | 
|                                  |  |               |         | 
|                                  |  | $             | 1,178.1 | 

Risk Factors



| |                                                                             
| | ----------------------------------------------------------------------------
| | AMERCO has filed for protection under
    Chapter 11 of the Bankruptcy Code.

On June 20, 2003, AMERCO filed a voluntary
petition for relief under Chapter 11 of the Bankruptcy
Code. AMERCOs subsidiaries were not included in the
initial filing. However, on August 13, 2003, Amerco Real
Estate Company filed for protection under Chapter 11.
AMERCO will continue to manage its properties and operate its
businesses as debtor-in-possession in under the
jurisdiction of the Bankruptcy Court and in accordance with the
applicable provisions of the Bankruptcy Code. In order to exit
Chapter 11 successfully, AMERCO will need to propose, and
obtain confirmation by the Bankruptcy Court of, a plan of
reorganization that satisfies the requirements of the Bankruptcy
Code. Although AMERCO expects to file a full-value
plan of reorganization that provides creditors with a
combination of cash and new debt securities equal to the full
amount of their allowed claims as well as AMERCOs
emergence from bankruptcy as a going concern, there can be no
assurance at this time that a plan of reorganization will be
confirmed by the Bankruptcy Court or that any such plan will be
implemented successfully.

The U.S. Trustee has appointed a Creditors
Committee and an Equity Committee. The Creditors
Committee, Equity Committee and their respective legal
representatives have a right to be heard on certain matters that
come before the Bankruptcy Court. There can be no assurance that
the Creditors Committee and Equity Committee will support
AMERCOs positions or AMERCOs ultimate plan of
reorganization, once proposed, and disagreements between AMERCO
and the Creditors Committee and Equity Committee could
protract the Chapter 11 case, could negatively impact
AMERCOs ability to operate during the Chapter 11
case, and could prevent AMERCOs emergence from
Chapter 11.

At this time, it is not possible to predict
accurately the effect of the Chapter 11 reorganization
process on the Companys business or when AMERCO may emerge
from Chapter 11. The Companys future results depend
on the timely and successful confirmation and implementation of
a plan of reorganization. The rights and claims of various
creditors and security holders will be determined by the plan as
well. Although AMERCO expects to file and consummate a
full value plan of reorganization that provides
creditors with a combination of cash and new debt securities
equal to the full amount of their allowed claims and also
preserves the value of AMERCOs common and preferred stock,
no assurance can be given as to what values, if any, will be
ascribed in the bankruptcy proceedings to each of these
constituencies. Accordingly, the Company urges that appropriate
caution be exercised with respect to existing and future
investments in any of such securities and claims.

35



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| |                                                 
| | ------------------------------------------------
| | We operate in a highly competitive
    industry.

The truck rental industry is highly competitive
and includes a number of significant national and hundreds of
regional and local competitors. Competition is generally based
on price, product quality, convenience, availability, brand name
recognition and service. In our truck rental business, we face
competition from Budget Car and Truck Rental Company and Penske
Truck Leasing. Some of our competitors may have greater
financial resources than we have. We cannot assure you that we
will not be forced to reduce our rental prices or delay price
increases.

We compete with national and regional
self-storage operators as well as local operators. Competition
in the market areas in which we operate is significant and
affects the occupancy levels, rental rates and operating
expenses of our facilities. Competition might cause us to
experience a decrease in occupancy levels, limit our ability to
increase rental rates and compel us to offer discounted rental
rates which could have a material adverse effect on our
operating results.

Entry into the self-storage business through
acquisition of existing facilities is possible for persons or
institutions with the required initial capital. Development of
new self-storage facilities is more difficult, however, due to
zoning, environmental and other regulatory requirements. The
self-storage industry has in the past experienced overbuilding
in response to perceived increases in demand. We cannot assure
you that we will be able to successfully compete in existing
markets or expand into new markets.



| |                                                                  
| | -----------------------------------------------------------------
| | Control of AMERCO remains in the hands of a
    small contingent.

As of June 30, 2003, Edward J. Shoen,
Chairman of the Board of Directors and President of AMERCO,
James P. Shoen, a director of AMERCO, and Mark V. Shoen, an
executive officer of AMERCO, collectively own
8,893,078 shares (approximately 43.1%) of the outstanding
common shares of AMERCO. Accordingly, Edward J. Shoen, Mark V.
Shoen and James P. Shoen will be in a position to continue to
influence the election of the members of the Board of Directors
and approval of significant transactions. In addition,
2,402,456 shares (approximately 11.7%) of the outstanding
common shares of AMERCO, including shares allocated to employees
and unallocated shares, are held by our Employee Savings and
Employee Stock Ownership Trust.



| |                                                                                                                                                                                  
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our operations subject us to numerous
    environmental regulations and the possibility that environmental
    liability in the future could adversely affect our
    operations.

Compliance with environmental requirements of
federal, state and local governments significantly affects our
business. 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. Under
environmental laws, we can be held strictly liable for hazardous
substances that are found on real property we have owned or
operated. We are aware of issues regarding hazardous substances
on some of our real estate and we have put in place a remedial
plan at each site where we believe such a plan is necessary. We
regularly make capital and operating expenditures to stay in
compliance with environmental laws. In particular, we have
managed a testing and removal program since 1988 for our
underground storage tanks. Under this program, we spent
$43.7 million between April 1988 and March 31, 2003.
Despite these compliance efforts, risk of environmental
liability is part of the nature of our business.

While we do not expect the future cost of
compliance with environmental laws or future environmental
liabilities, including compliance and remediation costs, to have
a material adverse effect on our business, environmental laws
and regulations are complex, change frequently and could become
more stringent in the future. We cannot assure you that future
compliance with these regulations or future environmental
liabilities will not have a material adverse effect on our
business.



| |                          
| | -------------------------
| | Our business is seasonal.

Our business is seasonal and our results of
operations and cash flows fluctuate significantly from quarter
to quarter. Historically, revenues have been stronger in the
first and second fiscal quarters due to the overall

36



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increase in moving activity during the spring and
summer months. The fourth fiscal quarter is generally weakest,
when there is a greater potential for adverse weather conditions.




| |                                                                        
| | -----------------------------------------------------------------------
| | We obtain our rental trucks from a limited
    number of manufacturers.

In the last ten years, we purchased all of our
rental trucks from Ford and General Motors. Although we believe
that we have alternative sources of supply for our rental
trucks, termination of one or more of our relationships with any
of these suppliers could have a material adverse effect on our
business, financial condition or results of operations.



| |                                                                                
| | -------------------------------------------------------------------------------
| | Our property and casualty insurance
    business has suffered extensive losses.

Our property and casualty insurance business,
RepWest, has experienced significant net losses totaling
approximately $77.0 million for the three calendar years
ended December 31, 2002. These losses are primarily
attributable to business lines that were unprofitable as
underwritten. To restore profitability in RepWest, we are
exiting all non-U-Haul related lines and the exit may result in
near term losses as these lines are eliminated. Although we
believe the changes will have a positive impact on the financial
position of RepWest, we cannot assure you that we will be
successful in returning RepWest to sustained profitability. Our
inability to sustain profitability could have a material adverse
effect on our earnings and financial position.



| |                                                                                                                                     
| | ------------------------------------------------------------------------------------------------------------------------------------
| | Our insurance businesses have recently
    suffered downgrades in their ratings from national insurance
    company rating agencies.

A.M. Best has recently downgraded RepWest and
Oxford. These downgrades have affected their standing in the
insurance industry and caused their premiums to decrease.
Ratings have become an increasingly important factor in
establishing the competitive position of insurance companies.
A.M. Best ratings reflect its opinion of an insurance
companys financial strength, operating performance,
strategic position and ability to meet its obligations to
policyholders. The A.M. Best ratings are C for RepWest and C+
for Oxford.



| |                                                                                           
| | ------------------------------------------------------------------------------------------
| | Notes receivable from SAC Holdings are a
    significant portion of AMERCOS total assets.

At June 30, 2003, we held
$393.1 million of mortgage loans and notes due from SAC
Holdings. Although these assets have been eliminated in the
consolidated financial statements, we have significant economic
exposure to SAC Holdings. SAC Holdings is highly leveraged with
total outstanding indebtedness and other obligations of
$982.7 million at June 30, 2003. We hold various
senior and junior unsecured notes of SAC Holdings. The senior
unsecured notes of SAC Holdings that we hold rank equal in right
of payment with the notes of certain senior mortgage holders,
but junior to the extent of the collateral securing the
applicable mortgages and junior to the extent of the cash flow
waterfalls that favor the senior mortgage holders. If SAC
Holdings are unable to meet their obligations to their senior
lenders, it could trigger a default on their obligations to us.
In such an event of default, we could suffer a significant loss
to the extent the value of the underlying collateral on our
loans to SAC Holdings is inadequate to repay SAC Holdings
senior lenders and us. We cannot assure you that SAC Holdings
will not default on their loans to their senior lenders or that
the value of SAC Holdings assets upon liquidation would be
sufficient to repay us in full.



| |                                                                                    
| | -----------------------------------------------------------------------------------
| | AMERCO is a holding company and is
    dependent on its subsidiaries for cash flow.

As a holding company with no business operations,
AMERCOs material assets consist only of the stock of its
subsidiaries. AMERCO will have to rely upon dividends and other
payments from its subsidiaries to generate the funds necessary
to pay its obligations. AMERCOs subsidiaries, however, are
legally distinct from AMERCO and have no obligation, contingent
or otherwise, to make funds available to AMERCO. The ability of
AMERCOs subsidiaries to make dividend and other payments
to AMERCO is subject to, among other things, the availability of
funds, the terms of the indebtedness of AMERCOs
subsidiaries and applicable state laws and insurance regulations.

37



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| |                                                                             
| | ----------------------------------------------------------------------------
| | We face risks related to an SEC
    investigation and securities litigation.

The SEC has issued a formal order of
investigation to determine whether we have violated the Federal
securities laws. Although we have fully cooperated with the SEC
in this matter and intend to continue to fully cooperate, the
SEC may determine that we have violated Federal securities laws.
We cannot predict when this investigation will be completed or
its outcome. If the SEC makes a determination that we have
violated Federal securities laws, we may face sanctions,
including, but not limited to, significant monetary penalties
and injunctive relief.

In addition, the Company has been named a
defendant in a number of class action and related lawsuits. The
findings and outcome of the SEC investigation may affect the
class-action lawsuits that are pending. We are generally
obliged, to the extent permitted by law, to indemnify our
directors and officers who are named defendants in some of these
lawsuits. We are unable to estimate what our liability in these
matters may be, and we may be required to pay judgments or
settlements and incur expenses in aggregate amounts that could
have a material adverse effect on our financial condition or
results of operations.



| |                                                                  
| | -----------------------------------------------------------------
| | We face risks related to a Department of
    Labor Investigation.

The DOL is presently investigating whether there
were violations of ERISA involving the AMERCO Employee Savings,
Profit Sharing, and Employee Stock Ownership Plan. Although the
Company has fully cooperated with the DOL in this matter and
intends to continue to fully cooperate, the DOL may determine
that the Company has violated ERISA. In that event, the Company
may face sanctions, including, but not limited to, significant
monetary penalties and injunctive relief.



| |                                                                   
| | ------------------------------------------------------------------
| | Our common stock may be delisted from the
    NASDAQ Stock Market.

On June 24, 2003, we received a letter from
NASDAQ indicating that, in light of AMERCOs recent
Chapter 11 filing, a NASDAQ Listing Qualifications Panel
(the Panel) would consider such filing and
associated concerns in rendering a determination regarding
AMERCOs listing status. NASDAQ has requested, and we have
provided, information regarding the Chapter 11 filing and
the anticipated effect of the filing on the shareholders of
AMERCO. On August 13, 2003, AMERCO received a letter from
Nasdaq indicating that the Panel has determined to continue the
listing of AMERCOs common stock on Nasdaq provided that:
(1) on or before August 22, 2003, AMERCO files this
report and its Form 10-K for the year ended March 31,
2002 with the SEC and Nasdaq (Nasdaq has been advised that this
deadline was not met and further discussions with Nasdaq are
anticipated); (2) on or before deadlines determined by the
Panel, AMERCO submits to Nasdaq a copy of the Companys
plan of reorganization as filed with the bankruptcy court, a
copy of any amendments to the plan of reorganization as
submitted to the bankruptcy court; documentation evidencing that
AMERCO has commenced the solicitation of votes regarding the
plan of reorganization, as well as documentation evidencing that
the plan of reorganization has been confirmed by the bankruptcy
court; and (3) on or before January 9, 2004, AMERCO
submits documentation to Nasdaq evidencing its emergence from
bankruptcy. In addition to the foregoing, AMERCO must comply
with all other requirements for continued listing on Nasdaq.
Although we have requested a modification of the above deadlines
and intend to take all actions available to maintain our Nasdaq
listing, there can be no assurance that AMERCO will be able to
do so.



| |                                                                         
| | ------------------------------------------------------------------------
| | Our preferred stock may be delisted from
    the New York Stock Exchange

The New York Stock Exchange has completed a
review of the continued listing of the Series A 8 1/2%
preferred stock of AMERCO following its filing for protection
under Chapter 11. According to NYSE, this assessment has
shown that the Company is currently in compliance with all of
the NYSEs quantitative continued listing standards. The
NYSE will continue to closely monitor events at the Company in
connection with assessing the appropriateness of continued
listing of the Companys preferred stock. The NYSE has
indicated that it will give consideration to immediate
suspension of the Companys preferred stock if
authoritative advice is received that the Companys
securities, including the common stock, are without value, or if
the Company subsequently falls below any of the NYSEs
quantitative continued listing standards. In

38



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##### 



addition, the NYSE noted that it may, at any
time, suspend a security if it believes that continued dealings
in the security on the NYSE are not advisable. Accordingly,
there can be no assurance that the Companys preferred
stock will continue to be listed on NYSE.




| |                                                                                                        
| | -------------------------------------------------------------------------------------------------------
| | RepWest has consented to an Order of
    Supervision issued by the Arizona Department of
    Insurance.

On May 20, 2003, RepWest consented to an
Order of Supervision issued by the DOI. Pursuant to this Order
and Arizona law, during the period of supervision, RepWest may
not engage in certain activities without the prior approval of
the DOI.

The requirements to abate the order are for
RepWest to eliminate the specific credit risk associated with
the exposures to AMERCO and its affiliates and establish that it
possesses surplus sufficient with Arizona law and as the Arizona
Director of Insurance may require based on type, volume or
nature of its business pursuant to Arizona law.

In addition, if RepWest fails to satisfy the
requirements to abate DOIs concerns, the DOI may take
further action, including, but not limited to, commencing a
conservatorship.



|        |                                                               
|------- | --------------------------------------------------------------
|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.



|        |                        
|------- | -----------------------
|Item 4. | Controls and Procedures

Evaluation of Controls and
Procedures

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

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

Changes in Internal Control Over Financial
Reporting

During the period covered by this report and
during our second fiscal quarter of 2003, there were significant
changes in our internal control over financial reporting that
have materially affected, or are reasonably likely to materially
affect, our internal control over financial reporting. These
changes are summarized below:

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

b.     We require
documentation for all journal postings;

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

d.     We have initiated
a formal cross training program to ensure that any unforseen
loss of personnel does not adversely affect the financial
reporting and disclosure processes;

e.     We have hired
additional accounting personnel; and

39



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##### 



f.     We are
implementing control procedures to verify each inter company
account is reconciled prior to each month end closing process.

These changes are largely a result of a material
weaknesses letter we received from our independent auditors in
July. The Company is developing a plan to address these issues
and implement a strategy to improve the overall control
environment.

PART II. OTHER INFORMATION



|        |                  
|------- | -----------------
|Item 1. | Legal Proceedings

On July 20, 2000, Charles Kocher
(Kocher) filed suit in Wetzel County, West Virginia,
Civil Action No. 00-C-51-K, entitled Charles Kocher v.
Oxford Life Insurance Co. (Oxford) seeking
compensatory and punitive damages for breach of contract, bad
faith and unfair claims settlement practices arising from an
alleged failure of Oxford to properly and timely pay a claim
under a disability and dismemberment policy. On March 22,
2002, the jury returned a verdict of $5 million in
compensatory damages and $34 million in punitive damages.
On November 5, 2002, the trial court entered an Order
(Order) affirming the $39 million jury verdict
and denying Oxfords motion for New Trial Or, in The
Alternative, Remittitur. Oxford has perfected its appeal to the
West Virginia Supreme Court. Oral argument on the appeal
petition occurred on September 9, 2003. Management does not
believe that the Order is sustainable and expects the Order to
be overturned by the West Virginia Supreme Court, in part
because the jury award has no reasonable nexus to the actual
harm suffered by Kocher. The Company has accrued $725,000, which
represents managements best estimate of the costs
associated with legal fees to appeal and re-try the case and the
companys uninsured exposure to an unfavorable outcome.

As previously discussed, on June 20, 2003,
AMERCO filed a voluntary petition for relief under
Chapter 11 of the Bankruptcy Code. As debtor-in-possession,
AMERCO is authorized under Chapter 11 to continue to
operate as an ongoing business, but may not engage in
transactions outside the ordinary course of business without the
prior approval of the Bankruptcy Court. As of the Petition Date,
virtually all pending litigation against AMERCO is stayed, and
absent further order of the Bankruptcy Court, no party, subject
to certain exceptions, may take any action, again subject to
certain exceptions, to recover on pre-petition claims against
AMERCO. The automatic stay, however, does not apply to
AMERCOs subsidiaries, other than Amerco Real Estate
Company, which filed for protection under Chapter 11, on
August 13, 2003.

On September 24, 2002, Paul F. Shoen filed a
derivative action in the Second Judicial District Court of the
State of Nevada, Washoe County, captioned Paul F. Shoen vs. SAC
Holding Corporation et al, CV02-05602, seeking damages and
equitable relief on behalf of AMERCO from SAC Holdings and
certain current and former members of the AMERCO Board of
Directors, including Edward J. Shoen, Mark V. Shoen and James P.
Shoen as defendants. AMERCO is named a nominal defendant for
purposes of the derivative action. The complaint alleges breach
of fiduciary duty, self-dealing, usurpation of corporate
opportunities, wrongful interference with prospective economic
advantage and unjust enrichment and seeks the unwinding of sales
of self-storage properties by subsidiaries of AMERCO to SAC
Holdings over the last several years. The complaint seeks a
declaration that such transfers are void as well as unspecified
damages. On October 28, 2002, AMERCO, the Shoen directors,
the non-Shoen directors and SAC Holdings filed Motions to
Dismiss the complaint. In addition, on October 28, 2002,
Ron Belec filed a derivative action in the Second Judicial
District Court of the State of Nevada, Washoe County, captioned
Ron Belec vs. William E. Carty, et al, CV 02-06331 and on
January 16, 2003, M.S. Management Company, Inc. filed a
derivative action in the Second Judicial District Court of the
State of Nevada, Washoe County, captioned M.S. Management
Company, Inc. vs. William E. Carty, et. al, CV 03-00386.
Two additional derivative suits were also filed against these
parties. These additional suits are substantially similar to the
Paul F. Shoen derivative action. The five suits assert virtually
identical claims. In fact, three of the five plaintiffs are
parties who are working closely together and chose to file the
same claims multiple times. The court consolidated all five
complaints before he dismissed them on May 8, 2003.
Plaintiffs have filed a notice of appeal. These lawsuits falsely
alleged that the AMERCO Board lacked independence. In reaching
his decision to dismiss these claims, the

40



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##### 



court determined that the AMERCO Board of
Directors had the requisite level of independence required in
order to have these claims resolved by the Board.


A subsidiary of U-Haul, INW Company
(INW), owns one property located within two
different state hazardous substance sites in the State of
Washington. The sites are referred to as the Yakima Valley
Spray Site and the Yakima Railroad Area. INW
has been named as a potentially 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
$5.0 million required by the State of Washington, INW filed
for reorganization under the federal bankruptcy laws in May of
2001. A successful mediation with other liable parties has
occurred and future potential liability to INW will be in the
range of $750,000 to $1.25 million.

The Securities and Exchange Commission
(SEC) has issued a formal order of investigation to
determine whether the Company has violated the Federal
securities laws. On January 7, 2003, the Company received
the first of four subpoenas issued by the SEC. SAC Holdings, the
Companys current and former auditors, and others have also
received one or more subpoenas relating to this matter. The
Company is cooperating fully with the SEC and is facilitating
the expeditious review of its financial statements and any other
issues that may arise. The Company has produced a large volume
of documents and other materials in response to the subpoenas,
and the Company is continuing to assemble and produce additional
documents and materials for the SEC. Although the Company has
fully cooperated with the SEC in this matter and intends to
continue to fully cooperate, the SEC may determine that the
Company has violated Federal securities laws. We cannot predict
when this investigation will be completed or its outcome. If the
SEC makes a determination that we have violated Federal
securities laws, we may face sanctions, including, but not
limited to, significant monetary penalties and injunctive relief.

AMERCO is a defendant in four putative class
action lawsuits. Article Four Trust v. AMERCO, et al.,
District of Nevada, United States District Court, Case
No. CV-N-03-0050-DWH-VPC. Article Four Trust, a
purported AMERCO shareholder, commenced this action on
January 28, 2003 on behalf of all persons and entities who
purchased or acquired AMERCO securities between
February 12, 1998 and September 26, 2002. The
Article Four Trustaction alleges one claim for
violation of Section 10(b) of the Securities Exchange Act
and Rule 10b-5 thereunder. Mates v. AMERCO, et al.,
United States District Court, District of Nevada, Case
No. CV-N-03-0107. Maxine Mates, an AMERCO shareholder,
commenced this putative class action on behalf of all persons
and entities who purchased or acquired AMERCO securities between
February 12, 1998 and September 26, 2002. The Matesaction asserts claims under section 10(b) and
Rule 10b-5, and section 20(a) of the Securities
Exchange Act. Klug v. AMERCO, et al., United States
District Court of Nevada, Case No. CV-S-03-0380. Edward
Klug, an AMERCO shareholder, commenced this putative class
action on behalf of all persons and entities who purchased or
acquired AMERCO securities between February 12, 1998 and
September 26, 2002. The Klugaction asserts claims
under section 10(b) and Rule 10b-5 and
section 20(a) of the Securities Exchange Act. IG
Holdingsv. AMERCO, et al., United States District
Court, District of Nevada, Case No. CV-N-03-0199. IG
Holdings, an AMERCO bondholder, commenced this putative class
action on behalf of all persons and entities who purchased,
acquired, or traded AMERCO bonds between February 12, 1998
and September 26, 2002, alleging claims under
section 11 and section 12 of the Securities Act of
1933 and section 10(b) and Rule 10b-5, and
section 20(a) of the Securities Exchange Act. Each of these
four securities class actions allege that AMERCO engaged in
transactions with SAC entities that falsely improved
AMERCOs financial statements, and that AMERCO failed to
disclose the transactions properly. The actions are at a very
early stage. The Klugaction has not been served. In the
other three actions, AMERCO does not currently have a deadline
by which it must respond to the complaints. Management has
stated that it intends to defend these cases vigorously. We have
filed a notice of AMERCOs bankruptcy petition and the
automatic stay in each of the Courts where these cases are
pending.

The United States Department of Labor
(DOL) is presently investigating whether there were
violations of the Employee Retirement Income Security Act of
1974 (ERISA) involving the AMERCO Employee Savings,
Profit Sharing, and Employee Stock Ownership Plan (the
Plan). The DOL has interviewed a number of Company
representatives as well as the Plan fiduciaries and has issued a
subpoena to the Company and a subpoena to SAC Holdings. At the
present time, the Company is unable to determine whether the DOL
will assert any claims against the Company, SAC Holdings, or the
Plan fiduciaries. The

41



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##### 



DOL has asked AMERCO and its current directors as
well as the Plan Trustees to sign an agreement tolling the
statute of limitations until December 31, 2003 with respect
to any claims arising out of certain transactions between AMERCO
or any affiliate of AMERCO and SAC Holdings or any of its
affiliates and such persons have done so. The DOL recently asked
such parties to extend the tolling agreement. The DOL has not
advised the Company that it believes that any violations of
ERISA have in fact occurred. Instead, the DOL is simply
investigating potential violations. The Company intends to take
any corrective action that may be needed in light of the
DOLs ultimate findings. Although the Company has fully
cooperated with the DOL in this matter and intends to continue
to fully cooperate, the DOL may determine that the Company has
violated ERISA. In that event, the Company may face sanctions,
including, but not limited to, significant monetary penalties
and injunctive relief.


Item
3.     Defaults Upon Senior
Securities

(a)     On
October 15, 2002, AMERCO failed to make a $100 million
principal payment and a $3.6 million interest payment due
to the Series 1997-C Bond Backed Asset Trust. On that date,
AMERCO also failed to pay $26.6 million in the aggregate to
Citibank and Bank of America in connection with the early
extinguishment of the Series 1997-C bonds. As a result of
the foregoing, AMERCO is in default with respect to the other
contractual obligations and commercial commitments listed below,
which contain cross-default provisions, including its 3-Year
Credit Agreement dated June 28, 2002 (the
Revolver). In addition to the cross-default under
the Revolver, the AMERCO is also in default under that agreement
as a result of its failure to obtain incremental net cash
proceeds and/or availability from additional financings in an
aggregate amount of at least $150.0 million prior to
October 15, 2002. In addition, Amerco Real Estate Company
has defaulted on a $100 million loan by failing to grant
mortgages required by the loan agreement in a timely manner. The
total amount of indebtedness currently in default (either
directly or as a result of a cross-default) is approximately
$1,178.1 million.

|                                  |  |               |         |  
|--------------------------------- |  | ------------- | ------- | -
|                                  |  | (In millions)
|Bank of Montreal synthetic lease  |  | $             | 149.0   | *
|Citibank synthetic lease          |  |               | 101.7   |  
|3yr Credit Agreement              |  |               | 205.0   |  
|Royal Bank of Canada lease        |  |               | 5.7     |  
|Amerco Real Estate Notes          |  |               | 100.0   |  
|03 Notes                         |  |               | 175.0   |  
|05 Notes                         |  |               | 200.0   |  
|Medium Term Notes                 |  |               | 109.5   |  
|BBAT                              |  |               | 100.0   |  
|Bank of America Obligation (BBAT) |  |               | 11.3    |  
|Citicorp Obligation (BBAT)        |  |               | 15.3    |  
|Bank of America Swap              |  |               | 2.1     |  
|JP Morgan Swap                    |  |               | 3.5     |  
|                                  |  |               |         |  
|                                  |  | $             | 1,178.1 |  



| |   |                                                                       
| | - | ----------------------------------------------------------------------
| | * | $14.8 million of such amount is owed by
    U-Haul International, Inc.

(b)     AMERCO has not
paid the December 1, 2002 or March 1, June 1, or
September 1, 2003 dividend payments to holders of its
Series A 8.5% Preferred Stock. Due to the Chapter 11
filing, AMERCO does not expect to make any dividend payments for
the duration of such proceedings. No assurance can be given as
to when or whether the payment of cumulative preferred stock
dividends will resume. The total amount of Series A 8.5%
Preferred Stock dividends in arrears is $12.96 million.

42



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##### 



Item
6.     Exhibits and Reports on Form
8-K

(a)     Exhibits

|        |       |             |  |                                                                                                                                                                           
|------- | ----- | ----------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |       |            
|No.     |       | Description
|        |       |            
|        | 3.1   |             |  | Restated Articles of Incorporation of AMERCO(1)                                                                                                                           
|        | 3.2   |             |  | Restated By-Laws of AMERCO as of August 27,
    1997(2)                                                                                                                   
|        | 3.3   |             |  | Restate Articles of Incorporation of U-Haul
    International, Inc. (3)                                                                                                   
|        | 3.4   |             |  | Bylaws of U-Haul International, Inc.(3)                                                                                                                                   
|        | 10.70 |             |  | Senior Secured Super-Priority
    Debtor-In-Possession Loan and Security Agreement                                                                                        
|        | 10.71 |             |  | AMERCO Revolver Lenders Restructuring Agreement                                                                                                                           
|        | 10.72 |             |  | Restructuring Agreement with Amerco Real Estate
    Company Noteholders                                                                                                   
|        | 31.1  |             |  | Rule 13a-14(a)/15d-14(a) Certificate of
    Edward J. Shoen, President and Chairman of the Board of AMERCO
    and U-Haul International, Inc.                             
|        | 31.2  |             |  | Rule 13a-14(a)/15d-14(a) Certificate of Gary
    B. Horton, Treasurer of AMERCO and Assistant Treasurer of U-Haul
    International, Inc.                                 
|        | 32.1  |             |  | Certificate of Edward J. Shoen, President and
    Chairman of the Board of U-Haul International, Inc. pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002       
|        | 32.2  |             |  | Certificate of Gary B. Horton, Treasurer of
    AMERCO and Assistant 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, 1992, file no. 1-11255. 
|   
|(2) | Incorporated by reference to AMERCOs
    Quarterly Report on Form 10-Q for the quarter ended
    September 30, 1996, file no. 1-11255.
|   
|(3) | Incorporated by reference to AMERCOs Annual
    Report on Form 10-K for the year ended March 31, 2003,
    file no. 1-11255.          



---

(b)     Reports on
Form 8-K.

On May 13, 2003, we filed a Form 8-K
relating to a press release announcing that BDO Seidman was in
the process of reauditing the financial statements of AMERCO and
its subsidiaries for fiscal years 2001 and 2002; (ii) that
AMERCO received notice from PricewaterhouseCoopers that its most
recent audit report should no longer be associated with
AMERCOs fiscal 2001 and 2002 financial statement; and
(iii) that the Securities and Exchange Commission has been
conducting an investigation regarding AMERCOs financial
statements.

On June 23, 2003, we filed a Form 8-K
disclosing that AMERCO filed a voluntary petition for relief
under Chapter 11 of the United Bankruptcy Code.

On July 16, 2003, we filed a Form 8-K
relating to a press release announcing that the filing of our
Annual Report on Form 10-K had been delayed.

On August 11, 2003, we filed a Form 8-K
disclosing that Andrew Stevens had relinquished his role as
Chief Financial Officer of AMERCO.

On August 27, 2003, we filed a Form 8-K
relating to a press release announcing our financial results for
the fiscal years ended March 31, 2001, 2002 and 2003 as
well as some guidance for our results for the quarter ended
June 30, 2003.

43



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##### 



SIGNATURES

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

|                        |  |                                                                                                                                                                  
|----------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
|                        |  | AMERCO                                                                                                                                                           
|                       
|Date: September 9, 2003 |  | /s/ EDWARD J. SHOEN
    -----------------------------------------------
    Edward J. Shoen
    President and Chairman of the Board
    (Duly Authorized Officer)
|                       
|Date: September 9, 2003 |  | /s/ GARY B. HORTON
    -----------------------------------------------
    Gary B. Horton
    Treasurer
    (Principal Financial Officer)                        
|                       
|                        |  | U-HAUL INTERNATIONAL, INC.                                                                                                                                       
|                       
|Date: September 9, 2003 |  | /s/ EDWARD J. SHOEN
    -----------------------------------------------
    Edward J. Shoen
    President and Chairman of the Board
    (Duly Authorized Officer)
|                       
|Date: September 9, 2003 |  | /s/ GARY B. HORTON
    -----------------------------------------------
    Gary B. Horton
    Assistant Treasurer
    (Principal Financial Officer)              

44



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##### 



EXHIBIT INDEX

|        |       |             |  |                                                                                                                                                                           
|------- | ----- | ----------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |       |            
|No.     |       | Description
|        |       |            
|        | 3.1   |             |  | Restated Articles of Incorporation of AMERCO(1)                                                                                                                           
|        | 3.2   |             |  | Restated By-Laws of AMERCO as of August 27,
    1997(2)                                                                                                                   
|        | 3.3   |             |  | Restate Articles of Incorporation of U-Haul
    International, Inc. (3)                                                                                                   
|        | 3.4   |             |  | Bylaws of U-Haul International, Inc.(3)                                                                                                                                   
|        | 10.70 |             |  | Senior Secured Super-Priority
    Debtor-In-Possession Loan and Security Agreement                                                                                        
|        | 10.71 |             |  | AMERCO Revolver Lenders Restructuring Agreement                                                                                                                           
|        | 10.72 |             |  | Restructuring Agreement with Amerco Real Estate
    Company Noteholders                                                                                                   
|        | 31.1  |             |  | Rule 13a-14(a)/15d-14(a) Certificate of
    Edward J. Shoen, President and Chairman of the Board of AMERCO
    and U-Haul International, Inc.                             
|        | 31.2  |             |  | Rule 13a-14(a)/15d-14(a) Certificate of Gary
    B. Horton, Treasurer of AMERCO and Assistant Treasurer of U-Haul
    International, Inc.                                 
|        | 32.1  |             |  | Certificate of Edward J. Shoen, President and
    Chairman of the Board of U-Haul International, Inc. pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002       
|        | 32.2  |             |  | Certificate of Gary B. Horton, Treasurer of
    AMERCO and Assistant 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, 1992, file no. 1-11255. 
|   
|(2) | Incorporated by reference to AMERCOs
    Quarterly Report on Form 10-Q for the quarter ended
    September 30, 1996, file no. 1-11255.
|   
|(3) | Incorporated by reference to AMERCOs Annual
    Report on Form 10-K for the year ended March 31, 2003,
    file no. 1-11255.