this was our discussion topic for the week :

One aspect of the construction business involves purchasing or leasing several pieces of expensive, heavy-duty construction equipment.You just hired a recent accounting graduate, and she has come to you with questions regarding the accounting for the leases your company has entered.

Complete the following steps prior to responding:

1. Identify a publicly traded company with which you are familiar and that you think would have a significant amount of leased assets on their financial statements.
2. Search theSEC's websiteto find that company's most recent financial statements.
3. Examine the balance sheet and determine if the company has leased assets.

Respond to the following

• Explain what you know by the account titles.
• Describe the disclosure that is provided in the footnotes related to the leased assets. Why are these important to the leased assets?
• Provide a link to the balance sheet you reviewed.

This is a response:

Upon conducting a thorough analysis of the consolidated financial statements of U-Haul Holding Company, one of the largest publicly traded corporations in the moving and storage industry, it becomes clear that the company engages in both operating and financial leases. Throughout their financial documentation, there is a consistent representation of accumulated depreciation across all relevant categories. Additionally, the inclusion of right-of-use assets for lessee arrangements underscores the company's commitment to current accounting practices in lease management.

As of March 31, 2025, U-Haul confidently reports total debt outstanding of $7,229.3 million and operating lease liabilities of $47.0 million. They believe in strong operational performance and revenue generation that supports added leverage. While existing debt presents certain challenges, they are prepared to distribute necessary cash flows to debt service and support flexibility in our strategic planning.

U-Haul's ability to service debt and leases depends on our operational performance and cash flow generation, both of which they are committed to improving amidst economic and competitive conditions. While strategic decisions may be necessary, such as adjusting capital expenditures, selling assets, or restructuring debt, it is essential to ensure that our revenue generation stays strong.

The company's property, plant, and equipment are recorded at cost, with regular reviews to confirm their recoverability. Analyze net cash flows against asset carrying amounts and adjust our estimates based on market trends.

In fiscal 2025, depreciation expense for our rental fleet rose by $128.1 million compared to fiscal 2024, reflecting an investment in expanding the fleet. However, net gains from the disposal of rental equipment decreased by $140.2 million due to declining resale values. The depreciation of other assets also increased, and they remain committed to improving asset management and financial performance.

How would I comment constructive and professional feedback with a question to follow