U-Haul 2004 Annual Report Download - page 36

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Disclosures about Contractual Obligations and Commercial Commitments
The following table provides contractual commitments and contingencies as of March 31, 2004:
Payment Due by Period (as of March 31, 2004)
Prior to 04/01/05 04/01/07 April 1, 2009
Contractual Obligations Total 03/31/05 03/31/07 03/31/09 and Thereafter
(In thousands)
Revolving credit facility, senior secured
Ñrst lien ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 164,051 $ Ì $ Ì $164,051 $ Ì
Senior amortizing notes, secured, Ñrst
lien, due 2009 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 350,000 3,500 7,000 339,500 Ì
Senior notes, secured second lien, 9%,
due 2009 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 200,000 Ì Ì 200,000 Ì
Senior subordinated notes, secured, 12%
due 2011 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 148,646 Ì Ì Ì 148,646
AMERCO's operating leasesÏÏÏÏÏÏÏÏÏÏÏ 341,504 127,087 170,584 37,537 6,296
AMERCO's capitalized portion of
synthetic lease ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 224,119 224,119(A) Ì Ì Ì
Private Mini Support Agreement ÏÏÏÏÏÏÏ 70,000 Ì Ì Ì 70,000
Other obligationsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 17,822 Ì Ì Ì 17,822
SAC Holding II notes and loans* ÏÏÏÏÏÏ 153,725 1,236 2,533 3,214 146,742
Elimination of SAC Holding II
obligations to AMERCO ÏÏÏÏÏÏÏÏÏÏÏÏ (75,088) Ì Ì Ì (75,088)
Total contractual obligations ÏÏÏÏÏÏÏÏÏ $1,594,779 $355,942 $180,117 $744,302 $314,418
As presented above, contractual obligations on debt and guarantees represent principal payments while
contractual obligations for capital and operating leases represent the notional payments under the lease
arrangements, including anticipated future cash payments for interest on capital leases. Certain other liabilities
are reported in the Company's consolidated balance sheets but are not reÖected in the table above due to the
absence of stated maturities.
* These notes and loans represent obligations of SAC Holding II issued to third party lenders and
Amerco.
(A) Includes $218.6 million of obligations under synthetic leases and future interest on the capitalized
portion of the synthetic leases of $5.5 million. These agreements were prepaid in full and terminated in
April 2004. See Note 23 to the Consolidated Financial Statements.
OÅ Balance Sheet Arrangements
AMERCO used certain equipment and occupies certain facilities under operating lease commitments
with terms expiring substantially through 2034 with the exception of one land lease expiring 2079. In the event
of a shortfall in proceeds from the sale of the underlying assets, AMERCO has guaranteed approximately
$235.0 million of residual values at March 31, 2004, for these assets at the end of the respective lease terms.
AMERCO has been leasing equipment since 1987 and, thus far, we have experienced no residual value
shortfalls. See details related to operating lease commitments in Note 16 to the consolidated Ñnancial
statements on page F-29.
The Company uses oÅ-balance sheet arrangements where the economics and sound business principles
warrant their use. The Company's principal use of oÅ-balance sheet arrangements occurs in connection with
the expansion of our self-storage business. The Company currently manages the self-storage properties owned
by SAC Holding Corporation pursuant to a standard form of management agreement with each SAC Holding
31