U-Haul 2004 Annual Report Download - page 86

AMERCO AND CONSOLIDATED ENTITIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
SigniÑcant components of the company's deferred tax assets and liabilities at Ñscal year-ends were as
follows:
March 31,
2004 2003
(In thousands)
Deferred tax asset:
Net operating loss and credit carryforwards ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 48,287 $ 99,375
Accrued expensesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 91,780 127,675
Deferred revenue from sale/leasebackÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 9,772 5,137
Policy beneÑt and losses, claims and loss expenses payable, net ÏÏÏÏÏÏÏ 22,767 26,597
Unrealized gains and (losses) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (1,442) 2,043
Total deferred tax assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 171,164 260,827
Deferred tax liabilities:
Property, plant and equipment ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 211,682 196,525
Deferred policy acquisition costs ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 16,107 26,127
Other ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 7,175 5,933
Total deferred tax liabilities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 234,964 228,585
Net deferred tax asset (liability) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $(63,800) $ 32,242
Under the provisions of the Tax Reform Act of 1984 (the Act), the balance in Oxford's account
designated ""Policyholders' Surplus Account'' is frozen at its December 31, 1983 balance of $19.3 million.
Federal income taxes (Phase III) will be payable thereon at applicable current rates if amounts in this
account are distributed to the stockholder or to the extent the account exceeds a prescribed maximum. Oxford
did not incur a Phase III liability for the years ended December 31, 2003, 2002 and 2001.
At March 31, 2004 and March 31, 2003, AMERCO and RepWest have non-life net operating loss
carryforwards available to oÅset federal taxable income in future years of $85.6 million and $181.6 million
respectively. These carryforwards expire in 2012 through 2020. At March 31, 2004 and March 31, 2003,
AMERCO has alternative minimum tax credit carryforwards of $8.5 million and $5.4 million, respectively,
which do not have an expiration date, and may only be utilized in years in which regular tax exceeds
alternative minimum tax.
The SAC Holding II aÇliated group, which began to Ñle tax returns in Ñscal year ending March 31, 2003,
has net operating losses of $14.0 million and $7.6 million in Ñscal years ending March 31, 2004 and March 31,
2003 respectively, to oÅset taxable income in future years. These carryforwards expire in 2023 through 2024.
Under certain circumstances and sections of the Internal Revenue Code, a change in ownership for tax
purposes will limit the amount of net operating loss carryforwards that can be used to oÅset future taxable
income.
Note 14: Employee BeneÑt Plans
ProÑt Sharing Plans
The Company provides tax-qualiÑed proÑt sharing retirement plans for the beneÑt of eligible employees,
former employees and retirees in the U.S. and Canada. The plans are designed to provide employees with an
accumulation of funds for retirement on a tax-deferred basis and provide for annual discretionary employer
contributions. Amounts to be contributed are determined by the chief executive oÇcer of the company under
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