U-Haul 2004 Annual Report Download - page 96

AMERCO AND CONSOLIDATED ENTITIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
general partner and has a direct 1% interest in Private Mini. AMERCO does not maintain operating control of
Private Mini and the minority holders have a substantial participation rights. During 1997, Private Mini
secured a line of credit $225.0 million with a Ñnancing institution, which was subsequently reduced in
accordance with its terms to $125.0 million in December 2001. Under the terms of this credit facility,
AMERCO entered into a support party agreement with Private Mini whereby upon default or noncompliance
with debt covenants by Private Mini, AMERCO assumes responsibility in fulÑlling all obligations related to
this credit facility.
At March 31, 2003 AMERCO had become contingently liable under the terms of the support agreement
for Private Mini. This guarantee is still in place at March 31, 2004. This resulted in increasing notes and loans
payable by $55.0 million and increasing our investment in a receivable from Private Mini by $55.0 million. As
of March 15, 2004 AMERCO paid $55.0 million as part of the bankruptcy settlement. Under the terms of
FIN 45, the Company recognized a liability in the amount of $70.0 million, which is management's estimate
on the liability associated with the guarantee. This resulted in increasing other liabilities by $70.0 million and
our receivable from Private Mini by $70.0 million.
The receivable from Private Mini Storage Realty, L.P. represents amounts due the company from Private
Mini Storage Realty, L.P. under a support agreement the Company entered to enhance the credit of Private
Mini Storage, L.P. The company expects to fully recover these amounts.
On June 30, 2003, RepWest and Oxford exchanged their respective interests in Private Mini for certain
real property owned by certain SAC Holding's entities. The exchanges were non-monetary and were recorded
on the basis of the book values of the assets exchanged. Private Mini has been determined not to be a variable
interest entity as deÑned by FIN 46R.
Related Party Receivables
March 31,
2004 2003
(In thousands)
PMSR Guarantee ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 70,000 $125,000
PMSR Receivables ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 55,000
PMSI NoteÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 10,000 10,000
SAC Holdings & Oxford NoteÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5,039 Ì
SAC Holdings & UHI Note ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 123,661 Ì
SAC Holdings & UHI Interest ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 29,396 Ì
Securespace & Oxford InvestmentÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5,675 Ì
Securespace & RepWest InvestmentÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5,675 Ì
$304,446 $135,000
In February 2004, SAC Holding Corporation restructured the Ñnancing of three subsidiaries and then
distributed its interest in those subsidiaries to its sole shareholder. This triggered a requirement to reassess the
Company's involvement with those subsidiaries, which led to a conclusion that the Company ceased to be the
primary beneÑciary of those three subsidiaries at that date. Also in February 2004, SAC Holding Corporation
returned the sole shareholder's original contribution of 184,000 shares of AMERCO common stock with an
original cost basis of $3.2 million, which was treated as a distribution. In March 2004, SAC Holding
Corporation restructured its Ñnancing, triggering a similar reassessment that led to a conclusion that the
Company ceased to be the primary beneÑciary of SAC Holding Corporation and its remaining subsidiaries.
Accordingly, at the dates the Company ceased to be the primary beneÑciary, it deconsolidated those entities.
The deconsolidation was accounted for as a distribution of the Company's interests to the sole shareholder of
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