U-Haul 2005 Annual Report Download

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Moving America
for 60 Years
A M E R C O A N N U A L R E P O R T 2005

Table of contents

  • Page 1
    ® Moving America for 60 Years AMERCO ANNUAL REPORT 2005

  • Page 2
    ... Company Moving Equipment ฀1 0฀ Self-Storage ฀1 2฀ Retail Sales ฀ ฀1 4฀ Board of Directors ฀1 5฀ Financials The following are registered trademarks, trademarks or service marks and trade names: U-HAUL®, AMERCO®, eMove®, In-Town®, WebSelfStorage®, webselfstorage.comSM, uhaul...

  • Page 3
    ...Share,฀Basic฀&฀Diluted Preferred฀Stock฀Dividends฀Accrued฀ Selected฀Balance฀Sheet฀Data: Property,฀Plant฀&฀Equipment,฀Net฀ Total฀Assets฀ Notes฀&฀Loans฀Payable฀Plus฀Capital฀Leases฀ Stockholders'฀Equity฀ Closing฀Common฀Stock฀Price฀Per฀Share...

  • Page 4
    ....฀ During฀fiscal฀2005,฀progress฀in฀our฀self-storage฀segment฀was฀outstanding.฀Storage฀revenue฀at฀our฀owned฀and managed฀facilities฀grew฀8.7%฀percent.฀Occupancy฀rates฀increased฀7.3฀percentage฀points,฀for฀a฀year-over-year฀net฀ gain฀of...

  • Page 5
    ... "We dedicate our 2005 Annual Report to the thousands of System members, dealers and family members who, throughout the past 60 years, have helped build this company into an American icon and to William "Hap" Carty, U-Haul pioneer who had the courage to take the actions necessary to turn "an...

  • Page 6
    ...is฀to get฀our฀customer where฀he฀wants฀to฀go, whatever฀it฀takes. That฀is฀the฀impetus฀of฀ "15,000฀helping฀hands฀ along฀the฀way." Everyone฀helps. The฀job฀doesn't฀end when฀our฀customer leaves฀our฀lot.. - Hap Carty " 1957 5 I AMERCO ANNUAL REPORT

  • Page 7
    ...are฀a฀"do-it-yourself "company and฀we฀understand฀the฀needs฀of฀our We design and manufacture many of the components of our customized trucks and trailers We fabricate and assemble U-Haul rental equipment We maintain and repair all of our rental equipment 6 I AMERCO ANNUAL REPORT

  • Page 8
    ...We develop state of the art point-ofsale, reservation and facility management software We manage moving and storage centers for others for a fee We furnish rental equipment and products to independent dealers successfully฀for฀over฀60฀years! 7 I AMERCO ANNUAL REPORT ...฀And฀we've฀been...

  • Page 9
    ... station lots in Portland, Vancouver and Seattle, Washington. 30 trailers $1.4 billion U-Move rental revenue 15,400 U-Haul branded moving and storage outlets throughout North America 1947 - First manufacturing plant opened at 8806 S.E. Foster Road, Portland, Oregon. First one-way trailer is rented...

  • Page 10
    ... and towing devices $1.2 billion of U-Move Revenue Today - For over 60 years U-Haul has provided equipment and services that have helped North Americans move to a better way of life. 93,000 moving trucks 115,000 trailers and towing devices $1.4 billion of U-Move Revenue 9 I AMERCO ANNUAL REPORT

  • Page 11
    ...United฀States฀and฀Canada,฀with฀ a฀market฀value฀of฀approximately฀$120฀billion.฀ Today,฀the฀self-storage฀industry฀remains฀highly฀ decentralized.฀Approximately฀85฀percent฀of฀the฀ self-storage฀locations฀throughout฀North฀America฀ are฀independent...

  • Page 12
    ...'s first Web-based management software that connects storage providers to the world's largest moving and storage reservation system. Today TODAY - Moving and Moving & Storage Team, Storage Team at U-Haul 15455 N. Scottsdale Road, Scottsdale, Scottsdale, Arizona AZ 9 l AMERCO ANNUAL REPORT

  • Page 13
    ....com฀to฀ get฀expert฀moving฀advice฀and฀to฀purchase฀boxes,฀ packing฀materials฀and฀ancillary฀moving฀ products.฀Do-it-yourself฀movers฀prefer฀U-Haul฀ boxes฀and฀packing฀materials฀to฀transport฀their฀ Scope,฀Branding,฀฀ 12 I AMERCO ANNUAL REPORT

  • Page 14
    ... design and technology and introduced the industry's first round tube hitch Today - U-Haul customers can select from a large product line of moving supplies from the convenience of their home through the U-Haul Moving Supply Store at uhaul.com ฀฀Customer฀Service 13 l AMERCO ANNUAL REPORT

  • Page 15
    ..., 54, Chief of U-Haul Phoenix Operations John C. Taylor, 47, Director and Executive V.P. of U-Haul Carlos Vizcarra, 58, President of Amerco Real Estate Company Rocky D. Wardrip, 47, Assistant Treasurer of AMERCO FINANCIALS 15 Business Description 20 Market for Common Stock and Related Stockholder...

  • Page 16
    ... of฀ U-Haul฀ brand฀ moving฀equipment฀rentals,฀self฀storage฀rooms฀and฀related฀ moving฀ and฀ storage฀ products฀ and฀ services฀ provide฀ our฀ customers฀with฀convenient฀"one-stop"฀shopping. Through฀ Republic฀ Western฀ Insurance฀ Company฀ ("RepWest...

  • Page 17
    ...and฀U-Haul฀moving฀supply฀ and฀service฀sales.฀Our฀storage฀business฀consists฀of฀U-Haul฀ self-storage฀ room฀ rentals,฀ self-storage฀ related฀ product฀ and฀ service฀ sales฀ and฀ management฀ of฀ non-owned฀ ฀ self-storage฀facilities. Net฀ revenues...

  • Page 18
    ...moving฀and฀storage฀market. Property฀and฀Casualty฀Insurance฀Operating฀Segment Republic฀ Western฀ Insurance฀ Company฀ ("RepWest")฀ provides฀ loss฀ adjusting฀ and฀ claims฀ handling฀ for฀ U-Haul฀ through฀regional฀offices฀across฀North฀America.฀RepWest...

  • Page 19
    ...฀ of฀ SAC฀ Holdings฀ II฀ Corporation฀ in฀ the฀ consolidated฀ financial฀ statements฀of฀AMERCO,฀as฀required฀by฀FIN฀46(R). Employees As฀ of฀ March฀ 31,฀ 2005,฀ we฀ employed฀ approximately฀ 18,300฀ people฀ throughout฀ North฀ America฀ and฀ 90...

  • Page 20
    ... I AMERCO ANNUAL REPORT and฀policies,฀including฀benefits฀and฀incentives,฀to฀ensure฀ that฀they฀are฀consistent฀with฀the฀goals฀and฀objectives฀of฀ the฀ Company.฀ It฀ reviews฀ and฀ makes฀ recommendations฀ to฀ the฀ Board฀ of฀ Directors฀ regarding...

  • Page 21
    ...of฀our฀equity฀securities. See Note 20 of Notes to Consolidated Financial Statements for a discussion of certain statutory U-Haul฀ has฀ not฀ cash฀ dividends฀ to฀ AMERCO฀ restrictions on declared฀ the ability of the insurance subsidiaries to pay dividends to AMERCO. during฀the...

  • Page 22
    ... of Operations: Self-moving equipment rentals 1,437,895 $ Self-storage revenues 114,155 Self-moving and self-storage products and service sales 206,098 Property management fees 11,839 Life insurance premiums 126,236 Property and casualty insurance premiums 24,987 Net investment and interest...

  • Page 23
    ...฀Segment Our฀Moving฀and฀Self-Storage฀Operating฀Segment฀consists฀ of฀ the฀ rental฀ of฀ trucks,฀ trailers฀ and฀ self-storage฀ spaces,฀ and฀sales฀of฀moving฀supplies,฀trailer฀hitches฀and฀propane฀ to฀the฀"do-it-yourself"฀mover.฀Operations฀are...

  • Page 24
    ...฀and฀ businesses฀in฀the฀moving฀and฀storage฀market. Property฀and฀Casualty฀Insurance฀Operating฀Segment RepWest฀ provides฀ loss฀ adjusting฀ and฀ claims฀ handling฀ for฀ U-Haul฀ through฀ regional฀ offices฀ across฀ North฀ America.฀ RepWest฀ also...

  • Page 25
    ...฀II฀Corporation฀from฀our฀ financial฀statements. Recoverability฀of฀Property,฀Plant฀and฀Equipment Property,฀ plant฀ and฀ equipment฀ is฀ stated฀ at฀ cost.฀ Interest฀ cost฀ incurred฀ during฀ the฀ initial฀ construction฀ of฀ 24 I AMERCO ANNUAL REPORT...

  • Page 26
    ...฀account฀balances฀ that฀accrue฀to฀the฀benefit฀of฀the฀policyholders,฀excluding฀ surrender฀ values.฀ Liabilities฀ for฀ health,฀ disability฀ and฀ other฀policies฀represents฀estimates฀of฀payments฀to฀be฀made฀ on฀insurance฀claims฀for฀reported...

  • Page 27
    ...2005 2004 (In thousands) Self-moving equipment rentals Self-storage revenues Self-moving and self-storage product and service sales Property management fees Life insurance premiums Property and casualty insurance premiums Net investment and interest income Other revenue Consolidated revenue...

  • Page 28
    ...million฀pretax. compared with $8.1 million in fiscal 2004 and Litigation฀proceeds,฀net฀of฀fees฀and฀costs,฀resulting฀from฀ reflects our higher pretax earnings for fiscal 2005, net of an increase in tax in fiscal 2004 of $4.8 million the฀settlement฀of฀litigation฀with฀our...

  • Page 29
    ...(In thousands) Self-moving equipment rentals Self-storage revenues Self-moving and self-storage product and service sales Property management fees Life insurance premiums Property and casualty insurance premiums Net investment and interest income Other revenue Consolidated revenue $1,381...

  • Page 30
    ... 31, 2004 2003 Moving and storage Revenues Earnings from operations Property and casualty insurance Revenues Earnings from operations Life insurance Revenues Earnings from operations SAC Holdings Revenues Earnings from operations Eliminations Revenues Earnings from operations Consolidated...

  • Page 31
    ...2005 2004 fiscal 2005 and fiscal 2004: Self-moving equipment rentals Self-storage revenues and self-storage product and service sales Self-moving equipment rentals Property management fees Self-storage revenues Net investment interest income Self-moving andand self-storage product and service...

  • Page 32
    ...฀ its฀ "C",฀ rating฀ which฀ resulted฀ in฀ lower฀ writings฀ on฀ ฀ non-U-Haul฀self฀storage฀business.฀Other฀lines฀of฀business฀ were฀ $6.1฀ million฀ and฀ $69.6฀ million฀ for฀ 2004฀ and฀ ฀ 2003,฀respectively. Net฀ investment฀ income฀ was...

  • Page 33
    ...effect฀ on฀ the฀ 2003฀ actuarial฀ estimations.฀ The฀ increased฀ claim฀severity฀was฀not฀known฀in฀prior฀years฀and฀thus฀was฀ not฀reflected฀in฀previous฀actuarial฀calculations. The฀following฀table฀illustrates฀the฀change฀in฀unpaid฀loss฀ and...

  • Page 34
    ... reading down, represents revised estimates of the original recorded reserve as...Management's Discussion and Analysis of Financial...5,613 21,756 7,036 374 Retro Premium RecoverableÏÏÏ Reestimated Reserve: 33 I AMERCO ANNUAL REPORT Amount (Cumulative 4,929 $(19,765) $(63,107) $(48,119) $(113...

  • Page 35
    ... business฀ Oxford Life Insurance Company RepWest's฀liabilities฀that฀are฀long฀term฀in฀nature. declined฀and฀existing฀exposure฀decreased.฀All฀other฀lines฀ had฀increases฀of฀$0.2฀million฀from฀2003. 2004 Compared with 2003 Oxford฀Life฀Insurance฀Company Net...

  • Page 36
    ...the฀ value฀ of฀ business฀ acquired฀ (VOBA)฀ was฀ $25.0฀ million฀ and฀ $20.5฀ million฀ for฀ 2003฀ and฀ 2002,฀ respectively.฀ These฀ costs฀ are฀ amortized฀ for฀ life฀ and฀ health฀ policies฀ as฀ the฀ premium฀ is฀ earned฀ over฀ the฀ term...

  • Page 37
    ...฀ moving and self-storage related products and rentals฀through฀steady฀transaction฀volume,฀price฀increases฀ and฀ inflation฀ and฀ higher฀ property฀ taxes,฀ cost฀ of฀ services followed growth in moving equipment rentals. sales,฀utilities฀and฀insurance฀costs...

  • Page 38
    services followed our growth in moving equipment rentals. Total costs and expenses increased as a result of wage and benefit inflation and higher property taxes, cost of sales, utilities and insurance costs. As a result of the above mentioned changes in revenues and expenses, earnings from ...

  • Page 39
    ... and฀ its฀ accounts฀ payable฀ and฀ accrued฀ expenses฀ and฀ other฀ policyholders'฀ funds฀ and฀ liabilities฀ were฀ $21.3฀ million.฀ Oxford's฀ financial฀ 38 I AMERCO ANNUAL REPORT assets฀ (cash,฀ receivables,฀ short-term฀ investments,฀ other฀ investments...

  • Page 40
    ... expansion฀ of฀ our฀ rental฀ fleet,฀ rental฀ equipment฀ and฀ rental฀ storage฀ space,฀ working฀ capital฀ requirements฀ and฀ our฀ preferred฀ stock฀ dividend฀program. For฀ a฀ more฀ detailed฀ discussion฀ of฀ our฀ long-term฀ debt฀ and฀ borrowing...

  • Page 41
    ... business.฀ statements on page F-31. AMERCO฀used฀certain฀equipment฀and฀occupies฀certain฀ Company฀ currently฀ manages฀ the฀ self-storage฀ properties฀ facilities฀under฀operating฀lease฀commitments฀with฀terms฀ owned฀by฀SAC฀Holdings฀and฀its฀affiliates...

  • Page 42
    ...its฀ marketing฀ company฀offices,฀vehicle฀repair฀shops฀and฀hitch฀installation฀ centers฀from฀subsidiaries฀of฀SAC฀Holdings฀and฀its฀affiliates.฀ Total฀ lease฀ payments฀ pursuant฀ to฀ such฀ leases฀ were฀ $2.7฀ million฀during฀fiscal฀2005. These...

  • Page 43
    ... 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. 42 I AMERCO ANNUAL REPORT The self-storage...

  • Page 44
    ... exposure฀ to฀ market฀ risk฀ for฀ changes฀ in฀ foreign฀ currency฀exchange฀rates฀relates฀primarily฀to฀our฀Canadian฀ business.฀Approximately฀2%฀of฀our฀revenue฀is฀generated฀ in฀Canada.฀The฀result฀of฀a฀10%฀change฀in฀the฀value฀of฀the...

  • Page 45
    ... Audit฀ Committee฀of฀our฀Board฀of฀Directors. Our฀independent฀registered฀public฀accounting฀firm,฀BDO฀ Seidman,฀LLP,฀has฀audited฀management's฀assessment฀of฀ the฀ company's฀ internal฀ control฀ over฀ financial฀ reporting฀ and฀has฀issued฀their...

  • Page 46
    ... Accounting Firm on Internal Control Over Financial Reporting Board฀of฀Directors฀and฀Stockholders AMERCO Reno,฀Nevada We฀have฀audited฀management's฀assessment,฀included฀in฀the฀accompanying฀Management's฀Report฀on฀Internal฀Control฀over฀ Financial฀Reporting...

  • Page 47
    ...฀audits.฀We฀did฀not฀audit฀the฀financial฀statements฀of฀SAC฀Holding฀II฀Corporation฀for฀2005,฀which฀ statements฀reflect฀total฀assets฀of฀$152.4฀million฀as฀of฀March฀31,฀2005,฀and฀total฀revenues฀of฀$43.2฀million฀for฀the฀year฀then...

  • Page 48
    ...฀cash฀flows฀for฀the฀year฀ended฀in฀conformity฀with฀accounting฀principles฀generally฀accepted฀ in฀the฀United฀States฀of฀America. ฀ ฀ Phoenix,฀Arizona June฀16,฀2005 /s/฀Semple฀&฀Cooper,฀LLP Certified฀Public฀Accountants 47 I AMERCO ANNUAL REPORT

  • Page 49
    ...Deferred policy acquisition costs, net Other assets Related party assets Property, plant and equipment, at cost: Land Buildings and improvements Furniture and equipment Rental trailers and other rental equipment Rental trucks SAC Holding II Corporation Ì property, plant and equipment Less...

  • Page 50
    ... Statements of Operations Revenues: Self-moving equipment rentals Self-storage revenues Self-moving and self-storage products and service sales ÏÏÏÏ Property management fees Life insurance premiums Property and casualty insurance premiums Net investment and interest income Other revenue...

  • Page 51
    ... employee stock ownership plan ÏÏÏ Foreign currency translation Fair market value of cash flow hedge Unrealized loss on investments Net earnings Preferred stock dividends: Series A ($2.13 per share for 2005 Purchase (sale) of shares Shares allocated to participants Net activity Balance...

  • Page 52
    ...Amerco and ConsolidatedENTITIES Entities AMERCO AND CONSOLIDATED Comprehensive income (loss): Net earnings (loss Other comprehensive income (loss) net of tax: Foreign currency translation Fair market value of cash flow hedges Unrealized gain (loss) on investments, net Total comprehensive income...

  • Page 53
    ...sales of: Property, plant and equipment 243,707 63,175 Short term investments 10,866 Ì Fixed maturity investments 152,024 243,490 Equity securities 56 3,452 Preferred stock 15,803 16,882 Real estate 16,185 6,338 Mortgage loans 5,368 16,374 Notes and mortgage receivables 1,336 5,008 Net cash...

  • Page 54
    ... AMERCO,฀ UHaul฀International,฀Inc฀and฀Amerco฀Real฀Estate฀Company฀ and฀ consist฀ of฀ the฀ rental฀ of฀ trucks฀ and฀ trailers,฀ sales฀ of฀ moving฀supplies,฀sales฀of฀trailer฀hitches,฀sales฀of฀propane,฀ the฀rental฀of฀self-storage฀spaces...

  • Page 55
    ...-sale,฀ long-term฀ investments,฀ mortgage฀ loans฀ and฀ notes฀ on฀ real฀ estate,฀ and฀ interest฀ rate฀ cap฀ contracts฀ are฀ based฀ on฀ quoted฀ market฀ prices,฀ dealer฀ quotes฀ or฀ discounted฀ cash฀ flows.฀Fair฀values฀of฀trade฀receivables...

  • Page 56
    ...rate฀ theconsist฀ discounted cash flow method and using interest rates currently offered for similar loans to borrowers with trade฀ receivables฀ and฀ notes฀ receivable.฀ The฀ Company฀ cap฀agreements฀on฀its฀$350฀million฀amortizing฀term฀loan฀ similar credit ratings...

  • Page 57
    ...from฀moving฀ and฀ self฀ storage฀ customers฀ and฀ dealers,฀ insurance฀ 56 I AMERCO ANNUAL REPORT premiums฀and฀amounts฀due฀from฀ceding฀re-insurers,฀less฀ management's฀estimate฀of฀uncollectible฀accounts. Insurance฀premiums฀receivable฀for฀policies฀that...

  • Page 58
    ...฀fair฀market฀value฀ of฀interest฀rate฀hedges,฀net฀of฀the฀related฀tax฀effects. Recent Accounting Pronouncements On฀ June฀ 1,฀ 2005,฀ the฀ Financial฀ Accounting฀ Standards฀ Board฀ ("FASB")฀ issued฀ Statement฀ of฀ Financial฀ Accounting฀ Standards...

  • Page 59
    ... income minus preferred Net income for purposes of computing earnings per common share is net income minus preferred stock Preferred฀stock฀dividends฀include฀accrued฀dividends฀of฀AMERCO. dividends. Preferred stock dividends include accrued dividends of AMERCO. dividends. Preferred stock...

  • Page 60
    ... with insurance insurance regulatory regulatory authorities authorities to was $12.9 millionrequirements. at DecemberThe 31, The cost company deposits bonds with meet statutory 2004 andcost $12.9 at December 31, 2003. regulatory authorities was $12.9 million at December 59 I31, AMERCO ANNUAL REPORT...

  • Page 61
    ...840 $ (28) 12 $ Months (56) (In thousands) Unrealized Estimated Market Value Estimated Market Value Amerco and Consolidated Entities U.S. government agency mortgageU.S. treasury securities and backed securities 10,570 316 Ì (12) 10,874 government obligations 29,765 $ 2,134 $ (36) $ Ì $ 31,863...

  • Page 62
    ...or fair value. Real estate obtained through foreclosures and held for sale and equity investments are carried at the lower of cost orpolicy fair value. Insurance loans are carried at their unpaid balance. Insurance policy loans are carried at their unpaid balance. F-18 F-18 61 I AMERCO ANNUAL REPORT

  • Page 63
    ...฀ deconsolidation of SAC Holding Corporation. exchange฀ had฀ a฀ carrying฀ value฀ of฀ zero,฀ for฀ other฀ real฀ On June 30, 2003, the Company's insurance subsidiaries exchanged their investments in Private Mini Interest฀income฀increased฀in฀fiscal฀2005฀compared฀with...

  • Page 64
    ...both฀ due฀ 2009),฀ are฀ secured฀ by฀ certain฀ assets฀ of฀ AMERCO,฀ including฀the฀capital฀stock฀of฀Oxford,฀certain฀real฀estate฀ held฀ for฀ sale฀ and฀ payments฀ from฀ notes฀ receivable฀ from฀ SAC฀Holdings฀having฀an฀aggregate฀outstanding...

  • Page 65
    ... will฀ pay฀ U-Haul฀ a฀ management฀fee฀based฀on฀gross฀self-storage฀rental฀revenues฀ generated฀ by฀ the฀ properties.฀ During฀ fiscal฀ 2005,฀ U-Haul฀ earned฀$1.4฀million฀in฀management฀fees฀from฀Mercury. Amerco and Consolidated Entities AMERCO AND...

  • Page 66
    ...฀of฀SAC฀Holding฀II฀Corporation฀long-term฀debt฀for฀the฀next฀five฀years฀and฀thereafter฀is฀as฀follows: is as follows: 2006 2007 Year Ended 2008 2009 (In thousands) 2010 Thereafter Notes payable, secured $1,331 $1,320 $1,430 $1,664 $1,800 $69,929 AMERCO AND...

  • Page 67
    ... preferred฀ The Serial common stock may be issued in classes such seriesstock and on such terms asDividends the Board on shall determine. exchangeable for, of any other class or of Series A exchangeable for, shares shares ofof฀ any other class or nonclasses of of are฀ stock of AMERCO. AMERCO...

  • Page 68
    ... 31, income฀before฀taxes฀was฀as฀follows: 2005 2004 2003 attributable to income before taxes was as follows: Statutory federal income tax rate Increase (reduction) in rate resulting from: Statutory federal income rate State and foreign taxes,tax net of federal benefit Increase (reduction...

  • Page 69
    ...tax.฀At฀March฀31,฀2005฀ by฀ the฀ chief฀ executive฀ officer฀ of฀ the฀ Company฀ under฀ and฀ March฀ 31,฀ 2004,฀ U-HAUL฀ Co.฀ (Canada)฀ Ltd.฀ has฀ the฀delegation฀of฀authority฀from฀the฀Board฀of฀Directors,฀ Note 14: Employee Benefit Plans net...

  • Page 70
    ... Retirement and Post Employment insurance฀ plans฀ covering฀ employees฀ of฀ the฀Benefits Company.฀ uses฀the฀accrual฀method฀of฀accounting฀for฀post-retirement฀ NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued) Premiums฀earned฀by฀Oxford฀on฀these฀policies...

  • Page 71
    ...5.75% in fiscal 2005, which was projected to decline annually to an ultimate rate of 4.20% in fixed฀ income฀ investments฀ with฀ cash฀ flow฀ streams฀ retirement฀benefit฀obligation฀as฀of฀fiscal฀year-end฀would฀ The estimated health care cost inflation rates used to measure...

  • Page 72
    ... 2009 2010 Amerco and Consolidated Entities Thereafter Notes to Consolidated Financial Statements, continued Total Note 15: Reinsurance and Policy benefits and losses, claims and loss expenses payable 128 145 162 185 1,393 $2,130 Note 15: Reinsurance and Policy benefits and losses, claims and...

  • Page 73
    ... of its facilities under operating leases The฀Company฀leases฀a฀portion฀of฀its฀rental฀equipment฀and฀ with terms that expire at various dates substantially through 2034. At March 31, 2005, AMERCO has market฀value,฀or฀sell฀the฀asset฀to฀a฀third฀party฀on฀behalf...

  • Page 74
    ...'') executed a General Release of No.฀ (the฀ "Action").฀ In฀ consideration฀ of฀and the฀ Evanston Ron฀Belec฀vs.฀William฀E.฀Carty,฀et฀al.,฀CV฀02-06331฀and฀ all 00-C-51-K฀ claims against Oxford, Republic Western, Insurance Company, together with certain payment...

  • Page 75
    ...฀ business.฀In฀managements฀opinion฀none฀of฀these฀matters฀ will฀ have฀ a฀ material฀ effect฀ on฀ the฀ Company's฀ financial฀ position฀and฀results฀of฀operations. 74 I AMERCO ANNUAL REPORT Note 18: Preferred Stock Purchase Rights The฀ Board฀ of฀ Directors...

  • Page 76
    ...฀2005฀and฀2004.฀This฀ management฀ fee฀ is฀ consistent฀ with฀ the฀ fee฀ received฀ for฀ other฀properties฀the฀Company฀manages฀for฀third฀parties. RepWest฀ and฀ Oxford฀ currently฀ hold฀ a฀ 46%฀ limited฀ partnership฀ interest฀ in฀ Securespace...

  • Page 77
    ...marketing฀of฀such฀equipment฀and฀in฀return฀receives฀ a฀percentage฀of฀rental฀fees฀paid฀by฀customers.฀Based฀on฀ the฀terms฀of฀various฀contracts,฀rental฀fees฀are฀distributed฀ to฀U-Haul฀(for฀services฀as฀operators),฀to฀the฀fleet฀owners...

  • Page 78
    ...of฀the฀State฀of฀Arizona฀require฀Republic฀Western฀Insurance฀Company฀and฀Oxford฀Life฀ and Oxford Life Insurance Company to maintain capital and surplus determined in accordance with statutory accounting principles. Audited statutoryminimum net income and statutory capital and...

  • Page 79
    ... to shareholders by insurance companies domiciled in the State Notes to of Consolidated Financial Statements, continued 2004, Oxford cannot distribute any their statutory surplus as dividends without regulatory approval. At of Arizona is limited. Any dividend in excess of the limit requires prior...

  • Page 80
    ...฀ segments.฀ Our฀ reportable฀ segments฀ are฀ Moving฀ and฀ Storage฀ operations฀ (AMERCO,฀ U-Haul฀ and฀ Real฀ Estate),฀ Property฀ and฀ Casualty฀ Insurance,฀ Life฀ Insurance฀ and฀ SAC฀ Holdings.฀ Management฀ tracks฀ revenues฀ separately,฀ but...

  • Page 81
    ... and Storage AMERCO U-Haul Real Estate Eliminations AMERCO Consolidated SAC Holdings Eliminations AMERCO as Consolidated Total Consolidated AMERCO Legal Group Moving & Property & Storage Casualty Life Consolidated(f) Insurance(a) Insurance(a) Eliminations (In thousands) 80 I AMERCO ANNUAL REPORT...

  • Page 82
    ... FINANCIAL STATEMENTS Ì (Continued) Consolidating balance sheets by industry segment as of March 31, 2005 are as follows: Moving and Storage AMERCO U-Haul Real Estate Eliminations AMERCO Consolidated SAC Holdings Eliminations Total Consolidated AMERCO Legal Group Moving & Property & Storage...

  • Page 83
    ... FINANCIAL STATEMENTS Ì (Continued) Consolidating balance sheets by industry segment as of March 31, 2004 are as follows: Moving and Storage AMERCO U-Haul Real Estate Eliminations AMERCO Consolidated SAC Holdings Eliminations Total Consolidated AMERCO Legal Group Moving & Property & Storage...

  • Page 84
    ... FINANCIAL STATEMENTS Ì (Continued) Consolidating balance sheets by industry segment as of March 31, 2004 are as follows: Moving and Storage AMERCO U-Haul Real Estate Eliminations AMERCO Consolidated SAC Holdings Eliminations Total Consolidated AMERCO Legal Group Moving & Property & Storage...

  • Page 85
    ... Consolidated Financial Statements, continued Amerco and Consolidated Entities F-43 Revenues: Self-moving equipment rentals Self-storage revenues Self-moving & self-storage products & service sales Property management fees Life insurance premiums Property and casualty insurance premiums Net...

  • Page 86
    ... Consolidated Financial Statements, continued Amerco and Consolidated Entities F-44 Revenues: Self-moving equipment rentals Self-storage revenues Self-moving & self-storage products & service sales Property management fees Life insurance premiums Property and casualty insurance premiums Net...

  • Page 87
    ...) $ (37,949) Revenues: Self-moving equipment rentals Self-storage revenues Self-moving & self-storage products and service sales Property management fees Life insurance premiums Property & casualty insurance premiums Net investment and interest income Other revenue Amerco and Consolidated...

  • Page 88
    ...,691 Short term investments Fixed maturity investments Equity securities Preferred stock Real estate Mortgage loans Notes and mortgage receivables 717 Net cash provided (used) by investing activities 3) (46,733) (a) Balances for the year ended December 31, 2004 87 I AMERCO ANNUAL REPORT

  • Page 89
    ...) Moving and Storage AMERCO U-Haul Real Estate Elimination AMERCO SAC Consolidated Holdings Elimination Total Consolidated AMERCO Legal Group Moving & Property & Storage Casualty Life Cons Insurance(a) Insurance(a) Elimination (In thousands) AMERCO as Consolidated 88 I AMERCO ANNUAL REPORT 129...

  • Page 90
    ... securities Preferred stock Real estate 415 Mortgage loans 329 1,153 Ì 1,482 Ì Notes and mortgage receivables 4,248 760 Ì 5,008 Ì Net cash provided (used) by investing activities 45 (140,544) 8,893 Ì (131,606) 81,987 (a) Balance for the year ended December 31, 2003 89 I AMERCO ANNUAL...

  • Page 91
    ... ANNUAL REPORT AMERCO U-Haul Real Estate AMERCO Legal Group AMERCO as Consolidated Moving & Property & Storage Casualty Life AMERCO Total Elimination Cons Insurance(a) Insurance(a) Elimination Consolidated SAC Holdings Elimination Consolidated (In thousands) Cash flows from financing activities...

  • Page 92
    ... policy acquisition costs Other assets Related party assets Accounts payable and accrued expenses Policy benefits and losses, claims and loss expenses payable Other policyholders' funds and liabilities Deferred income Related party liabilities Net cash provided (used) by operating activities...

  • Page 93
    ...) Moving and Storage AMERCO U-Haul Real Estate Elimination Moving & Storage Consolidated AMERCO Legal Group AMERCO as Consolidated Property & Casualty Life AMERCO SAC Total Insurance(a) Insurance(a) Elimination Consolidated Holdings Elimination Consolidated (In thousands) 92 I AMERCO ANNUAL REPORT...

  • Page 94
    ...existing฀loans. Preferred Stock Dividends On฀ May฀ 4,฀ 2005,฀ the฀ Board฀ of฀ Directors฀ of฀ AMERCO,฀ the฀ holding฀ company฀ for฀ U-Haul฀ International,฀ Inc.,฀ and฀ other฀ companies,฀ declared฀ a฀ regular฀ quarterly฀ cash฀ dividend฀of฀$0.53125...

  • Page 95
    ...each฀ month. earnings฀data฀is฀not฀necessarily฀representative฀of฀an฀ Payments฀to฀fleet฀owners฀for฀trailers฀lost฀or฀retired฀ individual฀fleet฀owner's฀earnings. from฀rental฀service฀as฀a฀result฀of฀damage฀by฀accident฀ 94 I AMERCO ANNUAL REPORT

  • Page 96
    ... Fund credit'' in theTotal Trailer summary of earnings represents independent fleet owner commissions foregone, which exceed expenses Total Trailer Subsidiary Trailer Accident Subsidiary Trailer Accident U-Haul Subsidiary Sub Accident Repair borne by the Fund. Companies Independent Total Retirements...

  • Page 97
    ... I Balance Sheets CONDENSED FINANCIAL INFORMATION OF AMERCO BALANCE SHEETS March 31, 2005 2004 (In thousands) ASSETS Cash Investment in subsidiaries and SAC Holding II Related party assets Other assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Notes and loans payable...

  • Page 98
    ... Restructuring expenses Other expenses Total expenses Equity in earnings of subsidiaries and SAC Holdings Interest expense Litigation settlement income, net of costs Pretax earnings (loss Income tax benefit Net earnings (loss Less: preferred stock dividends Earnings (loss) available to...

  • Page 99
    ...credit facilities Debt issuance costs Leveraged Employee Stock Ownership Plan Ì Payments on loans Proceeds from (repayment of) related party notes payable Proceeds from party loans Dividends paid Net cash provided by financing activities Increase (decrease) in cash and cash equivalents Cash...

  • Page 100
    ...฀ are฀ allocated฀ to฀ the฀ U-Haul International, Inc., Republic Western Insurance State฀ Company, Oxford Life Insurance Company and International,฀Inc.,฀Republic฀Western฀Insurance฀Company,฀ Amerco Real Estate Company. The financial statements of respective฀subsidiaries. the...

  • Page 101
    ...CASUALTY INSURANCE UNDERWRITERS) Years Ended December 31, 2004, 2003 and 2002 100 I AMERCO ANNUAL REPORT Deferred Policy Acquisition Cost Discount if any, Deducted Unearned Net Earned Premiums Premiums(1) (In thousands) Net Investment Income(2) Net Premiums Written(1) Reserves for Unpaid Claims and...

  • Page 102
    ... engaged฀ in฀ the฀ short-term฀ rental฀ of฀ trucks,฀ trailers,฀ and฀ related฀ equipment฀ to฀ the฀ do-it-yourself฀ mover.฀ The฀ Company฀ also฀ sells฀ related฀ moving฀ products฀ and฀ services,฀ and฀ rents฀ self-storage฀ facilities฀ and฀ general...

  • Page 103
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