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53 I AMERCO ANNUAL REPORT
Note 1: Basis of Presentation
AMERCO฀ has฀ a฀ fiscal฀ year฀ that฀ ends฀ on฀ the฀ 31st฀ of฀
March฀ for฀ each฀ year฀ that฀ is฀ referenced.฀ Our฀ Insurance฀
company฀ subsidiaries฀ have฀ fiscal฀ years฀ that฀ end฀ on฀ the฀
31st฀of฀December฀for฀each฀year฀that฀is฀referenced.฀They฀
have฀ been฀ consolidated฀ on฀ that฀ basis.฀ Consequently,฀ all฀
references฀ to฀ our฀ insurance฀ subsidiaries’฀ years฀ 2004,฀
2003฀and฀2002฀correspond฀to฀fiscal฀years฀2005,฀2004฀and฀
2003฀for฀AMERCO.฀The฀operating฀results฀and฀financial฀
position฀of฀AMERCO’s฀consolidated฀insurance฀operations฀
are฀determined฀as฀of฀December฀31st฀of฀each฀year.
Accounts฀denominated฀in฀non-U.S.฀currencies฀have฀been฀
re-measured฀into฀U.S.฀dollars.฀Certain฀amounts฀reported฀
in฀previous฀years฀have฀been฀reclassified฀to฀conform฀to฀the฀
2005฀presentation.
Note 2: Principles of Consolidation
The฀2005฀consolidated฀financial฀statements฀and฀the฀2004฀
balance฀ sheet฀ includes฀ the฀ accounts฀ of฀ AMERCO,฀ its฀
wholly฀owned฀subsidiaries,฀and฀SAC฀Holding฀II฀Corporation฀
and฀ its฀ subsidiaries.฀ The฀ 2004฀ statements฀ of฀ operations,฀
comprehensive฀ income,฀ and฀ cash฀ flows,฀ and฀ the฀ 2003฀
consolidated฀ financial฀ statements,฀ include฀ all฀ of฀ those฀
entities฀plus฀SAC฀Holding฀Corporation฀and฀its฀subsidiaries.
In฀ fiscal฀ 2003฀ and฀ 2002,฀ SAC฀ Holding฀ Corporation฀
and฀ SAC฀ Holding฀ II฀ Corporation฀ (together,฀ the฀ SAC฀
entities)฀ were฀ considered฀ special฀ purpose฀ entities฀ and฀
were฀ consolidated฀ based฀ on฀ the฀ provision฀ of฀ Emerging฀
Issues฀Task฀Force฀(EITF)฀Issue฀No.฀90-15.
In฀fiscal฀2004,฀the฀Company฀applied฀FASB฀Interpretation฀
No.฀46(R)฀to฀its฀interests฀in฀the฀SAC฀entities.฀Initially,฀the฀
Company฀concluded฀that฀the฀SAC฀entities฀were฀variable฀
interest฀ entities฀ and฀ that฀ the฀ Company฀ was฀ the฀ primary฀
beneficiary.฀Accordingly,฀the฀Company฀continued฀to฀include฀
the฀SAC฀entities฀in฀the฀consolidated฀financial฀statements.
In฀February฀2004,฀SAC฀Holding฀Corporation฀restructured฀
the฀ financing฀ 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฀
beneficiary฀of฀those฀three฀subsidiaries฀at฀that฀date.
In฀ March฀ 2004,฀ SAC฀ Holding฀ Corporation฀ restructured฀
its฀ financing,฀ triggering฀ a฀ similar฀ reassessment฀ that฀ led฀
to฀a฀conclusion฀that฀SAC฀Holding฀Corporation฀was฀not฀a฀
Variable฀Interest฀Entity฀(VIE)฀and฀the฀Company฀ceased฀to฀
be฀the฀primary฀beneficiary฀of฀SAC฀Holding฀Corporation฀
and฀its฀remaining฀subsidiaries฀at฀that฀date.
Accordingly,฀at฀the฀dates฀the฀Company฀ceased฀to฀be฀the฀
primary฀ beneficiary,฀ it฀ deconsolidated฀ those฀ entities.฀
The฀deconsolidation฀was฀accounted฀for฀as฀a฀distribution฀
of฀ the฀ Company’s฀ interests฀ to฀ the฀ sole฀ shareholder฀ of฀
the฀ SAC฀ entities.฀Because฀ of฀ the฀Company’s฀ continuing฀
involvement฀with฀SAC฀Holding฀Corporation฀and฀its฀current฀
and฀former฀subsidiaries,฀the฀distributions฀do฀not฀qualify฀as฀
discontinued฀operations฀as฀defined฀by฀SFAS฀No.฀144.
Inter-company฀accounts฀and฀transactions฀have฀been฀eliminated.
Description of legal entities
AMERCO,฀ a฀ Nevada฀ corporation฀ (“AMERCO”),฀ is฀ the฀
holding฀company฀for:
฀ U-Haul฀International,฀Inc.฀(“U-Haul”),฀
฀ Amerco฀Real฀Estate฀Company฀(“Real฀Estate”),฀
Republic฀ Western฀ Insurance฀ Company฀ (“RepWest”)฀
and฀its฀wholly-owned฀subsidiary
North฀ American฀ Fire฀ &฀ Casualty฀ Insurance฀
Company฀(“NAFCIC”),
Oxford฀ Life฀ Insurance฀ Company฀ (“Oxford”)฀ and฀ its฀
wholly-owned฀subsidiaries
North฀American฀Insurance฀Company฀(“NAI”)฀
Christian฀ Fidelity฀ Life฀ Insurance฀ Company฀
(“CFLIC”),
Unless฀ the฀ context฀ otherwise฀ requires,฀ the฀ term฀
“Company”,฀“we”,฀“us”฀or฀“our”฀refers฀to฀AMERCO฀and฀
all฀of฀its฀legal฀subsidiaries.
Description of Operating Segments
AMERCO฀has฀five฀operating฀segments฀and฀four฀reportable฀
segments.฀ Our฀ reportable฀ segments฀ are฀ Moving฀ and฀
Storage฀ Operations,฀ Property฀ and฀ Casualty฀ Insurance,฀
Life฀Insurance฀and฀SAC฀Holdings.
Moving฀ and฀ Storage฀ operations฀ include฀ AMERCO,฀ U-
Haul฀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฀to฀the฀“do-it-yourself”฀mover฀
and฀management฀of฀self-storage฀properties฀owned฀by฀others.฀
Operations฀are฀conducted฀under฀the฀registered฀trade฀name฀
U-Haul®฀throughout฀the฀United฀States฀and฀Canada.
Property฀ and฀ Casualty฀ Insurance฀ includes฀ RepWest฀
and฀ its฀ wholly-owned฀ subsidiary.฀ RepWest฀ provides฀
loss฀ adjusting฀ and฀ claims฀ handling฀ for฀ U-Haul฀ through฀
฀
Amerco and Consolidated Entities
Notes to Consolidated Financial Statements