U-Haul 2007 Annual Report Download - page 74

AMERCO AND CONSOLIDATED ENTITIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
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”) and its wholly-owned subsidiary
Dallas General Life Insurance Company (“DGLIC”)
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 four reportable segments. They are Moving and Storage, Property and Casualty Insurance, Life
Insurance and SAC Holding II.
Moving and Storage operations include AMERCO, U-Haul, and Real Estate and the wholly-owned subsidiaries of U-
Haul and Real Estate and consist of the rental of trucks and trailers, sales of moving supplies, sales of towing accessories,
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 regional offices across North America. RepWest also underwrites components of
the Safemove, Safetow and Safestor protection packages to U-Haul customers.
Life Insurance includes Oxford and its wholly-owned subsidiaries. Oxford originates and reinsures annuities, ordinary
life and Medicare supplement insurance. Oxford also administers the self-insured employee health and dental plans for
Arizona employees of the Company.
SAC Holding Corporation and its subsidiaries, and SAC Holding II Corporation and its subsidiaries, collectively
referred to as “SAC Holdings”, own self-storage properties that are managed by U-Haul under property management
agreements and act as independent U-Haul rental equipment dealers. AMERCO, through its subsidiaries, has contractual
interests in certain SAC Holdings’ properties entitling AMERCO to potential future income based on the financial
performance of these properties. With respect to SAC Holding II, AMERCO is considered the primary beneficiary of these
contractual interests. Consequently, we include the results of SAC Holding II in the consolidated financial statements of
AMERCO, as required by FIN 46(R).
Note 3: Accounting Policies
Use of Estimates
The preparation of financial statements in conformity with the accounting principles generally accepted in the United
States requires management to make estimates and judgments that affect the amounts reported in the financial statements
and accompanying notes. The accounting policies that we deem most critical to us and that require management’ s most
difficult and subjective judgments include the principles of consolidation, the recoverability of property, plant and
equipment, the adequacy of insurance reserves, the recognition and measurement of impairments for investments accounted
for under SFAS No. 115, and the recognition and measurement of income tax assets and liabilities. The actual results
experienced by the Company may differ from management’ s estimates.
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