U-Haul 2007 Annual Report Download - page 93

AMERCO AND CONSOLIDATED ENTITIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
The hedging relationship of the interest rate swap agreements is not considered to be perfectly effective. Therefore, for
each reporting period an effectiveness test is performed. For the portion of the change in the interest rate swaps fair value
deemed effective, this is charged to accumulated other comprehensive income. The remaining ineffective portion is
charged to interest expense for the period. For the year ended March 31, 2007, the Company recorded $2.4 million to
interest income related to these swap agreements, all of which represented the ineffective component of the swap that
impacted earnings during the period.
Interest Rates
Interest rates and Company borrowings were as follows:
2007 2006 2005
Weighted average interest rate during the year 6.76% 5.95% 5.69%
Interest rate at year end
- 6.45% 6.43%
Maximum amount outstanding during the yea
r
$ 90,000 $ 158,011 $ 164,051
Average amount outstanding during the year $ 70,027 $ 96,710 $ 46,771
Facility fees $ 300 $ - $ -
(In thousands, except interest rates)
Revolving Credit Activity
Year Ended March 31,
Note 11: Stockholders’ Equity
The Serial common stock may be issued in such series and on such terms as the Board shall determine. The Serial
preferred stock may be issued with or without par value. The 6,100,000 shares of Series A, no par, non-voting, 8½%
cumulative preferred stock that are issued and outstanding are not convertible into, or exchangeable for, shares of any other
class or classes of stock of AMERCO. Dividends on the Series A preferred stock are payable quarterly in arrears and have
priority as to dividends over the common stock of AMERCO.
On September 13, 2006, the Company announced that its Board had authorized the Company to repurchase up to $50.0
million of its Common Stock. The stock may be repurchased by the Company from time to time on the open market
between September 13, 2006 and October 31, 2007. On March 9, 2007, the Board authorized an increase in the Company’ s
common stock repurchase program to a total aggregate amount, net of brokerage commissions, of $115.0 million (which
amount is inclusive of the $50.0 million common stock repurchase program approved by the Board in 2006). As with the
original program, the Company may repurchase stock from time to time on the open market until October 31, 2007. The
extent to which the Company repurchases its shares and the timing of such purchases will depend upon market conditions
and other corporate considerations. The purchases will be funded from available working capital. During the fourth quarter
of fiscal 2007, the Company repurchased 739,291 shares.
The repurchases made by the Company were as follows:
Period
January 1 - 31, 2007 - - - - 50,000,000
February 1 - 28, 2007 268,653 68.37$ 268,653 18,368,840$ 31,631,160$
March 1 - 31, 2007 (2) 470,638 65.31$ 470,638 30,737,262$ 65,893,898$
Fourth Quarter Total 739,291 66.42$ 739,291 49,106,102$
(1) Represents weighted average purchase price for the periods represented.
Maximum $ of
Shares That May Yet
be Repurchased
Under the Plan
(2) On March 9, 2007, the Board authorized an increase in the Company's common stock repurchase program to a total aggregate
amount, net of brokerage commissions, of $115.0 million (which amount is inclusive of the $50.0 million common stock
repurchase program approved by the Board in 2006).
Total # of Shares
Repurchased
Average
Price Paid
per Share (1)
Total # of Shares
Repurchased as Part
of Publicly
Announced Plan
Total $ of Shares
Repurchased as Part
of Publicly
Announced Plan
F-28