U-Haul 2007 Annual Report Download - page 97

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AMERCO AND CONSOLIDATED ENTITIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
Note 14: Employee Benefit Plans
Profit Sharing Plans
The Company provides tax-qualified profit sharing retirement plans for the benefit of eligible employees, former
employees and retirees in the U.S. and Canada. The plans are designed to provide employees with an accumulation of funds
for retirement on a tax-deferred basis and provide for annual discretionary employer contributions. Amounts to be
contributed are determined by the Chief Executive Officer (“CEO”) of the Company under the delegation of authority from
the Board, pursuant to the terms of the Profit Sharing Plan. No contributions were made to the profit sharing plan during
fiscal 2007, 2006 or 2005.
The Company also provides an employee savings plan which allows participants to defer income under Section 401(k)
of the Internal Revenue Code of 1986.
ESOP Plan
The Company sponsors a leveraged employee stock ownership plan (“ESOP”) that generally covers all employees with
one year or more of service. The ESOP shares initially were pledged as collateral for its debt which was originally funded
by U-Haul. As the debt is repaid, shares are released from collateral and allocated to active employees, based on the
proportion of debt service paid in the year. When shares are scheduled to be released from collateral, prorated over the year,
the Company reports compensation expense equal to the current market price of the shares scheduled to be released, and the
shares become outstanding for earnings per share computations. ESOP compensation expense was $4.7 million and $3.3
million for fiscal 2007 and 2006, respectively. Listed below is a summary of these financing arrangements as of fiscal year-
end:
Financing Date
Outstanding as
of March 31,
2007 2007 2006 2005
June, 1991 $ 10,433 $ 694 $ 1,070 $ 1,008
March, 1999 60 5 9 8
February, 2000 419 31 53 54
April, 2001 117 6 10 9
Interest Payments
(In thousands)
Shares are released from collateral and allocated to active employees based on the proportion of debt service paid in the
plan year. Contributions to the Plan Trust (“ESOT”) during fiscal 2007, 2006 and 2005 were $2.0 million, $2.3 million and
$2.1 million, respectively.
Shares held by the Plan were as follows:
2007 2006
Allocated shares 1,416 1,474
Unreleased shares 494 569
Fair value of unreleased shares $ 26,288 $ 41,726
Year Ended March 31,
(In thousands)
For purposes of the above schedule, the fair value of unreleased shares issued prior to 1992 is defined as the historical
cost of such shares. The fair value of unreleased shares issued subsequent to December 31, 1992 is defined as the trading
value of such shares as of March 31, 2007 and March 31, 2006, respectively.
F-32