U-Haul 2007 Annual Report Download - page 99

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AMERCO AND CONSOLIDATED ENTITIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
The discount rate assumptions in computing the information above were as follows:
2007 2006 2005
Accumulated postretirement benefit obligation 5.75% 5.75% 5.75%
Year Ended March 31,
(In percentages)
The discount rate represents the expected yield on a portfolio of high grade (AA to AAA rated or equivalent) fixed
income investments with cash flow streams sufficient to satisfy benefit obligations under the plan when due. Fluctuations in
the discount rate assumptions primarily reflect changes in U.S. interest rates. The estimated health care cost inflation rates
used to measure the accumulated post retirement benefit obligation was 6.50% in fiscal 2007, which was projected to
decline annually to an ultimate rate of 4.50% in fiscal 2014.
If the estimated health care cost inflation rate assumptions were increased by one percent, the accumulated post
retirement benefit obligation as of fiscal year-end would increase by approximately $209,127 and the total of the service
cost and interest cost components would increase by $41,789. A decrease in the estimated health care cost inflation rate
assumption of one percent would decrease the accumulated post retirement benefit obligation as of fiscal year-end by
$235,499 and the total of the service cost and interest cost components would decrease by $47,631.
Post employment benefits provided by the Company, other than retirement, are not material.
Future net benefit payments are expected as follows:
Amount
(In thousands)
Year-ended:
2008 $ 387
2009 443
2010 517
2011 586
2012 668
2013 through 2017 4,810
Total $ 7,411
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