U-Haul 2009 Annual Report Download

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Table of contents

  • Page 1

  • Page 2
    ... space. Adequate cash and liquidity during these times cannot be emphasized enough. We have managed our finances so that we are able to address growth initiatives and still maintain cash reserves. At March 31, 2009 we finished the year with over $255 million of cash and availability at our Moving...

  • Page 3
    ... Net Earnings Per Common Share, Basic & Diluted Preferred Stock Dividends Accrued Selected Balance Sheet Data: Property, Plant & Equipment, Net Total Assets Notes, Loans and Leases Payable Stockholders' Equity Closing Common Stock Price Per Share As Of March 31 High And Low Per Share Sales Price Of...

  • Page 4
    ... company (as defined in Rule 12b-2 of the Exchange Act). Yes Â... No 5 The aggregate market value of AMERCO common stock held by non-affiliates on September 30, 2008 was $235,669,452. The aggregate market value was computed using the closing price for the common stock trading on NASDAQ on such date...

  • Page 5
    ... Market Risk ...Financial Statements and Supplementary Data ...Changes in and Disagreements with Accountants on Accounting and Financial Disclosure...Controls and Procedures ...Other Information ...PART III Directors, Executive Officers and Corporate Governance ...Executive Compensation...Security...

  • Page 6
    ... trailers and 34,000 towing devices. This equipment and our U-Haul brand of self-moving products and services are available through our network of managed retail moving centers and independent U-Haul dealers. Independent U-Haul dealers receive rental equipment from the Company, act as a rental agent...

  • Page 7
    ...engineering staff is committed to making our trailers easy to tow, aerodynamic and fuel efficient. To provide our self-move customers with added value, our rental trucks and trailers are designed with fuel efficiency in mind. Many of our newer trucks are fitted with fuel economy gauges, another tool...

  • Page 8
    ...their self-storage needs. Description of Operating Segments AMERCO currently has three reportable segments. They are Moving and Storage (AMERCO, U-Haul and Amerco Real Estate Company ("Real Estate")), Property and Casualty Insurance and Life Insurance. SAC Holding II Corporation and its subsidiaries...

  • Page 9
    ... of customer-rated affiliates provides pack and load help, cleaning help, self-storage and similar services. Our goal is to further utilize our web based technology platform to increase service to consumers and businesses with needs in the moving and storage market. For more than sixty years, U-Haul...

  • Page 10
    ... of our eMove web sites. A significant driver of U-Haul's rental transaction volume is our utilization of an online reservation and sales system, through uhaul.com, eMove.com and our 24-hour 1-800-GO-U-HAUL telephone reservations system. The Company's 1-800-GO-U-HAUL telephone reservation line is...

  • Page 11
    ...of storage rental locations, cleanliness, security and price. Competition in the market areas in which we operate is significant and affects the occupancy levels, rental rates and operating expenses of our facilities. Competition might cause us to experience a decrease in occupancy levels, limit our...

  • Page 12
    ... our long term business strategy. The United States credit markets are continuing to experience a contraction. As a result of the tightening credit markets, we may not be able to obtain additional financing on favorable terms, or at all. If one or more of the financial institutions that support our...

  • Page 13
    ...noncash changes to our financial position. We are controlled by a small contingent of stockholders. As of March 31, 2009, Edward J. Shoen, Chairman of the Board of Directors and President of AMERCO, James P. Shoen, a director of AMERCO, and Mark V. Shoen, an executive officer of AMERCO, collectively...

  • Page 14
    ... may adversely affect our ability to sell or rent such property or to use the property as collateral for future borrowings. Compliance with changing regulations could substantially impair real property and equipment productivity and increase our costs. The Federal government likely will institute...

  • Page 15
    ...repair facilities located throughout the United States and Canada. These facilities are used primarily for the benefit of our Moving and Storage segment. SAC Holdings owns property, plant and equipment that are utilized in the sale of moving supplies, rental of selfstorage rooms and U-Haul equipment...

  • Page 16
    ...a material adverse effect on AMERCO's financial position or results of operations. Compliance with environmental requirements of federal, state and local governments may significantly affect Real Estate's business operations. Among other things, these requirements regulate the discharge of materials...

  • Page 17
    ... of Equity Securities As of March 31, 2009, there were approximately 3,200 holders of record of the common stock. AMERCO's common stock is listed on NASDAQ Global Select Market under the trading symbol "UHAL". The number of shareholders is derived using internal stock ledgers and utilizing Mellon...

  • Page 18
    ...invested on March 31, 2004 in the Company's Common Stock and in each of comparison indices. The graph reflects the closing price of the Common stock trading on NASDAQ on March 31, 2005, 2006, 2007, 2008, and 2009. COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN* Among AMERCO, The Dow Jones US Index And...

  • Page 19
    ...a distribution of AMERCO common stock. The Board also authorized us, using management's discretion, to buy back shares of former employee ESOP participants whose respective ESOP account balances are valued at more than $1,000 but who own less than 100 shares, at the then-prevailing market prices. No...

  • Page 20
    ... this Annual Report on Form 10-K. Listed below is selected financial data for AMERCO and consolidated entities for each of the last five years ended March 31: Years Ended March 31, 2009 Summary of Operations: Self-moving equipment rentals Self-storage revenues Self-moving and self-storage products...

  • Page 21
    ... selfstorage rental facilities and related moving and self-storage products and services. We are able to expand our distribution and improve customer service by increasing the amount of moving equipment and storage rooms available for rent, expanding the number of independent dealers in our network...

  • Page 22
    ...insured employee health and dental plans for Arizona employees of the Company through December 31, 2008. SAC Holding II Operating Segment SAC Holding II owns self-storage properties that are managed by U-Haul under property management agreements and act as independent U-Haul rental equipment dealers...

  • Page 23
    ... ability to fund its own operations and execute its business plan without any future subordinated financial support; therefore, the Company was no longer the primary beneficiary of SAC Holding II as of the date of Blackwater's contribution. Accordingly, at the date AMERCO ceased to have a variable...

  • Page 24
    ... the general state of the used vehicle market, the age and condition of the vehicle at the time of its disposal and depreciation rates with respect to the vehicle. Insurance Reserves Liabilities for life insurance and certain annuity and health policies are established to meet the estimated future...

  • Page 25
    ... to hold the security, quoted market prices, dealer quotes or discounted cash flows, industry factors, financial factors, and issuer specific information such as credit strength. Other-than-temporary impairment in value is recognized in the current period operating results. The Company's insurance...

  • Page 26
    ... the Board and constituents additional time to consider the effect of various implementation issues that have arisen, or that may arise, from the application of Statement 157. FASB Staff Position FAS 157-3, Determining the Fair Value of a Financial Asset When the Market for That Asset Is Not Active...

  • Page 27
    ...-Town moves and the extra day in fiscal 2008. Total rental equipment transactions decreased less than one percent during the year. Foreign currency exchange rates between the United States and Canada negatively affected our translated U.S. dollar results during the second half of fiscal 2009. During...

  • Page 28
    ...the insurance companies and U-Haul's invested short-term balances. As a result of the items mentioned above, revenues for AMERCO and its consolidated entities were $1,992.3 million for fiscal 2009, compared with $2,049.2 million for fiscal 2008. Listed below are revenues and earnings from operations...

  • Page 29
    ... major product lines for fiscal 2008 and fiscal 2007: Self-moving equipment rentals Self-storage revenues Self-moving and self-storage product and service sales Property management fees Life insurance premiums Property and casualty insurance premiums Net investment and interest income Other revenue...

  • Page 30
    ... on the sale of real estate of $12.7 million and $4.4 million in fiscal 2008 and fiscal 2007, respectively. Repair and maintenance costs included in operating expenses declined for the year due to the rotation of older trucks out of the active rental fleet. Benefits and operating expenses decreased...

  • Page 31
    ... sales of hitches, towing accessories and rental support items. Net investment and interest income decreased $5.0 million in fiscal 2009, compared with fiscal 2008 due to lower investment yields on the Company's invested short-term cash balances. The Company owns and manages self-storage facilities...

  • Page 32
    ... Company increased the total number of rooms rented, rooms available and square footage available in the same time period. Sales of self-moving and self-storage products and services decreased $0.9 million in fiscal 2008 as compared with fiscal 2007 primarily due to lower sales of hitch and towing...

  • Page 33
    ... the year due to the rotation of older trucks out of the active rental fleet. These declines were offset by other operating costs including personnel, property tax and certain legal-related expenses. Equity in the earnings of AMERCO's insurance subsidiaries increased $10.0 million in fiscal 2008 as...

  • Page 34
    The following table illustrates the change in unpaid loss and loss adjustment expenses on a gross basis. The first line represents gross reserves (reserves prior to the effects of reinsurance) as originally reported at the end of the stated year. The second section, reading down, represents ...

  • Page 35
    ... due to policy lapses and lower first year sales offset by an increase in life insurance premiums of $2.9 million due to increased sales. Oxford stopped writing new credit insurance business in 2006 and as a result, credit insurance premiums decreased by $5.9 million. Net investment income was $20...

  • Page 36
    ... Other financial assets Debt obligations (a) As of December 31, 2008 Life Insurance (a) $ 213,078 $ 341,427 1,546,490 19,197 $ 391,706 - 8,312 539,112 - At March 31, 2009, our Moving and Storage operations (AMERCO, U-Haul and Real Estate) had cash available under existing credit facilities of...

  • Page 37
    ... from SAC Holdings reducing their outstanding note payable with AMERCO. The decrease in self-moving equipment rental revenues and product and service sales is a principal contributor to the decline in operating cash flows. Net cash used in investing activities decreased $136.2 million in fiscal 2009...

  • Page 38
    ... SAC Holdings reducing their outstanding note payable with AMERCO. The decrease in self-moving equipment rental revenues and product and service sales is a principal contributor to the decline in operating cash flows. Property and Casualty Insurance Cash provided (used) by operating activities was...

  • Page 39
    ...category. For more information, see Note 16 Fair Value Measurements of the Notes to Consolidated Financial Statements. The available-for-sale securities held by the Company are recorded at fair value. These values are determined primarily from actively traded markets where prices are based either on...

  • Page 40
    .... Off Balance Sheet Arrangements The Company uses off-balance sheet arrangements in situations where management believes that the economics and sound business principles warrant their use. AMERCO utilizes operating leases for certain rental equipment and facilities with terms expiring substantially...

  • Page 41
    ... significant shareholder and director of AMERCO, has an interest in Mercury. The Company leases space for marketing company offices, vehicle repair shops and hitch installation centers from subsidiaries of SAC Holdings, 5 SAC and Galaxy. Total lease payments pursuant to such leases were $2.4 million...

  • Page 42
    ... unaudited financial statements for the eight quarters beginning April 1, 2007 and ending March 31, 2009. The Company believes that all necessary adjustments have been included in the amounts stated below to present fairly, and in accordance with GAAP, such results. Moving and Storage operations are...

  • Page 43
    ... investment portfolios expose the Company to interest rate risk. This interest rate risk is the price sensitivity of a fixed income security to changes in interest rates. As part of our insurance companies' asset and liability management, actuaries estimate the cash flow patterns of our existing...

  • Page 44
    ... Form 10-K, our Disclosure Controls were effective related to the above stated design purposes. Inherent Limitations on Effectiveness of Controls The Company's management, including the CEO and CAO, does not expect that our Disclosure Controls or our internal control over financial reporting will...

  • Page 45
    ... reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company's assets that could have a material effect on the financial statements. Management assessed our internal control over financial reporting as of March 31, 2009, the end of our...

  • Page 46
    ...standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of the Company as of March 31, 2009 and 2008, and the related consolidated statements of operations, changes in stockholders' equity, other comprehensive income (loss), and cash flows for each...

  • Page 47
    ... statement, which will be filed with the SEC within 120 days after the close of the 2009 fiscal year. The Company has adopted a code of ethics that applies to all directors, officers and employees of the Company, including the Company's principal executive officer and principal accounting officer...

  • Page 48
    ... Statements 2. Financial Statement Schedules required to be filed by Item 8 and Paragraph (d) of this Item 15: Condensed Financial Information of AMERCO - Schedule I Valuation and Qualifying Accounts - Schedule II Supplemental Information (For Property-Casualty Insurance Underwriters) - Schedule...

  • Page 49
    ...Agreement, dated as of March 15, 2004 among SAC Holding Corporation, SAC Holding II Corporation, AMERCO, U-Haul International, Inc., and Law Debenture Trust Company of New York U-Haul Dealership Contract Page or Method of Filing Incorporated by reference to AMERCO's Current Report on Form 8-K filed...

  • Page 50
    ... Contract between U-Haul Leasing & Sales Co., and U-Haul Moving Partners, Inc. Property Management Agreement between Mercury Partners, LP, Mercury 99, LLC and UHaul Self-Storage Management (WPC), Inc. Property Management Agreement between ThreeSAC Self-Storage Corporation and U-Haul Co. (Canada...

  • Page 51
    ... Commercial Finance Corp. Promissory Note, dated June 8, 2005 by Amerco Real Estate Company, Amerco Real Estate Company of Texas, Inc., Amerco Real Estate Company of Alabama, Inc., U-Haul Co. of Florida, Inc. and U-Haul International, Inc. Form of Mortgage, Security Agreement, Assignment of Rents...

  • Page 52
    ... and Sales Co., U-Haul Co. of Arizona, BTMU Capital Corporation, and Orange Truck Trust 2006 Guarantee executed June 7, 2006, made by U-Haul International, Inc. and AMERCO in favor of BTMU Capital Corp. and Orange Truck Trust 2006. First Amendment to Security Agreement (New Truck Term Loan Facility...

  • Page 53
    ... and Restated Security Agreement, dated as of March 12, 2007, to the Security Agreement, dated June 28, 2005, among U-Haul Leasing & Sales Co., U-Haul Company of Arizona and UHaul International, Inc. in favor of Merrill Lynch Commercial Finance Corporation. 2007-1 BOX TRUCK BASE INDENTURE, dated as...

  • Page 54
    ... Facility), dated February 8, 2008 among U-Haul Leasing & Sales Co., U-Haul Co. of Arizona and U-Haul International, Inc. and Merrill Lynch Commercial Finance Corporation Code of Ethics Subsidiaries of AMERCO 50 Page or Method of Filing Incorporated by reference to AMERCO's Quarterly Report on Form...

  • Page 55
    ... 31.1 Description Consent of BDO Seidman, LLP Consent of Semple, Marchal and Cooper, LLP Power of Attorney Rule 13a-14(a)/15d-14(a) Certificate of Edward J. Shoen, President and Chairman of the Board of AMERCO Rule 13a-14(a)/15d-14(a) Certificate of Jason A. Berg, Chief Accounting Officer of AMERCO...

  • Page 56
    ... was accounted for as a distribution to the sole shareholder of SAC Holding II Corporation. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the Company's internal control over financial reporting as of March 31, 2009, based...

  • Page 57
    ...accompanying consolidated balance sheets of SAC Holding II Corporation (A Wholly-Owned Subsidiary of Blackwater Investments, Inc.) as of October 31, 2007 and March 31, 2007 and the related consolidated statements of operations, stockholder's deficit, and cash flows for the seven months ended October...

  • Page 58
    ...Rental trailers and other rental equipment Rental trucks Less: Accumulated depreciation Total property, plant and equipment Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Accounts payable and accrued expenses AMERCO's notes, loans and leases payable Policy benefits and losses, claims...

  • Page 59
    ... policy acquisition costs Lease expense Depreciation, net of (gains) losses on disposals Total costs and expenses Earnings from operations Interest expense Fees and amortization on early extinguishment of debt Pretax earnings Income tax expense Net earnings Less: Preferred stock dividends Earnings...

  • Page 60
    ...Fair market value of cash flow hedges, net of tax Adjustment to post retirement benefit obligation Net earnings Preferred stock dividends: Series A ($2.13 per share for fiscal 2008) Treasury stock Contribution from related party SAC Holding II Corporation distribution Net activity Balance as...

  • Page 61
    ...ENTITIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) 2009 Comprehensive income (loss): Net earnings Other comprehensive income (loss), net of tax: Foreign currency translation Unrealized gain (loss) on investments Change in fair value of cash flow hedges Postretirement benefit obligation...

  • Page 62
    ... Preferred stock Real estate Mortgage loans Payments from notes and mortgage receivables Net cash used by investing activities Cash flow from financing activities: Borrowings from credit facilities Principal repayments on credit facilties Debt issuance costs Capital lease payments Leveraged Employee...

  • Page 63
    ... to conform to the current presentation. Note 2: Principles of Consolidation The consolidated balance sheets as of March 31, 2009 and 2008 include the accounts of AMERCO and its whollyowned subsidiaries. The March 31, 2009 statements of operations and cash flows include AMERCO and its wholly-owned...

  • Page 64
    ... Insurance. SAC Holding II was also a reportable segment through October 2007. Moving and Storage operations include AMERCO, U-Haul, and Real Estate and the wholly-owned subsidiaries of UHaul and Real Estate and consist of the rental of trucks and trailers, sales of moving supplies, sales of towing...

  • Page 65
    ... of time to maturity. Fair values of short-term investments, investments available-for-sale, long-term investments, mortgage loans and notes on real estate, and interest rate swap contracts are based on quoted market prices, dealer quotes or discounted cash flows. Fair values of trade receivables...

  • Page 66
    ... primarily of truck and trailer parts and accessories used to manufacture and repair rental equipment as well as products and accessories available for retail sale. Inventory is held at Company-owned locations; our independent dealers do not hold any of the Company's inventory. Inventory cost is...

  • Page 67
    ... value of surplus real estate, which is lower than market value at the balance sheet date, was $10.5 million and $10.3 million for fiscal 2009 and 2008, respectively, and is included in Investments, other. Receivables Accounts receivable include trade accounts from moving and self-storage customers...

  • Page 68
    ... in accounts payable on the consolidated balance sheets. Revenue Recognition Self-moving rentals are recognized for the period that trucks and moving equipment are rented. Self-storage revenues, based upon the number of paid storage contract days, are recognized as earned during the period. Sales of...

  • Page 69
    ... Dallas General Life Insurance Company ("DGLIC"), a subsidiary of Oxford, which will file on a stand alone basis until 2012. SAC Holdings files consolidated tax returns, which are in no way associated with AMERCO's consolidated returns. In accordance with SFAS 109, Accounting for Income Taxes, the...

  • Page 70
    AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) FASB Staff Position FAS 157-3, Determining the Fair Value of a Financial Asset When the Market for That Asset Is Not Active. This FSP applies to financial assets within the scope of accounting pronouncements ...

  • Page 71
    ... stock. Note 5: Reinsurance Recoverables and Trade Receivables, Net Reinsurance recoverables and trade receivables, net were as follows: March 31, 2009 Reinsurance recoverable Trade accounts receivable Paid losses recoverable Accrued investment income Premiums and agents' balances Independent dealer...

  • Page 72
    ...-sale investments at December 31, 2008 were as follows: Amortized Cost U.S. treasury securities and government obligations U.S. government agency mortgage-backed securities Obligations of states and political subdivisions Corporate securities Mortgage-backed securities Redeemable preferred stocks...

  • Page 73
    ... on security-specific analysis as of the balance sheet date and considers various factors including the length of time to maturity and the extent to which the fair value has been less than the cost, the financial condition and the near-term prospects of the issuer, and whether the debtor is current...

  • Page 74
    ... the Company's insurance subsidiaries. Real estate obtained through foreclosure and held for sale is carried at the lower of fair value at time of foreclosure or current estimated fair value less cost to sell. Equity investments are carried at cost and assessed for impairment. Insurance policy loans...

  • Page 75
    ...and 5.52% per annum. Amerco Real Estate Company and U-Haul International, Inc. have provided limited guarantees of these senior mortgages. The default provisions of these senior mortgages include non-payment of principal or interest and other standard reporting and change-in-control covenants. There...

  • Page 76
    ... and other standard reporting and change-in-control covenants. There are limited restrictions regarding our use of the funds. Construction / Working Capital Loans Amerco Real Estate Company and a subsidiary of U-Haul International, Inc. entered into a revolving credit construction loan effective...

  • Page 77
    ... balance was $86.6 million. The note is secured by the cargo vans and pickup trucks that were purchased and the operating cash flows associated with their operation. The Box Truck Note and Cargo Van/Pickup Note have the benefit of financial guaranty insurance policies that guarantee the timely...

  • Page 78
    AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) The Company manages exposure to changes in market interest rates. The Company's use of derivative instruments is limited to highly effective interest rate swaps to hedge the risk of changes in cash flows (...

  • Page 79
    ... in interest expense in the statement of operations. Refer to Note 3 Accounting Policies of the Notes to Consolidated Financial Statements. Interest Rates Interest rates and Company borrowings were as follows: Revolving Credit Activity Years Ended March 31, 2009 2008 2007 (In thousands, except...

  • Page 80
    ...a distribution of AMERCO common stock. The Board also authorized us, using management's discretion, to buy back shares of former employee ESOP participants whose respective ESOP account balances are valued at more than $1,000 but who own less than 100 shares, at the then-prevailing market prices. No...

  • Page 81
    ...cash flow hedge Change in postretirement benefit obligation Balance at March 31, 2009 $ $ (34,247) $ (1,919) (36,166) 8,583 (27,583) (16,030) (43,613) $ Unrealized Gain (Loss) on Investments 717 $ (1,072) (355) 1,946 1,591 (8,914) (7,323) $ Fair Market Postretirement Value of Benefit Obligation Cash...

  • Page 82
    ... to income before taxes was as follows: 2009 Statutory federal income tax rate Increase (reduction) in rate resulting from: State taxes, net of federal benefit Foreign rate differential Federal tax credits Interest on deferred tax Dividend received deduction Other Actual tax expense of operations...

  • Page 83
    ... STATEMENTS -- (CONTINUED) Significant components of the Company's deferred tax assets and liabilities were as follows: March 31, 2009 2008 (In thousands) Deferred tax assets: Net operating loss and credit carry forwards Accrued expenses Policy benefit and losses, claims and loss expenses payable...

  • Page 84
    ...fiscal 2009, 2008 or 2007. 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 ESOP that generally covers all employees with one year or more of service. The...

  • Page 85
    ..., 1992 is defined as the trading value of such shares as of March 31, 2009 and March 31, 2008, respectively. Insurance Plans Oxford insured various group life and group disability insurance plans covering employees of the Company. Premiums earned by Oxford on these policies were $3.3 million for the...

  • Page 86
    ... 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 assumed health care cost trend rate used...

  • Page 87
    ... 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 - Quoted prices for identical or similar financial instruments in markets that are not considered to be active, or similar financial instruments for...

  • Page 88
    ...Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Total Significant Unobservable Inputs (Level 3) (In thousands) Assets Short-term investments Fixed maturities - available for sale Preferred stock Common stock Total Liabilities Guaranteed...

  • Page 89
    AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Note 17: Reinsurance and Policy Benefits and Losses, Claims and Loss Expenses Payable During their normal course of business, our insurance subsidiaries assume and cede reinsurance on both a coinsurance and a...

  • Page 90
    ...certain of these agreements, RepWest holds letters of credit at years-end in the amount of $3.6 million from re-insurers and has issued letters of credit in the amount of $13.4 million in favor of certain ceding companies. Policy benefits and losses, claims and loss expenses payable for Property and...

  • Page 91
    ... Company leases a portion of its rental equipment and certain of its facilities under operating leases with terms that expire at various dates substantially through 2016, with the exception of one land lease expiring in 2034. At March 31, 2009, AMERCO has guaranteed $183.4 million of residual values...

  • Page 92
    ... current and former members of the AMERCO Board of Directors, including Edward J. Shoen, Mark V. Shoen and James P. Shoen as Defendants. AMERCO is named as a nominal Defendant in the case. The complaint alleges breach of fiduciary duty, self-dealing, usurpation of corporate opportunities, wrongful...

  • Page 93
    ... to receive a portion of the appreciation realized upon, among other things, the sale of such property by SAC Holdings. To date, no excess cash flows related to these arrangements have been earned or paid. During fiscal 2009, AMERCO and U-Haul held various junior notes with Private Mini Storage...

  • Page 94
    ... significant shareholder and director of AMERCO, has an interest in Mercury. The Company leases space for marketing company offices, vehicle repair shops and hitch installation centers from subsidiaries of SAC Holdings, 5 SAC and Galaxy. Total lease payments pursuant to such leases were $2.4 million...

  • Page 95
    AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Note 21: Statutory Financial Information of Insurance Subsidiaries Applicable laws and regulations of the State of Arizona require Property and Casualty Insurance and Life Insurance to maintain minimum capital...

  • Page 96
    ... Geographic Area Financial information by geographic area for fiscal 2009 is as follows: Year Ended March 31, 2009 Total revenues Depreciation and amortization, net of (gains) losses on disposal Interest expense Pretax earnings Income tax expense Identifiable assets United States Canada Consolidated...

  • Page 97
    ...March 31, 2007 statements of operations and cash flows include the accounts of AMERCO and its wholly-owned subsidiaries and SAC Holding II. AMERCO's three current reportable segments are (and former reportable segment was): (a) Moving and Storage, comprised of AMERCO, U-Haul, and Real Estate and the...

  • Page 98
    ...FINANCIAL STATEMENTS -- (CONTINUED) Note 23A: Financial Information by Consolidating Industry Segment: Consolidating balance sheets by industry segment as of March 31, 2009 are as follows: Moving & Storage Property & Casualty Insurance (a) Life Insurance (a) Eliminations AMERCO Consolidated Moving...

  • Page 99
    ... AMERCO U-Haul Real Estate Eliminations Liabilities: Accounts payable and accrued expenses AMERCO's notes, loans and leases payable Policy benefits and losses, claims and loss expenses payable Liabilities from investment contracts Other policyholders' funds and liabilities Deferred income...

  • Page 100
    ...8,524 $ $ 206,622 U-Haul Real Estate Eliminations Moving & Storage Consolidated Property & Casualty Insurance (a) Life Insurance (a) AMERCO Consolidated Assets: Cash and cash equivalents Reinsurance recoverables and trade receivables, net Notes and mortgage receivables, net Inventories, net...

  • Page 101
    ... Real Estate Eliminations Liabilities: Accounts payable and accrued expenses AMERCO's notes and loans payable Policy benefits and losses, claims and loss expenses payable Liabilities from investment contracts Other policyholders' funds and liabilities Deferred income Deferred income taxes...

  • Page 102
    ... AMERCO U-Haul Real Estate Eliminations Revenues: Self-moving equipment rentals Self-storage revenues Self-moving & self-storage products & service sales Property management fees Life insurance premiums Property and casualty insurance premiums Net investment and interest income...

  • Page 103
    ...049,174 Self-moving equipment rentals $ Self-storage revenues Self-moving & self-storage products & service sales Property management fees Life insurance premiums Property and casualty insurance premiums Net investment and interest income Other revenue Total revenues Costs and expenses: 10...

  • Page 104
    ...Self-moving equipment rentals $ Self-storage revenues Self-moving & self-storage products & service sales Property management fees Life insurance premiums Property and casualty insurance premiums Net investment and interest income Other revenue Total revenues Costs and expenses: Operating...

  • Page 105
    ...Equity securities Preferred stock Real estate Mortgage loans Proceeds from sales of: Property, plant and equipment Short term investments Fixed maturities investments Equity securities Preferred stock Real estate Mortgage loans Payments from notes and mortgage receivables Net cash provided (used) by...

  • Page 106
    ... Elimination Moving & Storage Consolidated Life Insurance (a) AMERCO Consolidated Property & Casualty Insurance (a) Cash flows from financing activities: Borrowings from credit facilities Principal repayments on credit facilities Debt issuance costs Capital lease payments Leveraged Employee Stock...

  • Page 107
    ...Equity securities Preferred stock Real estate Mortgage loans Proceeds from sales of: Property, plant and equipment Short term investments Fixed maturities investments Equity securities Preferred stock Real estate Mortgage loans Payments from notes and mortgage receivables Net cash provided (used) by...

  • Page 108
    ...,748 U-Haul Real Estate Elimination Elimination SAC Holding II (b) Moving & Storage Consolidated Life Insurance (a) AMERCO Consolidated Property & Casualty Insurance (a) Elimination Total Consolidated Cash flows from financing activities: Borrowings from credit facilities Principal repayments...

  • Page 109
    ...from sales of: Property, plant and equipment Short term investments Fixed maturity investments Cash received in excess of purchase of company acquired Preferred stock Real estate Mortgage loans Payments from notes and mortgage receivables Net cash provided (used) by investing activities (a) Balance...

  • Page 110
    ... AMERCO U-Haul Real Estate Elimination Elimination Moving & Storage Consolidated Life Insurance (a) Property & Casualty Insurance (a) Cash flows from financing activities: Borrowings from credit facilities Principal repayments on credit facilities Debt issuance costs Leveraged Employee Stock...

  • Page 111
    AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Note 24: Subsequent Events Preferred Stock Dividends On May 1, 2009, the Board declared a regular quarterly cash dividend of $0.53125 per share on the Company's Series A, 8 1/2 percent Preferred Stock. The ...

  • Page 112
    SCHEDULE I CONDENSED FINANCIAL INFORMATION OF AMERCO BALANCE SHEETS March 31, 2009 (In thousands) ASSETS Cash and cash equivalents Investment in ...Preferred stock Common stock Additional paid-in capital Accumulated other comprehensive loss Retained earnings: Beginning of period Net earnings...

  • Page 113
    ... per share data) Revenues: Net interest income from subsidiaries Expenses: Operating expenses Other expenses Total expenses Equity in earnings of subsidiaries and SAC Holding II (a) Interest income Pretax earnings Income tax expense Net earnings Less: Preferred stock dividends Earnings available to...

  • Page 114
    ...) (201) 35,182 2009 Cash flows from operating activities: Net earnings Change in investments in subsidiaries and SAC Holding II (a) Adjustments to reconcile net earnings to cash provided by operations: Depreciation Deferred income taxes Net change in other operating assets and liabilities: Prepaid...

  • Page 115
    ... of Significant Accounting Policies AMERCO, a Nevada corporation, was incorporated in April, 1969, and is the holding Company for U-Haul International, Inc., Amerco Real Estate Company, Republic Western Insurance Company and Oxford Life Insurance Company. The financial statements of the Registrant...

  • Page 116
    SCHEDULE II AMERCO AND CONSOLIDATED SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS Years Ended March 31, 2009, 2008 and 2007 Balance at Beginning of Year Year ended March 31, 2009 Allowance for doubtful accounts (deducted from trade receivable) Allowance for doubtful accounts (deducted from notes ...

  • Page 117
    SCHEDULE V AMERCO AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL INFORMATION (FOR PROPERTY-CASUALTY INSURANCE UNDERWRITERS) Years Ended December 31, 2008, 2007 AND 2006 Year Reserves for Unpaid Claims Deferred Policy and Adjustment Affiliation with Registrant Acquisition Cost Expenses Discount if any...

  • Page 118
    ... requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. AMERCO By: /s/ Edward J. Shoen Edward J. Shoen Chairman of the Board and President Dated: June 2, 2009

  • Page 119
    ...the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Signature Title Date /s/ EDWARD J. SHOEN Chairman of the Board and President (Principal Executive Officer) Chief Accounting...

  • Page 120
    ... AMERCO and consolidated subsidiaries (the "Company") of our reports dated June 2, 2009, relating to the consolidated financial statements and financial statement schedules, and the effectiveness of the Company's internal control over financial reporting, which appear in the Company's Annual Report...

  • Page 121
    ...) of AMERCO and consolidating entities ("Company") of our report dated May 29, 2008, relating to the consolidated financial statements of SAC Holding II Corporation (A Wholly-Owned Subsidiary of Blackwater Investments, Inc.) and its subsidiaries consolidated in the Company's Annual Report on Form 10...

  • Page 122
    ... information; and Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting. (b) /s/ Edward J. Shoen Edward J. Shoen President and Chairman of the Board of AMERCO Date: June 2, 2009

  • Page 123
    ...and report financial information; and Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting. (b) /s/ Jason A. Berg Jason A. Berg Chief Accounting Officer of AMERCO Date: June 2, 2009

  • Page 124
    ... Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. AMERCO, a Nevada corporation /s/ Edward J. Shoen Edward J. Shoen President and Chairman of the Board Date...

  • Page 125
    ... Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. AMERCO, a Nevada corporation /s/ Jason A. Berg Jason A. Berg Chief Accounting Officer Date: June 2, 2009

  • Page 126
    ...Director of U-Haul, Amerco Real Estate Company and Republic Western Insurance Company Director of AMERCO Director of AMERCO Director of AMERCO, U-Haul and Amerco Real Estate Company Director of AMERCO Director of AMERCO Director of AMERCO, U-Haul, Amerco Real Estate Company and Oxford Life Insurance...

  • Page 127
    ... in the short-term rental of trucks, trailers and related equipment to the do-it-yourself mover. The Company also sells related moving products and services, and rents self-storage facilities and general rental items. In addition, the Company's insurance subsidiaries engage in the life and property...

  • Page 128