U-Haul 2011 Annual Report Download - page 72

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AMERCO AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
The unrealized losses of more than twelve months in the table on the previous page are considered
temporary declines. The Company tracks each investment with an unrealized loss and evaluates them on an
individual basis for other-than-temporary impairments including obtaining corroborating opinions from third party
sources, performing trend analysis and reviewing management’s future plans. Certain of these investments had
declines determined by management to be other-than-temporary and the Company recognized these write-
downs through earnings in the amounts of $0.8 million, $2.2 million and $0.4 million in fiscal 2011, 2010 and
2009, respectively.
The investment portfolio primarily consists of corporate securities and U.S. government securities. The
Company believes it monitors its investments as appropriate. The Company’s methodology of assessing other-
than-temporary impairments is based on security-specific analysis as of the balance sheet date and considers
various factors including the length of time to maturity, 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 on its
contractually obligated interest and principal payments. Nothing has come to management’s attention that would
lead to the belief that each issuer would not have the ability to meet the remaining contractual obligations of the
security, including payment at maturity. The Company does not have the intent to sell its fixed maturity and
common stock investments for a period of time sufficient to allow the Company to recover its costs.
The portion of other-than-temporary impairment related to a credit loss is recognized in earnings. The
significant inputs utilized in the evaluation of mortgage backed securities credit losses include ratings,
delinquency rates, and prepayment activity. The significant inputs utilized in the evaluation of asset backed
securities credit losses include the time frame for principal recovery and the subordination and value of the
underlying collateral.
Credit losses recognized in earnings for which a portion of an other-than-temporary impairment was
recognized in other comprehensive income were as follows:
Credit Loss
(In thousands)
Balance at March 31, 2010 $ 552
Additions:
Other-than-temporary impairment not previously recognized -
Balance at March 31, 2011 $ 552
The adjusted cost and estimated market value of available-for-sale investments at March 31, 2011 and 2010,
respectively, by contractual maturity, were as follows:
Amortized
Cost
Estimated
Market
Value
Amortized
Cost
Estimated
Market
Value
Due in one year or less $ 45,149 $ 45,760 $ 36,384 $ 36,804
Due after one year through five years 153,389 161,685 153,816 160,329
Due after five years through ten years 128,973 136,343 105,491 109,591
Due after ten years 249,919 259,132 196,197 201,154
577,430 602,920 491,888 507,878
Mortgage backed securities 6,740 6,848 9,250 8,862
Redeemable preferred stocks 31,190 32,080 18,723 16,775
Equity securities 28,293 25,958 17,840 18,370
Less: Preferred stock of AMERCO held by subsidiaries (7,190) (7,997) (2,185) (2,567)
$ 636,463 $ 659,809 $ 535,516 $ 549,318
March 31, 2011 March 31, 2010
(In thousands)
F-16