U-Haul 2011 Annual Report Download - page 77

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AMERCO AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
Other Obligations
The Company entered into capital leases for new equipment between April 2008 and February 2011, with
terms of the leases between 3 and 7 years. At March 31, 2011, the balance of these leases was $57.5 million.
In January 2010, the Company entered into a $0.5 million premium financing arrangement for two years
expiring in December 2011 with a fixed rate of 3.37%. The Company entered into a $2.5 million premium
financing arrangement for one year expiring in April 2011 at a rate of 3.25%. At March 31, 2011 the outstanding
balance was $0.3 million.
In February 2011, the Company and US Bank, National Association (the “Trustee”) entered into the U-Haul
Investors Club Indenture. The Company and the Trustee entered into this indenture to provide for the issuance
of notes (“U-Notes”) by the Company directly to investors over our proprietary website, uhaulinvestorsclub.com.
The U-Notes will be secured by various types of collateral including rental equipment and real estate. U-Notes
will be issued in smaller series that will vary as to principal amount, interest rate and maturity. U-Notes are
obligations of the Company and secured by the associated collateral; they are not guaranteed by any of the
Company’s affiliates or subsidiaries.
At March 31, 2011 the aggregate outstanding principal balance of the U-Notes issued was $0.2 million with
interest rates between 4.00% and 7.90% and maturity dates between 2014 and 2026.
Annual Maturities of Notes, Loans and Leases Payable
The annual maturities of long-term debt as of March 31, 2011 for the next five years and thereafter are as
follows:
2012 2013 2014 2015 2016 Thereafter
Notes, loans and leases payable, secured $ 147,859 $ 244,326 $ 167,983 $ 62,941 $ 472,131 $ 302,602
March 31,
(In thousands)
Note 10: Interest on Borrowings
Interest Expense
Components of interest expense include the following:
2011 2010 2009
Interest expense $ 60,701 $ 63,516 $ 76,670
Capitalized interest (425) (609) (693)
Amortization of transaction costs 4,249 5,198 4,908
Interest expense resulting from derivatives 23,856 25,242 17,585
Total interest expense $ 88,381 $ 93,347 $ 98,470
Years Ended March 31,
(In thousands)
Interest paid in cash including payments related to derivative contracts, amounted to $78.6 million, $64.4
million and $90.7 million for fiscal 2011, 2010 and 2009, respectively.
F-21