U-Haul 2011 Annual Report Download - page 79

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AMERCO AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
March 31, 2011 March 31, 2010
Loss recognized in income on interest rate contracts $ 23,856 $ 25,242
Gain recognized in AOCI on interest rate contracts (effective portion) $ (2,411) $ (23,352)
Loss reclassified from AOCI into income (effective portion) $ 24,632 $ 26,770
Gain recognized in income on interest rate contracts (ineffective portion and
amount excluded from effectiveness testing) $ (775) $ (1,528)
(In thousands)
The Effect of Interest Rate
Contracts on the Statements of Operations
Gains or losses recognized in income on derivatives are recorded as interest expense in the statement of
operations. At March 31, 2011, the Company expects to reclassify $22.1 million of net losses on interest rate
contracts from accumulated other comprehensive income to earnings that will offset interest payments over the
next twelve months. Please see Note 3, Accounting Policies in the Notes to Consolidated Financial Statements.
Note 12: Stockholders’ Equity
The Serial common stock may be issued in such series and on such terms as the AMERCO Board of
Directors (the “Board”) shall determine. The Serial preferred stock may be issued with or without par value. The
6,100,000 shares of Series A Preferred that are issued and outstanding are not convertible into, or
exchangeable for, shares of any other class or classes of stock of AMERCO. Dividends on the Series A
Preferred are payable quarterly in arrears and have priority as to dividends over the common stock of AMERCO.
Between January 1, 2009 and March 31, 2011 our insurance subsidiaries purchased 308,300 shares of
Series A Preferred on the open market for $7.2 million.
On April 15, 2011 the Company provided notice of the call for redemption of all 6,100,000 shares of its
issued and outstanding Series A Preferred stock at a redemption price of $25 per share plus accrued dividends
through the date of redemption which was June 1, 2011. The total amount paid pursuant to the redemption was
$155.7 million consisting of $152.5 million for the call price of $25 per share plus $3.2 million in accrued
dividends.
F-23