U-Haul 2011 Annual Report Download - page 82

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AMERCO AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
A reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period are
as follows:
Unrecognized
Tax Benefits
(In thousands)
Unrecognized tax benefits as of March 31, 2010
$
8,290
Additions based on tax positions related to the current year 1,873
Reductions for tax positions of prior years (642)
Settlements (18)
Unrecognized tax benefits as of March 31, 2011
$
9,503
The Company recognizes interest related to unrecognized tax benefits as interest expense, and penalties as
operating expenses. At April 1, 2010, the amount of interest and penalties accrued on unrecognized tax benefits
was $3.5 million, net of tax. During the current year we recorded expense from interest in the amount of $0.3
million, net of tax. At March 31, 2011, the amount of interest and penalties accrued on unrecognized tax benefits
was $3.8 million, net of tax.
The Company files income tax returns in the U.S. federal jurisdiction, and various states and foreign
jurisdictions. With some exceptions, the Company is no longer subject to audit for years prior to the fiscal year
ended March 31, 2008.
Note 15: Employee Benefit Plans
Profit Sharing Plans
The Company provides tax-qualified profit sharing retirement plans for the benefit of eligible employees,
former employees and retirees in the U.S. and Canada. The plans are designed to provide employees with an
accumulation of funds for retirement on a tax-deferred basis and provide for annual discretionary employer
contributions. Amounts to be contributed are determined by the President and Chairman of the Board of the
Company under the delegation of authority from the Board, pursuant to the terms of the Profit Sharing Plan. No
contributions were made to the profit sharing plan during fiscal 2011, 2010 or 2009.
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 ESOP shares initially were pledged as collateral for its debt which was originally funded by U-Haul.
As the debt is repaid, shares are released from collateral and allocated to active employees, based on the
proportion of debt service paid in the year. When shares are scheduled to be released from collateral, prorated
over the year, the Company reports compensation expense equal to the current market price of the shares
scheduled to be released, and the shares become outstanding for earnings per share computations. ESOP
compensation expense was $3.9 million, $2.4 million and $2.9 million for fiscal 2011, 2010 and 2009,
respectively. Listed below is a summary of these financing arrangements as of fiscal year-end:
F-26