U-Haul 2004 Annual Report Download - page 16

SAC entities that falsely improved AMERCO's Ñnancial statements, and that AMERCO failed to disclose
the transactions properly. The actions are at a very early stage. The Klug action has not been served. In the
other three actions, AMERCO does not currently have a deadline by which it must respond to the complaints.
Management has stated that it intends to defend these cases vigorously.
Department of Labor
On May 18, 2004, the United States Department of Labor (""DOL'') completed its investigation of the
AMERCO Employee Savings, ProÑt Sharing, and Employee Stock Ownership Plan (the ""Plan''), its
Ñduciaries, and other third parties. The Company has remedied or resolved all issues raised by the DOL in the
investigation.
Securities and Exchange Commission
The Securities and Exchange Commission (""SEC'') has issued a formal order of investigation to
determine whether the Company has violated the Federal Securities laws. On January 7, 2003, the Company
received the Ñrst of several subpoenas issued by the SEC to the Company. SAC Holdings, the Company's
current and former auditors and others have also received one or more subpoenas relating to this matter. The
Company is cooperating with the SEC and is facilitating the expeditious review of its Ñnancial statements and
any other issues that may arise.
The Company has produced well in excess of one million documents to the SEC and continues to respond
to requests for additional documents. Notwithstanding the Company's ongoing document production, on
March 5, 2004, the SEC commenced an action against the Company in the United States District Court for
the District of Nevada seeking an order compelling the Company to comply with the SEC's document
requests (""Subpoena Enforcement Action''). The Company disputed whether there was any basis for the
Subpoena Enforcement Action. The Company obtained an order from the Bankruptcy Court overseeing the
Company's Chapter 11 proceedings that AMERCO complied with the SEC's subpoenas at issue and, as a
result of this order, the District Court denied the SEC's application. The SEC recently Ñled a motion for
reconsideration of the Bankruptcy Court's order, which AMERCO has opposed. There has been no ruling on
the motion to reconsider.
Environmental
A subsidiary of U-Haul, INW Company (""INW'') owns one property located within two diÅerent state
hazardous substance sites in the State of Washington. The sites are referred to as the ""Yakima Valley Spray
Site'' and the ""Yakima Railroad Area''. INW has been named as a ""potentially liable party'' under state law
with respect to this property as it relates to both sites. As a result of the cleanup costs of approximately
$5 million required by the State of Washington, INW Ñled for reorganization under the federal bankruptcy
laws in May of 2001. The potentially liable parties, including INW, have agreed to share the cost of the
environmental cleanup necessary at the Yakima site. INW's percentage share of the cost is 17% or $879,000.
Due to the bankrupt status of INW, U-Haul has agreed to be responsible for paying INW's share, of which
$706,000 has been paid through May 21, 2004.
Emergence from Chapter 11 Restructuring
The disclosure included under the caption ""Business Ì Recent Developments Ì Emergence from
Chapter 11 Restructuring'' is incorporated into this section by reference.
Item 4. Submission of Matters to a Vote of Security Holders
No matter was submitted to a vote of the security holders of AMERCO or U-Haul during the fourth
quarter of the Ñscal year covered by this report, through the solicitation of proxies or otherwise.
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