U-Haul 2005 Annual Report Download - page 62

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61 I AMERCO ANNUAL REPORT
The฀ Company฀ sold฀ available-for-sale฀ securities฀ with฀ a฀
fair฀ value฀ of฀ $167.5฀ million฀ in฀ 2004,฀ $267.9฀ million฀ in฀
2003฀ and฀ $248.0฀ million฀ in฀ 2002.฀ The฀ gross฀ realized฀
gains฀ on฀ these฀ sales฀ totaled฀ $2.3฀ million฀ in฀ 2004,฀ $5.3฀
million฀in฀2003฀and฀$6.0฀million฀in฀2002.฀The฀company฀
realized฀ gross฀ losses฀ on฀ these฀ sales฀ of฀ $1.7฀ million฀ in฀
2004,฀ $3.1฀ million฀ in฀ 2003฀ and฀ $2.4฀ million฀ in฀ 2002.฀
The฀ company฀ recognized฀ a฀ write-down฀ of฀ investments฀
due฀to฀other฀than฀temporary฀declines฀on฀available-for-sale฀
investments฀of฀approximately฀$4.3฀million฀in฀2004,฀$5.0฀
million฀in฀2003฀and฀$9.8฀million฀in฀2002.฀The฀unrealized฀
losses฀presented฀in฀the฀tables฀above฀that฀are฀more฀than฀12฀
months฀are฀considered฀temporary฀declines.฀The฀Company฀
tracks฀each฀ of฀these฀investments฀ and฀ evaluates฀ them฀on฀
an฀ individual฀ basis฀ for฀ other฀ than฀ temporary฀ declines฀
including฀ obtaining฀ corroborating฀ opinions฀ from฀ third฀
party฀ sources,฀ performing฀ trend฀ analysis฀ and฀ reviewing฀
underlying฀management’s฀future฀plans.
AMERCO AND CONSOLIDATED ENTITIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
opinions from third party sources, performing trend analysis and reviewing underlying management's future
plans.
The adjusted cost and estimated market value of available-for-sale investments in debt securities at
December 31, 2004 and December 31, 2003, by contractual maturity, were as follows:
December 31, 2004 December 31, 2003
Estimated Estimated
Amortized Market Amortized Market
Cost Value Cost Value
(In thousands)
Due in one year or less ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $110,679 $112,058 $ 50,698 $ 50,847
Due after one year through five years ÏÏÏÏÏÏÏÏÏÏ 181,455 185,890 270,186 283,711
Due after five years through ten yearsÏÏÏÏÏÏÏÏÏÏ 109,108 113,076 132,009 137,969
After ten years ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 98,200 106,824 100,888 108,795
499,442 517,848 553,781 581,322
Mortgage-backed securitiesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 78,329 77,981 74,268 74,636
Redeemable preferred stocks ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 30,058 31,278 45,861 47,216
Equity securitiesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 7,476 6,641 243 349
$615,305 $633,748 $674,153 $703,523
Investments, other
The carrying value of other investments at fiscal year-ends was as follows:
March 31,
2005 2004
(In thousands)
Short-term investments ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $193,525 $187,560
Mortgage loans, net ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 51,196 53,496
Real estate ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 93,178 101,421
Policy loansÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5,185 5,698
Other ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2,123 970
$345,207 $349,145
Short-term investments primarily consist of securities with fixed maturities of three months to one year
from acquisition date.
Mortgage loans are carried at the unpaid balance, less an allowance for possible losses and any
unamortized premium or discount. The allowance for possible losses was $1.0 million and $1.1 million as of
March 31, 2005 and 2004, respectively. The estimated fair value of these loans at March 31, 2005 and 2004
approximated the carrying value. These loans represent first lien mortgages held by the Company's insurance
subsidiaries.
Real estate obtained through foreclosures and held for sale and equity investments are carried at the
lower of cost or fair value.
Insurance policy loans are carried at their unpaid balance.
F-18
AMERCO AND CONSOLIDATED ENTITIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
opinions from third party sources, performing trend analysis and reviewing underlying management's future
plans.
The adjusted cost and estimated market value of available-for-sale investments in debt securities at
December 31, 2004 and December 31, 2003, by contractual maturity, were as follows:
December 31, 2004 December 31, 2003
Estimated Estimated
Amortized Market Amortized Market
Cost Value Cost Value
(In thousands)
Due in one year or less ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $110,679 $112,058 $ 50,698 $ 50,847
Due after one year through five years ÏÏÏÏÏÏÏÏÏÏ 181,455 185,890 270,186 283,711
Due after five years through ten yearsÏÏÏÏÏÏÏÏÏÏ 109,108 113,076 132,009 137,969
After ten years ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 98,200 106,824 100,888 108,795
499,442 517,848 553,781 581,322
Mortgage-backed securitiesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 78,329 77,981 74,268 74,636
Redeemable preferred stocks ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 30,058 31,278 45,861 47,216
Equity securitiesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 7,476 6,641 243 349
$615,305 $633,748 $674,153 $703,523
Investments, other
The carrying value of other investments at fiscal year-ends was as follows:
March 31,
2005 2004
(In thousands)
Short-term investments ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $193,525 $187,560
Mortgage loans, net ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 51,196 53,496
Real estate ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 93,178 101,421
Policy loansÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5,185 5,698
Other ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2,123 970
$345,207 $349,145
Short-term investments primarily consist of securities with fixed maturities of three months to one year
from acquisition date.
Mortgage loans are carried at the unpaid balance, less an allowance for possible losses and any
unamortized premium or discount. The allowance for possible losses was $1.0 million and $1.1 million as of
March 31, 2005 and 2004, respectively. The estimated fair value of these loans at March 31, 2005 and 2004
approximated the carrying value. These loans represent first lien mortgages held by the Company's insurance
subsidiaries.
Real estate obtained through foreclosures and held for sale and equity investments are carried at the
lower of cost or fair value.
Insurance policy loans are carried at their unpaid balance.
F-18
Amerco and Consolidated Entities
Notes to Consolidated Financial Statements, continued
The฀adjusted฀cost฀and฀estimated฀market฀value฀of฀available-for-sale฀investments฀in฀debt฀securities฀at฀December฀31,฀2004฀
and฀December฀31,฀2003,฀by฀contractual฀maturity,฀were฀as฀follows:
Investments, other
The฀carrying฀value฀of฀other฀investments฀at฀fiscal฀year-ends฀was฀as฀follows:
Short-term฀ investments฀ primarily฀ consist฀ of฀ securities฀
with฀ fixed฀ maturities฀of฀three฀ months฀to฀ one฀ year฀ from฀
acquisition฀date.
Mortgage฀ loans฀ are฀ carried฀ at฀ the฀ unpaid฀ balance,฀ less฀
an฀ allowance฀ for฀ possible฀ losses฀ and฀ any฀ unamortized฀
premium฀or฀discount.฀The฀ allowance฀for฀possible฀losses฀
was฀$1.0฀million฀and฀$1.1฀million฀as฀of฀March฀31,฀2005฀
and฀2004,฀respectively.฀The฀estimated฀fair฀value฀of฀these฀
loans฀ at฀ March฀ 31,฀ 2005฀ and฀ 2004฀ approximated฀ the฀
carrying฀value.฀These฀loans฀represent฀first฀lien฀mortgages฀
held฀by฀the฀Company’s฀insurance฀subsidiaries.
Real฀estate฀obtained฀through฀foreclosures฀and฀held฀for฀sale฀
and฀ equity฀ investments฀ are฀ carried฀ at฀ the฀ lower฀ of฀ cost฀ or฀
fair฀value.
Insurance฀policy฀loans฀are฀carried฀at฀their฀unpaid฀balance.