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62 I AMERCO ANNUAL REPORT
Note 8: Investment and Interest Income Net
Investment฀and฀interest฀income,฀net฀were฀as฀follows:
AMERCO AND CONSOLIDATED ENTITIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
Note 8: Investment and Interest Income Net
Investment and interest income, net were as follows:
Year Ended March 31,
2005 2004 2003
(In thousands)
Fixed maturities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $21,085 $ 23,002 $ 35,952
Real estate ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 12,836 10,879 3,578
Insurance policy loans ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 160 498 Ì
Mortgage loans ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6,312 7,173 35
Short-term, amounts held by ceding reinsurers, net and other
investments ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (2,442) 1,616 (3,044)
Investment income ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 37,951 43,168 36,521
Less investment expensesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (3,154) (6,511) (1,112)
Investment income-related partyÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 21,942 1,624 5,322
Investment and interest income, netÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $56,739 $ 38,281 $ 40,731
Investment expenses include costs incurred in the management of the investment portfolio and interest
credited on annuity policies.
Interest income increased in fiscal 2005 compared with fiscal 2004 primarily as a result of the
deconsolidation of SAC Holding Corporation.
On June 30, 2003, the Company's insurance subsidiaries exchanged their investments in Private Mini
Storage Realty, L.P. (""Private Mini'') which, at the time of the exchange had a carrying value of zero, for
other real property owned by the SAC entities. The exchanges were non-monetary and were recorded on the
basis of the book value of the assets exchanged.
Note 9: Borrowings
Long-Term Debt
Long-term debt at fiscal year-ends was as follows:
March 31,
2005 2004
(In thousands)
Revolving credit facility, senior secured first lienÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 84,862 $164,057
Senior amortizing notes, secured, first lien, due 2009 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 346,500 350,000
Senior notes, secured second lien, 9.0% interest rate, due 2009 ÏÏÏÏÏÏÏÏÏÏ 200,000 200,000
Senior subordinated notes, secured, 12.0% interest rate, due 2011 ÏÏÏÏÏÏÏ 148,646 148,646
Total AMERCO notes and loans payableÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $780,008 $862,703
First Lien Senior Secured Notes
The Company has a First Lien Senior Secured credit facility, due 2009 in the amount of $550 million,
with a banking syndicate led and arranged by Wells Fargo Foothill, a part of Wells Fargo & Company (the
""Senior Secured Facility''). These senior notes consist of two components, a $200 million revolving credit
facility (including a $50 million letter of credit sub-facility) and a $350 million amortizing term loan.
F-19
AMERCO AND CONSOLIDATED ENTITIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
Note 8: Investment and Interest Income Net
Investment and interest income, net were as follows:
Year Ended March 31,
2005 2004 2003
(In thousands)
Fixed maturities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $21,085 $ 23,002 $ 35,952
Real estate ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 12,836 10,879 3,578
Insurance policy loans ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 160 498 Ì
Mortgage loans ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6,312 7,173 35
Short-term, amounts held by ceding reinsurers, net and other
investments ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (2,442) 1,616 (3,044)
Investment income ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 37,951 43,168 36,521
Less investment expensesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (3,154) (6,511) (1,112)
Investment income-related partyÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 21,942 1,624 5,322
Investment and interest income, netÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $56,739 $ 38,281 $ 40,731
Investment expenses include costs incurred in the management of the investment portfolio and interest
credited on annuity policies.
Interest income increased in fiscal 2005 compared with fiscal 2004 primarily as a result of the
deconsolidation of SAC Holding Corporation.
On June 30, 2003, the Company's insurance subsidiaries exchanged their investments in Private Mini
Storage Realty, L.P. (""Private Mini'') which, at the time of the exchange had a carrying value of zero, for
other real property owned by the SAC entities. The exchanges were non-monetary and were recorded on the
basis of the book value of the assets exchanged.
Note 9: Borrowings
Long-Term Debt
Long-term debt at fiscal year-ends was as follows:
March 31,
2005 2004
(In thousands)
Revolving credit facility, senior secured first lienÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 84,862 $164,057
Senior amortizing notes, secured, first lien, due 2009 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 346,500 350,000
Senior notes, secured second lien, 9.0% interest rate, due 2009 ÏÏÏÏÏÏÏÏÏÏ 200,000 200,000
Senior subordinated notes, secured, 12.0% interest rate, due 2011 ÏÏÏÏÏÏÏ 148,646 148,646
Total AMERCO notes and loans payableÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $780,008 $862,703
First Lien Senior Secured Notes
The Company has a First Lien Senior Secured credit facility, due 2009 in the amount of $550 million,
with a banking syndicate led and arranged by Wells Fargo Foothill, a part of Wells Fargo & Company (the
""Senior Secured Facility''). These senior notes consist of two components, a $200 million revolving credit
facility (including a $50 million letter of credit sub-facility) and a $350 million amortizing term loan.
F-19
Amerco and Consolidated Entities
Notes to Consolidated Financial Statements, continued
Investment฀expenses฀include฀costs฀incurred฀in฀the฀management฀
of฀ the฀ investment฀ portfolio฀ and฀ interest฀ credited฀ on฀ annuity฀
policies.
Interest฀income฀increased฀in฀fiscal฀2005฀compared฀with฀
fiscal฀2004฀primarily฀as฀a฀result฀of฀the฀deconsolidation฀of฀
SAC฀Holding฀Corporation.
On฀June฀30,฀2003,฀the฀Company’s฀insurance฀subsidiaries฀
exchanged฀ their฀ investments฀ in฀ Private฀ Mini฀ Storage฀
Realty,฀ L.P.฀ (“Private฀ Mini”)฀ which,฀ at฀ the฀ time฀ of฀ the฀
exchange฀ had฀ a฀ carrying฀ value฀ of฀ zero,฀ for฀ other฀ real฀
property฀owned฀by฀the฀SAC฀entities.฀The฀exchanges฀were฀
non-monetary฀and฀were฀recorded฀on฀the฀basis฀of฀the฀book฀
value฀of฀the฀assets฀exchanged.
Note 9: Borrowings
Long-Term Debt
Long-term฀debt฀at฀fiscal฀year-ends฀was฀as฀follows:
First Lien Senior Secured Notes
The฀ Company฀ has฀ a฀ First฀ Lien฀ Senior฀ Secured฀ credit฀
facility,฀ due฀ 2009฀ in฀ the฀ amount฀ of฀ $550฀ million,฀ with฀
a฀ banking฀ syndicate฀ led฀ and฀ arranged฀ by฀ Wells฀ Fargo฀
Foothill,฀a฀part฀of฀Wells฀Fargo฀&฀Company฀(the฀“Senior฀
Secured฀ Facility”).฀ These฀ senior฀ notes฀ consist฀ of฀ two฀
components,฀ a฀ $200฀ million฀ revolving฀ credit฀ facility฀
(including฀a฀$50฀million฀letter฀of฀credit฀sub-facility)฀and฀
a฀$350฀million฀amortizing฀term฀loan.