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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
 Form 10-K for Annual and Transition Reports
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934 (Mark One) þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
 For the fiscal year ended March 31, 2004
or o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934.
 For the transition period from __________________ to __________________ Commission
    
    Registrant, State of Incorporation
    
    I.R.S. EmployerFile Number
    
    Address and Telephone Number
    
    Identification No.1-11255
    
    AMERCO
    
    88-0106815(A Nevada Corporation)1325 Airmotive Way, Ste. 100Reno, Nevada 89502-3239Telephone (775) 688-63002-38498
    
    U-Haul International, Inc.
    
    86-0663060(A Nevada Corporation)2727 N. Central AvenuePhoenix, Arizona 85004Telephone (602) 263-6645
 Securities registered pursuant to Section 12(b) of the Act: Name of EachExchange on WhichRegistrant
    
    Title of Class
    
    RegisteredAMERCO
U-Haul International, Inc.
    
    Series A 8 1/2%
Preferred Stock
None
    
    New York Stock
Exchange
 Securities registered pursuant to Section 12(g) of the Act: Name of EachExchange on WhichRegistrant
    
    Title of Class
    
    RegisteredAMERCO
U-Haul International, Inc.
    
    Common
None
    
    NASDAQ
 Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes þ No o Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to
the best of the registrants knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. þ Indicate by check mark whether the registrant is an accelerated filer (as
defined in Exchange Act Rule 12b-2). Yes þ No o The aggregate market value of AMERCO common stock held by non-affiliates
(i.e., stock held by person other than officers, directors and 5% shareholders
of AMERCO) on September 30, 2003 was $170,054,402. The aggregate market value
was computed using the closing price for the common stock trading on NASDAQ on
such date. Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Section 12, 13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes þ No o 21,284,604 shares of AMERCO Common Stock, $0.25 par value were outstanding at
June 11, 2004. 5,385 shares of U-Haul International, Inc. Common Stock, $0.01 par value, were
outstanding at June 11, 2004. None of these shares were held by
non-affiliates.




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TABLE OF CONTENTS Page No.PART IItem 1.
    
    Business
    
    
    1Item 2.
    
    Properties
    
    
    7Item 3.
    
    Legal Proceedings
    
    
    8Item 4.
    
    Submission of Matters to a Vote of Security Holders
    
    
    10PART IIItem 5.
    
    Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
    
    
    10Item 6.
    
    Selected Financial Data
    
    
    11Item 7.
    
    Management's Discussion and Analysis of Financial Condition and Results of Operations
    
    
    12Item 7A.
    
    Quantitative and Qualitative Disclosures About Market Risk
    
    
    35Item 8.
    
    Financial Statements and Supplementary Data
    
    
    35Item 9.
    
    Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.
    
    
    35Item 9A.
    
    Controls and Procedures
    
    
    35PART IIIItem 10.
    
    Directors and Executive Officers of the Registrants
    
    
    37Item 11.
    
    Executive Compensation
    
    
    40Item 12.
    
    Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
    
    
    40Item 13.
    
    Certain Relationships and Related Transactions
    
    
    42Item 14.
    
    Principal Accounting Fees and Services
    
    
    43PART IVItem 15.
    
    Exhibits, Financial Statement Schedules, and Reports on Form 8-K
    
    
    46Exhibit 10.50Exhibit 21Exhibit 23.1Exhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2




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PART I 
 ITEM 1. BUSINESS Company Overview We are North Americas largest do-it-yourself moving and storage
provider, supplying products and services to help people move and store their
household and commercial goods. U-Haulis synonymous with do-it-yourself
moving and storage and our strategy is to maintain our leadership position. Through a network of 1,351 U-Hauloperated retail centers and 13,870
independent U-Hauldealers, we rent our distinctive orange and white U-Haultrucks and
trailers and storage rooms and we sell U-Haulbrand boxes, tape and other
moving and self storage related products and services. We also connect
independent providers of moving and self storage services, with
do-it-yourself moving and storage customers through our eMoveweb site. U-Haulis the most convenient supplier of products and services meeting
the needs of North Americas do-it-yourself moving and storage market. Our
broad geographic coverage throughout the United States and Canada and our
extensive selection of U-Haulbrand moving and self storage related products
and services provide our customers with one-stop shopping convenience. We were founded in 1945 under the name U-Haul Trailer Rental Company.
Since 1945 we have rented trailers. Starting in 1959, we rented trucks on a
one-way and In-Townbasis exclusively through independent U-Hauldealers.
Since 1974, we have developed a network of U-Haulmanaged retail centers,
through which we rent our trucks and trailers and sell moving and self-storage
related supplies and services, to complement our independent dealer network. AMERCO and U-Haulare each incorporated in Nevada. Our Internet address
is uhaul.com.On our investor relations web site is
amerco.com.We
post the following filings as soon as is reasonably practical after they are
electronically filed with or furnished to the Securities and Exchange
Commission: our annual report on Form 10-K, our quarterly reports on Form 10-Q,
our current reports on Form 8-K, our proxy statement related to our annual
stockholders meeting, and any amendments to those reports or statements filed
or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act
of 1934. All such filings on our web site are available free of charge. Products and Rental Equipment U-Haulrental equipment is specifically designed, engineered and
manufactured for the do-it-yourself household mover. Our Primary Service
Objective is to provide a better and better product and service to more and
more people at a lower and lower cost. Our
customers are do-it-yourself household movers. These
do-it-yourself movers include individuals and families
moving their belongings from one home to another, college students
moving their belongings, vacationers and sports enthusiasts needing
extra space or having special towing needs, people trying to save on
home furniture and home appliance delivery costs, and
do-it-yourself home remodeling and gardening enthusiasts
that need extra room to transport materials. As
of March 31, 2004, our distinctive orange and white rental fleet consisted of
approximately 92,000 trucks, 73,000 trailers and 33,000 tow devices. This
equipment and our U-Haulbrand self-moving and self-storage products and
services are distributed through a network of 1,351 U-Hauloperated retail
centers and 13,870 independent U-Hauldealers. Independent U-Hauldealers receive U-Haulrental
equipment on a consignment basis and are paid a commission based on gross
revenues generated from their U-Haulrentals. Our rental truck chassis are manufactured by domestic and foreign truck
manufacturers. These chassis are joined with the distinctive orange and
white U-Hauldesigned and manufactured van boxes at U-Hauloperated
manufacturing and assembly facilities strategically located throughout the
United States. U-Haulrental trucks feature our proprietary
Lowest DeckSM,
which provides our customers with extra ease of loading. The loading
ramps on our trucks are the widest in the industry which reduce the time needed
to move belongings. Our Gentle Ride SuspensionSM helps our customers safely
move their most delicate and prized possessions. Also, the engineers at the
U-HaulTechnical Center determined the softest ride in our trucks was at the
front of the van box. Consequently, they designed the part of the van box that
hangs over the front cab of the truck to be the location for our customers to
place their most fragile items during their move. We call this area Moms
Attic.SM Our distinctive orange and white trailers are also manufactured at these
same U-Hauloperated manufacturing and assembly facilities. These trailers are
well suited to the low profile of many of todays newly manufactured
automobiles. Our engineering staff is committed to making our
trailers easy to tow, aerodynamic and fuel efficient. 1




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To provide our self-move customers with added value, our rental
trucks and trailers are designed for fuel efficiency. Also, to help make our rental
equipment more trouble free, we perform extensive preventive maintenance and
repairs. As an added benefit, we also offer emergency road service at no
additional charge. U-Haulalso provides customers the equipment to transport their auto. We
provide three towing options, including; auto transport, in which all four
wheels are off the ground, tow dolly, in which the front wheels of the towed
vehicle are off the ground, and tow bar, where all four wheels are on the
ground. To help our customers load their boxes and larger household appliances and
furniture, U-Haulprovides several accessory rental items. Our utility dolly
has a lightweight design and is easy to maneuver. Another rental accessory is
our four wheel dolly, which provides a large, flat surface for moving dressers,
wall units, pianos and other large household items. U-Haulappliance dollies
provide the leverage needed to move refrigerators, freezers, washers and dryers
easily and safely. These utility, furniture and appliance dollies, along with
the low decks and the loading ramps on all U-Haultrucks and trailers, are
designed for easy loading and unloading of our customers belongings. The total package U-Hauloffers the do-it-yourself household mover
doesnt end with trucks and trailers. Our moving supplies include a wide array
of affordably priced U-Haulbrand boxes, tape and packing materials. We also
provide specialty boxes for dishes, computers and sensitive electronic
equipment, carton sealing tape, security locks, and packing supplies, like wrapping
paper and cushioning foam. U-Haulbrand boxes are specifically sized to make stacking
and tiering easier. U-Haulis also North Americas largest seller and installer of hitches and towing
systems. These hitching and towing systems can tow jet skis,
motorcycles, boats, campers and horse trailers. Our hitches, ball
mounts, and
balls undergo stringent testing requirements. To
enable the transport of items on the roof of a car or SUV, U-Hauloffers
a special Roof Pouch® that easily attaches to the roof rack of a vehicle. The
Roof Pouch® is made from tough vinyl coated material, is weather-proof, and
will not scratch the finish of a vehicle. The Roof Pouch® can double the cargo
space of a typical SUV. U-Haulis also North Americas largest retail propane distributor, with
more than 800 retail centers offering propane. We employ trained, certified
personnel to refill all propane cylinders, and our network of propane
dispensing locations is the largest automobile alternative refueling network in
North America. Self-storage was a natural outgrowth of the self-moving industry.
Conveniently located U-Haulself-storage rental facilities provide clean, dry
and secure space for storage of household and commercial goods, with storage
units ranging in size from 15 square feet to over 400 square feet. We operate
nearly 1,000 self-storage locations in North America, with more than 340,000
rentable rooms comprising approximately 29 million square feet of rentable
storage space. Our self-storage centers feature a wide array of security
measures, ranging from electronic property access control gates to individually
alarmed storage units. At many centers, we offer climate controlled storage
rooms to protect temperature sensitive goods such as video tapes, albums,
photographs and precious wood furniture. Our eMoveweb site, emove.com, is the largest network of customers and
businesses in the self-moving and self-storage industry. The eMovenetwork
consists of channels where customers, businesses and service providers transact
business. The eMoveMoving Help marketplace connects do-it-yourself movers
with independent service providers to help movers pack, load, clean, drive,
unload and more. Thousands of service providers are already in place. Through
the eMoveStorage Affiliate Program, independent storage businesses can join
the worlds largest storage reservation system. Self-storage customers making
a reservation through eMovecan access all of the U-Haulself-storage centers
and all U-Haulstorage affiliate partners for even greater convenience to meet
their self-storage needs. 2




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Additionally, we offer moving and storage protection packages such as
Safemoveand Safetow, protecting moving and towing customers with a damage
waiver, cargo protection and medical and life coverage, and Safestor,
protecting storage customers from loss on their goods in storage. Description of Operating
Segments AMERCO
has three reportable segments and five identifiable segments. The
three reportable segments are Moving and Self-Storage, Property and
Casualty Insurance and Life Insurance. The five identifiable segments
include U-Haul moving and storage, Real Estate, and SAC moving and
storage, which are separately listed under the reportable segment
Moving and Self-Storage. The remaining identifiable segments are Property
and Casualty Insurance and Life Insurance. (See Note 2 to the
Notes to Consolidated Financial Statements, Principles of
Consolidation.) Moving and Self-Storage U-Haul manages the Companys moving and self-storage business. Our
do-it-yourself moving business consists of U-Haultruck and trailer rentals
and U-Haulmoving supply and service sales. Our self-storage business consists
of U-Haulself-storage room rentals, self-storage related product and service
sales and management of non-owned self-storage facilities. Amerco Real Estate
develops and owns certain of the storage properties and retail centers that are
operated by U-Haul. SAC
Holding I and its subsidiaries and SAC Holding II and its
subsidiaries (collectively referred to as
SAC Holdings) own self-storage
properties that are managed by U-Haul. AMERCO has a variable interest in
certain of SAC Holdings properties entitling AMERCO to potential future income
based on the financial performance of these properties. As a result, AMERCO is
considered the primary beneficiary of certain variable interests in SAC
Holdings and we include the results of those variable interest entities in the
consolidated financial statements of AMERCO, as required by FIN 46R. Net
revenue for the Moving and Self-Storage operating segment made up
approximately 87% of consolidated net revenue in 2004. Revenue from the
rental and sale of self moving related products and services within the Self
Moving and Storage operating segment represented approximately 72% of
consolidated net revenue in 2004. Self Moving Within our truck and trailer rental operation, we continue to focus on
expanding our dealer network which provides added convenience for our
customers. A U-Haul dealer is an independent commissioned agent, generally
renting U-Haul products in conjunction with another primary business. A U-Haul
dealer is most often an owner-operator. U-Haul strives to continually improve
the dealer program to make attractive for the dealer. At our retail centers we have implemented several customer
service initiatives. These initiatives included improving management of our
rental equipment to provide our retail centers with the right type of rental
equipment, at the right time and at the most convenient location for our
customers, effective marketing of our broad line of self-moving related
products and services, maintaining hours of operation to provide convenience to
our customers, and increasing staff by attracting and retaining moonlighters
(moonlighters are part-time U-Haul employees with full-time jobs elsewhere)
during our peak hours of operation. We believe our reservation and
scheduling system enables us to provide more of the right equipment, at the
right time and at the right location to meet seasonal demand fluctuations. We
plan to further enhance this system and manage our capital expansion plans to
leverage this capability and generate increased rentals on our rental
equipment. Effective marketing of our self moving related products and services, such
as boxes, pads and insurance, helps our customers have a better moving
experience and helps them protect their belongings from potential damage
during the moving process. We are committed to providing a complete line of products selected with the do-it-yourself moving and storage customer
in mind. Examples of products recently added or expanded include a number of
specialty packing boxes, Movers Wrap and Smart Move tapes. Movers Wrap is a
sticks-to-itself plastic stretch wrap used to bind, bundle, and fasten items
when moving or storing. Additionally, U-Haulhas added a full line of Smart
Move tape products. The Smart Move tape is a color coded packing tape that has
the room printed right on it allowing customers to tape and label their
belongings in one quick step. These actions, leveraged by our 1,351 company owned and operated retail
centers, enables the company to provide better customer service, which we
believe led to increased sales and increased productivity. Self-Storage Our self-storage business consists of U-Haulself-storage room rentals,
self-storage related product and service sales and management of self-storage facilities not owned by the company. 3




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U-Haulis the second largest operator of self-storage and has been a
leader in the self-storage industry since 1974. U-Hauloperates over 340,000
storage rooms, approximately 29 million square feet of storage space and
locations in 49 states and 10 Canadian provinces. U-Hauls self-storage
facility locations range in size up to 152,000 square feet of storage space,
with individual storage units in sizes ranging from 15 square feet to over 400
square feet. The primary market for storage rooms is the storage of household goods. We
believe that our self-storage services provide a competitive advantage through
such things as Maximum Security (MAX), an electronic system that monitors the
storage facility 24 hours a day; climate control; individually alarmed rooms;
extended hour access; and an internet based customer reservation and account
management system. eMove Our
eMove.com web site connects independent providers of moving and
self-storage services with do-it-yourself moving and storage customers. The
eMove.com web site connects business to business, business to consumer and consumer
to consumer to provide what we believe to be a compelling array of products and
services as near as any internet portal. eMove.com is the largest self-move and self-storage online destination for
consumers and businesses we know of. Shoppers can rent or reserve moving
equipment, hire helpers to load, pack or unload, rent or reserve a storage
room, and more without going to a store or using the yellow pages. eMove.com
connects shoppers to the worlds largest network of customer rated moving and
self-storage service providers. With over 12,000 unedited reviews of service
providers, the marketplace has facilitated over 21,000 moves. eMove also targets independently owned self-storage facilities to connect
into the eMove network to provide storage services. Over 900 independent
self-storage facilities are connected with the eMove network channel, making
eMove.com the only online destination in the self-storage industry to be able
to connect consumers to self-storage facilities across North America. Over
1,900 self-storage facilities are now registered on the eMove network. Within 2 years of its inception, eMove.com has established itself as the
only online destination in the do-it-yourself moving and storage industry
that connects consumers to service providers in all 50 states and 11 Canadian
provinces. Our goal is to further utilize our web-based technology platform to
expand into additional markets and provide more value-added products and
services to the moving and storage industry. Property and Casualty Insurance Republic
Western Insurance Company (RepWest) provides loss adjusting and
claims handling for U-Haulthrough regional offices across North America.
RepWest also provides components of the Safemove, Safetow and Safestor
protection packages to U-Haulcustomers. The business plan for RepWest
includes offering property and casualty products in other U-Haulrelated
programs and completing its exit from non-U-Haul lines of business. Life Insurance Oxford Life Insurance Company (Oxford) originates and reinsures
annuities; credit life and disability; single premium whole life; group life
and disability coverage; and Medicare supplement insurance. Oxford also
administers the self-insured employee health and dental plans for our Company. Employees As of March 31, 2004, we employed approximately 17,230 people throughout
North America. Approximately 97% of these employees work within our self
moving and storage segment. Approximately 94% of these employees are located
in the United States. Sales and Marketing As
of March 31, 2004, our distinctive orange and white rental fleet consisted of
approximately 92,000 trucks, 73,000 trailers and 33,000 towing devices. This
equipment, and our U-Haulbrand self moving and self storage products
and services are distributed through a network of 1,351 U-Hauloperated retail
centers and 13,870 independent U-Hauldealers. Independent U-Hauldealers
receive U-Haulrental equipment on a consignment basis and are paid a
commission based on gross revenues generated from their U-Haulrentals. 4




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Our self-storage operations consist of approximately 340,000 rentable
rooms. These self-storage rooms are available for rent on a month-to-month
basis through nearly 1,000 self-storage locations, and are comprised of
approximately 29 million square feet of self-storage capacity. Our
marketing plan includes maintaining our leadership position with U-Haul
being synonymous with do-it-yourself moving and storage. We accomplish this
by continually improving the ease of use and efficiency of our rental
equipment, by providing added convenience to our retail centers through
independent U-Hauldealers, and by expanding the capabilities of our eMoveweb
site, connecting independent moving service providers with do-it-yourself
household movers. We promote U-Haulbrand awareness through direct and co-marketing
arrangements. Our direct marketing activities consist of yellow pages, print
and web based advertising as well as trade events, movie cameos of our rental
fleet and boxes, and industry and consumer communications. We support our
independent U-Hauldealers through advertising of U-Haulmoving and
self-storage rentals, products and services. Competition Self-Moving The moving truck and trailer rental industry is large and highly
competitive. There are two distinct users of rental trucks: commercial and
do-it-yourself users. We focus primarily on the do-it-yourself residential
user. Within this segment, we believe the principal competitive factors are
convenience of rental locations, availability of quality rental moving
equipment, breadth of essential products and services, and price. Our major competitors in the moving equipment rental market are Budget Car
and Truck Rental Company and Penske Truck Leasing. Self-Storage The self-storage market is large and highly fragmented. We
believe the principal competitive factors in this industry are
convenience of storage rental locations, cleanliness, security and price. Our primary competitors in the self-storage market are Public Storage,
Shurgard, Storage USA and others. Insurance The highly competitive insurance industry includes a large number of life
insurance companies and property and casualty insurance companies. In addition,
the marketplace now includes financial services firms offering both insurance
and financial products. Some of the insurance companies are owned by
stockholders and others are owned by policyholders. Many competitors have been
in business for a longer period of time or possess substantially greater
financial resources and broader product portfolios. We compete in the insurance
business based upon price, product design, and services rendered to producers
and policyholders. Corporate Governance Corporate governance is typically defined as the system that allocates
duties and authority among a companys stockholders, board of directors and
management. The stockholders elect the board and vote on extraordinary
matters; the board is the companys governing body; and management runs the
day-to-day operations of the company. Our current Board members are William E. Carty, John M. Dodds, Charles J.
Bayer, John P. Brogan, James J. Grogan, M. Frank Lyons, James P. Shoen and
Edward J. Shoen. Board Responsibilities and Structure The primary responsibilities of the Board of Directors are oversight,
counseling and direction to the management of the Company in the long-term
interests of the Company and its stockholders. 5




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The Board and its committees meet throughout the year on a set schedule,
and also hold special meetings and act by written consent from time to time as
needed. The Board has delegated various responsibilities and authority to
different Board committees as generally described below. Committees regularly
report on their activities and actions to the full Board. Board Committees The Board currently has Audit, Executive Finance, Compensation, and
Independent Corporate Governance Committees, as well as an Advisory Board. Audit Committee. The Audit Committee assists the Board of Directors in
fulfilling its oversight responsibilities as to financial reporting
and audit
functions and risk management. The Audit Committee monitors the financial
information that is provided to stockholders and others, the independence and
performance of the Companys independent auditors and internal audit department
and the systems of internal control established by management and the Board. In addition, the members of the Audit Committee of the Board each qualify
as independent under special standards developed by the Securities and
Exchange Commission (SEC) for members of audit committees, and the Audit
Committee includes at least one member who is determined by the Board to meet
the qualifications of an audit committee financial expert in accordance with
SEC rules, including that the person meets the relevant definition of an
independent director. Mr. John P. Brogan is the independent director who has
been determined to be an audit committee financial expert. Stockholders should
understand that this designation is a disclosure requirement of the SEC related
to Mr. Brogans experience and understanding with respect to certain accounting
and auditing matters. The designation does not impose on Mr. Brogan any
duties, obligations or liability that are greater than are generally imposed on
him as a member of the Audit Committee and the Board of Directors, and his
designation as an audit committee financial expert pursuant to this SEC
requirement does not affect the duties, obligations or liability of any other
member of the Audit Committee or Board of Directors. Executive Finance Committee. The Executive Finance Committee is authorized
to act on behalf of the Board of Directors in approving any transaction
involving the finances of the Company. It has the authority to give final
approval for the borrowing of funds on behalf of the Company without further
action or approval of the Board of Directors. The Executive Finance Committee
is composed of Edward J. Shoen, John P. Brogan and Charles J. Bayer. Compensation Committee. The Compensation Committee reviews the Companys
executive compensation plans and policies, including benefits and incentives,
to ensure that they are consistent with the goals and objectives of the
Company. It reviews and makes recommendations to the Board of Directors
regarding management recommendations for changes in executive compensation. The
Compensation Committee also monitors management plans and programs for the
retention, motivation and development of senior management. The Compensation
Committee is composed of John P. Brogan and James J. Grogan, non-employee
independent directors of the Company. Independent Governance Committee. The Independent Governance Committee is
co-chaired by two independent members of the Board, James J. Grogan and John P.
Brogan. Thomas W. Hayes, the former State Treasurer of California, and Paul A.
Bible, a partner in the Reno-based law firm of Bible, Hoy & Trachok, are also
members of this committee. Neither Mr. Hayes nor Mr. Bible are members of the
Companys Board of Directors. The Independent Governance Committee evaluates
specific corporate governance principles and standards and proposes to the
Board any modifications thereto as deemed appropriate. In addition, this
committee reviews potential candidates for Board membership. The committee may
review other matters as referred to it by the Board.
The committee has the authority to and a budget from which to retain
professionals. The committee membership term is one year and each member is
determined by the Board to be free of any relationship that would interfere
with his exercise of independent judgment as member of this committee. Advisory Board Members. In addition to the four committees described above
the Board of Directors authorized up to two (2) Advisory Board Members. On
June 4, 2003, the Board of Directors appointed Michael L. Gallagher as a member
of the Advisory Board. Mr. Gallagher is a senior partner in the law firm
Gallagher & Kennedy. Mr. Gallagher is also a director of Pinnacle West Capital
Corporation and the Omaha World Herald Company. As of June 9, 2004 The Board
appointed Daniel R. Mullen as a second Advisory Board member. Mr. Mullen is a
retired financial executive with public company experience. 6




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Recent Developments Emergence From Chapter 11 Restructuring On March 15, 2004, we emerged from Chapter 11 (less than nine months from
our petition date) with full payment to our creditors while preserving the
interests of our stockholders. In connection with our emergence from
bankruptcy, we believe our balance sheet is strengthened, having restructured
its debt and lease obligations. For a detailed
description of our new financial structure, see footnote 9, Borrowings on
page F-18. As
background, on June 20, 2003, AMERCO filed a voluntary petition for relief under
Chapter 11 of the United States Bankruptcy Code. Amerco Real Estate Company
also filed a voluntary petition for relief under Chapter 11 on August 13, 2003.
The other subsidiaries of AMERCO were not included in either of the filings.
The Chapter 11 filing was undertaken to facilitate a restructuring of the debt
of AMERCO in response to liquidity issues, which developed in the second half
of 2002. These liquidity issues began when our prior independent auditors
advised the Company in 2002 that its financial statements would have to be
restated. This restatement, and the resulting lack of clarity regarding the
operating results and financial condition of AMERCO, contributed substantially
and directly to a series of significant developments adversely impacting the
Companys access to capital. The restatement, which involved the consolidation
of SAC Holdings resulted in a material decrease in reported net worth and a corresponding increase in its reported leverage
ratios. The restatement also required a costly and time-consuming restatement
of prior periods results that led to the untimely filing of quarterly and
annual reports with the Securities and Exchange Commission. As this situation was occurring, AMERCO was attempting to negotiate and
replace its then existing revolving credit facility and complete a $275 million
bond offering. Although we were able to replace our revolving
credit facility, the amount of the facility was substantially reduced. We were
not able to successfully complete the $275 million bond offering, exemplifying
the significantly reduced access AMERCO had to the capital markets to meet its
financial needs due to, among other things, the confusion and adverse
perception resulting from the restatement. As a result of our failure to
complete the $275 million bond offering, we did not have sufficient funds to
meet our maturity obligations for our Series 1997-C Bond Backed Asset Trust
(BBAT) and related SWAP agreements which were due on October 15, 2002. Our
inability to meet these maturity obligations resulted in a default on BBAT
obligations, which led to cross-defaults and an acceleration of substantially
all of the other outstanding instruments in the Companys debt structure.
Although we worked diligently with our creditors to resolve and cure or
restructure these defaults, we were left with no viable alternative but to seek
Chapter 11 protection, which we did on June 20, 2003. On March 15, 2004 we
emerged from Chapter 11. Upgraded Ratings of AMERCO Life Insurance Subsidiaries A.M. Best Co. recently upgraded the financial strength ratings of Oxford
Life Insurance Company and its subsidiaries, Christian Fidelity Life Insurance
Company and North American Insurance Company from C+ (weak) to B- (fair). The
rating outlook for all three companies is positive. Although our life
insurance subsidiaries continue to face challenges to regain their marketing
momentum, we believe these rating upgrades will favorably impact the operations
of our life insurance subsidiaries. AMERCO Chief Financial Officer On June 9, 2004, Jack A. Peterson was appointed Chief Financial Officer of
AMERCO and U-Haul International, Inc. 
 ITEM 2. Properties The Companys subsidiaries own property, plant and equipment that are
utilized in the manufacture, repair and rental of U-Haulequipment and storage
space as well as providing office space for the Company. Such facilities exist
throughout the United States and Canada. The Company also manages storage
facilities owned by others. The Company operates 1,351 U-Haulretail centers
(including approximately 941 Company owned locations), and operates 11
manufacturing and assembly facilities. We also operate over 200 fixed site
repair facilities located throughout the United States and Canada. 7




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##### Table of Contents



SAC Holdings owns property, plant and equipment that are utilized in the
rental of self-storage rooms and
U-Haulequipment. Such facilities exist throughout the United States and
Canada. We manage the storage facilities under management agreements whereby
the management fees are consistent with management fees received by
U-Haul for other properties owned by unrelated parties and managed by us. 
 ITEM 3. Legal Proceedings Kocher On July 20, 2000, Charles Kocher (Kocher) filed suit in Wetzel County,
West Virginia, Civil Action No. 00-C-51-K, entitled Charles Kocher v. Oxford
Life Insurance Co. (Oxford) seeking compensatory and punitive damages for
breach of contract, bad faith and unfair claims settlement practices arising
from an alleged failure of Oxford to properly and timely pay a claim under a
disability and dismemberment policy. On March 22, 2002, the jury returned a
verdict of $5 million in compensatory damages and $34 million in punitive
damages. On November 5, 2002, the trial court entered an Order (Order)
affirming the $39 million jury verdict and denying Oxfords motion for New
Trial Or, in The Alternative, Remittitur. Oxford has perfected its appeal to
the West Virginia Supreme Court. On January 27, 2004, the matter was argued
before the West Virginia Supreme Court and taken under advisement. On
June 17, 2004 the West Virginia Supreme Court reversed and
vacated the punitive damages award and remanded the case for a new
trial on punitive damages. The Company has
accrued $725,000, which represents managements best estimate of the costs
associated with legal fees to appeal and re-try the case. The Company has
a $5 million E&O policy and has notified the carrier
of the West Virginia Supreme Courts ruling. The E&O carrier is disputing coverage. Shoen On September 24, 2002, Paul F. Shoen filed a derivative action in the
Second Judicial District Court of the State of Nevada, Washoe County, captioned
Paul F. Shoen vs. SAC Holding Corporation et al., CV02-05602, seeking damages
and equitable relief on behalf of AMERCO from SAC Holdings and certain current
and former members of the AMERCO Board of Directors, including Edward J. Shoen,
Mark V. Shoen and James P. Shoen as defendants. AMERCO is named a nominal
defendant for purposes of the derivative action. The complaint alleges breach
of fiduciary duty, self-dealing, usurpation of corporate opportunities,
wrongful interference with prospective economic advantage and unjust enrichment
and seeks the unwinding of sales of self-storage properties by subsidiaries of
AMERCO to SAC Holdings over the last several years. The complaint seeks a
declaration that such transfers are void as well as unspecified damages. On
October 28, 2002, AMERCO, the Shoen directors, the non-Shoen directors and SAC
Holdings filed Motions to Dismiss the complaint. In addition, on October 28,
2002, Ron Belec filed a derivative action in the Second Judicial District Court
of the State of Nevada, Washoe County, captioned Ron Belec vs. William E.
Carty, et al., CV 02-06331 and on January 16, 2003, M.S. Management Company,
Inc. filed a derivative action in the Second Judicial District Court of the
State of Nevada, Washoe County, captioned M.S. Management Company, Inc. vs.
William E. Carty, et al., CV 03-00386. Two additional derivative suits were
also filed against these parties. These additional suits are substantially
similar to the Paul F. Shoen derivative action. The five suits assert
virtually identical claims. In fact, three of the five plaintiffs are parties
who are working closely together and chose to file the same claims multiple
times. The court consolidated all five complaints before dismissing them on
May 28, 2003. Plaintiffs have filed a notice of appeal. These lawsuits
falsely alleged that the AMERCO Board lacked independence. In reaching its
decision to dismiss these claims, the court determined that the AMERCO Board of
Directors had the requisite level of independence required in order to have
these claims resolved by the Board. 8




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Article Four Trust AMERCO is a defendant in four putative class action lawsuits. Article
Four Trust v. AMERCO, et al., District of Nevada, United States District Court,
Case No. CV-N-03-0050-DWH-VPC. Article Four Trust, a purported AMERCO
shareholder, commenced this action on January 28, 2003 on behalf of all persons
and entities who purchased or acquired AMERCO securities between February 12,
1998 and September 26, 2002. The Article Four Trust action alleges one claim
for violation of Section 10(b) of the Securities Exchange Act and Rule 10b-5
thereunder. Mates v. AMERCO, et al., United States District Court, District of
Nevada, Case No. CV-N-03-0107. Maxine Mates, an AMERCO shareholder, commenced
this putative class action on behalf of all persons and entities who purchased
or acquired AMERCO securities between February 12, 1998 and September 26, 2002.
The Mates action asserts claims under section 10(b) and Rule 10b-5, and
section 20(a) of the Securities Exchange Act. Klug v. AMERCO, et al., United
States District Court of Nevada, Case No. CV-S-03-0380. Edward Klug, an AMERCO
shareholder, commenced this putative class action on behalf of all persons and
entities who purchased or acquired AMERCO securities between February 12, 1998
and September 26, 2002. The Klug action asserts claims under section 10(b) and
Rule 10b-5 and section 20(a) of the Securities Exchange Act. IG Holdings v.
AMERCO, et al., United States District Court, District of Nevada, Case No.
CV-N-03-0199. IG Holdings, an AMERCO bondholder, commenced this putative class
action on behalf of all persons and entities who purchased, acquired, or traded
AMERCO bonds between February 12, 1998 and September 26, 2002, alleging claims
under section 11 and section 12 of the Securities Act of 1933 and section 10(b)
and Rule 10b-5, and section 20(a) of the Securities Exchange Act. Each of
these four securities class actions allege that AMERCO engaged in transactions
with SAC entities that falsely improved AMERCOs financial 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, Profit Sharing, and Employee
Stock Ownership Plan (the Plan), its fiduciaries, 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 first 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 financial 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 filed 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 different 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 filed 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. 9




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Emergence From Chapter 11 Restructuring The disclosure included under the caption BusinessRecent
Developments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 fiscal year covered by this report,
through the solicitation of proxies or otherwise. 
 PART II 
 ITEM 5. Market for the Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities As of April 30, 2004, there were approximately 3,000 holders of record of
the common stock. AMERCOs trading symbol is UHAL. The following table sets forth the high and the low sales price of the
common stock of AMERCO for the periods indicated: For the Years EndedMarch 31,2004
    
    2003High
    
    Low
    
    High
    
    LowFirst quarter
    
    $
    9.12
    
    
    $
    3.10
    
    
    $
    18.50
    
    
    $
    13.90Second quarter
    
    $
    26.66
    
    
    $
    6.85
    
    
    $
    14.99
    
    
    $
    6.19Third quarter
    
    $
    28.90
    
    
    $
    16.35
    
    
    $
    10.40
    
    
    $
    1.36Fourth quarter
    
    $
    24.34
    
    
    $
    21.05
    
    
    $
    6.00
    
    
    $
    2.77
 The common stock of U-Haul is wholly owned by AMERCO. As a result, no
active trading market exists for the purchase and sale of such common stock. Dividends AMERCO does not have a formal dividend policy. The Board of Directors of
AMERCO periodically considers the advisability of declaring and paying
dividends in light of existing circumstances. The Companys new credit
facility and its senior note indentures limit the Companys ability to pay
dividends and accordingly, the Company does not anticipate declaring and paying
dividends on its common stock in the foreseeable future.  U-Haul has not declared cash dividends to AMERCO during the three most
recent fiscal years.See Note 20 of Notes to Consolidated Financial Statements for a discussion
of certain statutory restrictions on the ability of the insurance subsidiaries
to pay dividends to AMERCO.


See Note 11 of Notes to Consolidated Financial Statements for a discussion
of AMERCOs preferred stock.

During the fourth quarter of fiscal 2004, we did not repurchase any shares
of our equity securities.
 10




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##### Table of Contents



ITEM 6. Selected Financial Data. Listed below is selected financial data for AMERCO and consolidated
entities for five years ended March 31: For the Year Ended March 31,2004
    
    2003
    
    2002
    
    2001
    
    2000(In thousands except share and per share data)Summary of Operations:Rental revenue
    
    $
    1,655,571
    
    
    $
    1,560,005
    
    
    $
    1,512,250
    
    
    $
    1,436,832
    
    
    $
    1,334,923Net sales
    
    
    232,437
    
    
    
    222,889
    
    
    
    222,816
    
    
    
    212,243
    
    
    
    201,355Premiums
    
    
    237,118
    
    
    
    314,016
    
    
    
    411,170
    
    
    
    328,108
    
    
    
    262,057Net investment and interest income
    
    
    42,369
    
    
    
    35,477
    
    
    
    47,343
    
    
    
    52,297
    
    
    
    61,021Total revenues
    
    
    2,167,495
    
    
    
    2,132,387
    
    
    
    2,193,579
    
    
    
    2,029,480
    
    
    
    1,859,356Operating expenses
    
    
    1,176,091
    
    
    
    1,178,994
    
    
    
    1,203,930
    
    
    
    1,116,828
    
    
    
    951,196Commission expenses
    
    
    147,010
    
    
    
    136,827
    
    
    
    140,442
    
    
    
    132,865
    
    
    
    134,135Cost of sales
    
    
    111,906
    
    
    
    115,115
    
    
    
    122,694
    
    
    
    126,506
    
    
    
    115,390Benefits and losses
    
    
    212,853
    
    
    
    244,308
    
    
    
    376,673
    
    
    
    290,558
    
    
    
    244,579Amortization of deferred policy acquisition costs
    
    
    39,083
    
    
    
    37,819
    
    
    
    40,674
    
    
    
    36,232
    
    
    
    34,987Lease expense
    
    
    160,727
    
    
    
    166,100
    
    
    
    164,075
    
    
    
    175,460
    
    
    
    130,951Depreciation, net (1)
    
    
    148,813
    
    
    
    137,446
    
    
    
    102,957
    
    
    
    103,807
    
    
    
    96,090Restructuring expense
    
    
    44,097
    
    
    
    6,568
    
    
    
    
    
    
    
    
    
    
    
    Total costs and expenses
    
    
    2,040,580
    
    
    
    2,023,177
    
    
    
    2,151,445
    
    
    
    1,982,256
    
    
    
    1,707,328Earnings from operations
    
    
    126,915
    
    
    
    109,210
    
    
    
    42,134
    
    
    
    47,224
    
    
    
    152,028Interest expense
    
    
    121,690
    
    
    
    121,631
    
    
    
    109,465
    
    
    
    111,878
    
    
    
    97,187Fees on early termination of BBATs
    
    
    
    
    
    
    26,500
    
    
    
    
    
    
    
    
    
    
    
    Pretax earnings (loss)
    
    
    5,225
    
    
    
    (38,921
    )
    
    
    (67,331
    )
    
    
    (64,654
    )
    
    
    54,841Income tax benefit (expense)
    
    
    (8,077
    )
    
    
    13,935
    
    
    
    19,891
    
    
    
    22,544
    
    
    
    (19,362
    )Net earnings (loss)
    
    $
    (2,852
    )
    
    $
    (24,986
    )
    
    $
    (47,440
    )
    
    $
    (42,110
    )
    
    $
    35,479Less: Preferred stock dividends
    
    
    12,963
    
    
    
    12,963
    
    
    
    12,963
    
    
    
    12,963
    
    
    
    13,641Earnings (loss) available to common shareholders
    
    
    (15,815
    )
    
    
    (37,949
    )
    
    
    (60,403
    )
    
    
    (55,073
    )
    
    
    21,838Net earnings (loss) per common share basic and diluted
    
    $
    (.76
    )
    
    $
    (1.82
    )
    
    $
    (2.87
    )
    
    $
    (2.56
    )
    
    $
    1.01Weighted average common shares outstanding basic and
diluted
    
    
    20,749,998
    
    
    
    20,824,618
    
    
    
    21,063,720
    
    
    
    21,518,025
    
    
    
    21,659,637Selected Balance Sheet Data:Property, plant and equipment, net
    
    $
    1,451,805
    
    
    $
    1,946,317
    
    
    $
    1,936,076
    
    
    $
    1,882,010
    
    
    $
    1,704,483Total assets
    
    
    3,375,605
    
    
    
    3,832,372
    
    
    
    3,732,317
    
    
    
    3,599,658
    
    
    
    3,280,884AMERCO
capitalized portion of Synthetic leases
    
    
    99,609
    
    
    
    14,793
    
    
    
    14,793
    
    
    
    
    
    
    
    SAC Holdings capitalized portion of Synthetic leases
    
    
    
    
    
    
    122,238
    
    
    
    122,238
    
    
    
    60,297
    
    
    
    58,741AMERCOs notes and loans payable
    
    
    880,519
    
    
    
    940,063
    
    
    
    1,031,008
    
    
    
    1,156,849
    
    
    
    1,137,840SAC Holdings notes and loans payable
    
    
    78,637
    
    
    
    466,781
    
    
    
    439,649
    
    
    
    315,849
    
    
    
    172,035Stockholders equity
    
    
    503,846
    
    
    
    327,448
    
    
    
    381,524
    
    
    
    446,354
    
    
    
    504,749
   (1)
    
    Reflects the change in salvage value and estimated useful lives during
the fiscal year ended March 31, 2002. The net effect of
these changes for the fiscal year 2002 was to increase net earnings by
$3.1 million or $0.15 per share. Gains and losses on the sale of
fixed assets are recorded in depreciation. 11




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##### Table of Contents



Item 6. Selected Financial Data.  (Continued) Listed below is selected financial data for U-Haul International, Inc for
five years ended March 31: For the Year Ended March 31,2004
    
    2003
    
    2002
    
    2001
    
    2000(In thousands except share and per share data)Summary of Operations:Rental revenue
    
    $
    1,548,408
    
    
    $
    1,433,442
    
    
    $
    1,425,685
    
    
    $
    1,364,504
    
    
    $
    1,304,709Net sales
    
    
    181,799
    
    
    
    174,065
    
    
    
    198,312
    
    
    
    194,270
    
    
    
    191,083Net investment and interest income
    
    
    21,504
    
    
    
    29,358
    
    
    
    22,686
    
    
    
    24,346
    
    
    
    19,474Total revenues
    
    
    1,751,711
    
    
    
    1,636,865
    
    
    
    1,646,683
    
    
    
    1,583,120
    
    
    
    1,515,266Operating expenses
    
    
    1,062,695
    
    
    
    1,029,774
    
    
    
    1,088,390
    
    
    
    1,062,097
    
    
    
    961,795Commission expenses
    
    
    176,165
    
    
    
    164,508
    
    
    
    153,465
    
    
    
    143,588
    
    
    
    143,916Cost of sales
    
    
    87,430
    
    
    
    93,735
    
    
    
    110,449
    
    
    
    116,601
    
    
    
    112,874Lease expense
    
    
    159,869
    
    
    
    165,020
    
    
    
    171,656
    
    
    
    167,290
    
    
    
    132,395Depreciation, net (1)
    
    
    125,093
    
    
    
    112,815
    
    
    
    92,351
    
    
    
    87,539
    
    
    
    78,740Total costs and expenses
    
    
    1,611,252
    
    
    
    1,565,852
    
    
    
    1,616,311
    
    
    
    1,577,115
    
    
    
    1,429,720Earnings from operations
    
    
    140,459
    
    
    
    71,013
    
    
    
    30,372
    
    
    
    6,005
    
    
    
    85,546Interest
(income) expense
    
    
    (8,560
    )
    
    
    9,991
    
    
    
    11,675
    
    
    
    17,094
    
    
    
    496Pretax earnings (loss)
    
    
    149,019
    
    
    
    61,022
    
    
    
    18,697
    
    
    
    (11,089
    )
    
    
    85,050Income tax benefit (expense)
    
    
    (52,992
    )
    
    
    (21,211
    )
    
    
    (6,117
    )
    
    
    4,921
    
    
    
    (31,704
    )Net earnings (loss)
    
    $
    96,027
    
    
    $
    39,811
    
    
    $
    12,580
    
    
    $
    (6,168
    )
    
    $
    53,346Balance Sheet Data:Property, plant and equipment, net
    
    $
    875,729
    
    
    $
    736,499
    
    
    $
    750,779
    
    
    $
    731,074
    
    
    $
    757,029Total assets
    
    
    1,445,860
    
    
    
    1,235,497
    
    
    
    1,099,195
    
    
    
    935,254
    
    
    
    970,968Capital leases
    
    
    99,609
    
    
    
    14,793
    
    
    
    14,793
    
    
    
    
    
    
    
    Notes and loans payable
    
    
    17,892
    
    
    
    16,900
    
    
    
    
    
    
    
    
    
    
    
    Stockholders equity
    
    
    601,514
    
    
    
    499,380
    
    
    
    458,639
    
    
    
    449,586
    
    
    
    455,714
   (1)
    
    Reflects the change in estimated salvage value and useful lives of assets
during the fiscal year ended March 31, 2002. The net
effect of these changes was to reduce the net loss for fiscal year 2002 by
$3.1 million or $0.15 per share. Gains and losses on the sale of
fixed assets are recorded in depreciation. 
 ITEM 7. Managements Discussion and Analysis of Financial Condition and Results of Operations General We begin Managements Discussion and Analysis of Financial Condition and
Results of Operations (MD&A) with a discussion of the overall strategy of
AMERCO, followed by a description
of our operating segments, and then a discussion of the strategy of our business segments to
give the reader an overview of the goals of our business and the direction in
which our business and products are moving. This is followed by a discussion
of the Critical Accounting Estimates that we believe are important to
understanding the assumptions and judgments incorporated in our reported
financial results. In the next section, we discuss our Results of Operations
for fiscal year 2004 compared with fiscal year 2003, and for fiscal year 2003
compared with fiscal year 2002 beginning with an overview. We then provide an
analysis of changes in our balance sheet and cash flows, and discuss our
financial commitments in the sections entitled Liquidity and Capital
Resources and Disclosures about Contractual Obligations and Commercial
Commitments. We conclude this MD&A by discussing our outlook for fiscal year
2005. 12




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##### Table of Contents



This MD&A should be read in conjunction with the other sections of this
Annual Report on Form 10-K, including Item 1: Business, Item 6: Selected
Financial Data and Item 8: Financial Statements and Supplementary Data. The
various sections of this MD&A contain a number of forward looking statements,
all of which are based on our current expectations and could be affected by the
uncertainties and risk factors described throughout this filing and
particularly under the caption Risk Factors in this section. Our actual
results may differ materially with these forward looking statements. Description of Operating Segments AMERCO has three reportable operating segments and five identifiable
operating segments. The three reportable segments are Moving and Self Storage,
Property and Casualty Insurance and Life Insurance. The five identifiable
segments include U-Haul moving and storage, Real Estate, and SAC moving and
storage, which are separately listed under the reportable segment, Moving and
Self Storage. The remaining identifiable segments are Property and Casualty
Insurance and Life Insurance. See Notes 1, 21 and 21A to the Consolidated
Financial Statements included in this Form 10-K. Strategy Our plan is to maintain our leadership position in the North American
do-it-yourself moving and storage industry. Our overall strategy is to
provide a seamless and integrated supply chain to the do-it-yourself moving
and storage market. As part of executing this strategy, we leverage the brand
recognition of U-Haulwith our full line of moving and self-storage related
products and services and the convenience of our broad geographic presence. Our primary focus is to provide our customers with a wide selection of
moving rental equipment, convenient self-storage rental facilities and related
moving and self-storage products and services. We are able to expand our
distribution and improve customer service by increasing the amount of moving
equipment and storage rooms available for rent, expanding the number of
independent dealers in our network and expanding and taking advantage
of our growing eMove capabilities. During fiscal year 2004, RepWest decided to focus its activities on
providing property and casualty insurance to U-Haul,its customers, its
independent dealers and affiliates. This will enable RepWest to focus
its core competencies and financial resources to better support our overall
strategy. RepWest has incurred losses as it exits unprofitable non-U-Haulbusiness. Moving and Self-Storage U-Haul moving and self-storage operations consist of the rental of trucks
and trailers, sales of moving supplies, sales of trailer hitches, sales of
propane, and the rental of self-storage spaces to the do-it-yourself mover.
Operations are conducted under the registered trade name U-Haul® throughout the
United States and Canada. Real Estate owns approximately 90 percent of the Companys real estate
assets, including U-Haul Center and Storage locations. The remainder
of our
real estate assets are owned by various U-Haul entities. Real Estate is
responsible for overseeing property acquisitions, dispositions and managing
environmental risks of the properties. SAC moving and self-storage operations consist of the rental of
self-storage spaces, sales of moving supplies, sales of trailer hitches, and
sales of propane. In addition, SAC functions as an independent dealer and
earns commissions from the rental of U-Haul trucks and trailers. Operations
are conducted under the registered trade name U-Haul® throughout the United
States and Canada. We continue to focus on expanding our dealer network, which provides added
convenience for our customers and expanding the selection and availability of
rental equipment to satisfy the needs of our customers. With respect to our retail sales of product, U-Haul has developed a number
of specialty packing boxes, Movers Wrap and Smart Move tape. Movers Wrap
is a sticks-to-itself plastic stretch wrap used to bind, bundle, and fasten
items when moving or storing. Additionally, U-Haul has added a full line of
Smart Move tape products. The Smart Move tape is a color coded packing tape
that has the room printed right on it allowing customers to tape and
label their
belongings in one quick step. 13




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##### Table of Contents



eMove.com connects consumers to independent customer rated service
providers who provide packing, loading, unloading, cleaning, driving help and
more. With over 12,000 unedited reviews of service providers, the marketplace
has facilitated over 21,000 moves. Another service, the eMove Storage Affiliate
program, targets independently owned self-storage facilities to connect into
the eMove network to provide storage services. Over 1,900 self-storage
facilities are now registered on the eMove network. We believe acting as an
intermediary, with little added investment, serves the customer in a cost
effective manner. Within two years of its inception, eMove.com has established
itself as the only online destination in the do-it-yourself moving and
storage industry that connects consumers to service providers in all 50 states
and 11 Canadian provinces. Our goal is to further utilize our web-based
technology platform to expand into additional markets. Property and Casualty Insurance Republic Western Insurance Company (RepWest) provides loss adjusting and
claims handling for U-Haulthrough regional offices across North America.
RepWest also provides components of the Safemove, Safetow and Safestor
protection packages to U-Haulcustomers. We continue to focus on increasing the
penetration of these products. The business plan for RepWest includes offering
property and casualty products in other U-Haulrelated programs. During the
past year RepWest has commuted numerous assumed reinsurance treaties to eliminate the
risk of further development on these treaties. Life Insurance Oxford Life Insurance Company originates and reinsures annuities, credit
life and disability, life insurance and supplemental health insurance products.
Oxfords business strategy is long-term capital growth through direct writing
and reinsuring of annuity, credit life and disability, and Medicare supplement
products. Oxford is pursing this growth strategy of increased direct writing
via acquisitions of insurance companies, expanded distribution channels and
product development. The acquisition of North American Insurance Company and
Safe Mate Life Insurance Company in 1997, and Christian Fidelity Life Insurance
Company in 2000 represents significant movement toward this long-term goal.
Oxford significantly expanded product offerings, distribution channels and
administrative capabilities through these acquisitions. Critical Accounting Policies and Estimates The methods, estimates and judgments we use in applying our accounting
policies can have a significant impact on the results we report in our
financial statements, which we discuss under the heading Results of
Operations. Some of our accounting policies require us to make difficult and
subjective judgments, often as a result of the need to make estimates of
matters that are inherently uncertain. The accounting estimates that require
managements most difficult and subjective judgments include the recoverability
of property, plant and equipment; the adequacy of insurance reserves; and the
recognition and measurement of income tax assets and liabilities. Below, we
discuss these policies further, as well as the estimates and judgments
involved. The estimates are based on historical experience,
observance of trends in particular areas, information and valuations
available from outside sources and on various other assumptions that
are believed to be reasonable under the circumstances and which form
the basis for making judgments about the carrying values of assets and
liabilities that are not readily apparent from other sources. Actual
amounts may differ from these estimates under different assumptions
and conditions. Such differences may be material. Accounting
policies are considered critical when they are significant and
involve difficult, subjective or complex judgments or estimates. The
accounting policies that we deem most critical to us, and involve the
most difficult, subjective or complex judgments include the following: We also have other policies that we consider key accounting
policies, such as revenue recognition; however, these policies do not meet the
definition of critical accounting estimates, because they do not generally
require us to make estimates or judgments that are difficult or subjective. Principles
of Consolidation The
2004 balance sheet includes the accounts of AMERCO, its wholly owned
subsidiaries, and SAC Holding II Corporation and its
subsidiaries. The 2003 balance sheet and the 2004 statements of operations, comprehensive
income, and cash flows, and the consolidated financial statements for
fiscal 2003 and 2002, include all of those entities plus SAC Holding
Corporation and its subsidiaries. In fiscal 2003 and 2002, SAC
Holding Corporation and SAC Holding II Corporation (the SAC
entities) were considered special purpose entities and were
consolidated based on the provision of Emerging Issues Task Force
(EITF) Issue No. 90-15. In fiscal 2004, the Company applied FASB
Interpretation No. 46 to its interests in the SAC Entities.
Initially, the Company concluded that the SAC entities were variable
interest entities and that the Company was the primary beneficiary.
Accordingly, the Company continued to include the SAC entities in the
consolidated financial statements. In February 2004, SAC Holding
Corporation restructured the financing of three subsidiaries and then
distributed its interest in those subsidiaries to its sole
shareholder. This triggered a requirement to reassess the
Companys involvement with those subsidiaries, which led to a
conclusion that the Company ceased to be the primary beneficiary of
those three subsidiaries at that date. In March 2004, SAC Holding
Corporation restructured its financing, triggering a similar
reassessment that led to a conclusion that the Company ceased to be
the primary beneficiary of SAC Holding Corporation and its remaining
subsidiaries. Accordingly, at the dates the Company ceased to be the
primary beneficiary, it deconsolidated those entities. The
deconsolidation was accounted for as a distribution of the
Companys interests to the sole shareholder of the SAC entities.
Because of the Companys continuing involvement with SAC Holding
Corporation and its current and former subsidiaries, the
distributions do not qualify as discontinued operations as defined by
SFAS No. 144. Inter-company accounts and transactions have been eliminated. Recoverability of Property, Plant and Equipment Property, plant and equipment are stated at cost. Interest costs incurred
during the initial construction of buildings or rental equipment are considered
part of cost. Depreciation is computed for financial reporting purposes
principally using the straight-line method over the following estimated useful
lives: rental equipment 2-20 years: buildings and non-rental equipment 3-55
years. Major overhauls to rental equipment are capitalized and are amortized
over the estimated period benefited. Routine maintenance costs are charged to
operating expense as they are incurred. Gains and losses on dispositions of
property, plant and equipment are netted against depreciation expense when
realized. Depreciation is recognized in amounts expected to
result in the recovery of estimated residual values upon disposal
(i.e. no gains or losses.) In determining the depreciation rate,
historical disposal experience and holding periods, and trends in the
market for vehicles are reviewed. Due to longer holding periods on
trucks and the resulting increased possibility of changes in the
economic environment and market conditions, these estimates are
subject to a greater degree of risk. 14




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##### Table of Contents



Reviews
are periodically performed to determine whether facts and
circumstances exist which indicate that the carrying amount of assets,
including estimates of residual value, may not be recoverable or that the
useful life of assets is shorter or longer than originally estimated. The
company assesses the recoverability of its assets by comparing the projected
undiscounted net cash flows associated with the related asset or group of
assets over their estimated remaining lives against their respective carrying
amounts. Impairment, if any, is based on the excess of the carrying amount
over the fair value of those assets. If assets are determined to be
recoverable, but the useful lives are shorter or longer than originally
estimated, the net book value of the assets is depreciated over the newly
determined remaining useful lives. Insurance Reserves Liabilities for life insurance and certain annuity policies are
established to meet the estimated future obligations of policies in force, and
are based on mortality and withdrawal assumptions from recognized actuarial
tables which contain margins for adverse deviation. Liabilities for annuity
contracts consist of contract account balances that accrue to the benefit of
the policyholders, excluding surrender values. Liabilities for health,
disability and other policies represents estimates of payments to be made on
insurance claims for reported losses and estimates of losses incurred, but not
yet reported. Insurance reserves for RepWest and U-Haul International, Inc.
take into account losses incurred based upon actuarial estimates.
These estimates are based on past claims experience and current claim
trends as well as social and economic conditions such as changes in
legal theories and inflation. Due to the nature of underlying risks
and the high degree of uncertainty associated with the determination
of the liability for future policy benefits and claims, the amounts to
be ultimately paid to settle liabilities cannot be precisely
determined and may vary significantly from the estimated liability. Investments For
investments accounted for under SFAS 115, in determining if and
when a decline in market value below amortized cost is other than
temporary, quoted market prices, dealer quotes or discounted cash
flows are reviewed. Other-than-temporary declines in value are
recognized in the current period operating results to the extent of
the decline. Results of Operations AMERCO and Consolidated
Entities March 31,2004
    
    2003
    
    2002(In thousands)Rental revenue
    
    $
    1,655,571
    
    
    $
    1,560,005
    
    
    $
    1,512,250Net sales
    
    
    232,437
    
    
    
    222,889
    
    
    
    222,816Premiums
    
    
    237,118
    
    
    
    314,016
    
    
    
    411,170Net investment and interest income
    
    
    42,369
    
    
    
    35,477
    
    
    
    47,343Total Revenues
    
    $
    2,167,495
    
    
    $
    2,132,387
    
    
    $
    2,193,579Operating expenses
    
    $
    1,176,091
    
    
    $
    1,178,994
    
    
    $
    1,203,930Commission expenses
    
    
    147,010
    
    
    
    136,827
    
    
    
    140,442Cost of sales
    
    
    111,906
    
    
    
    115,115
    
    
    
    122,694Benefits and losses
    
    
    212,853
    
    
    
    244,308
    
    
    
    376,673Amortization
of deferred policy acquisition costs
    
    
    39,083
    
    
    
    37,819
    
    
    
    40,674Lease expense
    
    
    160,727
    
    
    
    166,100
    
    
    
    164,075Depreciation,
net(A)
    
    
    148,813
    
    
    
    137,446
    
    
    
    102,957Restructuring expenses
    
    
    44,097
    
    
    
    6,568
    
    
    
    Total costs
and expenses
    
    $
    2,040,580
    
    
    $
    2,023,177
    
    
    $
    2,151,445Earnings from operations
    
    $
    126,915
    
    
    $
    109,210
    
    
    $
    42,134Interest expense
    
    
    121,690
    
    
    
    148,131
    
    
    
    109,465Pre-tax earnings (loss)
    
    
    5,225
    
    
    
    (38,921
    )
    
    
    (67,331
    )Income tax benefit (expense)
    
    
    (8,077
    )
    
    
    13,935
    
    
    
    19,891Net earnings (loss)
    
    $
    (2,852
    )
    
    $
    (24,986
    )
    
    $
    (47,440
    )
 (A) Depreciation is
shown net of (gain)/losses on the disposal of fixed assets. 15




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##### Table of Contents



Fiscal 2004 Compared With Fiscal 2003 Revenues for AMERCO and its consolidated entities were $2,167.5 million
for fiscal year 2004. This compares to $2,132.4 million for fiscal year 2003.
Earnings from operations were $126.9 million in fiscal 2004 compared with
$109.2 million for fiscal year 2003. We experienced 6.4% revenue
growth, before consolidating entries, in our
Moving and Self-Storage segment in fiscal 2004 compared with fiscal 2003.
Combined earnings from operations before consolidating entries, in our Moving
and Self-Storage segments were $266.1 million in fiscal 2004, and reflect an
improvement of $70.3 million, or 35.9% in fiscal 2004 compared with fiscal
2003. At the Oxford Life Insurance Company, revenue decreased 4.8%
before eliminating entries, primarily
as a result of its rating downgrade by A.M. Best in 2003. This downgrade
resulted from liquidity issues that faced AMERCO. Earnings from operations at Oxford
were $11.3 million in fiscal 2004, reflecting a reduction in write-downs of
investments due to other than temporary declines and a solid turnaround from
the $1.4 million loss reported in fiscal 2003. At RepWest, revenues declined
34.3%, reflecting its strategic decision to exit unprofitable non-U-Haullines
of business. The benefits and losses on these unprofitable lines adversely affected
its profitability. As a result, earnings from operations at RepWest were a loss
of $36.0 million in fiscal 2004, compared with a loss of $8.0 million for
fiscal 2003. Interest expense for fiscal 2004 was $121.7 million. This compares to
$148.1 million in fiscal 2003, which included our early termination of BBAT
payments of $26.5 million. Income tax expense was $8.1 million in fiscal 2004
compared with a income tax benefit of $13.9 million in fiscal 2003. This
reflects pretax earnings and an increase in
current year tax of $4.8 million as a result of our settlement with the IRS for
tax audits related to 1996 and 1997. As a result of the
abovementioned items, there was a loss of $2.9 million in fiscal 2004 compared with a loss of
$25.0 million in
fiscal 2003. Included in fiscal 2004 results are $44.1 million of
non-recurring financial restructuring costs ($27.3 million on an after-tax
basis) compared with $6.6 million of non-recurring financial restructuring
costs ($4.0 million on an after-tax basis) included in fiscal
2003. Preferred stock dividends paid or
accrued were $13.0 million in fiscal 2004 and fiscal 2003. Loss available to common shareholders were a loss of
$15.8 million in fiscal 2004 compared to a loss of
$37.9 million in fiscal 2003. Fiscal 2003 Compared With Fiscal 2002 Revenues for AMERCO and its consolidated entities were $2,132.4 million
for fiscal 2003. This compares to $2,193.6 million for fiscal year 2003.
Earnings from operations were $109.2 million in fiscal 2003 compared with $42.1
million for fiscal 2002, which included losses from RepWest of $72.4 million in
fiscal 2002 compared with losses of $8.0 million in fiscal 2003. We experienced
a 3.4% revenue growth, before consolidating entries, in our Moving and Self-Storage segments in fiscal 2003
compared with fiscal 2002. Combined earnings from operations, before
consolidating entries, in our Moving and
Self-Storage segments were $195.8 million in fiscal 2003,
compared with $143.9 million in 2002, reflecting an
improvement of $51.9 million, or 36.1% from fiscal 2002. At the Oxford Life
Insurance Company, revenue declined 4.0%. Earnings from operations were a loss
of $1.4 million in fiscal 2003 compared with a profit of $5.6 million in fiscal
2002, reflecting write-downs of investments due to other than temporary
declines. At RepWest revenues declined 38.1% in fiscal 2003 compared with
fiscal 2002. Earnings from operations were a loss of $8.0 million in fiscal
2003 compared with a loss of $72.4 million in fiscal 2002. Interest expense for fiscal 2003 was $148.1 million. This compares to
$109.5 million in fiscal 2002, and includes our early termination of BBAT
payments of $26.5 million in fiscal 2003. Income tax benefit was $13.9 million in fiscal 2003
compared with an income tax benefit of $19.9 million in fiscal 2002. This reflects
a lower pretax earnings loss.
Net loss was $25.0 million in fiscal 2003 compared to
$47.4 million in fiscal 2002. Preferred stock
dividends paid or accrued were $13.0 million in fiscal 2003 and
fiscal 2002. As a result of the above mentioned items, our earnings (loss) available to
common shareholders were a loss of $37.9 million in fiscal 2003 compared with
the loss of $60.4 million in fiscal 2002. Included in 2003 results are $6.6
million of non-recurring financial restructuring costs ($4.0) million on
after-tax basis). There were no non-recurring financial restructuring costs in
fiscal 2002. 16




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##### Table of Contents



Fiscal 2005 Outlook As we look ahead to fiscal 2005, we believe the momentum in our Moving and
Self-Storage segments will continue, adjusted for
the deconsolidation of SAC Holding Corporation. We reported approximately $177.9
million of revenues, $55.2 million of earnings from operations,
$67.9 million
of interest expense, and a net loss of $9.4 million in fiscal 2004 that are
related to variable interests in SAC Holdings that are being deconsolidated as
of March 31, 2004. Oxford was recently upgraded to B- by A.
M. Best. Oxfords revenues will likely continue to erode in the near term, although we
anticipate operating margins will be maintained. At RepWest, the benefits from
focusing its efforts on the U-Haullines of business are expected to
materialize in 2005. Separately, we expect no further costs associated with our
financial restructuring during 2005. Self Moving and Storage The
following tables sets forth certain revenue and consolidated
statements of operations data for the periods indicated: U-Haul International March 31,2004
    
    2003
    
    2002(In thousands)Rental revenue
    
    $
    1,548,408
    
    
    $
    1,433,442
    
    
    $
    1,425,685Net sales
    
    
    181,799
    
    
    
    174,065
    
    
    
    198,312Net investment and interest income
    
    
    21,504
    
    
    
    29,358
    
    
    
    22,6861,751,711
    
    
    
    1,636,865
    
    
    
    1,646,683Operating expenses
    
    
    1,062,695
    
    
    
    1,029,774
    
    
    
    1,088,390Commission expenses
    
    
    176,165
    
    
    
    164,508
    
    
    
    153,465Cost of sales
    
    
    87,430
    
    
    
    93,735
    
    
    
    110,449Lease expense
    
    
    159,869
    
    
    
    165,020
    
    
    
    171,656Depreciation,
net(A)
    
    
    125,093
    
    
    
    112,815
    
    
    
    92,351Total costs
and expenses
    
    
    1,611,252
    
    
    
    1,565,852
    
    
    
    1,616,311Earnings from operations
    
    
    140,459
    
    
    
    71,013
    
    
    
    30,372Interest
(income)/expense
    
    
    (8,560
    )
    
    
    9,991
    
    
    
    11,675Pre-tax earnings
    
    
    149,019
    
    
    
    61,022
    
    
    
    18,697Income tax expense
    
    
    (52,992
    )
    
    
    (21,211
    )
    
    
    (6,117
    )Net earnings
    
    $
    96,027
    
    
    $
    39,811
    
    
    $
    12,580
 (A)
    Depreciation is shown net of (gains)/losses on the disposal of
    fixed assets: 2004
    
    2003
    
    2002Depreciation expense
    
    $
    116,693
    
    
    $
    119,802
    
    
    $
    82,940(Gain)/loss on disposal
    
    
    8,400
    
    
    
    (6,987
    )
    
    
    9,411Depreciation, net
    
    $
    125,093
    
    
    $
    112,815
    
    
    $
    92,351 17




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##### Table of Contents



SAC Holdings March 31,2004
    
    2003
    
    2002(In thousands)Rental revenue
    
    $
    168,378
    
    
    $
    168,027
    
    
    $
    112,747Net sales
    
    
    50,577
    
    
    
    48,768
    
    
    
    24,449218,955
    
    
    
    216,795
    
    
    
    137,196Operating expenses
    
    
    108,412
    
    
    
    105,287
    
    
    
    68,223Cost of sales
    
    
    24,450
    
    
    
    21,359
    
    
    
    12,221Depreciation, net
    
    
    21,400
    
    
    
    21,373
    
    
    
    15,071Total costs and exp
    
    
    154,262
    
    
    
    148,019
    
    
    
    95,515Earnings from operations
    
    
    64,693
    
    
    
    68,776
    
    
    
    41,681Interest expense
    
    
    80,963
    
    
    
    81,164
    
    
    
    61,081Pre-tax loss
    
    
    (16,270
    )
    
    
    (12,388
    )
    
    
    (19,400
    )Income tax benefit
    
    
    4,719
    
    
    
    3,691
    
    
    
    5,375Net loss
    
    $
    (11,551
    )
    
    $
    (8,697
    )
    
    $
    (14,025
    )
 Amerco Real Estate March 31,2004
    
    2003
    
    2002(In thousands)Rental revenue
    
    $
    59,754
    
    
    $
    59,162
    
    
    $
    68,245Net sales
    
    
    61
    
    
    
    56
    
    
    
    55Net investment and interest income
    
    
    16,089
    
    
    
    10,695
    
    
    
    8,32175,904
    
    
    
    69,913
    
    
    
    76,621Operating expenses
    
    
    8,063
    
    
    
    8,041
    
    
    
    6,147Cost of sales
    
    
    26
    
    
    
    21
    
    
    
    24Lease expense
    
    
    2,653
    
    
    
    640
    
    
    
    632Depreciation, net(A)
    
    
    4,209
    
    
    
    5,169
    
    
    
    (2,039
    )Total costs and exp
    
    
    14,951
    
    
    
    13,871
    
    
    
    4,764Earnings from operations
    
    
    60,953
    
    
    
    56,042
    
    
    
    71,857Interest expense
    
    
    29,154
    
    
    
    23,652
    
    
    
    34,299Pre-tax earnings
    
    
    31,799
    
    
    
    32,390
    
    
    
    37,558Income tax expense
    
    
    (12,776
    )
    
    
    (13,002
    )
    
    
    (15,102
    )Net earnings
    
    $
    19,023
    
    
        $

    19,388
    
    
    $
    22,456(A) Depreciation is shown net of (gains)/losses on the disposal of fixed assets:2004
    
    2003
    
    2002Depreciation expense
    
    $
    8,670
    
    
    $
    8,697
    
    
    $
    10,339(Gain)/loss on disposal
    
    
    (4,461
    )
    
    
    (3,528
    )
    
    
    (12,378
    )Depreciation, net
    
    $
    4,209
    
    
    $
    5,169
    
    
    $
    (2,039
    )
 18




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##### Table of Contents



Moving and Self-Storage 2004 Compared With 2003 Rental revenues at U-Haul, before consolidating entries, were $1,548.4
million in fiscal 2004, compared with $1,433.4 million in 2003. This
represents an increase of $115.0 million, or 8.0%, and was driven by a
combination of factors, including increased utilization, better price realization
and improved product mix. Rental revenues at SAC Holdings, before consolidating
entries, were $168.4 million in fiscal 2004 compared with $168.0 million in
2003. This represents an increase of $0.4 million, or 0.2%, and reflects a
stable number of rooms available for rent. Rental revenues at Real Estate,
before consolidating entries, were $59.8 million in fiscal 2004, compared with
$59.2 million in 2003. This represents an increase of $0.6 million, or 1.0%,
and reflects increased rental rates. Net sales of moving and self-storage related products and services at
U-Haul were $181.8 million in fiscal 2004, compared with $174.1 million in
2003. This represents an increase of $7.7 million, or 4.4%, and was driven by
increased volume and improved pricing. Net sales of moving and
self-storage related products and services at SAC Holdings were $50.6 million
in fiscal 2004, compared with $48.8 million in 2003. This represents an
increase of $1.8 million, or 3.7%, and was driven by increased volume and
improved pricing. Net
investment and interest income at U-Haul, before consolidating entries, was $21.5 million
in fiscal 2004, compared with $29.4 million in 2003. The decrease in interest
income is directly related to lower average investment balances in SAC Holdings
notes. Net
investment and interest income at Real Estate, before consolidating entries, was $16.1
million in fiscal 2004, compared with $10.7 million in 2003. The increase in
interest income is directly related to increased investments in mortgage notes. Operating expenses at U-Haul, before consolidating entries, were $1,062.7
million in fiscal 2004, compared with $1,029.8 million in 2003. This represents
an increase of $32.9 million, or 3.2%, and was the result of increases in
payroll, equipment maintenance and insurance costs, which were driven by
increases in volume and inflation, partially offset by lower other operating
expenses. Operating expenses at SAC Holdings, before consolidating entries,
were $108.4 million in fiscal 2004, compared with $105.3 million in 2003. This
represents an increase of $3.1 million, or 2.9%, and was the result of
inflationary increases in payroll, property taxes, utilities and insurance
costs. Operating expenses at Real Estate, before consolidating entries, were
$8.1 million in fiscal 2004, compared with $8.1 million in 2003. Dealer commissions at U-Haul were $176.2 million in fiscal 2004, compared
with $164.5 million in 2003. This represents an increase of $11.7 million, or
7.1%, and was driven by increased rentals by our independent dealers. Lease expenses at U-Haul, before consolidating entries, were $159.9
million in fiscal 2004, compared with $165.0 million in 2003. This represents a
reduction of $5.1 million, or 3.1%, and reflects a reduction in the amount of
rental equipment we leased. Lease expenses at Real Estate, before
consolidating entries, were $2.7 million in fiscal 2004,
compared with $.6 million in 2003. This represents an increase of $2.1 million and
reflects increases in synthetic lease cost and other expenses. Depreciation
expense, net at U-Haul, before consolidating entries, was $125.1
million in fiscal 2004, net of loss on sales of fixed assets of
$8.4 million, compared with $112.8 million in 2003
which included $7.0 million of gains in sales of fixed assets.
The overall increase in depreciation between fiscal 2004 and fiscal
2003 is due to losses on the sales of fixed assets in 2004 compared to
gains on the sales of fixed assets in 2003. Depreciation
expense at SAC Holdings, before consolidating entries, was $21.4
million in fiscal 2004, which is consistent with the amount recorded in 2003. 19




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Earnings from operations at U-Haul, before consolidating entries, were
$140.5 million in fiscal 2004, compared with $71.0 million in 2003. This
represents an increase of $69.5 million, or 97.8%, and was driven by increased
rentals of our trucks, trailers and self-storage rooms, increased sales of
moving and storage related products and services, operational productivity and
improved customer service. Earnings from operations at SAC Holdings, before
consolidating entries, were $64.7 million in fiscal 2004, compared with $68.8
million in 2003. This represents a decrease of $4.1 million, or 5.9%, and was
driven by stable rentals of self-storage rooms, increased sales of moving and
storage related products and services, offset by increased operating expenses.
Earnings from operations at Real Estate, before consolidating entries, were
$61.0 million in fiscal 2004, compared with $56.0 million in 2003. This
represents an increase of $5.0 million, or 8.8%, and was driven by increased
interest income from investments in mortgage notes. 2003 Compared With 2002 Rental revenues at U-Haul, before consolidating entries, were $1,433.4
million in fiscal 2003, compared with $1,425.7 million in 2002. This
represents an increase of $7.7 million, or 0.5%, and was driven by a
combination of factors, including better price realization and productivity
gains. Rental revenues at SAC Holdings, before consolidating entries, were
$168.0 million in fiscal 2003 compared with $112.7 million in 2002. This
represents an increase of $55.3 million, or 49.1%, and reflects increased
storage capacity from the acquisition of several locations from U-Haul and
increased storage rates. Rental revenues at Real Estate, before consolidating
entries, were $59.2 million in fiscal 2003, compared with $68.2 million in
2002. This represents a decrease of $9.0 million, or 13.3%, and reflects the
sale of properties to SAC Holdings. Net sales of moving and self-storage related products and services at
U-Haul were $174.1 million in fiscal 2003, compared with $198.3 million in
2002. This represents a decrease of $24.2 million, or 12.2%, and was driven
primarily by the sale of several retail centers to SAC Holdings. Net sales of
moving and self-storage related products and services at SAC Holdings were
$48.8 million in fiscal 2003, compared with $24.4 million in 2002. This
represents an increase of $24.4 million, or 100.0%, and was driven primarily by
the acquisition of U-Haul retail centers by SAC Holdings. Net
investment and interest income at U-Haul, before consolidating entries, was $29.4 million
in fiscal 2003, compared with $22.7 million in 2002. The increase in interest
income is directly related to higher average investment balances in SAC
Holdings notes. Net investment and interest income at Real Estate, before consolidating entries,
was $10.7 million in fiscal 2003, compared with $8.3 million in 2002. The
increase in interest income is directly related to increased investments in
mortgage notes. Operating
expenses at U-Haul, before consolidating entries, were $1,029.8
million in fiscal 2003, compared with $1,088.4 million in 2002. This
represents a decrease of $58.6 million, or 5.4%, and was the result of the sale
of several retail centers to SAC Holdings and a cost reduction program.
Operating expenses at SAC Holdings, before consolidating entries, were $105.3
million in fiscal 2003, compared with $68.2 million in 2002. This represents
an increase of $37.1 million, or 54.4%, and was primarily the result of the
acquisition of several locations from U-Haul. Operating expenses at Real
Estate, before consolidating entries, were $8.1 million in fiscal 2003,
compared with $6.1 million in 2002. This represents an increase of
$2.0
million due to more locations in fiscal 2003 compared to fiscal 2002. Dealer commissions at U-Haul were $164.5 million in fiscal 2003, compared
with $153.5 million in 2002. This represents an increase of $11.0 million, or
7.2%, and was driven by increased rentals by our independent dealers. Lease expenses at U-Haul, before consolidating entries, were $165.0
million in fiscal 2003, compared with $171.7 million in 2002. This represents
a reduction of $6.7 million, or 3.9%, and reflects a reduction in the amount of
rental equipment we leased. Lease expenses at Real Estate, before
consolidating entries, were $.06 million in each fiscal 2003,
and 2002. 20




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##### Table of Contents



Depreciation
expense net at U-Haul, before consolidating entries, was
$112.8 million in fiscal 2003, net of $7.0 million gains on the sale of
fixed assets compared with $92.4 million in 2002, net of $9.4 million of loss on the sales of fixed assets. Excluding the gains and
losses on sales of fixed assets depreciation expense represents
an increase of $36.9 million, or 27.5%, and reflects an increase in the number
of trucks that we own. Depreciation expense at SAC Holdings, before
consolidating entries, was $21.4 million in fiscal 2003, compared with $15.1
million in 2002. This reflects the acquisition of several locations from
U-Haul. Depreciation expense at Real Estate, before consolidating entries, was
$5.2 million in fiscal 2003, compared with $(2.0) million in 2002. Earnings from operations at U-Haul, before consolidating entries, were
$71.0 million in fiscal 2003, compared with $30.4 million in 2002. This
represents an increase of $40.6 million, or 133.6%, and was driven by increased
rental revenues and lower expenses resulting from the sale of several retail
centers to SAC Holdings and a cost reduction program. Earnings from operations
at SAC Holdings, before consolidating entries, were $68.8 million in fiscal
2003, compared with $41.7 million in 2002. This represents an increase of
$27.1 million, or 65.0%, and was driven by the acquisition of several locations
from U-Haul. Earnings from operations at Real Estate, before consolidating
entries, were $56.0 million in fiscal 2003, compared with $71.9 million in
2002. This represents a decrease of $15.9 million, or 22.1%, and was driven by
a reduction in rental revenues and reductions in gains on asset
disposals. Oxford Life Insurance Company The
following table sets forth certain net revenue and statements of
operations data for the periods indicated: December 31,2003
    
    2002
    
    2001(In thousands)Premiums
    
    $
    147,753
    
    
    $
    161,398
    
    
    $
    159,380Net investment income
    
    
    19,046
    
    
    
    13,891
    
    
    
    23,175Total revenue
    
    
    166,799
    
    
    
    175,289
    
    
    
    182,555Benefits and losses
    
    
    103,491
    
    
    
    115,628
    
    
    
    120,917Amortization
of deferred policy acquisition costs
    
    
    24,957
    
    
    
    20,538
    
    
    
    18,583Operating expenses
    
    
    27,098
    
    
    
    40,549
    
    
    
    37,473Total expenses
    
    
    155,546
    
    
    
    176,715
    
    
    
    176,973Income (loss) from operations
    
    
    11,253
    
    
    
    (1,426
    )
    
    
    5,582Income tax benefit (expense)
    
    
    (4,493
    )
    
    
    549
    
    
    
    (2,418
    )Net income (loss)
    
    $
    6,760
    
    
    $
    (877
    )
    
    $
    3,164
 Premium
revenues, before intercompany eliminations, were $147.8 million,
$161.4 million, and $159.4 million for the year ended December 31, 2003, 2002,
and 2001, respectively. Oxfords Medicare supplement premiums decreased by
$3.5 million from 2002. Within this line of business run-off programs had
premium decreases of $7.7 million due to lapses; this was offset by new
writings from Christian Fidelity Life Insurance Company (CFLIC) of $4.2
million. Medicare supplement premiums increased $2.8 million from 2001
primarily due to new CFLIC premiums. Premiums from Oxfords life insurance
lines decreased $4.1 million from 2002 and $1.6 million from 2001. Credit life
and disability premiums decreased $4.8 million from 2002 and $7.7 million from
2001 due to account cancellations and decreased penetration. Annuitizations
decreased by $0.3 million from 2002 and $1.0 million from 2001. Other health
insurance premiums decreased $0.9 million from 2002 and decreased $4.1 million
from 2001 due to the termination of major medical programs. Net investment income before intercompany eliminations was $19.0 million,
$13.9 million, and $23.2 million for the years ended December 31, 2003, 2002
and 2001, respectively. The increase from 2002 is due to $6.0 million fewer
capital losses and limited partnership losses offset by a lower invested asset
base and reduced reinvestment rates. The change from 2001 is due primarily to
lower reinvestment rates. 21




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##### Table of Contents



Benefits
and losses incurred were $103.5 million, $115.6 million, and $120.9 million
for the years ended December 31, 2003, 2002 and 2001, respectively. Medicare
supplement benefits decreased $6.5 million from 2002 and $8.3 million from 2001
primarily due to decreased exposure and improved experience. Credit insurance
benefits decreased $2.3 million from 2002 and $4.0 million from 2001 due to
decreased exposure. Benefits from other health lines increased $0.3 million
from 2002 due to increased morbidity and decreased $3.8 million from 2001 due
to the termination of major medical programs. Annuity and life benefits
decreased $3.6 million from 2002 and $1.3 million from 2001 due to decreases in
life insurance exposure. Amortization
of deferred policy acquisition costs (DAC) and the value of business
acquired (VOBA) was $25.0 million, $20.5 million, and $18.6 million for 2003,
2002, and 2001, respectively. These costs are amortized for life and health
policies as the premium is earned over the term of the policy; and for deferred
annuities, amortized in relation to interest spreads. Amortization associated
with annuity policies increased $6.4 million from 2002 and $7.5 million from
2001 primarily due to increased surrender activity. Other segments decreased
$1.9 million from 2002 to 2003, and $1.1 million from 2001 to 2003 due to
decreased new business volume. Operating expenses were $27.1 million, $40.5 million, and $37.5 million
for the years ended December 31, 2003, 2002, and 2001, respectively.
Commissions have decreased $4.1 million from 2002 and $3.1 million from 2001
primarily due to decreases in new business. Fee income from surrendered annuity
policies is netted into this category. Surrender charge income increased $5.0
million from 2002 and $5.2 million from 2001. General and administrative
expenses net of fees collected decreased $4.3 million from 2002 to 2003 and
$2.1 million from 2001 to 2003. Earnings/(losses)
from operations were $11.3 million, $(1.4) million, and
$5.6 million for the years ending December 31, 2003, 2002 and 2001,
respectively. The increase from 2002 and 2001 is due primarily to fewer other
than temporary declines in the investment portfolio and improved loss ratios in
the Medicare supplement segment. 22




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##### Table of Contents



Republic Western Insurance Company The
following table sets forth certain revenue and statements of
operations data for the periods indicated: December 31,2003
    
    2002
    
    2001Premiums
    
    $
    93,242
    
    
    $
    152,618
    
    
    $
    261,975Net investment income
    
    
    21,699
    
    
    
    22,318
    
    
    
    20,651Totals revenue
    
    
    114,941
    
    
    
    174,936
    
    
    
    282,626Benefits and losses
    
    
    109,362
    
    
    
    128,680
    
    
    
    255,756Amortization of deferred
policy acquisition costs
    
    
    14,126
    
    
    
    17,281
    
    
    
    22,091Operating expenses
    
    
    27,403
    
    
    
    36,958
    
    
    
    77,210Total expenses
    
    
    150,891
    
    
    
    182,919
    
    
    
    355,057Loss from operations
    
    
    (35,950
    )
    
    
    (7,983
    )
    
    
    (72,431
    )Income tax benefit
    
    
    12,508
    
    
    
    2,612
    
    
    
    23,736Net income (loss)
    
    $
    (23,442
    )
    
    $
    (5,371
    )
    
    $
    (48,695
    )
 Premium revenues, before intercompany eliminations, were $93.2 million,
$152.6 million, and $262.0 million for the years ended December 31, 2003, 2002,
and 2001, respectively. Cancelled agency premiums were $65.6 million, $86.8
million, and $146.5 million for the years ended December 31, 2003, 2002, and
2001, respectively. The decreases from 2002 and 2001 are the result of the
Companys shift in its operating focus away from non affiliated and unprofitable
lines of business. Assumed treaty reinsurance premiums were $1.7 million, $31.0
million, and $69.1 million for the year ended December 31, 2003, 2002 and 2001,
respectively. The decreases in both years are due to the cancellation and non
renewal of all assumed treaty business. Rental industry revenues were $25.9
million, $34.8 million, and $46.3 million for the years ended December 31,
2003, 2002, and 2001, respectively. These decreases are due to the change in
structure of the U-Haul business to deductible/self-insured
arrangements. Net investment income was $21.7 million, $22.3 million, and $20.7 million
for the twelve months ended December 31, 2003 2002 and 2001 respectively. Benefits and losses incurred were $109.4 million, $128.7 million, and
$255.8 million for the twelve months ended December 31, 2003, 2002, and 2001,
respectively. The decreases in each year are due to decreased earned premiums
in all segments of RepWests business. Amortization
of deferred policy acquisition costs was $14.1 million, $17.3
million, and $22.1 million for the twelve months ended December 31, 2003, 2002,
and 2001, respectively. The decreases are due to decreased premium writings. Operating expenses, before intercompany eliminations, were $27.4 million,
$37.0 million and $77.2 million for the twelve months ended December 31, 2003,
2002, and 2001, respectively. Included in operating expenses are commissions
that were $10.3 million, $13.9 million and $51.2 million for the twelve months
ended December 31, 2003, 2002 and 2001, respectively. The decreases are due to
decreased premium writings. Pretax losses from operations were $36.0 million, $8.0 million, and $72.4
million for the twelve months ended December 31, 2003, 2002, and 2001,
respectively. The increase in losses in 2003 was due to the development of
losses on business lines that were previously written and subsequently terminated. The decrease in losses in 2002 from 2001 was due to
reduced expenses as well as improved loss development. 23




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##### Table of Contents



Activity in the liability for unpaid losses and loss adjustment expenses
is summarized as follows: 2003
    
    2002
    
    2001(in thousands)Balance at January 1
    
    $
    399,447
    
    
    $
    448,987
    
    
    $
    382,651Less reinsurance recoverable
    
    
    146,622
    
    
    
    128,044
    
    
    
    80,868Net balance at January 1
    
    
    252,825
    
    
    
    320,943
    
    
    
    301,783Incurred related to:Current year
    
    
    56,454
    
    
    
    112,284
    
    
    
    232,984Prior years
    
    
    53,127
    
    
    
    16,396
    
    
    
    23,042Total incurred
    
    
    109,581
    
    
    
    128,680
    
    
    
    256,026Paid related to:Current year
    
    
    22,931
    
    
    
    66,728
    
    
    
    106,395Prior years
    
    
    100,851
    
    
    
    130,070
    
    
    
    130,471Total paid
    
    
    123,782
    
    
    
    196,798
    
    
    
    236,866Net balance at December 31
    
    
    238,624
    
    
    
    252,825
    
    
    
    320,943Plus reinsurance recoverable
    
    
    177,635
    
    
    
    146,622
    
    
    
    128,044Balance at December 31
    
    $
    416,259
    
    
    $
    399,447
    
    
    $
    448,987
 As a result of changes in estimates of insured events in prior years, the
provision for unpaid losses and loss adjustment expenses (net of reinsurance
recoveries of $107.4 million) increased by $53.1 million in
fiscal 2003. 24




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##### Table of Contents



The following table illustrates the change in unpaid loss and loss
adjustment expenses. First line  reserves as originally reported at the end
of the stated year. Second section, reading down,  cumulative amounts paid as
of the end of successive years with respect to that reserve. Third section,
reading down,  revised estimates of the original recorded reserve as of the
end of successive years. Last section  compares the latest revised estimated
reserve amount to the reserve amount as originally established. This last
section is cumulative and should not be summed. Unpaid Loss and Loss Adjustment ExpensesDecember 311993
    
    1994
    
    1995
    
    1996
    
    1997
    
    1998
    
    1999
    
    2000
    
    2001
    
    2002
    
    2003(In thousands)Unpaid Loss and Loss
Adjustment Expenses
    
    
    314,482
    
    
    
    329,741
    
    
    
    341.981
    
    
    
    332,674
    
    
    
    384,816
    
    
    
    344,748
    
    
    
    334,858
    
    
    
    382,651
    
    
    
    448,987
    
    
    
    399,447
    
    
    
    416,259Paid (Cumulative) as of:One year later
    
    
    70,382
    
    
    
    86,796
    
    
    
    89,041
    
    
    
    89,336
    
    
    
    103,752
    
    
    
    82,936
    
    
    
    117,025
    
    
    
    130,471
    
    
    
    130,070
    
    
    
    100,851Two years late
    
    
    115,467
    
    
    
    139,247
    
    
    
    150,001
    
    
    
    161,613
    
    
    
    174,867
    
    
    
    164,318
    
    
    
    186,193
    
    
    
    203,605
    
    
    
    209,525Three years later
    
    
    146,640
    
    
    
    173,787
    
    
    
    195,855
    
    
    
    208,168
    
    
    
    216,966
    
    
    
    218,819
    
    
    
    232,883
    
    
    
    255,996Four years later
    
    
    166,068
    
    
    
    198,434
    
    
    
    226,815
    
    
    
    232,726
    
    
    
    246,819
    
    
    
    255,134
    
    
    
    264,517Five years later
    
    
    181,174
    
    
    
    219,425
    
    
    
    243,855
    
    
    
    250,312
    
    
    
    269,425
    
    
    
    274,819Six years later
    
    
    194,652
    
    
    
    231,447
    
    
    
    254,204
    
    
    
    263,645
    
    
    
    282,598Seven years later
    
    
    203,535
    
    
    
    237,118
    
    
    
    264,120
    
    
    
    274,249Eight years later
    
    
    207,834
    
    
    
    242,450
    
    
    
    273,205Nine years later
    
    
    211,493
    
    
    
    250,475Ten years later
    
    
    216,688Reserve Reestimated as of:One year later
    
    
    321,058
    
    
    
    338,033
    
    
    
    353,508
    
    
    
    354,776
    
    
    
    357,733
    
    
    
    339,602
    
    
    
    377,096
    
    
    
    433,222
    
    
    
    454,510
    
    
    
    471,029Two years later
    
    
    323,368
    
    
    
    340,732
    
    
    
    369,852
    
    
    
    342,164
    
    
    
    361,306
    
    
    
    371,431
    
    
    
    432,714
    
    
    
    454,926
    
    
    
    523,624Three years later
    
    
    309,936
    
    
    
    349,459
    
    
    
    328,445
    
    
    
    346,578
    
    
    
    369,598
    
    
    
    429,160
    
    
    
    437,712
    
    
    
    517,361Four years later
    
    
    317,687
    
    
    
    302,808
    
    
    
    331,897
    
    
    
    349,810
    
    
    
    398,899
    
    
    
    413,476
    
    
    
    480,200Five years later
    
    
    267,005
    
    
    
    300,180
    
    
    
    339,665
    
    
    
    376,142
    
    
    
    398,184
    
    
    
    443,696Six years later
    
    
    262,517
    
    
    
    307,306
    
    
    
    347,664
    
    
    
    369,320
    
    
    
    428,031Seven years later
    
    
    267,948
    
    
    
    332,762
    
    
    
    344,451
    
    
    
    396,197Eight years later
    
    
    303,457
    
    
    
    311,682
    
    
    
    360,149Nine years later
    
    
    270,300
    
    
    
    323,241Ten years later
    
    
    278,947Cumulative Redundancy
Deficiency)
    
    $
    35,535
    
    
    $
    6,500
    
    
    $
    (18,168
    )
    
    $
    (63,523
    )
    
    $
    (43,215
    )
    
    $
    (98,948
    )
    
    $
    (145,342
    )
    
    $
    (134,710
    )
    
    $
    (74,637
    )
    
    $
    (71,582
    )Retro Premium Recoverable
    
    
    4,239
    
    
    
    8,231
    
    
    
    11,294
    
    
    
    13,905
    
    
    
    18,350
    
    
    
    25,569
    
    
    
    29,852
    
    
    
    39,731
    
    
    
    41,206
    
    
    
    41,581Reestimated Reserve:Amount (Cumulative)
    
    $
    39,774
    
    
    $
    14,731
    
    
    $
    (6,874
    )
    
    $
    (49,618
    )
    
    $
    (24,865
    )
    
    $
    (73,379
    )
    
    $
    (115,490
    )
    
    $
    (94,979
    )
    
    $
    (33,431
    )
    
    $
    (30,001
    )
 25




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##### Table of Contents



Liquidity and Capital Resources Our
successful financial restructuring has provided us with a
strengthened balance sheet and we believe a capital structure that
will allow us to achieve our operational plans and goals and provide
us with sufficient liquidity. The majority of the obligations we
incurred in connection with our financial restructuring mature at the
end of fiscal 2009. The senior subordinated notes mature at the end
of fiscal 2011. As a result, we believe that our liquidity is strong,
which will allow us the ability to focus on our operations and
business to improve our liquidity in the long term. We further
believe that as we are successful in improving our operations and
further strengthening our liquidity, we will improve our access to
the capital markets. However, there is no assurance that future cash flows
will be sufficient to meet our outstanding obligations or our future
capital needs. The terms of our secured indebtedness
place financial and operational covenants on AMERCO and its
subsidiaries, and restrict our ability to incur additional
indebtedness and other obligations. As
a result of the deconsolidation of SAC Holding during
the fourth quarter of 2004, AMERCOs assets and liabilities were
reduced approximately $472 million and $629 million,
respectively, and equity increased approximately $157 million. This
deconsolidation was the result of AMERCO no longer being the primary
beneficiary of a majority of its variable interests in SAC Holdings. At
March 31, 2004, cash and cash equivalents totaled
$81.6 million, up from $66.8 million at March 31,
2003. In addition, AMERCO had availability under its revolving credit
facility of $35.9 million. At
March 31, 2004 notes and loans payable, as reported, was
$1.0 billion, and represented 1.9 times stockholders equity.
At March 31, 2003, notes and loans payable, as reported, was
$1.4 billion and represented 4.3 times stockholders equity. On
April 30, 2004, AMERCO completed its transaction with
UH Storage DE, a W.P. Carey affiliate, effectively
terminating its amended and restated leases (the synthetic leases)
with the Bank of Montreal and Citibank. This transaction will result
in AMERCO eliminating its capital lease obligation of approximately
$99.5 million during the first quarter of fiscal 2005. (See
footnote 23 to Consolidated Financial Statements for a more
complete discussion of this transaction and its effect on the
Companys financial statements.) 26




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##### Table of Contents



For
fiscal year 2004, cash (used) provided by operating activities was
$(40.3) million, compared to $74.5 million in fiscal year
2003, and $(19.6) million in fiscal year 2002. We
provided $55.2 million in net cash from investing activities during
fiscal year 2004, compared to a use of $36.1 million in fiscal year
2003 and a use of $148.1 million in fiscal year 2002. Gross capital
expenditures were $198.4 million, $243.2 million and
$381.5 million in 2004, 2003 and 2002, respectively.
Capital dispositions were $63.2 million, $96.9 million and
$229.4 million in 2004, 2003 and
2002, respectively. Net capital expenditures were
$135.2 million, $146.3 million and
$152.1 million in 2004, 2003 and
2002, respectively. Financing
activities used $(0.1) million during fiscal year 2004.
This compares with usage of $(13.0) million during fiscal year
2003. We provided $159.5 million from financing activities during fiscal year 2002. Liquidity and Capital
Resources and Requirements of Our Operating Segments Moving and
Self-Storage


To
meet the needs of its customers, U-Haul maintains a large fleet of
rental equipment. Historically, capital expenditures have primarily
reflected new rental equipment acquisitions. The capital required to
fund these expenditures has historically been obtained through
internally generated funds from operations, lease financing and
sales of used equipment. Going forward, we anticipate that a
substantial portion of our internally generated funds will be used to
enhance liquidity by paying down existing indebtedness. During each
of the fiscal years ended March 31, 2005, 2006 and 2007, U-Haul
estimates that net capital expenditures will average approximately
$150 million to maintain its fleet at current levels. Financial
covenants contained in our loan agreements limit the amount of capital expenditures we can make in 2005, 2006 and 2007, net of
dispositions, to $185 million, $245 million and $195 million,
respectively. Management estimates that U-Haul will fund its fleet
expansion requirements from leasing and from the proceeds from the
sale of trucks. We intend to focus our growth on expanding our
independent dealer network, which does not require a substantial
amount of capital resources.

Real
Estate has traditionally financed the acquisition of self-storage
properties to support U-Hauls growth through lease and debt
financing. U-Haulss growth plan in self-storage is focused on eMove,
which does not require acquisition or construction of self-storage
properties by the company. Therefore, Real
Estate will not require substantial capital for its future plans and our loan
covenants give us the
necessary flexibility to implement this plan.

SAC
Holdings operations are funded by various mortgage loans and unsecured
notes. SAC Holdings does not utilize revolving lines of credit
to finance its operations or acquisitions. Certain of SAC Holdings loan
agreements contain restrictive covenants and restrictions on
incurring additional subsidiary indebtedness.

Life Insurance

As
of December 31, 2003, Oxford had no notes and loans payable in
less than one year and its accounts payable and accrued expenses
total approximately $5.5 million. Oxfords financial assets
(cash, receivables, inventories, short-term investments, other investments and fixed
maturities) at December 31, 2003 were approximately
$846.6 million. State insurance regulations restrict the amount
of dividends that can be paid to stockholders of insurance companies.
As a result, Oxfords funds are generally not available to satisfy
the claims of AMERCO or its legal subsidiaries.

The primary sources of cash for Oxford include premiums, receipts for
interest sensitive products and investment income. The primary uses
of cash are operating costs and benefit payments to policy holders. Matching the investment portfolio to the cash flow demands of the
types of insurance being written is an important consideration.
Benefit and claim statistics are continually monitored to provide
projections of future cash requirements.

In addition to cash flows from operating and financing activities,
a substantial amount of liquid funds are available through
Oxfords
short-term portfolio. Short-term investments amounted to
$122.9 million, $81.4 million and $53.5 million at
December 31, 2003, 2002 and 2001, respectively.

Property and Casualty
Insurance

As of December 31, 2003, RepWest had no notes or loans due in
less than one year and its accounts payable, accrued expenses,
and other payables were
approximately $18.4 million. RepWests financial assets (cash,
receivables, inventories, short-term investments and fixed
maturities) at December 31, 2003 were approximately
$353.2 million.

State insurance regulations restrict the amount of dividends that can
be paid to stockholders of insurance companies. As a result,
RepWests funds are generally not available to satisfy the
claims of AMERCO or its legal subsidiaries. Conversely,
AMERCOs loan agreements prohibit any further loans, capital
contributions or other advances to RepWest by AMERCO.

The primary sources of cash for RepWest include premiums and
investment income. The primary uses of cash are operating costs and
benefit payments to policy holders. Matching the investment portfolio
to the cash flow demands of the types of insurance written is an
important consideration. Benefit and claim statistics are continually
monitored to provide projections of future cash requirements.

RepWests cash and cash equivalents and short-term investment portfolio
were $62.1 million, $35.1 million, and $18.3 million at December 31, 2003,
2002, and 2001, respectively. This balance reflects funds in transition from
maturity proceeds to long term investments. This level of liquid assets,
combined with budgeted cash flow, is adequate to meet periodic needs. Capital
and operating budgets allow Republic to schedule cash needs in accordance with
investment and underwriting proceeds.

Cash Provided from Operating Activities by Operating Segments

Moving and
Self-Storage



Life
Insurance

Cash provided (used) from operating activities from Oxford was
$20.9 million, $(18.0) million and $(5.2) million for
fiscal years 2004, 2003 and 2002, respectively. The increase in cash
flow from operating activities from fiscal years 2003 and 2002
relates to lower federal income tax payments, better loss experience
and lower commissions.

Property and Casualty
Insurance

Cash
flows used by operating activities were $86.8 million,
$75.1 million, and $61.5 million for the years ended
December 31, 2003, 2002, and 2001, respectively. The cash used
by operating activities is a result of RepWest exiting the assumed
reinsurance and non U-Haul related lines. As RepWest adjudicates the
claims in these lines there will be a continued use of cash and a
corresponding decrease in insurance reserves.

Liquidity and Capital
Resources-Summary

We believe we have the financial resources needed to meet our
business requirements including capital expenditures for the
expansion and modernization of our rental fleet, rental equipment and
rental storage space, working capital requirements and our preferred
stock dividend program.

For a more detailed discussion of our long-term debt and borrowing
capacity, please see footnote 9 Borrowings to the
Notes to the Consolidated Financial Statements.

27



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Disclosures about Contractual Obligations and Commercial Commitments The following table provides contractual commitments and contingencies as
of March 31, 2004: Payment due by Period (as of March 31, 2004)Prior to
    
    04/01/05
    
    04/01/07
    
    April 1,2009Contractual Obligations
    
    Total
    
    03/31/05
    
    03/31/07
    
    03/31/09
    
    and Thereafter(In thousands)Revolving credit facility, senior
secured first lien
    
    $
    164,051
    
    
    $
    
    
    
    $
    
    
    
    $
    164,051
    
    
    $
    Senior amortizing notes, secured,
first lien, due 2009
    
    
    350,000
    
    
    
    3,500
    
    
    
    7,000
    
    
    
    339,500
    
    
    
    Senior notes, secured second lien,
9%, due 2009
    
    
    200,000
    
    
    
    
    
    
    
    
    
    
    
    200,000
    
    
    
    Senior subordinated notes,
secured, 12% due 2011
    
    
    148,646
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    148,646AMERCOs operating leases
    
    
    341,504
    
    
    
    127,087
    
    
    
    170,584
    
    
    
    37,537
    
    
    
    6,296AMERCOs
capitalized portion of synthetic lease
    
    
    224,119
    
    
    
    224,119
    (A)
    
    
    
    
    
    
    
    
    
    
    Private Mini Support Agreement
    
    
    70,000
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    70,000Other
obligations
    
    
    17,822
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    17,822SAC Holding
II notes and loans*
    
    
    153,725
    
    
    
    1,236
    
    
    
    2,533
    
    
    
    3,214
    
    
    
    146,742Elimination of SAC Holding II
obligations to AMERCO
    
    
    (75,088
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (75,088
    )Total contractual obligations
    
    $
    1,594,779
    
    
    $
    355,942
    
    
    $
    180,117
    
    
    $
    744,302
    
    
    $
    314,418
 As presented above,
contractual obligations on debt and guarantees represent principal
payments while contractual obligations for capital and operating
leases represent the notional payments under the lease arrangements,
including anticipated future cash payments for interest on capital
leases. Certain other liabilities are reported in the Companys
consolidated balance sheets but are not reflected in the table above
due to the absence of stated maturities. * These notes and loans represent obligations of SAC Holding
II issued to third party lenders and Amerco. (A)
    Includes $218.6 million of
obligations under synthetic leases and future interest on the
capitalized portion of the synthetic leases of $5.5 million.
These agreements were prepaid in full and terminated in
April 2004. See Note 23 to the Consolidated Financial Statements. 28




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##### Table of Contents



Off Balance Sheet Arrangements AMERCO used certain equipment and occupies certain facilities under
operating lease commitments with terms expiring substantially through 2034 with the exception
of one land lease expiring 2079. In the event of a shortfall
in proceeds from the sale of the underlying assets, AMERCO has guaranteed
approximately $235.0 million of residual values at March 31, 2004, for these
assets at the end of the respective lease terms. AMERCO has been leasing
equipment since 1987 and, thus far, we have experienced no residual value shortfalls. See details related to operating lease commitments in Note 16 to the
consolidated financial statements on page F-30. The
Company uses off-balance sheet arrangements where the economics and
sound business principles warrant their use. The Companys
principal use of off-balance sheet arrangements occurs in connection
with the expansion of our self-storage business. The Company
currently manages the self-storage properties owned by SAC Holding
Corporation pursuant to a standard form of management agreement with
each SAC Holding Corporation subsidiary, under which the Company receives a management
fee equal to 6% of the gross receipts. Business Outlook As we look ahead to fiscal 2005, we believe the momentum in our Moving and
Self-Storage segment will continue, adjusted for the deconsolidation
of SAC Holding Corporation. We reported approximately $177.9 million of revenues, $55.2
million of earnings from operations, $67.9 million of interest expense, and a
net loss of $9.4 million in fiscal 2004 that are related to variable interests
in SAC Holdings that were deconsolidated as of March 31, 2004. U-Haul will continue to benefit from the initiatives mentioned earlier,
including positive sales increases and maintenance cost improvements associated
with our fleet replacement program. Oxford is in the process of rebuilding its business that was impacted by
the AMERCO restructuring. Prior to the restructuring Oxford was rated B++ by
A.M. Best. The rating was reduced to C+ during the restructuring, but has been
recently upgraded to B- with a positive future outlook. Continued improvement
in the rating will be a key factor in the success of Oxfords marketing
programs including annuities, life insurance, Medicare supplement, and credit
life and disability. Oxfords statutory capital measurements continue to
strengthen and its existing business is expected to continue to perform
profitably. RepWest expects to realize the benefits of our restructuring. During 2004
we successfully discontinued the majority of the unprofitable direct and
assumed reinsurance lines and significantly strengthened our reserves
associated with those lines. U-Haul related lines have historically been
profitable and we expect to see the results of the new business plan during
2005. RepWests statutory capital measurements will continue to strengthen as
the reserves of the discontinued lines run off. We are working with the Arizona
Department of Insurance regarding the supervision order and expect it to be
resolved in the future. We expect no further costs associated with our financial
restructuring during 2005. 29




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##### Table of Contents



Cautionary Statement Regarding Forward-looking Statements This Annual Report on Form 10-K contains forward-looking statements. We
may make additional written or oral forward-looking statements from time to
time in filings with the Securities and Exchange Commission or otherwise. We
believe such forward-looking statements are within the meaning of the
safe-harbor provisions of the Private Securities Litigation Reform Act of 1995.
Such statements may include, but are not limited to, projections of revenues,
income or loss, estimates of capital expenditures, plans for future operations,
products or services, financing needs and plans, our perceptions of our legal
positions and anticipated outcomes of pending litigation against us, liquidity,
goals and strategies, plans for new business, growth rate assumptions, pricing,
costs, and access to capital and leasing markets as well as assumptions
relating to the foregoing. The words believe, expect, anticipate,
estimate, project and similar expressions identify forward-looking
statements, which speak only as of the date the statement was made.
Forward-looking statements are inherently subject to risks and uncertainties,
some of which cannot be predicted or quantified. Factors that could
significantly affect results include, without limitation, the risk factors
enumerated at the end of this section, as well as the following: the Companys
ability to operate pursuant to the terms of its credit facilities; the
Companys ability to maintain contracts that are critical to its operations;
the costs and availability of financing; the Companys ability to execute its
business plan; the Companys ability to attract, motivate and retain key
employees; general economic conditions; fluctuations in our costs to maintain
and update our fleet and facilities; our ability to refinance our debt; changes
in government regulations, particularly environmental regulations; our credit
ratings; the availability of credit; changes in demand for our products;
changes in the general domestic economy; degree and nature of our competition;
the resolution of pending litigation against the Company; changes in accounting
standards and other factors described in this report or the other documents we
file with the Securities Exchange Commission. The above factors, the following
disclosures, as well as other statements in this report and in the Notes to our
Consolidated Financial Statements, could contribute to or cause such
differences, or could cause our stock price to fluctuate dramatically.
Consequently, the forward-looking statements should not be regarded as
representations or warranties by the Company that such matters will be
realized. The Company disclaims any intent or obligation to update or revise
any of the forward-looking statements, whether in response to new information,
unforeseen events, changed circumstances or otherwise. 30




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Quarterly Results
(unaudited) The quarterly results shown below are derived from unaudited financial
statements for the eight quarters beginning April 1, 2002 and ending March 31,
2004. The Company believes that all necessary adjustments have been included in
the amounts stated below to present fairly, and in accordance with generally
accepted accounting principles, such results. U-Haul moving and storage
operations are seasonal and proportionally more of the Companys revenues and
net earnings from its U-Haul moving and self-storage operations are generated
in the first and second quarters of each fiscal year (April through September).
The operating results for the periods presented are not necessarily indicative
of results for any future period. Quarter EndedMar 31, 2004
    
    Dec 31, 2003
    
    Sep 30, 2003
    
    June 30, 2003(In thousands, except for share and per share data)Total revenues
    
    $
    457,339
    
    
    $
    502,583
    
    
    $
    627,457
    
    
    $
    580,116Earnings/(loss) from operations
    
    
    (46,605
    )
    
    
    (1,030
    )
    
    
    98,990
    
    
    
    75,560Net earnings (loss)
    
    
    (52,946
    )
    
    
    (21,667
    )
    
    
    44,025
    
    
    
    27,736Earnings/(loss) available to common shareholders
    
    
    (56,186
    )
    
    
    (24,908
    )
    
    
    40,784
    
    
    
    24,495Weighted average common shares outstanding
basic and diluted
    
    
    20,774,689
    
    
    
    20,757,297
    
    
    
    20,744,692
    
    
    
    20,732,086Earnings (loss) per common share basic and diluted
    
    $
    (2.70
    )
    
    $
    (1.20)
    *
    
    $
    1.97
    *
    
    $
    1.18
    *
 Quarter EndedMar 31, 2003
    
    Dec 31, 2002
    
    Sep 30, 2002
    
    June 30, 2002(In thousands, except for share and per share data)Total revenues
    
    $
    448,997
    
    
    $
    467,223
    
    
    $
    636,874
    
    
    $
    579,294Earnings/(loss) from operations
    
    
    (10,534
    )
    
    
    (6,722
    )
    
    
    62,869
    
    
    
    63,597Net earnings (loss)
    
    
    (25,110
    )
    
    
    (45,783
    )
    
    
    22,128
    
    
    
    23,779Earnings/(loss) available to common shareholders
    
    
    (28,351
    )
    
    
    (49,024
    )
    
    
    18,887
    
    
    
    20,538Weighted average common shares outstanding
basic and diluted
    
    
    20,749,681
    
    
    
    20,752,204
    
    
    
    20,812,686
    
    
    
    20,946,168Earnings (loss) per common share basic and diluted
    
    $
    (1.37)
    *
    
    $
    (2.36)
    *
    
    $
    0.91
    *
    
    $
    0.98
    *
   *
    
    Amounts revised to reflect the corrected number of weighted average
common shares outstanding.The weighted average common shares
increased (decreased) by approximately 353,000; 33,000; (11,000);
(87,000); 906,000; 230,000; and 657,000 for the seven quarters ending
December 31, 2003, respectively.The effect of including these shares was to
increase (decrease) earnings (loss) per share by $.02; $.00; $.00; $.01;
$.05; $.02; $(.04); for the seven quarters ended December 31, 2003,
respectively. 31




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Risk Factors We operate in a highly competitive industry. The truck rental industry is highly competitive and includes a number of
significant national, regional and local competitors.
Competition is generally based on convenience of rental locations,
availability of quality rental moving equipment, breadth of essential
services and price. In our truck rental business,
we face competition from Budget Car and Truck Rental Company and Penske Truck
Leasing. Some of our competitors may have greater financial resources than we
have. We cannot assure you that we will not be forced to reduce our rental
prices or delay price increases. The
self-storage industry is large and highly fragmented. We believe the
principle competitive factors in this industry are convenience of
storage rental locations, cleanliness, security and price. Our
primary competitors in the self-storage market are Public Storage,
Shurgard, Storage USA and others. Competition in the market areas in
which we operate is significant and affects the occupancy levels,
rental sales and operating expenses of our facilities. Competition
might cause us to experience a decrease in occupancy levels, limit our
ability to raise rental sales and
require us to offer discounted rates
that would have a material affect on operating results. Entry into the self-storage business through acquisition of existing
facilities is possible for persons or institutions with the required initial
capital. Development of new self-storage facilities is more difficult, however,
due to zoning, environmental and other regulatory requirements. The
self-storage industry has in the past experienced overbuilding in response to
perceived increases in demand. We cannot assure you that we will be able to
successfully compete in existing markets or expand into new markets. Control of AMERCO remains in the hands of a small contingent. As of March 31, 2004, Edward J. Shoen, Chairman of the Board of Directors
and President of AMERCO, James P. Shoen, a director of AMERCO, and Mark V.
Shoen, an executive officer of AMERCO, collectively own 8,789,933 shares
(approximately 42.4%) of the outstanding common shares of AMERCO. Accordingly,
Edward J. Shoen, Mark V. Shoen and James P. Shoen will be in a position to
continue to influence the election of the members of the Board of Directors and
approval of significant transactions. In addition, 2,303,681 shares
(approximately 10.8%) of the outstanding common shares of AMERCO, including
shares allocated to employees and unallocated shares, are held by our Employee
Savings and Employee Stock Ownership Trust. Our operations subject us to numerous environmental regulations and the
possibility that environmental liability in the future could adversely affect
our operations. Compliance with environmental requirements of federal, state and local
governments significantly affects our business. Among other things, these
requirements regulate the discharge of materials into the water, air and land
and govern the use and disposal of hazardous substances. Under environmental
laws, we can be held strictly liable for hazardous substances that are found on
real property we have owned or operated. We are aware of issues regarding
hazardous substances on some of our real estate and we have put in place a
remedial plan at each site where we believe such a plan is necessary. We
regularly make capital and operating expenditures to stay in compliance with
environmental laws. In particular, we have managed a testing and removal
program since 1988 for our underground storage tanks. Under this program, we
spent $43.7 million between April 1988 and March 31, 2004. Despite these
compliance efforts, risk of environmental liability is part of the nature of
our business. Environmental laws and regulations are complex, change frequently and
could become more stringent in the future. We cannot assure you that future
compliance with these regulations or future environmental liabilities will not
have a material adverse effect on our business. Our business is seasonal. Our business is seasonal and our results of operations and cash flows
fluctuate significantly from quarter to quarter. Historically, revenues have
been stronger in the first and second fiscal quarters due to the overall
increase in moving activity during the spring and summer months. The fourth
fiscal quarter is generally weakest, when there is a greater potential for
adverse weather conditions. 32




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##### Table of Contents



We obtain our rental trucks from a limited number of manufacturers. In the last ten years, we purchased all of our rental trucks from Ford and
General Motors. Although we believe that we have alternative sources of supply
for our rental trucks, termination of one or both of our relationships with
these suppliers could have a material adverse effect on our business, financial
condition or results of operations. Our property and casualty insurance business has suffered extensive losses. Since January 2000, our property and casualty insurance business, RepWest,
reported losses totaling approximately $149 million. These losses are primarily
attributable to business lines that were unprofitable as underwritten. To
restore profitability in RepWest, we have exited all non-U-Haul related lines
and have strengthened the reserves on the lines being eliminated. Although we
believe the terminated lines are adequately reserved, we cannot assure you that
there will not be future adverse reserve development. Our life insurance business was downgraded by A.M. Best during restructuring A.M. Best downgraded Oxford and its subsidiaries during the restructuring
to C+. Upon emergence from bankruptcy in March 2004, Oxford and its
subsidiaries were upgraded to B-. A.M. Best has indicated the rating outlook
for our life insurance business is positive. Prior to AMERCOs restructuring
Oxford was rated B++. Financial strength ratings are important external
factors that can affect the success of Oxfords business plans. Accordingly, if
Oxfords ratings, relative to its competitors, do not continue to improve,
Oxford may not be able to retain and attract business as currently planned. Notes receivable from SAC Holdings are a significant portion of AMERCOS total
assets. At March 31, 2004, we held approximately $203.8 million of notes due from
SAC Holdings. Although these assets have been eliminated in the consolidated
financial statements, we have significant economic exposure to SAC Holdings.
SAC Holdings is highly leveraged with significant indebtedness to others. We
hold various junior unsecured notes of SAC Holdings. If SAC Holdings is unable
to meet its obligations to its senior lenders, it could trigger a default on
its obligations to us. In such an event of default, we could suffer a
significant loss to the extent the value of the underlying collateral on our
loans to SAC Holdings is inadequate to repay SAC Holdings senior lenders and
us. We cannot assure you that SAC Holdings will not default on its loans to
their senior lenders or that the value of SAC Holdings assets upon liquidation
would be sufficient to repay us in full. We face risks related to an SEC investigation and securities litigation. The SEC has issued a formal order of investigation to determine whether we
have violated the Federal securities laws. Although we have cooperated with the
SEC in this matter and intend to continue to cooperate, the SEC may determine
that we have violated Federal securities laws. We cannot predict when this
investigation will be completed or its outcome. If the SEC makes a
determination that we have violated Federal securities laws, we may face
sanctions, including, but not limited to, significant monetary penalties and
injunctive relief. In addition, the Company has been named a defendant in a number of class
action and related lawsuits. The findings and outcome of the SEC investigation
may affect the class-action lawsuits that are pending. We are generally
obliged, to the extent permitted by law, to indemnify our directors and
officers who are named defendants in some of these lawsuits. We are unable to
estimate what our liability in these matters may be, and we may be required to
pay judgments or settlements and incur expenses in aggregate amounts that could
have a material adverse effect on our financial condition or results of
operations. Our common stock may be delisted from the NASDAQ Stock Market. On June 24, 2003, we received a letter from NASDAQ indicating that, in
light of AMERCOs Chapter 11 filing, a NASDAQ Listing Qualifications Panel (the
Panel) would consider such filing and associated concerns in rendering a
determination regarding AMERCOs listing status. Nasdaq has indicated that the
Panel has determined to continue the listing of AMERCOs common stock on Nasdaq
provided that AMERCO complies with all requirements for continued listing on
Nasdaq and timely files all periodic reports with the SEC for all periods
ending on or before June 30, 2004, without the benefit of any extensions
provided pursuant to Exchange Act Rule 12b-25. Although we intend to take all
actions available to maintain our Nasdaq listing, there can be no assurance
that we will be able to do so. We have advised Nasdaq that we did not
meet Nasdaqs deadline for this Form 10-K and we are seeking a waiver of this requirement for such filing. 33




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RepWest has consented to an Order of Supervision issued by the Arizona
Department of Insurance. On May 20, 2003, RepWest consented to an Order for Supervision issued by
the Arizona Department of Insurance (DOI). The DOI determined that RepWests
level of risk based capital (RBC) allowed for regulatory control. Pursuant to
this order and Arizona law, during the period of supervision, RepWest may not
engage in any of the following activities without the prior approval of the
DOI: a. dispose of, convey or encumber any of its assets or its business in
force; b. withdraw any of its bank accounts; c. lend any of its funds; d. invest any of its funds; e. transfer any of its property; f. incur any debt, obligation or liability including the issuance of all
new and renewal business; g. merge or consolidate with another company; h. enter into any new reinsurance contract or treaty; or i. enter into any affiliate transactions. In order to abate the DOIs order, RepWest must establish that it
possesses surplus in compliance with Arizona law and as the Director of
Insurance may require based on type, volume or nature of its business pursuant
to Arizona law and establish that certain credit risks associated with the
exposures to AMERCO and its affiliates have been eliminated. If RepWest fails to satisfy the DOIs concerns, the DOI may take further
action, including, but not limited to, commencing a conservatorship. New Accounting Pronouncements In January 2003, the Financial Accounting Standards Board (FASB) issued
Interpretation No. 46 (FIN 46), Consolidation of Variable Interest Entities, an
interpretation of Accounting Research Bulletin No. 51. FIN 46 requires that
variable interest entities be consolidated by a company if that company absorbs
a majority of the entitys expected losses, receives a majority of its expected
residual returns, or both, as a result of holding a variable interest. In
December 2003, the FASB issued FIN 46R, which reflected certain amendments to
the standard. The provisions of FIN 46, as revised, are effective for the first
interim or annual period ending after March 15, 2004 when certain conditions
are met by a variable interest entity. The Company has adopted FIN 46R and the
effects of the variable interest are further explained in the Notes to the
financial statements. In April 2003, the FASB issued SFAS No. 149 Amendment of Statement 133 on
Derivative Instruments and Hedging Activities. This Statement (SFAS 149) amends
and clarifies the accounting for derivative instruments, including certain
derivative instruments embedded in other contracts and for hedging activities
under SFAS 133. In particular, SFAS 149 (1) clarifies under what circumstances
a contract with an initial net investment meets the characteristic of a
derivative as discussed in SFAS 133, (2) clarifies when a derivative contains a
financing component, (3) amends the definition of an underlying derivative to
conform it to the language used in FIN 45, and (4) amends certain other
existing pronouncements. SFAS 149 is generally effective for contracts entered
into or modified after June 30, 2003. The Company has adopted SFAS 149 and it
had no material impact on the Companys financial position, results of
operations or cash flows. In May 2003, the FASB issued SFAS No. 150 (SFAS 150), Accounting for
Certain Financial Instruments with Characteristics of both Liabilities and
Equity. This Statement establishes standards for classifying and measuring as
liabilities certain financial instruments that embody obligations of the issuer
and have characteristics of both liabilities and equity. SFAS 150 is effective
at the beginning of the first interim period beginning after June 15, 2003;
including all financial instruments created or modified after May 31, 2003. The
Company has adopted SFAS 150 and it had no material impact on the Companys
financial position, results of operations or cash flows. 34




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##### Table of Contents



In December 2003, FASB issued SFAS No. 132 (Revised 2003), Employers
Disclosure about Pensions and Other Post-retirement Benefits and amendment of
FASB Statements No. 87, 88 and 106. This Statement revises employers
disclosures about pension plans and other post-retirement benefit plans. The
disclosures required by this Statement are effective for fiscal years ending
after December 15, 2003. The Company has incorporated these expanded
disclosures into our footnotes of the financial statements. 
 ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk We are exposed to financial market risks, including changes in interest
rates and currency exchange rates. To mitigate these risks, we may utilize
derivative financial instruments, among other strategies. We do not use
derivative financial instruments for speculative purposes. Interest rate risk The exposure to market risk for changes in interest rates relates
primarily to our variable rate debt obligations. We have used interest rate
swap agreements to provide for matching the gain or loss recognition on the
hedging instrument with the recognition of the changes in the cash flows
associated with the hedges asset or liability attributable to the hedged risk
or the earnings effect of the hedged forecasted transaction. At March 31, 2004
and at March 31, 2003, the Company had no interest rate swap contracts. On May
13, 2004 the Company entered into separate interest rate cap contracts for $200
million of its variable rate debt obligations for a two year term and for $50
million of its variable rate debt obligations for a three year term. At March
31, 2004, the Company had approximately $515 million of variable rate debt
obligations. A fluctuation in the interest rates of 100 basis points would
change interest expense for the Company by approximately $5.2 million annually. Foreign Currency Exchange Rate Risk The exposure to market risk for changes in foreign currency exchange rates
relates primarily to our Canadian business. Approximately 2% of our revenue is
generated in Canada. The result of a 10% change in the value of the U.S. dollar
relative to the Canadian dollar would not be material. We typically do not
hedge any foreign currency risk since the exposure is not considered material. 
 ITEM 8. Financial Statements and Supplementary Data The Report of Independent Accountants and Consolidated Financial
Statements of AMERCO including the notes to such statements and the related
schedules are set forth on pages F-1 through F-58 and thereby incorporated
herein. 
 ITEM 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure Not applicable. 
 ITEM 9A. Controls and Procedures We conducted an evaluation of the effectiveness of the design and
operation of our disclosure controls and procedures (Disclosure Controls) as
of the end of the period covered by this Annual Report. The controls
evaluation was done under the supervision and with the participation of
management, including the Chief Executive Officer (CEO) and the Chief Financial
Officer (CFO). 35




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##### Table of Contents



Definition of Disclosure Controls Disclosure Controls are controls and procedures designed to reasonably
assure that information required to be disclosed in our reports filed under the
Exchange Act, such as this Annual Report, is recorded, processed, summarized
and reported within the time periods specified in the rules and forms of the
Securities and Exchange Commission. Disclosure Controls are also designed to
reasonably assure that such information is accumulated and communicated to our
management, including the CEO and the CFO, as appropriate to allow timely
decisions regarding required disclosure. Our Disclosure Controls include
components of our internal control over financial reporting, which consists of
control processes designed to provide reasonable assurance regarding the
reliability of our financial reporting and the preparation of financial
statements in accordance with generally accepted accounting principles in the
U.S. To the extent that components of our internal control over financial
reporting are included within Disclosure Controls, they are included in the
scope of our quarterly controls evaluation. Limitations on the Effectiveness of Controls The management of the Company, including the CEO and the CFO, does not
expect that our Disclosure Controls or our internal control over financial
reporting will prevent all error or fraud. A control system, no matter how
well designed and operated, can provide only reasonable, not absolute,
assurance that the objectives of the control system will be met. Further, the
design of a control system must reflect the fact that there are resource
constraints, and the benefits of controls must be considered relative to their
costs. Because of the inherent limitations in all control systems, no
evaluation of controls can provide absolute assurance that all control issues
and instances of fraud, if any, within the company have been detected. These
inherent limitations include the realities that judgments in decision making
can be faulty and that breakdowns can occur because of simple error or mistake.
Controls can also be circumvented by the individual acts of some persons, by
collusion of two or more people, or by management override of the controls.
The design of any system of controls is based in part on certain assumptions
about the likelihood of certain future events, and there can be no assurance
that any design will succeed in achieving its stated goals under all potential
future conditions. Over time, controls may become inadequate because of
changes in conditions or deterioration in the degree of compliance with
policies or procedures. Because of the inherent limitations in a cost
effective control system, misstatements due to error or fraud may occur and not
be detected. Scope of the Controls Evaluation The evaluation of our Disclosure Controls included a review of the
objectives and design of the controls, the implementation of the controls by
the company and the effect of the controls on the information generated for use
in this Annual Report. In the course of the controls evaluation, we sought to
identify data errors, control problems or acts of fraud and confirm that
appropriate corrective action, including process improvements, were being
undertaken. This type of evaluation is performed on a quarterly basis so that
the conclusions of management, including the CEO and the CFO, concerning the
effectiveness of the controls can be reported in our Quarterly Reports on Form
10-Q and to supplement our disclosures made in our Annual Report on Form 10-K.
Many of the components of our Disclosure Controls are evaluated on an on-going
basis by personnel in our finance department, as well as our independent
auditors who evaluate them in connection with determining their auditing
procedures related to their report on our annual financial statements. The
overall goals of these various evaluation activities are to monitor our
Disclosure Controls, and to modify them as necessary. Our intent is to
maintain the Disclosure Controls as dynamic systems that change as conditions
warrant. 36




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##### Table of Contents



Among other matters, we also considered whether our evaluation identified
any significant deficiencies or material weaknesses in our internal control
over financial reporting, and whether the company had identified any acts of
fraud involving personnel with a significant role in our internal control over
financial reporting. This information was important both for the controls
evaluation generally, and because item 5 of the certifications of the CEO and
the CFO requires that the CEO and the CFO disclose that information to the
Audit Committee of our Board and the independent auditors. In the professional
auditing literature, significant deficiencies are referred to as reportable
conditions, which are deficiencies in the design or operation of controls that
could adversely affect our ability to record, process, summarize and report
financial data in the financial statements. Auditing literature defines
material weakness as a particularly serious reportable condition in which the
internal control does not reduce to a relatively low level the risk that
misstatements caused by error or fraud may occur in amounts that would be
material in relation to the financial statements and the risk that such
misstatements would not be detected within a timely period by employees in the
normal course of performing their assigned functions. Based upon our
evaluation of the effectiveness of the Companys internal
controls, management has concluded that there were deficiencies in the design
and operation of internal controls that adversely affected our
ability to record, process and summarize and report financial data
related to: SAC Holding I and SAC Holding II Corporation account
analyses, and general ledger reconciliation and segregation of the
Canadian general ledger into local currency. These deficiencies were
considered to be material weaknesses under the standards established by the
American Institute of Certified Public Accountants. As a result of
the conclusions discussed above, under the direction of the Audit
Committee and the Board of Directors, we have taken corrective
action to strengthen our internal controls and procedures to ensure
information required to be disclosed in the reports we file or submit
under the Securities Exchange Act of 1934 is recorded, processed,
summarized and accurately reported, within the time periods specified
in the SECs rules and forms. We also sought to
address other control matters in the control evaluation, and in each case if
a problem was identified, we considered what revision, improvement and/or
correction to make in accordance with our on-going procedures. Changes in Internal Control Over Financial Reporting During the last fiscal quarter covered by this report we made no change in
our internal control over financial reporting which materially affected, or is
reasonably likely to materially affect, our internal control over financial
reporting. Conclusions Based upon the controls evaluation, our CEO and CFO have concluded that,
subject to the limitations noted above, as of the end of the period covered by
this Annual Report, our Disclosure Controls were effective to provide
reasonable assurance that material information relating to AMERCO and its
consolidated subsidiaries is made known to management, including the CEO and
the CFO, particularly during the period when our periodic reports are being
prepared. 
 PART III 
 Item 10. Directors and Executive Officers of the Registrants The
Registrants Directors and Executive Officers are: Name
    
    Age*
    
    OfficeEdward J. Shoen
    
    
    55
    
    
    Chairman of the Board, President, and DirectorWilliam E. Carty
    
    
    77
    
    
    DirectorJohn M. Dodds
    
    
    67
    
    
    DirectorCharles J. Bayer
    
    
    64
    
    
    DirectorJohn P. Brogan
    
    
    59
    
    
    DirectorJames J. Grogan
    
    
    49
    
    
    DirectorM. Frank Lyons
    
    
    68
    
    
    DirectorJames P. Shoen
    
    
    44
    
    
    DirectorGary B. Horton
    
    
    60
    
    
    Treasurer of AMERCO and Asst. Treasurer of U-HaulGary V. Klinefelter
    
    
    55
    
    
    Secretary & General Counsel of AMERCO and U-HaulJack A. Peterson
    
    
    51
    
    
    Chief Financial Officer of AMERCO and U-HaulRocky D. Wardrip
    
    
    46
    
    
    Assistant Treasurer of AMERCOMark V. Shoen
    
    
    53
    
    
    President of U-Haul Phoenix OperationsJohn C. Taylor
    
    
    46
    
    
    Director and Executive V.P. of U-HaulRonald C. Frank
    
    
    63
    
    
    Executive V.P. of U-Haul Field OperationsMark A. Haydukovich
    
    
    47
    
    
    President of Oxford Life Insurance CompanyCarlos Vizcarra
    
    
    57
    
    
    President of Amerco Real Estate CompanyRichard M. Amoroso
    
    
    44
    
    
    President of Republic Western Insurance Company
   *
    
    Ages are as of March 31, 2004


37



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##### Table of Contents



Class I (Term Expires at 2007 Meeting) John P. Broganhas served as a Director of AMERCO since August 1998 and
has served as the Chairman of Muench-Kreuzer Candle Company since 1980. He has
been involved with various companies including a seven year association with
Alamo Rent-A-Car that ended in 1986. He is a member of the American Institute
of Certified Public Accountants and served as Chairman of the Board of
Trustees, College of the Holy Cross, from 1988 to 1996. James J. Groganhas served as a Director of AMERCO since August 1998 and
is the CEO of Loreto Bay Company. He was President of G.W. Holdings, a
diversified investment company, from 2001 to 2002. Throughout 1999 and 2000, he
served as President and CEO of Sterling Financial Corporation, a Toronto Stock
Exchange company focused on real estate investments. He was the Senior
Executive Vice President of UDC Homes, a homebuilder, from 1996 to 1998. He
serves on the Board of Directors of several charitable organizations. Class II (Term Expires at 2004 Meeting) Edward J. Shoenhas served as a Director and Chairman of the Board of
AMERCO since 1986, as President since 1987, as a Director of U-Haul since 1990,
and as the President of U-Haul since 1991. Mr. Shoen has been associated with
the Company since 1971. M. Frank Lyonswas elected to the Board of AMERCO on February 6, 2002. Mr.
Lyons served in various positions with the Company from 1959 until 1991,
including 25 years as the president of Warrington Manufacturing. From 1991
until his retirement in 2000 he was president of Evergreen Realty, Inc. Class III (Term Expires at 2005 Meeting) John M. Doddshas served as a Director of AMERCO since 1987 and Director
of U-Haul since 1990. Mr. Dodds has been associated with the Company since
1963. He served in regional field operations until 1986 and served in national
field operations until 1994. Mr. Dodds retired from the Company in 1994. James P. Shoenhas served as a director of AMERCO since 1986 and was Vice
President of AMERCO from 1989 to November 2000. Mr. Shoen has been associated
with the Company since 1976. He served from 1990 to November 2000 as Executive
Vice President of U-Haul. He is currently Vice President of Amerco
Business Consultants, a subsidiary of the Company. Class IV (Term Expires at 2006 Meeting) William E. Cartyhas served as a Director of AMERCO since 1987 and as a
Director of U-Haul since 1986. He has been associated with the Company since
1946. He has served in various executive positions in all areas of the Company.
Mr. Carty retired from the Company in 1987. Charles J. Bayerhas served as a Director of AMERCO since 1990 and has
been associated with the Company since 1967. He has served in various executive
positions including V.P. Finance and served as President of Amerco Real Estate Company until his
retirement in October 2000. He is a graduate of Notre Dame
University, and has an MBA from the W.P. Carey School of Business at
ASU. Prior to AMERCO, Charles served as Commanding Officer on the USS
Asheville. 38




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##### Table of Contents



Other Executive Officers Gary B. Hortonhas served as Treasurer of AMERCO since 1982 and Assistant
Treasurer of U-Haul since 1990. He has been associated with the Company since
1969. Gary V. Klinefelter,Secretary of AMERCO since 1988 and Secretary of
U-Haul since 1990, is licensed as an attorney in Arizona and has served as
General Counsel of AMERCO and U-Haul since June 1988. He has been associated
with the Company since 1978. Jack A. Petersonhas served as Chief Financial Officer of AMERCO and
U-Haul since June 2004. Prior to joining AMERCO, he was Executive Vice
President and Chief Financial Officer of Alliant Foodservice, Inc. (formerly
Kraft Foodservice, Inc.) from April 1989 until May 1998. During 2002, Mr.
Peterson was Executive Vice President and Chief Financial Officer of
Johnston-Keay Laboratories. During 2003 and until joining AMERCO in 2004, he
was Vice President and Chief Financial Officer of Lee Food Service, Inc. Rocky D. Wardrip, Assistant Treasurer of AMERCO since 1990, has been
associated with the Company since 1978 in various capacities within accounting
and treasury operations. Mark V. Shoenhas served as a Director of AMERCO from 1990 until February
1997. He has served as a Director of U-Haul from 1990 until November 1997 and
as President, Phoenix Operations, from 1994 to present. John C. Taylor, Director of U-Haul since 1990, has been associated with
the Company since 1981. He is presently an Executive Vice President of U-Haul. Ronald C. Frankhas been associated with the Company since 1959. He is
presently Executive Vice President of U-Haul Field Operations. Mark A Haydukovichhas been associated with the Company since 1979. He has
served as President of Oxford since June 1997. From 1980 to 1997 he served as
Vice President of Oxford. Carlos Vizcarrahas been associated with the Company since 1978. He has
served as President of Amerco Real Estate Company since September 2000. He
began his previous position as Vice President/ Storage Product Group for U-Haul
in 1988. Richard M. Amorosohas served as President of RepWest since August 2000.
He was Assistant General Counsel of U-Haul from 1993 until February 2000. He
served as Assistant General Counsel of ON Semiconductor Corporation from
February to August 2000. Edward J., Mark V., and James P. Shoen are brothers. William E. Carty is
the uncle of Edward J. and Mark V. Shoen. M. Frank Lyons was married to William
E. Cartys sister and the aunt of Edward J. and Mark V. Shoen until her death
in 1992. Reference
is made to Item 1, Business  Recent
Developments  Emergence from Chapter 11
Restructuring. Section 16(a) Beneficial Ownership Reporting and Compliance Section 16(a) of the Securities Exchange Act of 1934 requires the
Companys directors and executive officers, and persons who own more than 10%
of a registered class of the Companys equity securities, to file reports of
ownership of, and transactions in, the Companys securities with the Securities
and Exchange Commission. Such directors, executive officers and 10%
stockholders are also required to furnish the Company with copies of all
Section 16(a) forms they file. Based solely on a review of the copies of such forms received by it, the
Company believes that during fiscal 2004, all Section 16(a) filing requirements
applicable to its directors, officers and 10% stockholders were complied with. Information about AMERCOs audit committee is included in this report
under the caption Principal Accounting Fees and Services. Code of Ethics The Company has adopted a code of ethics that applies to all management
and non management employees. A copy of our code of ethics is located on our
website at amerco.com. 39




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##### Table of Contents



Item 11. Executive Compensation The following Summary Compensation Table shows the annual compensation for
fiscal years 2004, 2003 and 2002 paid to (1) the Companys chief executive
officer; and (2) the four most highly compensated executive officers of the
Company, other than the chief executive officer. Summary Compensation Table Annual CompensationAll OtherSalary
    
    Bonus
    
    CompensationName and Principal Position
    
    Year
    
    ($) (1)
    
    ($)
    
    ($) (2)Edward J. ShoenChairman of the Board and President of AMERCO and
U-Haul
    
    
    2004
    
    
    
    467,307
    
    
    
    3,000
    
    
    
    1,9872003
    
    
    
    503,708
    
    
    
    
    
    
    
    3342002
    
    
    
    503,708
    
    
    
    
    
    
    
    1,311Mark V. ShoenPresident of U-Haul Phoenix Operations
    
    
    2004
    
    
    
    623,076
    
    
    
    3,000
    
    
    
    1,9872003
    
    
    
    617,308
    
    
    
    
    
    
    
    3342002
    
    
    
    623,077
    
    
    
    
    
    
    
    1,311Ronald C. FrankExecutive V.P. U-Haul Field Operations
    
    
    2004
    
    
    
    240,852
    
    
    
    198,805
    
    
    
    1,9872003
    
    
    
    237,995
    
    
    
    15,704
    
    
    
    3342002
    
    
    
    188,471
    
    
    
    
    
    
    
    1,311Gary B. HortonTreasurer of AMERCO and Assistant Treasurer of U-Haul
    
    
    2004
    
    
    
    242,308
    
    
    
    46,380
    
    
    
    1,9872003
    
    
    
    242,308
    
    
    
    40,000
    
    
    
    3342002
    
    
    
    233,655
    
    
    
    40,000
    
    
    
    1,311Gary V. KlinefelterSecretary and General Counsel of AMERCO and U-Haul
    
    
    2004
    
    
    
    285,581
    
    
    
    3,000
    
    
    
    1,9872003
    
    
    
    251,738
    
    
    
    55,000
    
    
    
    3342002
    
    
    
    222,547
    
    
    
    67,000
    
    
    
    1,311
   (1)
    
    Includes annual fees paid to Directors of AMERCO and U-Haul.(2)
    
    Represents the value of Common Stock allocated under the AMERCO Employee
Savings, Profit Sharing and Employee Stock Ownership Plan. The annual fee for all services as a director of AMERCO prior to June 4,
2003 was $26,400. Effective on that date, the annual fee was increased to
$50,000. This amount is paid in equal monthly installments. Audit Committee
members receive an additional $50,000 annual fee. Executive Finance Committee
and Compensation Committee members each receive an additional $20,000 annual
fee. Independent Governance Committee members receive an annual fee of $50,000. 
 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters To the best of the Companys knowledge, the following table lists, as of
March 31, 2004 (1) the beneficial ownership of AMERCOs equity securities by
each director and director nominee of AMERCO, by each executive officer named
above, and by all directors and executive officers of AMERCO as a group; (2)
the beneficial ownership of Common Stock of those persons who beneficially own
more than five percent (5%) of the Common Stock of AMERCO; and (3) the
beneficial ownership by each director and director nominee of AMERCO, by each
executive officer named above, and by all directors and executive officers of
the Company as a group, of the percentage of net payments received by such
persons during the 2004 fiscal year in respect of fleet-owner contracts issued
by U-Haul. 40




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##### Table of Contents



Shares of Common
    
    Percentage of
    
    Percentage of NetName and Address of
    
    Stock Beneficially
    
    Common Stock
    
    Fleet OwnerBeneficial Owner
    
    Owned
    
    Class
    
    Contract PaymentsEdward J. Shoen (1)
    
    
    3,487,722
    (2)
    
    
    16.4
    
    
    
    .001Chairman of the Board, President, Directorand Director Nominee2727 N. Central AvenuePhoenix, Arizona 85004Mark V. Shoen (1)
    
    
    3,352,248
    (2)
    
    
    15.3
    
    
    
    N/APresident, U-HaulPhoenix Operations2727 N. Central AvenuePhoenix, Arizona 85004James P. Shoen (1)
    
    
    1,950,008
    (2)
    
    
    9.2
    
    
    
    N/ADirector1325 Airmotive WayReno, Nevada 89502Sophia M. Shoen
    
    
    1,346,668
    (2)
    
    
    6.3
    
    
    
    N/A5104 N. 32nd StreetPhoenix, Arizona 85018The ESOP Trust (2)
    
    
    2,303,681
    
    
    
    10.8
    
    
    
    N/A2727 N. Central AvenuePhoenix, Arizona 85004John M. Dodds
    
    
    0
    
    
    
    0
    
    
    
    N/ADirector2727 N. Central AvenuePhoenix, Arizona 85004William E. Carty (1)
    
    
    0
    
    
    
    0
    
    
    
    N/ADirector2727 N. Central AvenuePhoenix, Arizona 85004Charles J. Bayer
    
    
    2,186
    
    
    
    *
    *
    
    
    .001Director2727 N. Central AvenuePhoenix, Arizona 85004John P. Brogan
    
    
    6,000
    
    
    
    *
    *
    
    
    N/ADirector2727 N. Central AvenuePhoenix, Arizona 85004James J. Grogan
    
    
    2,605
    
    
    
    *
    *
    
    
    N/ADirector2727 N. Central AvenuePhoenix, Arizona 85004M. Frank Lyons
    
    
    300
    
    
    
    *
    *
    
    
    N/ADirector and Director Nominee2727 N. Central AvenuePhoenix, Arizona 85004Gary V. Klinefelter
    
    
    3,513
    
    
    
    *
    *
    
    
    N/ASecretary and General Counsel2727 N. Central AvenuePhoenix, Arizona 85004Gary B. Horton
    
    
    2,657
    
    
    
    *
    *
    
    
    N/ATreasurer of AMERCO andAssistant Treasurer of U-Haul2727 N. Central AvenuePhoenix, Arizona 85004Ronald C Frank
    
    
    2,592
    
    
    
    *
    *
    
    
    .002Executive V.P. Field Operations of U-Haul2727 N. Central AvenuePhoenix, Arizona 85004Officers and Directors as a group (12 persons) (1)
    
    
    8,720,863
    
    
    
    41.0
    
    
    
    .004
   **
    
    The percentage of the referenced class beneficially owned is less than one
percent. 41




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##### Table of Contents



(1)
    
    Edward J. Shoen, Mark V. Shoen, James P. Shoen, and William E. Carty
beneficially own 16,300 shares (0.26 percent), 16,700 shares (0.27
percent), 31,611 shares (0.51 percent), and 12,000 shares (0.19 percent)
of AMERCOs Series A 8 1/2% Preferred Stock, respectively. The executive
officers and directors as a group beneficially own 77,611 shares (1.27
percent) of AMERCOs Series A 8 1/2% Preferred Stock.(2)
    
    The complete name of the ESOP Trust is the ESOP Trust Fund for the AMERCO
Employee Savings and Employee Stock Ownership Trust. The ESOP Trustee,
which consists of three individuals without a past or present employment
history or business relationship with the Company, is appointed by the
Companys Board of Directors. Under the ESOP, each participant (or such
participants beneficiary) in the ESOP directs the ESOP Trustee with
respect to the voting of all Common Stock allocated to the participants
account. All shares in the ESOP Trust not allocated to participants are
voted by the ESOP Trustee. As of March 31, 2004, of the 2,303,681 shares
of Common Stock held by the ESOP Trust, 1,577,101 shares were allocated to
participants and 726,580 shares remained unallocated. The number of shares
reported as beneficially owned by Edward J. Shoen, Mark V. Shoen, James P.
Shoen, Paul F. Shoen, and Sophia M. Shoen include Common Stock held
directly by those individuals and 3,694, 3,690, 3,648, 779 and 196 shares
of Common Stock, respectively, allocated by the ESOP Trust to those
individuals. Those shares are also included in the number of shares held
by the ESOP Trust. To the best of the Companys knowledge, there are no arrangements giving
any stockholder the right to acquire the beneficial ownership of any shares
owned by any other stockholder. 
 Item 13. Certain Relationships and Related Transactions AMERCO has engaged in related party transactions, and has continuing
related party interests, with certain major stockholders, directors and
officers of the consolidated group. Management believes that the transactions
described below and in the related notes were consummated on terms equivalent
to those that would prevail in arms-length transactions. These transactions
are as disclosed below and in Note 19 of Notes to Consolidated Financial
Statements in this Form 10-K. Samuel J. Shoen, the son of Edward J. Shoen, is employed by U-Haul as
project group supervisor. Mr. Shoen was paid an aggregate salary and bonus of
$86,532 for his services during the fiscal year 2004. James P. Shoen, the brother
of Edward J. Shoen and Mark V. Shoen, is Vice President of
AMERCO Business Consultants, a subsidiary of the Company.
Mr. Shoen was paid an aggregate of $228,003 for his services
during fiscal 2004. During fiscal 2004 a subsidiary of the Company held various senior and
junior unsecured notes of SAC Holdings. Substantially all of the equity
interest of SAC Holdings is controlled by Mark V. Shoen, a significant
shareholder and executive officer of the Company. The Company does not have an
equity ownership interest in SAC Holdings, except for minority investments made
by RepWest and Oxford in a SAC Holdings-controlled limited partnership which
holds Canadian self-storage properties. The senior unsecured notes of SAC
Holdings that the Company holds rank equal in right of payment with the notes
of certain senior mortgage holders, but junior to the extent of the collateral
securing the applicable mortgages and junior to the extent of the cash flow
waterfalls that favor the senior mortgage holders. Interest on the
notes accrue at rates varying from 7.5% to 9.0%. The Company received cash
interest payments of $26.5 million from SAC Holdings during fiscal year 2004.
The notes receivable balance outstanding at March 31, 2004 was, in the
aggregate, $203.8 million. The largest aggregate amount outstanding during the
fiscal year ended March 31, 2004 was $403.5 million. Interest accrues on the outstanding principal balance of junior notes of
SAC Holdings that the Company holds at a stated rate of basic interest. A fixed
portion of that basic interest is paid on a monthly basis. Additional interest is paid on the same payment date based on the amount
of remaining basic interest and the cash flow generated by the underlying
property. This amount is referred to as the cash flow-based calculation. In the event that this cash flow-based calculation exceeds the amount of
remaining basic interest, contingent interest is paid on the same monthly date
as the fixed portion of basic interest. To the extent that the cash flow-based
calculation is less than the amount of remaining basic interest, the additional
interest payable on the applicable monthly date is limited to the amount of
that cash flow-based calculation. In such a case, the excess of the remaining
basic interest over the cash flow-based calculation is deferred and all amounts
so deferred bear interest until maturity of the junior note. In addition,
subject to certain contingencies, the junior notes provide that the holder of
the note is entitled to receive payments upon, among other things, the sale of
such property by SAC Holdings. This is called Capital Proceeds Contingent
Interest. As of March 31, 2004 interest on the notes accrues
interest at rates ranging from 7.5% to 9.0%. 42




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The Company currently manages the self-storage properties owned by SAC
Holdings pursuant to a standard form of management agreement with each SAC
Holdings subsidiary, under which the Company receives a management fee equal to
6% of the gross receipts. The Company received management fees of $12.7 million
during fiscal year 2004. This management fee is consistent with the fees
received for other properties the Company manages for third parties. RepWest and Oxford currently hold a 46% limited partnership interest in
Securespace Limited Partnership (Securespace), a Nevada limited partnership.
A SAC Holdings subsidiary serves as the general partner of Securespace and owns
a 1% interest. Another SAC Holdings subsidiary owns the remaining 53% limited
partnership interest in Securespace. Securespace was formed by SAC Holdings to
be the owner of various Canadian self-storage properties. During fiscal year 2004, the Company leased space for marketing company
offices, vehicle repair shops and hitch installation centers owned by
subsidiaries of SAC Holdings. Total lease payments pursuant to such leases were
$2.6 million, during fiscal year 2004. The terms of the leases are similar to
the terms of leases for other properties owned by unrelated parties that are
leased to the Company. At March 31, 2004, subsidiaries of SAC Holdings acted as U-Haul
independent dealers. The financial and other terms of the dealership contracts
with subsidiaries of SAC Holdings are substantially identical to the terms of
those with the Companys other independent dealers. During fiscal 2004, the
Company paid subsidiaries of SAC Holdings $29.1 million in commissions pursuant
to such dealership contracts. SAC Holdings was established in order to acquire self-storage properties
which are being managed by the Company pursuant to management agreements. The
sale of self-storage properties by the Company to SAC Holdings has in the past
provided significant cash flows to the Company and the Companys outstanding
loans to SAC Holdings entitle the Company to participate in SAC Holdings
excess cash flows (after senior debt service). However, in connection with SAC
Holdings issuance of the New SAC Holdings Notes to AMERCOs creditors in
AMERCOs Chapter 11 proceeding, certain SAC Holdings notes payable to the
Company were satisfied thereby extinguishing the cash flow-based calculation. Management believes that its sales of self-storage properties to SAC
Holdings over the past several years provided a unique structure for the
Company to earn rental revenues at the SAC Holdings self-storage properties
that the Company manages and participate in SAC Holdings excess cash flows as
described above. No real estate transactions with SAC Holdings that involve the Company or
any of its subsidiaries are expected in the foreseeable future. During
fiscal 2004, AMERCO purchased $121,608 of refinishing supplies from
Space Age Auto Paint Store Inc. E.J. Shoen, a major stockholder,
officer and director of AMERCO, owns Space Age Auto Paint Store Inc. 
 ITEM 14. Principal Accounting Fees and Services The ultimate responsibility for good corporate governance rests with the
Board, whose primary roles are oversight, counseling and direction to the
Companys management in the best long-term interests of the Company and its
stockholders. The Audit Committee has been established for the purpose of
overseeing the accounting and financial reporting processes of the company and
audits of the Companys annual financial statements. The Companys Audit Committee is made up solely of independent directors,
as defined in the applicable Nasdaq and SEC rules, and it operates under a
written charter adopted by the Board. The composition of the Audit Committee,
the attributes of its members and its responsibilities, as reflected in its
charter, are intended to be in accordance with applicable requirements for
corporate audit committees. The Audit Committee reviews and assesses the
adequacy of its charter on an annual basis. 43




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The purpose of the Audit Committee is to assist the Board in its general
oversight of the Companys financial reporting, internal controls and audit
functions. Management is responsible for the preparation, presentation and
integrity of the Companys financial statements; accounting and financial
reporting principles; internal controls; and procedures designed to reasonably
assure compliance with accounting standards, applicable laws and regulations.
BDO Seidman, LLP, our independent auditing firm, is responsible for performing
an independent audit of the consolidated financial statements in accordance
with the standards of the PCAOB  United States. The Audit Committee has
ultimate authority and responsibility to select, compensate, evaluate and, when
appropriate, replace the Companys independent auditors. The Audit Committee
has the authority to engage its own outside advisors, including experts in
particular areas of accounting, as it determines appropriate, apart from
counsel or advisors hired by management. The Audit Committee members are not professional accountants or auditors,
and their functions are not intended to duplicate or to certify the activities
of management and the independent auditors, nor can the Audit Committee certify
that the independent auditors are independent under applicable rules. The
Audit Committee serves a board-level oversight role, in which it provides
advice, counsel and direction to management and the auditors on the basis of
the information it receives, discussions with management and the auditors, and
the experience of the Audit Committees members in business, financial and
accounting matters. The Audit Committee includes at least one independent
director who is determined by the Board to meet the qualifications of an audit
committee financial expert in accordance with SEC rules. John P. Brogan is
the independent director who has been determined to be an audit committee
financial expert. Stockholders should understand that this designation is an
SEC disclosure requirement related to Mr. Brogans experience and understanding
with respect to certain accounting and auditing matters. The designation does
not impose on Mr. Brogan any duties, obligations or liability that are greater
than are generally imposed on him as a member of the Audit Committee and the
Board, and his designation as an audit committee financial expert pursuant to
this SEC requirement does not affect the duties, obligations or liability of
any other member of the Audit Committee or the Board. The Audit Committee meets each quarter with BDO Seidman, LLP and
management to review AMERCOs interim financial results before the publication
of AMERCOs quarterly earnings press releases. Managements and the independent
auditors presentations to and discussions with the Audit Committee cover
various topics and events that may have significant financial impact and/or are
the subject of discussions between management and the independent auditors. The
Audit Committee is responsible for establishing procedures for the receipt,
retention and treatment of complaints received by the Company regarding
accounting, internal accounting controls or auditing matters, including the
confidential, anonymous submission by Company employees, received through
established procedures, of concerns regarding questionable accounting or
auditing matters. Among other matters, the Audit Committee monitors the activities and
performance of AMERCOs external auditors, including the audit scope, audit
fees, auditor independence matters and the extent to which the independent
auditors may be retained to perform non-audit services. AMERCOs independent
auditors provide the Audit Committee with the written disclosures and the
letter required by Independence Standards Board Standard No. 1, Independence
Discussions with Audit Committees, and the Audit Committee discusses with the
independent auditors and management that firms independence. In accordance with Audit Committee policy and the requirements of law, all
services to be provided by BDO Seidman, LLP are pre-approved by the Audit
Committee. Pre-approval includes audit services, audit-related services, tax
services and other services. In some cases, pre-approval is provided by the
full Audit Committee for up to a year, and relates to a particular defined task
or scope of work and is subject to a specific budget. In other cases, the Audit
Committee has the delegated authority to pre-approve additional services, and
such pre-approvals are then communicated to the full Audit Committee. To avoid
certain potential conflicts of interest, the law prohibits a publicly traded
company from obtaining certain non-audit services from its auditing firm. We
obtain these services from other service providers as needed. 44




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The Audit Committee has reviewed and discussed the consolidated financial
statements for fiscal year 2004 with management and the independent auditors;
management represented to the Audit Committee that the Companys consolidated
financial statements were prepared in accordance with generally accepted
accounting principles; and the independent auditors represented that their
presentations included the matters required to be discussed with the
independent auditors by Statement on Auditing Standards No. 61, as amended,
Communication with Audit Committees. This review included a discussion with
management of the quality, not merely the acceptability, of the Companys
accounting principles, the reasonableness of significant estimates and
judgments, and the clarity of disclosure in the Companys financial statements,
including the disclosures related to critical accounting estimates. In reliance
on these views and discussions, and the report of the independent auditors, the
Audit Committee has recommended to the Board, and the Board has approved, the
inclusion of the audited financial statements in the Companys Annual Report on
Form 10-K for the year ended March 31, 2004 for filing with the SEC. Audit Committee:John P. BroganJames J. GroganJohn M. Dodds
 Fees Paid to BDO Seidman, LLP The following table shows the fees that AMERCO and its consolidated entities
paid or accrued for the audit and other services provided by BDO Seidman, LLP
for fiscal years 2004 and 2003. March 31,2004
    
    2003(In thousands)Audit fees
    
    $
    2,500
    
    
    $
    4,190Audit-related fees
    
    
    70
    
    
    
    35Tax fees
    
    
    105
    
    
    
    230All other fees
    
    
    77
    
    
    
    330Total
    
    $
    2,752
    
    
    $
    4,785
 Audit Fees. This category includes the audit of AMERCOs annual financial
statements, review of financial statements included in AMERCOs Form 10-Q
quarterly reports, and services that are normally provided by the independent
auditors in connection with statutory and regulatory filings or engagements for
those fiscal years. This category also includes advice on accounting matters
that arose during, or as a result of, the audit or the review of interim
financial statements, statutory audits required by U.S. jurisdictions and the
preparation of an annual management letter on internal control matters.
Fiscal year 2003 includes the cost of re-auditing all consolidated entities for
the fiscal years ended March 31, 2002 and 2001. Audit-Related Fees. This category consists of assurance and related
services provided by BDO Seidman, LLP that are reasonably related to the
performance of the audit or review of AMERCOs financial statements and are not
reported above under Audit Fees. The services for the fees disclosed under
this category include benefit plan audits and other accounting consulting. Tax Fees. This category consists of professional services rendered by BDO
Seidman, LLP, primarily in connection with AMERCOs tax compliance activities,
including the preparation of tax returns in certain jurisdictions and technical
tax advice related to the preparation of tax returns. All Other Fees. This category consists of fees for other miscellaneous
items. This includes fees associated with various litigation and regulatory
inquiries occurring during the current and prior fiscal years. 45




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PART IV ITEM 15.EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K (a) The following documents are filed as part of this Report: Page No.1.
    
    Financial StatementsReport of Independent Registered
Public Accounting Firm
    
    F-1Consolidated Balance Sheets -- March 31, 2004 and 2003
    
    F-2Consolidated Statements of Operations -- Year ended March 31, 2004, 2003 and 2002
    
    F-4Consolidated Statements of Changes
in Stockholders Equity -- Years ended March 31, 2004, 2003 and 2002
    
    F-5Consolidated Statements of other Comprehensive Income (loss) -- Years ended March 31, 2004, 2003 and 2002
    
    F-6Consolidated Statement of Cash Flows -- Years ended March 31, 2004, 2003 and 2002
    
    F-7Notes to Consolidated Financial Statements
    
    F-82.
    
    Additional Information:Summary of Earnings of Independent
Rental Fleets
    
    F-50Notes to Summary of Earnings of
Independent Rental Fleets
    
    F-513.
    
    Financial Statement Schedules required to be filed by Item 8 and Paragraph (d) of this Item 16:Condensed Financial Information of Registrant -- Schedule 1
    
    F-53Supplemental Information (For Property-Casualty Insurance Underwriters) -- Schedule V
    
    F-58
 All other schedules are omitted as the required information is not
applicable or the information is presented in the financial statements or
related notes thereto. (b) Reports on Form 8-K: On March 26, 2004, we filed a current report on Form 8-K relating to our
emergence from Chapter 11. On May 5, 2004, we filed a current report on Form 8-K disclosing that the
Board of Directors of AMERCO had approved the AMERCO Code of Ethics. 46




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Exhibit Number
    
    Description
    
    Page or Method of Filing2.1
    
    Joint Plan of Reorganization of AMERCO and AMERCO
Real Estate Company
    
    Incorporated by
reference to AMERCOs
Current Report on Form
8-K filed October 20,
2003, file no. 1-112552.2
    
    Disclosure Statement Concerning the Debtors Joint
Plan of Reorganization
    
    Incorporated by
reference to AMERCOs
Current Report on Form
8-K filed October 20,
2003, file no. 1-112552.3
    
    Amended Joint Plan of Reorganization of AMERCO and
AMERCO Real Estate Company
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended December
31, 2003, file No.
1-112553.1
    
    Restated Articles of Incorporation of AMERCO
    
    Incorporated by
reference to AMERCOs
Current Report on the
S-4 filed March 30,
2004, file number
1-112553.2
    
    Restated By-Laws of AMERCO
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended September
30, 1996, file No.
1-112553.3
    
    Restated Articles of Incorporation of U-Haul
International, Inc.
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 2003, file
no. 1-112553.4
    
    Bylaws of U-Haul International, Inc.
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 2003, file
no. 1-112554.1
    
    Indenture, dated as of March 1, 2004, among
AMERCO, the subsidiary guarantors listed therein,
and Wells Fargo Bank, N.A.
    
    Incorporated by
reference to AMERCOs
Current Report on Form
8-K filed on March 26,
2004, file no. 1-11255.4.2
    
    Indenture dated as of March 15, 2004 among AMERCO,
the subsidiary guarantors listed therein, and The
Bank of New York
    
    Incorporated by
reference to AMERCOs
Current Report on Form
8-K filed on March 26,
2004, file no. 1-11255.4.3
    
    Indenture dated as of March 15, 2004 among SAC
Holding Corporation and SAC Holding II Corporation
and Law Debenture Trust Company of New York
    
    Incorporated by
reference to AMERCOs
Current Report on Form
8-K filed on March 26,
2004, file no. 1-11255.4.4
    
    Rights Agreement, dated as of August 7, 1998
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended June 30,
1998, file no. 1-1125510.1*
    
    AMERCO Employee Savings, Profit Sharing and
Employee Stock Ownership Plan
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 1993, file
no. 1-1125510.1A*
    
    First Amendment to the AMERCO Employee Savings,
Profit Sharing and Employee Stock Ownership Plan
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 2000, file
no. 1-1125510.2
    
    Loan and Security Agreement among AMERCO and Wells
Fargo Foothill, Inc., dated as of March 1, 2004
    
    Incorporated by
reference to AMERCOs
Current Report on Form
8-K filed on March 26,
2004, file no. 1-11255.10.3
    
    SAC Participation and Subordination Agreement,
dated as of March 15, 2004 among SAC Holding
Corporation, SAC Holding II Corporation, AMERCO,
U-Haul International, Inc., and Law Debenture
Trust Company of New York
    
    Incorporated by
reference to AMERCOs
Current Report on Form
8-K filed on March 26,
2004, file no. 1-11255.10.4
    
    Intercreditor Agreement, dated as of March 1,
2004, between Wells Fargo Bank, N.A. and Wells
Fargo Foothill, Inc.
    
    Incorporated by
reference to AMERCOs
Current Report on Form
8-K filed on March 26,
2004, file no. 1-11255.10.5
    
    U-Haul Dealership Contract
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 1993, file
no. 1-1125510.6
    
    Share Repurchase and Registration Rights Agreement
with Paul F. Shoen
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 1993, file
no. 1-1125510.7
    
    ESOP Loan Credit Agreement
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 1990, file
no. 1-1125510.8
    
    ESOP Loan Agreement
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 1990, file
no. 1-11255
 47




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Exhibit Number
    
    Description
    
    Page or Method of Filing10.9
    
    Trust Agreement for the AMERCO Employee Savings,
Profit Sharing and Employee Stock Ownership Plan
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 1990, file
no. 1-1125510.10
    
    Amended Indemnification Agreement
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 1990, file
no. 1-1125510.11
    
    Indemnification Trust Agreement
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 1990, file
no. 1-1125510.12
    
    Management Agreement between Three SAC
Self-Storage Corporation and subsidiaries of
AMERCO
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 1997, file
no. 1-1125510.13
    
    Management Agreement between Four SAC Self-Storage
Corporation and subsidiaries of AMERCO
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 1997, file
no. 1-1125510.14
    
    Agreement, dated October 17, 1995, among AMERCO,
Edward J. Shoen, James P. Shoen, Aubrey K.
Johnson, John M. Dodds and William E. Carty
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended September
30, 1995, file no.
1-1125510.15
    
    Directors Release, dated October 17, 1995,
executed by Edward J. Shoen, James P. Shoen,
Aubrey K. Johnson, John M. Dodds and William E.
Carty in favor of AMERCO
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended September
30, 1995, file no.
1-1125510.16
    
    AMERCO Release, dated October 17, 1995, executed
by AMERCO in favor of Edward J. Shoen, James P.
Shoen, Aubrey K. Johnson, John M. Dodds and
William E. Carty
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended September
30, 1995, file no.
1-1125510.17
    
    Management Agreement between Five SAC Self-Storage
Corporation and subsidiaries of AMERCO
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 1999, file
no. 1-1125510.18
    
    Management Agreement between Eight SAC
Self-Storage Corporation and subsidiaries of
AMERCO
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 1999, file
no. 1-1125510.19
    
    Management Agreement between Nine SAC Self-Storage
Corporation and subsidiaries of AMERCO
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 1999, file
no. 1-1125510.20
    
    Management Agreement between Ten SAC Self-Storage
Corporation and subsidiaries of AMERCO
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 1999, file
no. 1-1125510.21
    
    Management Agreement between Six-A SAC
Self-Storage Corporation and subsidiaries of
AMERCO
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 2000, file
no. 1-1125510.22
    
    Management Agreement between Six-B SAC
Self-Storage Corporation and subsidiaries of
AMERCO
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 2000, file
no. 1-1125510.23
    
    Management Agreement between Six-C SAC
Self-Storage Corporation and subsidiaries of
AMERCO
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 2000, file
no. 1-1125510.24
    
    Management Agreement between Eleven SAC
Self-Storage Corporation and subsidiaries of
AMERCO
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 2000, file
no. 1-1125510.25
    
    Management Agreement between Twelve SAC
Self-Storage Corporation and subsidiaries of
AMERCO
    
    Incorporated by
reference to AMERCOs
Form S-4 registration
statement, No.
333-11404210.26
    
    Management Agreement between Thirteen SAC
Self-Storage Corporation and subsidiaries of
AMERCO
    
    Incorporated by
reference to AMERCOs
Form S-4 registration
statement, No.
333-11404210.27
    
    Management Agreement between Fourteen SAC
Self-Storage Corporation and subsidiaries of
AMERCO
    
    Incorporated by
reference to AMERCOs
Form S-4 registration
statement, No.
333-11404210.28
    
    Management Agreement between Fifteen SAC
Self-Storage Corporation and subsidiaries of
AMERCO
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended December
31, 2000, file no.
1-1125510.29
    
    Management Agreement between Sixteen SAC
Self-Storage Corporation and subsidiaries of
AMERCO
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended December
31, 2000, file no.
1-1125510.30
    
    Management Agreement between Seventeen SAC
Self-Storage Corporation and subsidiaries of
AMERCO
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 2001, file
no. 1-1125510.31
    
    Management Agreement between Eighteen SAC
Self-Storage Corporation and U-Haul
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended September
30, 2002
 48




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Exhibit Number
    
    Description
    
    Page or Method of Filing10.32
    
    Management Agreement between Nineteen SAC
Self-Storage Limited Partnership and U-Haul
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended September
30, 200210.33
    
    Management Agreement between Twenty SAC
Self-Storage Corporation and U-Haul
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended September
30, 200210.34
    
    Management Agreement between Twenty-One SAC
Self-Storage Corporation and U-Haul
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended September
30, 200210.35
    
    Management Agreement between Twenty-Two SAC
Self-Storage Corporations and U-Haul
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended September
30, 200210.36
    
    Management Agreement between Twenty-Three SAC
Self-Storage Corporation and U-Haul
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended September
30, 200210.37
    
    Management Agreement between Twenty-Four SAC
Self-Storage Limited Partnership and U-Haul
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended September
30, 200210.38
    
    Management Agreement between Twenty-Five SAC
Self-Storage Limited Partnership and U-Haul
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended September
30, 200210.39
    
    Management Agreement between Twenty-Six SAC
Self-Storage Limited Partnership and U-Haul
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended September
30, 200210.40
    
    Management Agreement between Twenty-Seven SAC
Self-Storage Limited Partnership and U-Haul
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended September
30, 200210.41
    
    Promissory Note between SAC Holding Corporation
and Oxford Life Insurance Company
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended September
30, 200210.42
    
    Promissory Note between SAC Holding Corporation
and Oxford Life Insurance Company
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended September
30, 200210.42A
    
    Amendment and Addendum to Promissory Note between
SAC Holding Corporation and Oxford Life Insurance
Company
    
    Incorporated by
reference to AMERCOs
Form S-4 registration
statement, No.
373-11404210.43
    
    2003 AMERCO Support Party Agreement for the
benefit of GMAC Commercial Holding Capital Corp.
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 2003, file
no. 1-1125510.44
    
    State of Arizona Department of Insurance Notice of
Determination, Order for Supervision and Consent
Thereto
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 2003, file
no. 1-1125510.45
    
    Fixed Rate Note between SAC Holding Corporation and
U-Haul International, Inc.
    
    Incorporated by
reference to AMERCOs
Form S-4 registration
statement, No.
333-11404210.46
    
    Promissory Note between SAC Holding Corporation and
U-Haul International, Inc.
    
    Incorporated by
reference to AMERCOs
Form S-4 registration
statement, No.
333-11404210.47
    
    Amended and Restated Promissory Note between SAC
Holding Corporation and U-Haul International, Inc.
(in an aggregate principal amount up to
$21,000,000)
    
    Incorporated by
reference to AMERCOs
Form S-4 registration
statement, No.
333-11404210.48
    
    Amended and Restated Promissory Note between SAC
Holding Corporation and U-Haul International, Inc.
(in an aggregate principal amount up to
$47,500,000)
    
    Incorporated by
reference to AMERCOs
Form S-4 registration
statement, No.
333-11404210.49
    
    Amended and Restated Promissory Note between SAC
Holding Corporation and U-Haul International, Inc.
(in an aggregate principal amount up to
$76,000,000)
    
    Incorporated by
reference to AMERCOs
Form S-4 registration
statement, No.
333-11404210.50
    
    Property Management Agreement
    
    Filed herewith14
    
    Code of Ethics
    
    Incorporated by
reference to AMERCOs
Current Report on Form
8-K, filed on May 5,
2004, file No.
1-1125521
    
    Subsidiaries of AMERCO
    
    Filed herewith23.1
    
    Consent of BDO Seidman, LLP
    
    Filed herewith24
    
    Power of Attorney
    
    See signature page31.1
    
    Rule 13a-14(a)/15d-14(a) Certificate of Edward J.
Shoen, President and Chairman of the Board of
AMERCO and U-Haul International, Inc.
    
    Filed herewith31.2
    
    Rule 13a-14(a)/15d-14(a)
Certificate of Jack A. Peterson, Chief Financial Officer of AMERCO
and U-Haul International, Inc.
    
    Filed herewith
 49




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##### Table of Contents



Exhibit Number
    
    Description
    
    Page or Method of Filing31.3
    
    Rule 13a-14(a)/15d-14(a) Certificate of Jack A.
Peterson, Chief Financial Officer of AMERCO and
U-Haul International, Inc.
    
    Filed herewith32.1
    
    Certificate of Edward J. Shoen, President and
Chairman of the Board of AMERCO and U-Haul
International, Inc. pursuant to Section 906 of the
Sabanes-Oxley Act of 2002
    
    Filed herewith32.2
    
    Certificate of Jack A. Peterson,
Chief Financial Officer of AMERCO and U-Haul International,
Inc. pursuant to Section 906 of the Sabanes-Oxley
Act of 2002
    
    Filed herewith
   *
    
    Indicates compensatory plan arrangement. 50




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##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Board of Directors and Stockholders AMERCO Reno, Nevada We have audited the accompanying consolidated balance sheets of AMERCO and
its subsidiaries and SAC Holding II Corporation and its subsidiaries
(collectively, the Company) as of March 31, 2004 and the consolidated balance
sheet of AMERCO and its subsidiaries, SAC Holding II Corporation and its
subsidiaries, and SAC Holding Corporation and its subsidiaries (collectively,
the Consolidated Entities) as of March 31, 2003 and the related consolidated statements
of operations, changes in stockholders equity, other comprehensive
income/(loss), and cash flows for each of the three years in the period ended
March 31, 2004. We have also audited the schedules listed in the accompanying
index. These financial statements and schedules are the responsibility of the
Companys management. Our responsibility is to express an opinion on these
financial statements and schedules based on our audits. We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements and schedules are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements and schedules. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion. In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the financial position of AMERCO and
its subsidiaries and SAC Holding II Corporation and its subsidiaries at March
31, 2004 and the financial position of AMERCO and its subsidiaries, SAC Holding
II Corporation and its subsidiaries, and SAC Holding Corporation and its
subsidiaries at March 31, 2003, and the results of operations and cash flows
for each of the three years in the period ended March 31, 2004,in conformity
with accounting principles generally accepted in the United States of America.
Also, in our opinion, the schedules present fairly, in all material respects,
the information set forth therein. Our audits were conducted for the purpose of forming an opinion on the
consolidated financial statements and schedules taken as a whole. The
consolidating balance sheets, statements of operations schedules, statements of
cash flows schedules, and the summary of earnings of independent rental fleets
information included on pages F-38 through F-48 and F-50 through F-52 are presented for purposes of
additional analysis of the consolidated financial statements rather than to
present the financial position, results of operations, and cash flows or the
earnings of the independent fleets. Accordingly, we do not express an opinion
on the financial position, results of operations, and cash flows or on the
earnings of the independent trailer fleets. However, such information has been
subjected to the auditing procedures applied in the audit of the consolidated
financial statements and schedules and, in our opinion, is fairly stated in all
material respects in relation to the consolidated financial statements and
schedules taken as a whole. /s/ BDO Seidman, LLP Los
Angeles, California
     June 1, 2004 F-1




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##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES CONSOLIDATED BALANCE SHEETS March 31,2003
    
    2004
    
    Proforma
2004
Unaudited
See Footnote 23ASSETS
    
    
    
    
    
    (In Thousands)Cash and cash equivalents
    
    $
    66,834
    
    
    $
    81,557
    
    
    $
    122,971Trade receivables, net
    
    
    275,002
    
    
    
    268,386
    
    
    
    268,386Notes and mortgage receivables, net
    
    
    8,309
    
    
    
    4,537
    
    
    
    4,537Inventories, net
    
    
    53,270
    
    
    
    52,802
    
    
    
    52,802Prepaid expenses
    
    
    21,846
    
    
    
    13,172
    
    
    
    16,387Investments, fixed maturities
    
    
    860,600
    
    
    
    709,353
    
    
    
    709,353Investments, other
    
    
    264,252
    
    
    
    347,537
    
    
    
    347,537Deferred policy acquisition costs, net
    
    
    105,100
    
    
    
    76,939
    
    
    
    76,939Deferred income taxes
    
    
    32,242
    
    
    
    
    
    
    
    Other assets
    
    
    63,600
    
    
    
    65,071
    
    
    
    92,921Related
party receivables
    
    
    135,000
    
    
    
    304,446
    
    
    
    304,4461,886,055
    
    
    
    1,923,800
    
    
    
    1,996,279Property, plant, and equipment, at cost:Land
    
    
    157,987
    
    
    
    158,594
    
    
    
    158,594Buildings and improvements
    
    
    747,853
    
    
    
    874,985
    
    
    
    682,206Furniture and equipment
    
    
    291,383
    
    
    
    293,115
    
    
    
    293,115Rental trailers and other rental equipment
    
    
    149,707
    
    
    
    159,586
    
    
    
    159,586Rental trucks
    
    
    1,140,294
    
    
    
    1,219,002
    
    
    
    1,219,002SAC Holdings  property, plant and equipment
    
    
    757,292
    
    
    
    78,363
    *
    
    
    78,363
    *3,244,516
    
    
    
    2,783,645
    
    
    
    2,590,866Less: Accumulated depreciation
    
    
    (1,298,199
    )
    
    
    (1,331,840
    )
    
    
    (1,309,036
    )Total property, plant and equipment
    
    
    1,946,317
    
    
    
    1,451,805
    
    
    
    1,281,830Total assets
    
    $
    3,832,372
    
    
    $
    3,375,605
    
    
    $
    3,278,109
   *
    
    SAC Holding II Corporation The accompanying notes are an integral part of these consolidated
financial statements. F-2




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##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES CONSOLIDATED BALANCE SHEETS March 31,2003
    
    2004
    
    Proforma
2004
Unaudited
See Footnote 23LIABILITIES AND STOCKHOLDERS EQUITYLiabilities:Accounts payables and accrued expenses
    
    $
    413,723
    
    
    $
    280,596
    
    
    $
    279,755Capital leases
    
    
    137,031
    
    
    
    99,609
    
    
    
    AMERCOs notes and loans payable
    
    
    940,063
    
    
    
    880,519
    
    
    
    880,519SAC Holdings notes and loans payable, non-recourse to AMERCO
    
    
    466,781
    
    
    
    78,637
    *
    
    
    78,637
    *Policy benefits and losses, claims and loss expenses payable
    
    
    836,632
    
    
    
    813,738
    
    
    
    813,738Liabilities from investment contracts
    
    
    639,998
    
    
    
    574,745
    
    
    
    574,745Other policyholders funds and liabilities
    
    
    30,309
    
    
    
    28,732
    
    
    
    28,732Deferred income
    
    
    40,387
    
    
    
    51,383
    
    
    
    54,337Deferred income taxes
    
    
    
    
    
    
    63,800
    
    
    
    63,800Total liabilities
    
    
    3,504,924
    
    
    
    2,871,759
    
    
    
    2,774,263Commitments and Contingencies (Notes 9, 15, 16 and 17)
Stockholders equity:Series preferred stock, with or without par value, 50,000,000 shares
authorized:Series A preferred stock, with no par value, 6,100,000 shares authorized;
6,100,000 shares issued and outstanding as of March 31, 2004 and 2003
    
    
    
    
    
    
    
    
    
    
    Series B preferred stock, with no par value, 100,000 shares authorized;
none issued and outstanding as of March 31, 2004 and 2003
    
    
    
    
    
    
    
    
    
    
    Series common stock, with or without par value, 150,000,000 shares
authorized:Series A common stock of $0.25 par value, 10,000,000 shares authorized;
5,662,496 shares issued as of March 31, 2004 and 2003
    
    
    1,416
    
    
    
    1,416
    
    
    
    1,416Common stock of $0.25 par value, 150,000,000 shares authorized;
36,323,205 and 36,323,205 issued as of March 31, 2004 and 2003
    
    
    9,081
    
    
    
    9,081
    
    
    
    9,081Additional paid in-capital
    
    
    235,850
    
    
    
    349,732
    
    
    
    349,732Additional paid-in-capital  SAC
    
    
    3,199
    
    
    
    
    
    
    
    Accumulated other comprehensive (loss)
    
    
    (54,278
    )
    
    
    (21,446
    )
    
    
    (21,446
    )Accumulated other comprehensive income/(loss)  SAC Holdings
    
    
    (1,487
    )
    
    
    
    
    
    
    Retained earnings
    
    
    568,222
    
    
    
    595,181
    
    
    
    595,181Cost of common shares in treasury, net (20,701,096 and 20,705,363
shares as of March 31, 2004 and 2003, respectively)
    
    
    (421,378
    )
    
    
    (418,092
    )
    
    
    (418,092
    )Unearned employee stockownership plan shares
    
    
    (13,177
    )
    
    
    (12,026
    )
    
    
    (12,026
    )Total stockholders equity
    
    
    327,448
    
    
    
    503,846
    
    
    
    503,846Total liabilities and stockholders equity
    
    $
    3,832,372
    
    
    $
    3,375,605
    
    
    $
    3,278,109
   *    SAC Holding II Corporation The accompanying notes are an integral part of these consolidated financial
statements. F-3




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##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES CONSOLIDATED STATEMENTS OF OPERATIONS Years Ended March 31,2002
    
    2003
    
    2004(In thousands, except share and per share data)Revenues:Rental revenue
    
    $
    1,512,250
    
    
    $
    1,560,005
    
    
    $
    1,655,571Net sales
    
    
    222,816
    
    
    
    222,889
    
    
    
    232,437Premiums
    
    
    411,170
    
    
    
    314,016
    
    
    
    237,118Net investment and interest income
    
    
    47,343
    
    
    
    35,477
    
    
    
    42,369Total revenues
    
    
    2,193,579
    
    
    
    2,132,387
    
    
    
    2,167,495Costs and expenses:Operating expenses
    
    
    1,203,930
    
    
    
    1,178,994
    
    
    
    1,176,091Commission expenses
    
    
    140,442
    
    
    
    136,827
    
    
    
    147,010Cost of sales
    
    
    122,694
    
    
    
    115,115
    
    
    
    111,906Benefits and losses
    
    
    376,673
    
    
    
    244,308
    
    
    
    212,853Amortization of deferred policy
acquisition costs
    
    
    40,674
    
    
    
    37,819
    
    
    
    39,083Lease expense
    
    
    164,075
    
    
    
    166,100
    
    
    
    160,727Depreciation, net
    
    
    102,957
    
    
    
    137,446
    
    
    
    148,813Restructuring expenses
    
    
    
    
    
    
    6,568
    
    
    
    44,097Total costs and expenses
    
    
    2,151,445
    
    
    
    2,023,177
    
    
    
    2,040,580Earnings from operations
    
    
    42,134
    
    
    
    109,210
    
    
    
    126,915Interest expense
    
    
    109,465
    
    
    
    148,131
    
    
    
    121,690Pretax earnings (loss)
    
    
    (67,331
    )
    
    
    (38,921
    )
    
    
    5,225Income tax benefit (expense)
    
    
    19,891
    
    
    
    13,935
    
    
    
    (8,077
    )Net (loss)
    
    
    (47,440
    )
    
    
    (24,986
    )
    
    
    (2,852
    )Less: Preferred stock dividends
    
    
    (12,963
    )
    
    
    (12,963
    )
    
    
    (12,963
    )Earnings (loss) available to common
shareholders
    
    $
    (60,403
    )
    
    $
    (37,949
    )
    
    $
    (15,815
    )Basic and diluted loss per common share
    
    $
    (2.87
    )
    
    $
    (1.82
    )
    
    $
    (0.76
    )Weighted average common share outstanding:Basic and diluted
    
    
    21,063,720
    
    
    
    20,824,618
    
    
    
    20,749,998
 The accompanying notes are an integral part of these consolidated financial
statements. F-4




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##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY Serial A Common
    
    
    
    
    
    
    
    
    
    Accumulated OtherStock, $0.25 per
    
    Common Stock, $0.25
    
    Additional
    
    ComprehensiveDescription
    
    value
    
    per value
    
    Paid-In Capital
    
    IncomeBalance as of March 31, 2001
    
    $
    1,416
    
    
    $
    9,081
    
    
    $
    239,469
    
    
    $
    (45,197
    )Issuance of common shares under leveraged employee stock ownership plan
    
    
    
    
    
    
    
    
    
    
    89
    
    
    
    Foreign Currency Translation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (25,031
    )Fair market value of cash flow hedge
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,942Unrealized gain (loss) on investments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20,706Net loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Preferred stock Dividends: Series A ($2.13 per share for 2004, 2003, and 2002)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Treasury stock transactions
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Purchase of Shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Shares allocated to participants
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net Activity
    
    
    
    
    
    
    
    
    
    
    89
    
    
    
    4,617Balance as of March 31, 2002
    
    
    1,416
    
    
    
    9,081
    
    
    
    239,558
    
    
    
    (40,580
    )Issuance of common shares under leveraged employee stock ownership plan
    
    
    
    
    
    
    
    
    
    
    (509
    )
    
    
    Foreign Currency Translation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,781Fair market value of cash flow hedge
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (6,318
    )Unrealized gain (loss) on investments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (12,648
    )Net loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Preferred stock Dividends: Series A ($2.13 per share for 2004, 2003, and 2002)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Treasury stock transactions
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Shares allocated to participants
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net Activity
    
    
    
    
    
    
    
    
    
    
    (509
    )
    
    
    (15,185
    )Balance as of March 31, 2003
    
    
    1,416
    
    
    
    9,081
    
    
    
    239,049
    
    
    
    (55,765
    )Issuance of common shares under leveraged employee stock ownership plan
    
    
    
    
    
    
    
    
    
    
    (311
    )
    
    
    Foreign Currency Translation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,936Fair market value of cash flow hedge
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Unrealized gain (loss) on investments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    27,896Net loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Preferred stock Dividends: Series A ($2.13 per share for 2004, 2003, and 2002)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Contribution from related party
    
    
    
    
    
    
    
    
    
    
    110,994
    
    
    
    SAC Holding
Corporation distribution
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,487Treasury stock transactions
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Purchase of Shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Shares allocated to participants
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net Activity
    
    
    
    
    
    
    
    
    
    
    110,683
    
    
    
    34,319Balance as of March 31, 2004
    
    $
    1,416
    
    
    $
    9,081
    
    
    $
    349,732
    
    
    $
    (21,446
    )
   [Continued from above table, first column(s) repeated] Less: UnearnedEmployee StockOwnership Plan
    
    Total Stockholders'Description
    
    Retained Earnings
    
    Less: Treasury Stock
    
    Shares
    
    EquityBalance as of March 31, 2001
    
    $
    666,574
    
    
    $
    (409,816
    )
    
    $
    (15,173
    )
    
    $
    446,354Issuance of common shares under leveraged employee stock ownership plan
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    89Foreign Currency Translation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (25,031
    )Fair market value of cash flow hedge
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,942Unrealized gain (loss) on investments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20,706Net loss
    
    
    (47,440
    )
    
    
    
    
    
    
    
    
    
    
    (47,440
    )Preferred stock Dividends: Series A ($2.13 per share for 2004, 2003, and 2002)
    
    
    (12,963
    )
    
    
    
    
    
    
    
    
    
    
    (12,963
    )Treasury stock transactions
    
    
    
    
    
    
    (10,154
    )
    
    
    
    
    
    
    (10,154
    )Purchase of Shares
    
    
    
    
    
    
    
    
    
    
    (72
    )
    
    
    (72
    )Shares allocated to participants
    
    
    
    
    
    
    
    
    
    
    1,093
    
    
    
    1,093Net Activity
    
    
    (60,403
    )
    
    
    (10,154
    )
    
    
    1,021
    
    
    
    (64,830
    )Balance as of March 31, 2002
    
    
    606,171
    
    
    
    (419,970
    )
    
    
    (14,152
    )
    
    
    381,524Issuance of common shares under leveraged employee stock ownership plan
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (509
    )Foreign Currency Translation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,781Fair market value of cash flow hedge
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (6,318
    )Unrealized gain (loss) on investments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (12,648
    )Net loss
    
    
    (24,986
    )
    
    
    
    
    
    
    
    
    
    
    (24,986
    )Preferred stock Dividends: Series A ($2.13 per share for 2004, 2003, and 2002)
    
    
    (12,963
    )
    
    
    
    
    
    
    
    
    
    
    (12,963
    )Treasury stock transactions
    
    
    
    
    
    
    (1,408
    )
    
    
    
    
    
    
    (1,408
    )Shares allocated to participants
    
    
    
    
    
    
    
    
    
    
    975
    
    
    
    975Net Activity
    
    
    (37,949
    )
    
    
    (1,408
    )
    
    
    975
    
    
    
    (54,076
    )Balance as of March 31, 2003
    
    
    568,222
    
    
    
    (421,378
    )
    
    
    (13,177
    )
    
    
    327,448Issuance of common shares under leveraged employee stock ownership plan
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (311
    )Foreign Currency Translation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Fair market value of cash flow hedge
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,936Unrealized gain (loss) on investments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    27,896Net loss
    
    
    (2,852
    )
    
    
    
    
    
    
    
    
    
    
    (2,852
    )Preferred stock Dividends: Series A ($2.13 per share for 2004, 2003, and 2002)
    
    
    (12,963
    )
    
    
    
    
    
    
    
    
    
    
    (12,963
    )Contribution from related party
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    110,994SAC Holding Corporate distribution
    
    
    42,774
    
    
    
    3,199
    
    
    
    
    
    
    
    47,460Treasury stock transactions
    
    
    
    
    
    
    87
    
    
    
    
    
    
    
    87Purchase of Shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Shares allocated to participants
    
    
    
    
    
    
    
    
    
    
    1,151
    
    
    
    1,151Net Activity
    
    
    26,959
    
    
    
    3,286
    
    
    
    1,151
    
    
    
    176,398Balance as of March 31, 2004
    
    $
    595,181
    
    
    $
    (418,092
    )
    
    $
    (12,026
    )
    
    $
    503,846
 The accompanying notes are an integral part of these consolidated
financial statements. F-5




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##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME/ (LOSS) Years Ended March 31,2004
    
    2003
    
    2002(In thousands)Comprehensive income/(loss):Net earnings/(loss)
    
    $
    (2,852
    )
    
    $
    (24,986
    )
    
    $
    (47,440
    )Other comprehensive income/(loss) net of
tax:Foreign currency translation
    
    
    6,423
    
    
    
    3,781
    
    
    
    (25,031
    )Fair market value of cash flow hedges
    
    
    
    
    
    
    (6,318
    )
    
    
    8,942Unrealized gain (loss) on investments, net
    
    
    27,896
    
    
    
    (12,648
    )
    
    
    20,706Total comprehensive loss
    
    $
    31,467
    
    
    $
    (40,171
    )
    
    $
    (42,823
    )
 The accompanying notes are an integral part of these consolidated
financial statements. F-6




---



##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended March 31,2004
    
    2003
    
    2002(In thousands)Cash flows
from operating activities:Net/(loss)
    
    $
    (2,852
    )
    
    $
    (24,986
    )
    
    $
    (47,440
    )Depreciation and amortization
    
    
    190,676
    
    
    
    185,833
    
    
    
    149,058Provision for losses on accounts receivable
    
    
    (377
    )
    
    
    3,903
    
    
    
    5,682Net (gain)
loss on sale of real and personal property
    
    
    3,754
    
    
    
    (10,515
    )
    
    
    (3,526
    )(Gain) Loss on sale of investments
    
    
    (3,112
    )
    
    
    9,497
    
    
    
    5,923Changes in policy liabilities and accruals
    
    
    (30,714
    )
    
    
    (78,314
    )
    
    
    (6,561
    )Additions to deferred policy acquisition costs
    
    
    (17,230
    )
    
    
    (42,663
    )
    
    
    (39,252
    )Net change in other operating assets and liabilities
    
    
    (180,470
    )
    
    
    31,775
    
    
    
    (83,515
    )Net cash provided (used) by operating activities
    
    
    (40,325
    )
    
    
    74,530
    
    
    
    (19,631
    )Cash flow from investment activities:Purchase of investments:Property, plant and equipment
    
    
    (198,443
    )
    
    
    (243,161
    )
    
    
    (381,483
    )Fixed maturities
    
    
    (77,384
    )
    
    
    (278,357
    )
    
    
    (257,559
    )Common stock
    
    
    (1,736
    )
    
    
    
    
    
    
    (418
    )Preferred stock
    
    
    
    
    
    
    
    
    
    
    (2,072
    )Other asset investment
    
    
    (174
    )
    
    
    (1,410
    )
    
    
    (2,259
    )Real estate
    
    
    (17,156
    )
    
    
    (21,759
    )
    
    
    4,277Mortgage loans
    
    
    (450
    )
    
    
    
    
    
    
    (1,351
    )Proceeds from sales of investments:Property, plant and equipment
    
    
    63,175
    
    
    
    96,889
    
    
    
    229,375Fixed maturities
    
    
    243,490
    
    
    
    364,114
    
    
    
    233,716Common stock
    
    
    3,452
    
    
    
    
    
    
    
    Preferred stock
    
    
    16,882
    
    
    
    2,885
    
    
    
    4,400Real estate
    
    
    6,338
    
    
    
    22,043
    
    
    
    3,700Mortgage loans
    
    
    16,374
    
    
    
    18,173
    
    
    
    18,690Changes in other investments
    
    
    811
    
    
    
    4,481
    
    
    
    2,897Net cash provided (used) by investing activities
    
    
    55,179
    
    
    
    (36,102
    )
    
    
    (148,087
    )Cash flow from financing activities:Net change in short-term borrowings
    
    
    165,041
    
    
    
    21,900
    
    
    
    (9,277
    )Proceeds from notes
    
    
    831,973
    
    
    
    349,836
    
    
    
    247,893Debt issuance costs
    
    
    (24,831
    )
    
    
    (3,010
    )
    
    
    (390
    )Leveraged Employee Stock Ownership Plan:Purchase of shares
    
    
    
    
    
    
    
    
    
    
    (72
    )Payments on loans
    
    
    1,151
    
    
    
    975
    
    
    
    1,093Principal payments on notes
    
    
    (905,684
    )
    
    
    (442,112
    )
    
    
    (107,181
    )Preferred stock dividend paid
    
    
    (3,241
    )
    
    
    (6,480
    )
    
    
    (12,963
    )Treasury stock acquisitions, net
    
    
    
    
    
    
    (1,408
    )
    
    
    (10,154
    )Investment contract deposits
    
    
    50,990
    
    
    
    165,281
    
    
    
    150,432Investment contract withdrawals
    
    
    (115,530
    )
    
    
    (98,022
    )
    
    
    (99,845
    )Net cash provided (used) by financing activities
    
    
    (131
    )
    
    
    (13,040
    )
    
    
    159,536Increase (decrease) in cash and cash equivalents
    
    
    14,723
    
    
    
    25,388
    
    
    
    (8,182
    )Cash and cash equivalents at beginning of year
    
    
    66,834
    
    
    
    41,446
    
    
    
    49,628Cash and cash equivalents at end of year
    
    $
    81,557
    
    
    $
    66,834
    
    
    $
    41,446
 The accompanying notes are an integral part of these consolidated financial
statements. F-7




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##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1: Basis of Presentation AMERCO has a fiscal year that ends on the 31st of March for each year that
is referenced. Our Insurance company subsidiaries have fiscal years that end
on the 31st of December for each year that is referenced. They have been
consolidated on that basis. Consequently, all references to our insurance
subsidiaries years 2003, 2002 and 2001 correspond to 2004, 2003 and 2002 for
AMERCO. The operating results and financial position of AMERCOs consolidated
insurance operations are determined as of December 31 of each year. Accounts denominated in non-U.S. currencies have been re-measured using
the U.S. dollar as the functional currency. Certain amounts reported in
previous years have been reclassified to conform to the 2004 presentation.
There were no effects related to intervening events between January 1 and March
31 of 2004, 2003, or 2002 that would materially affect the consolidated
financial position or results of operations for the financial statements
presented herein. Note 2: Principles of Consolidation The
2004 balance sheet includes the accounts of AMERCO, its wholly owned
subsidiaries, and SAC Holding II Corporation and its
subsidiaries. The 2003 balance sheet and the 2004 statements of operations, comprehensive
income, and cash flows, and the consolidated financial statements for
fiscal 2003 and 2002, include all of those entities plus SAC Holding
Corporation and its subsidiaries. In fiscal 2003 and 2002, SAC
Holding Corporation and SAC Holding II Corporation (the SAC
entities) were considered special purpose entities and were
consolidated based on the provision of Emerging Issues Task Force
(EITF) Issue No. 90-15. In fiscal 2004, the Company applied FASB
Interpretation No. 46 to its interests in the SAC Entities.
Initially, the Company concluded that the SAC entities were variable
interest entities and that the Company was the primary beneficiary.
Accordingly, the Company continued to include the SAC entities in the
consolidated financial statements. In February 2004, SAC Holding
Corporation restructured the financing of three subsidiaries and then
distributed its interest in those subsidiaries to its sole
shareholder. This triggered a requirement to reassess the
Companys involvement with those subsidiaries, which led to a
conclusion that the Company ceased to be the primary beneficiary of
those three subsidiaries at that date. In March 2004, SAC Holding
Corporation restructured its financing, triggering a similar
reassessment that led to a conclusion that the Company ceased to be
the primary beneficiary of SAC Holding Corporation and its remaining
subsidiaries. Accordingly, at the dates the Company ceased to be the
primary beneficiary, it deconsolidated those entities. The
deconsolidation was accounted for as a distribution of the
Companys interests to the sole shareholder of the SAC entities.
Because of the Companys continuing involvement with SAC Holding
Corporation and its current and former subsidiaries, the
distributions do not qualify as discontinued operations as defined by
SFAS No. 144. Inter-company accounts and transactions have been eliminated. Description of legal entities AMERCO, a Nevada corporation (AMERCO), is the holding company for: U-Haul International, Inc. (U-Haul), Amerco Real Estate Company (Real Estate), Republic Western Insurance Company (RepWest) and its wholly-owned
subsidiary North American Fire & Casualty Insurance Company (NAFCIC), Oxford Life Insurance Company (Oxford) and its wholly-owned subsidiaries North American Insurance Company (NAI) Christian Fidelity Life Insurance Company (CFLIC), Unless the context otherwise requires, the term Company refers to AMERCO
and all of its legal subsidiaries. Description of Operating Segments AMERCO has three reportable operating segments and five identifiable
operating segments. The three reportable segments are Moving and Self Storage,
Property and Casualty Insurance and Life Insurance. U-Haul moving and storage,
Real Estate, and SAC moving and storage are separately listed under one
reportable segment, Moving and Self Storage, since they meet the
aggregation criteria of FASB 131. F-8




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##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED) U-Haul moving and self-storage operations consist of the rental of trucks
and trailers, sales of moving supplies, sales of trailer hitches, sales of
propane, and the rental of self-storage spaces to the do-it-yourself mover.
Operations are conducted under the registered trade name U-Haul® throughout the
United States and Canada. Real Estate owns approximately 90 percent of the Companys real estate
assets, including U-Haul Center and Storage locations. The remainder of the
real estate assets are owned by various U-Haul entities. Real Estate is
responsible for overseeing property acquisitions, dispositions and managing
environmental risks of the properties. SAC moving and self-storage operations consist of the rental of
self-storage spaces, sales of moving supplies, sales of trailer hitches, and
sales of propane. In addition, SAC functions as an independent dealer and
earns commissions from the rental of U-Haul trucks and trailers. Operations
are conducted under the registered trade name U-Haul® throughout the United
States and Canada. RepWest originates and reinsures property and casualty insurance products
for various market participants, including independent third parties, U-Hauls
customers, and the Company. Oxford originates and reinsures annuities, credit life and disability,
life insurance, and supplemental health products. Oxford also administers the
self-insured employee health and dental plans for the Company. Note 3: Accounting Policies Use of Estimates The preparation of financial statements in conformity with the accounting
principles generally accepted in the U.S. requires management to make estimates
and judgments that affect the amounts reported in the financial statements and
accompanying notes. The accounting estimates that require managements most
difficult and subjective judgments include the recoverability of property,
plant and equipment; the adequacy of insurance reserves; and the recognition
and measurement of income tax assets and liabilities. The actual results
experienced by the Company may differ from managements estimates. Cash and Cash Equivalents The Company considers cash equivalents to be highly liquid debt securities
with insignificant interest rate risk with original maturities from the date of
purchase of three months or less. Investments Fixed Maturities.Fixed maturity investments consist of either marketable
debt or redeemable preferred stocks. As of the balance sheet date, these
investments are either intended to be held to maturity or are considered
available-for-sale. Investments that are intended to be held to maturity are
recorded at cost, as adjusted for the amortization of premiums or the accretion
of discounts. Available-for-Sale.Investments that are considered available-for-sale are
reported at fair value, with unrealized gains or losses, net of tax, recorded
in stockholders equity. Fair value for these investments is based on quoted
market prices, dealer quotes or discounted cash flows. The cost of investments
sold is based on the specific identification method. Realized gains or losses
on the sale or exchange of investments and declines in value judged to be other
than temporary are recorded as revenues. Investments are judged to be impaired
if the fair value is less than cost continuously for six months, absent
compelling evidence to the contrary. Mortgage Loans and Notes on Real Estate.Mortgage loans and notes on real
estate are reported at their unpaid balance, net of any allowance for possible
losses and any unamortized premium or discount. Recognition of Investment Income.Interest income from bonds and mortgage
notes is recognized when it becomes earned. Dividends on common and preferred
stocks are recognized on the ex-dividend dates. Realized gains and losses on
the sale or exchange of investments are recognized at the trade date.
Unrealized gains and losses are determined as of each balance sheet date. F-9




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##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED) Fair Values Fair values of cash equivalents approximate cost due to the short period
of time to maturity. Fair values of short-term investments, investments
available-for-sale, long-term investments, mortgage loans and notes on real
estate, swaps and forward currency contracts are based on quoted market prices,
dealer quotes or discounted cash flows. Fair values of trade receivables
approximate their recorded value. Limited credit risk exists on trade receivables due to the diversity of
our customer base and their dispersion across broad geographic markets. The
Companys financial instruments that are exposed to concentrations of credit
risk consist primarily of temporary cash investments, trade receivables and
notes receivable. The Company places its temporary cash investments with
financial institutions and limits the amount of credit exposure to any one
financial institution. The Company has mortgage receivables, which potentially expose the Company
to credit risk. The portfolio of notes is principally collateralized by
mini-warehouse storage facilities and other residential and commercial
properties. The Company has not experienced losses related to the notes from
individual notes or groups of notes in any particular industry or geographic
area. The estimated fair values were determined using the discounted cash flow
method, using interest rates currently offered for similar loans to borrowers
with similar credit ratings. Other
investments including short-term investments are substantially
current or bear reasonable interest rates. As a result, the carrying
values of these financial instruments approximate fair value. The
carrying value of long-term debt is based on current rates at which
the Company could borrow funds with similar remaining maturities and
approximates fair market value due to its recent issuance. Derivative Financial Instruments The companys primary objective for holding derivative financial
instruments is to manage currency and interest rate risk. The companys
derivative instruments are recorded at fair value and are reported
as other assets, accrued expenses, or debt. At this time,
the company has no forward currency contracts and no interest rate swap
contracts. Inventories, net Inventories at fiscal year-ends were as follows: March 31,2004
    
    2003(In thousands)Truck and trailer parts and accessories
    
    $
    37,165
    
    
    $
    33,256Hitches and towing components
    
    
    9,899
    
    
    
    10,389Moving supplies and promotional items
    
    
    5,738
    
    
    
    9,625Total
    
    $
    52,802
    
    
    $
    53,270
 Inventories consist primarily of truck and trailer parts and accessories
used to repair rental equipment products purchased directly for resale and are
valued at the lower of cost or market. Inventory cost is primarily determined
using the last-in, first-out method. Inventories valued on the LIFO basis were
approximately 93% of total inventories for 2004 and 99% of total inventories
for 2003. Inventories would have been $3.2 million and $1.1 million higher at
March 31, 2004 and 2003, respectively, if the company valued inventories using
the first-in, first-out method. Inventories are stated net of reserve for
obsolescence of $2.5 million and $4.9 million at March 31, 2004 and 2003,
respectively. Property, Plant and Equipment Property, plant and equipment are stated at cost. Interest costs incurred
during the initial construction of buildings or rental equipment are considered
part of cost. Depreciation is computed for financial reporting purposes
principally using the straight-line method over the following estimated useful
lives: rental equipment 2-20 years: buildings and non-rental equipment 3-55
years. Major overhauls to rental equipment are capitalized and are amortized
over the estimated period benefited. Routine maintenance costs are charged to
operating expense as they are incurred. Gains and losses on dispositions of
property, plant and equipment are netted against depreciation expense when
realized. F-10




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##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED) Reviews
are periodically performed to determine whether facts and
circumstances exist which indicate that the carrying amount of assets,
including estimates of residual value, may not be recoverable or that the
useful life of assets is shorter than originally estimated. The company
assesses the recoverability of its assets by comparing the projected
undiscounted net cash flows associated with the related asset or group of
assets over their estimated remaining lives against their respective carrying
amounts. Impairment, if any, is based on the excess of the carrying amount
over the fair value of those assets. If assets are determined to be
recoverable, but the useful lives are shorter than originally estimated, the
net book value of the assets is depreciated over the newly determined remaining
useful lives. During fiscal year 2002, based on an in-depth market analysis, U-Haul
decreased the estimated salvage value and increased the useful lives of certain
rental trucks. The effect of the change reduced net losses for fiscal year
2002 by $3.1 million ($0.15 per share) net of taxes. The in-house analysis of
sales of trucks was completed for the fiscal years ending March 31, 1996
through March 31, 2001. The study compared the truck model, size, age and
average residual value of units sold for each fiscal year indicated. The
analysis revealed that average residual values (as computed) when compared to
sales prices were not reflective of the values that the Company was receiving
upon disposition. Based on the analysis, the estimated residual values were
decreased to approximately 25% of historic cost. In addition, this analysis
revealed that our estimates of useful lives were not reflective of the economic
lives of our trucks, which ultimately were being utilized by the Company for
longer periods of time. Thus the useful lives for certain of our trucks were
increased by approximately 3 years. The adjustment reflects managements best
estimate, based on information available, of the estimated salvage value and
useful lives of these rental trucks. The carrying value of surplus real estate, which is lower than market
value, at the balance sheet date was $1.5 million for 2004 and 2003, and is included in the investments, other. Receivables Accounts receivable include trade accounts from self moving and self
storage customers and dealers, insurance premiums and agent balances due, net
of commissions payable and amounts due from ceding re-insurers, less
managements estimate of uncollectible accounts. Notes and mortgage receivables include accrued interest and are reduced by
discounts and amounts considered by management to be uncollectible. Policy Benefits and Losses, Claims and Loss Expenses Payable Liabilities for life insurance and certain annuity policies are
established to meet the estimated future obligations of policies in force, and
are based on mortality and withdrawal assumptions from recognized actuarial
tables which contain margins for adverse deviation. Liabilities for annuity contracts consist of contract account balances
that accrue to the benefit of the policyholders, excluding surrender values.
Liabilities for health, disability and other policies represents estimates of
payments to be made on insurance claims for reported losses and estimates of
losses incurred, but not yet reported. RepWests liability for reported and unreported losses is based on
RepWests historical and industry averages. The liability for unpaid loss
adjustment expenses is based on historical ratios of loss adjustment expenses
paid to losses paid. Amounts recoverable from reinsurers on unpaid losses are
estimated in a manner consistent with the claim liability associated with the
reinsured policy. Adjustments to the liability for unpaid losses and loss
expenses as well as amounts recoverable from reinsurers on unpaid losses are
charged or credited to expense in periods in which they are made. Revenue Recognition Rental revenues are recognized over the period that trucks, moving
equipment and storage space are rented. Product sales are recognized at the
time that title passes and the customer accepts delivery. Insurance premiums
are recognized over the policy periods. Interest and investment income are
recognized as earned. Advertising All advertising costs are expensed as incurred. Advertising expense was
$32.7 million in 2004, $39.9 million in 2003 and $37.8 million in 2002. F-11




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##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED) Deferred Policy Acquisition Costs Commissions and other costs which fluctuate with and are primarily related
to the production of insurance premiums are deferred. For Oxford, costs are amortized in relation to revenue such that costs are
realized as a constant percentage of revenue. For RepWest, costs are amortized over the related contract period which
generally do not exceed one year. Environmental Costs Liabilities are recorded when environmental assessments and remedial
efforts, if applicable, are probable and the costs can be reasonably estimated.
The amount of the liability is based on managements best estimate of
undiscounted future costs. Certain recoverable environmental costs related to
the removal of underground storage tanks or related contamination are
capitalized and amortized over the estimated useful lives of the properties.
These costs improve the safety or efficiency of the property or are incurred in
preparing the property for sale. Income Taxes AMERCO files a consolidated tax return with all of its legal subsidiaries,
except for Christian Fidelity Insurance Company, which files on a stand alone
basis. SAC Holdings and its legal subsidiaries file a consolidated return, and
their return is not consolidated with AMERCO. In accordance with SFAS No. 109,
the provision for income taxes reflects deferred income taxes resulting from
changes in temporary differences between the tax basis of assets and
liabilities and their reported amounts in the financial statements. Comprehensive Income/(Loss) Comprehensive income/(loss) consists of net income, foreign currency
translation adjustment, unrealized gains and losses on investments and fair
market value of cash flow hedges, net of the related tax effects. Recent Accounting Pronouncements In January 2003, the Financial Accounting Standards Board (FASB) issued
Interpretation No. 46 (FIN 46), Consolidation of Variable Interest Entities, an
interpretation of Accounting Research Bulletin No. 51. FIN 46 requires that
variable interest entities be consolidated by a company if that company absorbs
a majority of the entitys expected losses, receives a majority of its expected
residual returns, or both, as a result of holding a variable interest. In
December 2003, the FASB issued FIN 46R, which reflected certain amendments to
the standard. The provisions of FIN 46, as revised, are effective for the first
interim or annual period ending after March 15, 2004 when certain conditions
are met by a variable interest entity. The Company has adopted FIN 46R and the
effects of the variable interest are further explained in the Notes to the
financial statements. In April 2003, the FASB issued SFAS No. 149 Amendment of Statement 133 on
Derivative Instruments and Hedging Activities. This Statement (SFAS 149) amends
and clarifies the accounting for derivative instruments, including certain
derivative instruments embedded in other contracts and for hedging activities
under SFAS 133. In particular, SFAS 149 (1) clarifies under what circumstances
a contract with an initial net investment meets the characteristic of a
derivative as discussed in SFAS 133, (2) clarifies when a derivative contains a
financing component, (3) amends the definition of an underlying derivative to
conform it to the language used in FIN 45, and (4) amends certain other
existing pronouncements. SFAS 149 is generally effective for contracts entered
into or modified after June 30, 2003. The Company has adopted SFAS 149 and it
had no material impact on the Companys financial position, results of
operations or cash flows. In May 2003, the FASB issued SFAS No. 150 (SFAS 150), Accounting for
Certain Financial Instruments with Characteristics of both Liabilities and
Equity. This Statement establishes standards for classifying and measuring as
liabilities certain financial instruments that embody obligations of the issuer
and have characteristics of both liabilities and equity. SFAS 150 is effective
at the beginning of the first interim period beginning after June 15, 2003;
including all financial instruments created or modified after May 31, 2003. The
Company has adopted SFAS 150 and it had no material impact on the Companys
financial position, results of operations or cash flows. In December 2003, the FASB issued SFAS No. 132 (Revised 2003), Employers
Disclosures about Pensions and Other Post-retirement Benefits and Amendment of
FASB Statements No. 87, 88 and 106. This Statement revises F-12




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AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED) employers disclosures about pension plans and other post-retirement
benefit plans. The disclosures required by this Statement are effective for
fiscal years ending after December 15, 2003. The Company has incorporated these
expanded disclosures into the notes to the financial statements. Note 4: Earnings per Share Net income for purposes of computing earnings per common share is net
income minus preferred stock dividends. Preferred stock dividends
include accrued dividends of AMERCO. The shares used in the computation of the companys basic and diluted
earnings per common share were as follows: Years Ended March 31,2004
    
    2003
    
    2002Basic and diluted loss per common share
    
    $
    (0.76
    )
    
    $
    (1.82
    )
    
    $
    (2.87
    )Weighted average common share
outstanding:Basic and diluted
    
    
    20,749,998
    
    
    
    20,824,618
    
    
    
    21,063,720
 The weighted average common shares outstanding exclude post-1992 shares of
the employee stock ownership plan that have not been committed to be released
as of March 31, 2004, 2003, and 2002. 6,100,000 shares of preferred stock have
been excluded from the weighted average shares outstanding calculation because
they are not common stock equivalents. Note 5: Trade Receivables, Net Trade receivables at fiscal year-ends were as follows: March 31,2004
    
    2003(In thousands)Reinsurance recoverable
    
    $
    180,480
    
    
    $
    150,681Premiums and agents balances
    
    
    9,091
    
    
    
    40,401Trade accounts receivable
    
    
    5,080
    
    
    
    3,694Accrued investment income
    
    
    9,645
    
    
    
    10,554Independent dealer receivable
    
    
    1,054
    
    
    
    1,152Other receivable
    
    
    65,048
    
    
    
    70,803270,398
    
    
    
    277,285Less allowance for doubtful accounts
    
    
    (2,012
    )
    
    
    (2,283
    )$
    268,386
    
    
    $
    275,002
 Note 6: Notes and Mortgage Receivables, Net Notes and mortgage receivables at fiscal year-ends were as follows: March 31,2004
    
    2003(In thousands)Notes, mortgage receivables and other, net of
discount
    
    $
    7,180
    
    
    $
    12,443Less allowance for doubtful accounts
    
    
    (2,643
    )
    
    
    (4,134
    )$
    4,537
    
    
    $
    8,309
 F-13




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##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED) Note 7: Investments Fixed Maturity Investments Fixed maturity investments at December 31, 2003 were as follows: Gross
    
    Gross
    
    EstimatedAmortized
    
    Unrealized
    
    Unrealized
    
    MarketCost
    
    Gains
    
    Losses
    
    Value(In thousands)DECEMBER 31, 2003CONSOLIDATED HELD-TO MATURITYU.S. treasury securities and government obligations
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    U.S. government agency mortgage-backed securities
    
    
    522
    
    
    
    148
    
    
    
    
    
    
    
    670Corporate securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Mortgage-backed securities
    
    
    5,308
    
    
    
    109
    
    
    
    (2
    )
    
    
    5,415Redeemable preferred stocks
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    5,830
    
    
    $
    257
    
    
    $
    (2
    )
    
    $
    6,085
 Fixed maturity investments at December 31, 2002 were as follows: Gross
    
    Gross
    
    EstimatedAmortized
    
    Unrealized
    
    Unrealized
    
    MarketCost
    
    Gains
    
    Losses
    
    Value(In thousands)DECEMBER 31, 2002CONSOLIDATED HELD-TO MATURITYU.S. treasury securities and government obligations
    
    $
    500
    
    
    $
    170
    
    
    $
    
    
    
    $
    670U.S. government agency mortgage-backed securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Corporate securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Mortgage-backed securities
    
    
    15,683
    
    
    
    583
    
    
    
    
    
    
    
    16,266Redeemable preferred stocks
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    16,183
    
    
    $
    753
    
    
    $
    
    
    
    $
    16,936
 F-14




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##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED) The adjusted cost and estimated market value of fixed maturity investments
in debt securities at December 31, 2003 as compared to December 31, 2002, by
contractual maturity, were as follows: December 31, 2003
    
    December 31, 2002Estimated
    
    
    
    
    
    EstimatedAmortized
    
    Market
    
    Amortized
    
    MarketCost
    
    Value
    
    Cost
    
    Value(In thousands)CONSOLIDATED HELD-TO MATURITYDue in one year or less
    
    $
    
    
    
    $
    
    
    
    $
    19
    
    
    $
    20Due after one year through five years
    
    
    240
    
    
    
    283
    
    
    
    204
    
    
    
    252Due after five years through ten years
    
    
    219
    
    
    
    294
    
    
    
    205
    
    
    
    287After ten years
    
    
    63
    
    
    
    93
    
    
    
    72
    
    
    
    111522
    
    
    
    670
    
    
    
    500
    
    
    
    670Mortgage-backed securities
    
    
    5,308
    
    
    
    5,415
    
    
    
    15,683
    
    
    
    16,266Redeemable preferred stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    5,830
    
    
    $
    6,085
    
    
    $
    16,183
    
    
    $
    16,936
 Expected maturities may differ from contractual maturities as borrowers
may have the right to call or prepay obligations with or without call or
prepayment penalties. The company deposits bonds with insurance regulatory authorities to meet
statutory requirements. The adjusted cost of bonds on deposit with insurance
regulatory authorities was $12.9 million at December 31, 2003 and $11.7 million
at December 31, 2002. Available-for-Sale Investments Available-for-sale investments at December 31, 2003 were as follows: Gross
    
    Gross
    
    EstimatedAmortized
    
    Unrealized
    
    Unrealized
    
    MarketCost
    
    Gains
    
    Losses
    
    Value(In thousands)DECEMBER 31, 2003CONSOLIDATED AVAILABLE-FOR-SALEU.S. treasury securities and government obligations
    
    $
    29,765
    
    
    $
    2,134
    
    
    $
    (36
    )
    
    $
    31,863U.S. government agency mortgage-backed securities
    
    
    10,570
    
    
    
    316
    
    
    
    (12
    )
    
    
    10,874Obligations of states and political subdivisions
    
    
    2,850
    
    
    
    91
    
    
    
    
    
    
    
    2,941Corporate securities
    
    
    510,596
    
    
    
    32,515
    
    
    
    (7,467
    )
    
    
    535,644Mortgage-backed securities
    
    
    74,268
    
    
    
    1,739
    
    
    
    (1,371
    )
    
    
    74,636Redeemable preferred stocks
    
    
    45,861
    
    
    
    1,426
    
    
    
    (71
    )
    
    
    47,216Redeemable common stocks
    
    
    243
    
    
    
    106
    
    
    
    
    
    
    
    349$
    674,153
    
    
    $
    38,327
    
    
    $
    (8,957
    )
    
    $
    703,523
 F-15




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##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED) Available-for-sale investments at December 31, 2002 were as follows: Gross
    
    Gross
    
    EstimatedAmortized
    
    Unrealized
    
    Unrealized
    
    MarketCost
    
    Gains
    
    Losses
    
    Value(In thousands)DECEMBER 31, 2002CONSOLIDATED AVAILABLE-FOR-SALEU.S. treasury securities and government obligations
    
    $
    31,697
    
    
    $
    3,405
    
    
    $
    (49
    )
    
    $
    35,053U.S. government agency mortgage-backed securities
    
    
    10,182
    
    
    
    201
    
    
    
    (13
    )
    
    
    10,370Obligations of states and political subdivisions
    
    
    3,974
    
    
    
    232
    
    
    
    
    
    
    
    4,206Corporate securities
    
    
    574,334
    
    
    
    25,996
    
    
    
    (25,392
    )
    
    
    574,938Mortgage-backed securities
    
    
    95,893
    
    
    
    2,206
    
    
    
    (4,316
    )
    
    
    93,783Redeemable preferred stocks
    
    
    126,301
    
    
    
    1,558
    
    
    
    (2,962
    )
    
    
    124,897Redeemable common stocks
    
    
    1,101
    
    
    
    304
    
    
    
    (235
    )
    
    
    1,170$
    843,482
    
    
    $
    33,902
    
    
    $
    (32,967
    )
    
    $
    844,417
 The company sold available-for-sale securities with a fair value of $267.9
million in 2003, $248.0 million in 2002 and $175.9 million in 2001. The gross
realized gains on these sales totaled $5.3 million in 2003, $6.0 million in
2002 and $3.8 million in 2001. The company realized gross losses on these
sales of $3.1 million in 2003, $2.4 million in 2002 and $0.3 million in 2001.
The company recognized a write-down of investments due to other than temporary
declines on available-for-sale investments of approximately $5.0 million in
2003, $9.8 million in 2002 and $6.7 million in 2001. The adjusted cost and estimated market value of available-for-sale
investments in debt securities at December 31, 2003 as compared to December 31,
2002, by contractual maturity, were as follows: December 31, 2003
    
    December 31, 2002Estimated
    
    
    
    
    
    EstimatedAmortized
    
    Market
    
    Amortized
    
    MarketCost
    
    Value
    
    Cost
    
    Value(In thousands)CONSOLIDATED AVAILABLE-FOR-SALE
Due in one year or less
    
    $
    50,698
    
    
    $
    50,847
    
    
    $
    53,240
    
    
    $
    53,985Due after one year through five years
    
    
    270,186
    
    
    
    283,711
    
    
    
    210,765
    
    
    
    215,996Due after five years through ten years
    
    
    132,009
    
    
    
    137,969
    
    
    
    181,425
    
    
    
    176,645After ten years
    
    
    100,888
    
    
    
    108,795
    
    
    
    164,575
    
    
    
    167,571553,781
    
    
    
    581,322
    
    
    
    610,005
    
    
    
    614,197Mortgage-backed securities
    
    
    74,268
    
    
    
    74,636
    
    
    
    106,075
    
    
    
    104,153Redeemable preferred stock
    
    
    45,861
    
    
    
    47,216
    
    
    
    126,301
    
    
    
    124,897Redeemable common stock
    
    
    243
    
    
    
    349
    
    
    
    1,101
    
    
    
    1,170$
    674,153
    
    
    $
    703,523
    
    
    $
    843,482
    
    
    $
    844,417
 F-16




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##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED) Investments, other The carrying value of other investments at fiscal year-ends was as
follows: March 31,2004
    
    2003(In thousands)Short-term investments
    
    $
    187,560
    
    
    $
    111,377Mortgage loans
    
    
    53,496
    
    
    
    67,615Real estate
    
    
    99,813
    
    
    
    74,202Policy loans
    
    
    5,698
    
    
    
    5,684Other
    
    
    970
    
    
    
    5,374$
    347,537
    
    
    $
    264,252
 Short-term investments primarily consist of 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 at fiscal year-ends was $0.5 million for 2004 and $0.5 million
for 2003. The estimated fair value of these loans at fiscal year-ends was
$75.0 million for 2004 and $68.0 million for 2003. 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. Note 8: Investment and Interest Income Net Investment Income, Net Investment income, net was as follows: Year Ended March 31,2004
    
    2003
    
    2002(In thousands)Fixed maturities
    
    $
    50,043
    
    
    $
    54,764
    
    
    $
    67,945Real estate
    
    
    10,879
    
    
    
    2,438
    
    
    
    (1,518
    )Insurance policy loans
    
    
    498
    
    
    
    368
    
    
    
    1,092Mortgage loans
    
    
    7,173
    
    
    
    8,007
    
    
    
    8,796Short-term, amounts held by ceding
reinsurers,
net and other investments
    
    
    1,616
    
    
    
    (2,176
    )
    
    
    (1,575
    )Investment income
    
    
    70,209
    
    
    
    63,401
    
    
    
    74,740Less investment expenses
    
    
    (29,464
    )
    
    
    (29,464
    )
    
    
    (30,914
    )Interest income
    
    
    1,624
    
    
    
    4,464
    
    
    
    3,517Net investment income
    
    $
    42,369
    
    
    $
    35,477
    
    
    $
    47,343
 Investment expenses include costs incurred in the management of the
investment portfolio and interest credited on annuity policies. On June 30, 2003, the Companys insurance subsidiaries exchanged their
investments in Private Mini Storage Realty, L.P. for other real property owned
by SAC Holdings. The exchanges were non-monetary and were recorded on the
basis of the book value of the assets exchanged. The Companys insurance
subsidiaries wrote their equity investment in Private Mini Storage Realty, L.P.
to zero to reflect the equity pick up losses during the first quarter of 2003. F-17




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##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED) Note 9: Borrowings Long-Term Debt Long-term debt at fiscal year-ends was as follows: March 31,2004
    
    2003(In thousands)Revolving credit facility, senior secured first lien
    
    $
    164,051
    
    
    $
    Senior amortizing notes, secured, first lien, due 2009
    
    
    350,000
    
    
    
    Senior notes, secured second lien, 9.0% interest rate, due 2009
    
    
    200,000
    
    
    
    Senior subordinated notes, secured, 12.0% interest rate, due
2011
    
    
    148,646
    
    
    
    Revolving credit facility, secured by intercompany notes
    
    
    
    
    
    
    205,000Senior notes, secured, Series A, due 2012
    
    
    
    
    
    
    95,000Senior notes, secured, Series B, due 2007
    
    
    
    
    
    
    5,000Senior notes, unsecured, 7.85% interest rate, due 2003
    
    
    
    
    
    
    175,000Senior notes, unsecured, 8.80% interest rates, due 2005
    
    
    
    
    
    
    200,000Medium-term notes, payable, unsecured, 7.23% to 8.08% interest
rate due through 2027
    
    
    
    
    
    
    109,500Notes payable under Bond Backed Asset Trust, unsecured, 7.14%
interest rates, due through 2032
    
    
    
    
    
    
    100,000Debt related to BBAT option termination
    
    
    
    
    
    
    26,550Loan against cash surrender value of life insurance policies
    
    
    17,822
    
    
    
    18,229Other
    
    
    
    
    
    
    5,784Total AMERCO notes and loans payable
    
    $
    880,519
    
    
    $
    940,063
 At
March 31, 2003 AMERCO was in default on substantially all of its borrowings
due to cross default provisions in the debt agreement. As part of the
bankruptcy restructuring on March 15, 2004 most of the prior year debt was
refinanced with the new debt, see description below. As part of the
restructuring the Company has incurred professional fees of $44.1 million and
$6.6 million in fiscal 2004 and 2003. First Lien Senior Secured Notes We entered into 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. The proceeds we
received from these senior notes were used primarily to satisfy the claims of
the creditors in our Chapter 11 proceeding and to pay related fees and expenses
incurred in connection therewith. The
$350 million amortizing term loan requires monthly principal payments
of $291,667 and periodic interest F-18




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##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED) payments with the balance due
on maturity in 2009. The interest rate per the provisions of the term
loan agreement is defined as the 3-month London Inter Bank Offer Rate
(LIBOR), plus 4.0% applicable margin, the sum of which at
March 31, 2004 was 5.11%. Advances under the
revolving credit facility are based on a borrowing base formula which is based
on a percentage of the value of our eligible real estate. On March 31, 2004,
outstanding advances under the revolving credit facility totaled $164 million
and $35 million was available to borrow. The interest rate per
the provisions of the revolving credit facility agreement is defined
as the prime rate (Prime) plus 1.5%, the sum of which at
March 31, 2004 was 5.5%. The Senior Secured Facility is
secured by a first priority position in substantially all of the assets of
AMERCO and its subsidiaries, except for our notes receivable from SAC Holdings,
real estate subject to synthetic leases, certain real estate held for sale, the
capital stock of our insurance subsidiaries, real property previously mortgaged
to Oxford, vehicles subject to certain lease financing arrangements, and
proceeds in excess of $50 million associated with the settlement, judgment or
recovery related to our litigation against PricewaterhouseCoopers. 9.0% Second Lien Senior Secured Notes AMERCO issued $200 million aggregate principal amount of 9.0% Second Lien
Senior Secured Notes due 2009. These notes represent our senior secured
obligations. These notes are secured by a second priority position in the same
collateral which secures our obligations under the Senior Secured Facility. Senior Subordinated Notes AMERCO issued $148,646,137 aggregate principal amount of 12.0% senior
subordinated notes due 2011 (the Senior Subordinated) to our unsecured
creditors in the Chapter 11 proceeding. No principal payments are due on the
Senior subordinated Notes until maturity. These notes, which are subordinated
to all of the senior indebtedness of AMERCO (including the Senior Secured
Facility and the 9.0% Second Lien Senior Secured Notes due 2009), are secured
by certain assets of AMERCO, including the capital stock of our life insurance
subsidiary (Oxford Life Insurance Company), certain real estate held for sale,
75% of the net proceeds in excess of $50 million associated with the
settlement, judgment or recovery related to our litigation against
PricewaterhouseCoopers (after deduction of attorneys fees and costs and taxes
payable with respect to such proceeds), and payments from notes receivable from
SAC Holdings having an aggregate outstanding principal balance at
March 31,
2004 of $203.8 million. Restrictive Covenants Under the abovementioned loan
agreements, the Company is required to comply with a
number of affirmative and negative covenants. These covenants apply to the
obligors, and provide that, among other things:  
    
    On a quarterly basis, the obligors cannot allow EBITDA minus capital
expenditures (as defined) to fall below specified levels.
    
    The obligors are restricted in the amount of capital
expenditures that they can make in any fiscal year.
    
    The obligors ability to incur additional indebtedness is restricted.
    
    The obligors ability to create, incur, assume or permit to
exist any lien on or against any of their assets is restricted.
    
    The obligors ability to convey, sell, lease, assign, transfer
or otherwise dispose of any of their assets is restricted.
    
    The obligors cannot enter into any merger, consolidation, reorganization, or
recapitalization (subject to exceptions) and they cannot liquidate, wind
up or dissolve any of their subsidiary that is a borrower under the
abovementioned loan agreements, unless the assets of the dissolved
entity are transferred to another subsidiary that is a borrower under
the abovementioned loan agreements and certain other conditions are met.
    
    The obligors ability to guarantee the obligations of the
insurance subsidiaries or any third party is restricted.
    
    The obligors ability to prepay, redeem, defease, purchase or
otherwise acquire any of their indebtedness or any indebtedness of a
subsidiary that is a borrower under the abovementioned loan
agreements is restricted. As of March 31, 2004 the Company was in compliance with these covenants. Restructuring of Synthetic Lease Agreements At the time of our emergence from bankruptcy, Amerco Real Estate Company
restructured approximately $249.5 million of our obligations under synthetic
lease arrangements (the Synthetic Leases). As part of this restructuring, we
paid down approximately $31 million of obligations under the Synthetic Leases
and entered into new lease agreements with the lessors. The new lease
agreements are for a term of three years, and include four one year renewal
options. The purpose of these leases was to finance the purchase of self-storage
properties and to construct self-storage facilities on existing properties. At
March 31, 2004 AMERCO guaranteed each of these restructured Synthetic Leases.
Title to the real property subject to these leases is in the name of
off-balance sheet non-affiliated special purpose entities. F-19




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##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED) These entities are lessors who then lease the properties to one or more
subsidiaries of AMERCO. Our approved Chapter 11 plan of reorganization contemplates that our
obligations under the Synthetic Leases will be satisfied when the real property
subject to the leases is sold to a third party. We entered into such
a transaction which closed in escrow on
March 31, 2004, and funded on April 30, 2004. As a result of closing this
transaction, we expect that over approximately the next 24 months we will be
reimbursed for capital improvements we made to these properties. In addition,
as part of this transaction, U-Haul has entered into arrangements to
manage these properties that will allow us to continue to operate them as part
of the U-Haul moving and self-storage system. See Note 23 for details of this
transaction. Annual
Maturities of AMERCO Notes The annual maturity of AMERCOs long-term debt for the next five years and
thereafter is as follows: Year Ended2005
    
    2006
    
    2007
    
    2008
    
    2009
    
    Thereafter(In thousands)Notes payable, secured
    
    $
    3,500
    
    
    
    3,500
    
    
    
    3,500
    
    
    
    3,500
    
    
    
    700,051
    
    
    $
    166,468
 SAC Holdings Notes and Loans SAC Holdings notes and loans payable at fiscal year-ends were as follows: March 31,2004
    
    2003(In thousands)Notes payable, secured, bearing interest rates ranging from
7.87% to 9.00% due 2027
    
    $
    78,637
    
    
    $
    468,575Less discounts on notes payable
    
    
    
    
    
    
    (1,794
    )Total SAC Holdings notes and loans payable
    
    $
    78,637
    (A)
    
    $
    466,781
    (B)
 (A)  SAC Holding II
Corporation  In connection with the Chapter 11 bankruptcy restructuring of AMERCO, SAC
Holding agreed to issue to creditors in our Chapter 11 proceeding, $200
million aggregate principal amount of 8.5% senior notes due 2014 (the New SAC
Notes). The issuance of these notes by SAC Holding was part of an agreed
upon set of transactions in connection with our bankruptcy reorganization plan
which had the effect of eliminating $200 million of notes receivable from SAC
Holding that were previously held by AMERCO. Annual Maturities of SAC Holdings Notes The annual maturity of SAC Holdings IIs long-term debt for the next five
years and thereafter is as follows: Year Ended2005
    
    2006
    
    2007
    
    2008
    
    2009
    
    Thereafter(In thousands)Notes payable, secured
    
    $
    1,236
    
    
    
    1,215
    
    
    
    1,317
    
    
    
    1,544
    
    
    
    1,669
    
    
    $
    71,656
 Secured notes payable are secured by deeds of trusts on the collateralized land
and buildings. Principal and interest payments on notes payable to third party
lenders are due monthly. Certain notes payable contain provisions whereby the
loans may not be prepaid at any time prior to the maturity date without payment
to the lender of a Yield Maintenance Premium, as defined in the loan
agreements. F-20




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##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED) Note 10: Interest on Borrowings Interest Expense Interest expense was as follows: March 31,2004
    
    2003
    
    2002(In thousands)Interest expense
    
    $
    75,737
    
    
    $
    75,454
    
    
    $
    74,639Amortization of transaction costs
    
    
    1,825
    
    
    
    902
    
    
    
    2,124Fees on
early termination of BBATS
    
    
    
    
    
    
    26,500
    
    
    
    Interest
expense resulting from interest rate swap agreements
    
    
    
    
    
    
    
    
    
    
    (16
    )Total AMERCO interest expense
    
    
    77,562
    
    
    
    102,856
    
    
    
    76,747SAC Holdings interest expense
    
    
    80,963
    
    
    
    81,164
    
    
    
    61,081Less: Intercompany transactions
    
    
    (36,835
    )
    
    
    (35,889
    )
    
    
    (28,363
    )Total
    
    $
    121,690
    
    
    $
    148,131
    
    
    $
    109,465
 At March 31, 2004, the Company has no interest rate swap agreements
outstanding. Historically, AMERCO has entered into interest rate swap agreements
to potentially mitigate the impact of changes in interest rates on its
floating rate debt. These agreements effectively changed AMERCOs interest rate
exposure on $45.0 million of floating rate notes to a weighted average fixed
rate of 8.63%. These interest rate swaps mature at the time the related notes mature.
Incremental interest expense associated with interest rate swap activity was $1.5 million,
$2.4 million, and $1.0 million during 2004, 2003 and 2002 respectively. As
of March 31, 2003 the Company no longer had interest rate swap
agreements. All interest rate swap agreements at March 31, 2002 expired during
the year ended March 31, 2003, except for two agreements, which were converted to debt
in the amount of $5.6 million and repaid during 2004. Interest
paid in cash by AMERCO amounted to $76.6 million, $77.9 million and $92.6
million for fiscal years 2004, 2003 and 2002, respectively. Interest Rates Interest rates and company borrowings were as follows: Revolving Credit Activity
    
    Short-Term BorrowingYear Ended
    
    Year EndedAMERCO
    
    2004
    
    2003
    
    2002
    
    2004
    
    2003
    
    2002(In thousands, except interest rates)Weighted average
interest rate
during the year
    
    
    6.75%
    
    
    
    4.6%
    
    
    
    3.53%
    
    
    
    N/A
    
    
    
    N/A
    
    
    
    3.59%Interest rate at year end
    
    
    5.50%
    
    
    
    7.0%
    
    
    
    2.44%
    
    
    
    N/A
    
    
    
    N/A
    
    
    
    2.63%Maximum amount
outstanding during
the year
    
    $
    205,000
    
    
    
    400,000
    
    
    
    283,000
    
    
    
    N/A
    
    
    
    N/A
    
    
    
    33,553
 F-21




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##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED) Revolving Credit Activity
    
    Short-Term BorrowingYear Ended
    
    Year EndedAMERCO
    
    2004
    
    2003
    
    2002
    
    2004
    
    2003
    
    2002(In thousands, except interest rates)Average amount
outstanding during
the year
    
    $
    174,267
    
    
    
    248,847
    
    
    
    224,667
    
    
    
    
    
    
    
    N/A
    
    
    
    23,531Facility fees
    
    $
    1,333
    
    
    
    1,537
    
    
    
    507
    
    
    
    
    
    
    
    N/A
    
    
    
    N/A
 Note 11: Stockholders Equity AMERCO has authorized capital stock as follows: Issued andAuthorized
    
    Outstanding(In thousands)AMERCO common stock
    
    
    150,000
    
    
    
    3,255AMERCO serial common stock
    
    
    150,000
    
    
    
    5,662AMERCO serial preferred stock
    
    
    50,000
    
    
    
    6,100
 The Serial common stock may be issued in such series and on such terms as
the Board shall determine. The Serial preferred stock may be issued with or
without par value. The 6.1 million shares of Series A, no par, non-voting, 8
1/2% cumulative preferred stock 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 stock are payable
quarterly in arrears and have priority as to dividends over the common stock of
AMERCO. On or after December 1, 2000, AMERCO, at its option, may redeem all or
part of the Series A preferred stock for cash, at $25.00 per share plus accrued
and unpaid dividends to the redemption date. As of our fiscal year-end, we had
accrued and unpaid dividends of $16.2 million. $3.2 million was authorized for
payment by the Board on June 1, 2004. Note 12: Comprehensive Income The
components of accumulated other comprehensive income (loss), net of tax, were
as follows: Year Ended March 31,2004
    
    2003
    
    2002(In thousands)Accumulated foreign currency translation
    
    $
    (34,914
    )
    
    $
    (41,337
    )
    
    $
    (45,118
    )Accumulated unrealized gain or (loss) on investments
    
    
    13,468
    
    
    
    (14,428
    )
    
    
    (1,780
    )Accumulated fair market value of cash flow hedge
    
    
    
    
    
    
    
    
    
    
    6,318$
    (21,446
    )
    
    $
    (55,765
    )
    
    $
    (40,580
    )
 F-22




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##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED) A summary of accumulated comprehensive income (loss) components follows: Unrealized
    
    Fair Market
    
    AccumulatedForeign
    
    Gain/(Loss)
    
    Value of
    
    OtherCurrency
    
    on
    
    Cash Flow
    
    ComprehensiveTranslation
    
    Investments
    
    Hedge
    
    Income(In thousands)Balance at March 31, 2002
    
    $
    (45,118
    )
    
    $
    (1,780
    )
    
    $
    6,318
    
    
    $
    (40,580
    )Foreign currency translation -
U-Haul
    
    
    2,490
    
    
    
    
    
    
    
    
    
    
    
    2,490Foreign currency translation  SAC
    
    
    1,291
    
    
    
    
    
    
    
    
    
    
    
    1,291Fair market value of cash flow
hedge
    
    
    
    
    
    
    
    
    
    
    (6,318
    )
    
    
    (6,318
    )Unrealized gain on investments
    
    
    
    
    
    
    (12,648
    )
    
    
    
    
    
    
    (12,648
    )Balance at March 31, 2003
    
    
    (41,337
    )
    
    
    (14,428
    )
    
    
    
    
    
    
    (55,765
    )Foreign currency translation -
U-Haul
    
    
    4,936
    
    
    
    
    
    
    
    
    
    
    
    4,936Foreign currency translation  SAC
    
    
    1,487
    
    
    
    
    
    
    
    
    
    
    
    1,487Unrealized gain on investments
    
    
    
    
    
    
    27,896
    
    
    
    
    
    
    
    27,896Balance at March 31, 2004
    
    $
    (34,914
    )
    
    $
    13,468
    
    
    $
    
    
    
    $
    (21,446
    )
 F-23




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##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED) Note 13: Provision for Taxes Income before taxes and the provision for taxes consisted of the
following: March 31,2004
    
    2003
    
    2002(In thousands)Income (loss) before taxes:U.S.
    
    $
    (1,166
    )
    
    $
    (45,628
    )
    
    $
    (74,828
    )Non-U.S.
    
    
    6,391
    
    
    
    6,707
    
    
    
    7,497Total income
(loss) before taxes
    
    
    5,225
    
    
    
    (38,921
    )
    
    
    (67,331
    )Provision for taxes:Federal:Current
    
    
    9,705
    
    
    
    4,440
    
    
    
    3,831Deferred
    
    
    (4,494
    )
    
    
    (19,631
    )
    
    
    (25,139
    )State:Current
    
    
    3,147
    
    
    
    2,127
    
    
    
    3,591Deferred
    
    
    (1,395
    )
    
    
    (1,711
    )
    
    
    (3,097
    )Non-U.S.:Current
    
    
    1,114
    
    
    
    840
    
    
    
    923Deferred
    
    
    
    
    
    
    
    
    
    
    Total
expense (benefit) for taxes
    
    $
    8,077
    
    
    $
    (13,935
    )
    
    $
    (19,891
    )
 Income taxes paid in cash amounted to $4.0 million, $12.8 million, and
$7.2 million for fiscal years 2004, 2003, and 2002, respectively. The difference between the tax provision at the statutory federal income
tax rate and the tax provision attributable to income before taxes was as
follows: March 31,2004
    
    2003
    
    2002(In percentage)Statutory federal income tax rate
    
    
    35.00
    %
    
    
    -35.00
    %
    
    
    -35.00
    %Increase (reduction) in rate resulting from:State and foreign taxes, net of federal benefit
    
    
    36.43
    %
    
    
    2.22
    %
    
    
    1.37
    %Canadian subsidiary income (loss)
    
    
    -20.51
    %
    
    
    -2.97
    %
    
    
    -1.82
    %Interest on deferred taxes
    
    
    12.04
    %
    
    
    1.62
    %
    
    
    1.12
    %Tax-exempt interest income (loss)
    
    
    -0.42
    %
    
    
    -0.19
    %
    
    
    -0.24
    %Dividends received deduction
    
    
    
    
    
    
    
    
    
    
    1.35
    %IRS Settlement
    
    
    91.11
    %
    
    
    
    
    
    
    Other
    
    
    0.93
    %
    
    
    -1.48
    %
    
    
    3.68
    %Effective
tax rate
    
    
    154.58
    %
    
    
    -35.80
    %
    
    
    -29.54
    %
 During
the fiscal year ended March 31, 2004, the Company entered into a
settlement of its tax audit for the years ended March 31, 1996
and March 31, 1997. For financial statement purposes this
results in a reduction in deferred tax assets of $4.76 million
and a charge to current year operations of the same amount. F-24




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##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED) Significant components of the companys deferred tax assets and
liabilities at fiscal year-ends were as follows: March 31,2004
    
    2003(In thousands)Deferred tax asset:Net operating loss and credit carryforwards
    
    $
    48,287
    
    
    $
    99,375Accrued expenses
    
    
    91,780
    
    
    
    127,675Deferred revenue from sale/leaseback
    
    
    9,772
    
    
    
    5,137Policy benefit and losses, claims and loss expenses payable, net
    
    
    22,767
    
    
    
    26,597Unrealized gains and (losses)
    
    
    (1,442
    )
    
    
    2,043Total deferred tax assets
    
    
    171,164
    
    
    
    260,827Deferred tax liabilities:Property, plant and equipment
    
    
    211,682
    
    
    
    196,525Deferred policy acquisition costs
    
    
    16,107
    
    
    
    26,127Other
    
    
    7,175
    
    
    
    5,933Total deferred tax liabilities
    
    
    234,964
    
    
    
    228,585Net deferred tax asset (liability)
    
    $
    (63,800
    )
    
    $
    32,242
 Under the provisions of the Tax Reform Act of 1984 (the Act), the balance
in Oxfords account designated Policyholders Surplus Account is frozen at
its December 31, 1983 balance of $19.3 million. Federal income taxes (Phase
III) will be payable thereon at applicable current rates if amounts in this
account are distributed to the stockholder or to the extent the account exceeds
a prescribed maximum. Oxford did not incur a Phase III liability for the years
ended December 31, 2003, 2002 and 2001. At March 31, 2004 and March 31, 2003, AMERCO and RepWest have non-life net
operating loss carryforwards available to offset federal taxable income in
future years of $85.6 million and $181.6 million respectively. These
carryforwards expire in 2012 through 2020. At March 31, 2004 and March 31,
2003, AMERCO has alternative minimum tax credit carryforwards of $8.5 million
and $5.4 million, respectively, which do not have an expiration date, and may
only be utilized in years in which regular tax exceeds alternative minimum tax. The SAC Holding II affiliated group, which began to file tax returns in
fiscal year ending March 31, 2003, has net operating losses of $14.0 million
and $7.6 million in fiscal years ending March 31, 2004 and March 31, 2003
respectively, to offset taxable income in future years. These carryforwards
expire in 2023 through 2024. Under certain circumstances and sections of the Internal Revenue Code, a
change in ownership for tax purposes will limit the amount of net operating
loss carryforwards that can be used to offset future taxable income. Note 14: 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 chief executive officer of the company under the delegation of authority
from the Board of Directors, pursuant to the terms of the Profit Sharing Plan.
No contributions were made to the profit sharing plan during 2004, 2003 or
2002. The Company also provides an employee saving plan which allows
participants to defer income under Section 401(k) of the Internal Revenue Code
of 1986. F-25




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##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED) ESOP Plan The Company also provides an Employee Stock Ownership Plan (the Plan)
under which the Company may make contributions of its common stock or cash to
acquire such stock on behalf of participants. Generally, employees are
eligible to participate in the Plan upon completion of one year of service.
The Company has arranged financing to fund the ESOP Trust (ESOT) and to enable
the ESOT to purchase shares. Listed below is a summary of these financing
arrangements as of fiscal year-end: AmountOutstandingas of
    
    Interest PaymentsMarch 31,Financing Date
    
    2004
    
    2004
    
    2003
    
    2002(In thousands)June, 1991
    
    $
    13,538
    
    
    $
    1,159
    
    
    $
    978
    
    
    $
    1,210March, 1999
    
    
    120
    
    
    
    11
    
    
    
    11
    
    
    
    14February, 2000
    
    
    730
    
    
    
    74
    
    
    
    62
    
    
    
    74April, 2001
    
    
    125
    
    
    
    12
    
    
    
    5
    
    
    
    
 Shares are released from collateral and allocated to active employees
based on the proportion of debt service paid in the plan year. Contributions
to the ESOT that were charged to expense during 2004, 2003 and 2002 were $2.1
million, $2.2 million and $2.1 million, respectively. Shares held by the ESOP as of year-end were as follows: March 31,2004
    
    2003(In thousands)Allocated shares
    
    
    1,577
    
    
    
    1,639Unreleased shares
    
    
    727
    
    
    
    795Fair value of unreleased shares
    
    $
    12,249
    
    
    $
    2,513
 For purposes of the above schedule, the fair value of unreleased shares
issued prior to 1992 is defined as the historical cost of such shares. The
fair value of unreleased shares issued subsequent to December 31, 1992 is
defined as the trading value of such shares as of March 31, 2004 and March 31,
2003, respectively. Insurance Plans Oxford Life Insurance Company insures various group life and group
disability insurance plans covering employees of the Company. Premiums earned
by Oxford on these policies were $2.7 million, $2.7 million and $2.0 million
for the years ended December 31, 2003, 2002, and 2001, respectively. These
amounts were eliminated from the Companys financial statements in
consolidation. Post Retirement and Post Employment Benefits The Company provides medical and life insurance benefits to eligible
employees and dependents. To be eligible, F-26




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##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED) employees need to be over age 65 and meet specified years of service
requirements. The Company uses the accrual method of accounting for
post-retirement benefits and funds these benefit costs as claims are incurred. The
components of net periodic post retirement benefit cost for the
fiscal years ended 2004, 2003 and 2002 are as follows: Year Ended2004
    
    2003
    
    2002(In thousands)Service cost for benefits earned during the period
    
    $
    315
    
    
    $
    299
    
    
    $
    259Interest cost on accumulated postretirement benefit
    
    
    331
    
    
    
    355
    
    
    
    302Other components
    
    
    (549
    )
    
    
    (279
    )
    
    
    (315
    )Net periodic postretirement benefit cost
    
    $
    97
    
    
    $
    375
    
    
    $
    246
 The
2004 and 2003 post retirement benefit liability include the
following components: Year Ended2004
    
    2003(In thousands)Beginning of year
    
    $
    4,978
    
    
    $
    4,982Service cost
    
    
    315
    
    
    
    299Interest cost
    
    
    331
    
    
    
    355Benefit payments and expense
    
    
    (108
    )
    
    
    (122
    )Actuarial (gain) loss
    
    
    (442
    )
    
    
    (536
    )Accumulated postretirement benefit obligation
    
    
    5,074
    
    
    
    4,978Unrecognized net gain
    
    
    4,513
    
    
    
    4,364Total post
retirement benefit liability
    
    $
    9,587
    
    
    $
    9,342
 The discount rate assumptions in computing the information above were as
follows: March 31,2004
    
    2003
    
    2002(In percentage)Accumulated postretirement benefit obligation
    
    
    6.25
    %
    
    
    6.75
    %
    
    
    7.25
    %
 The discount rate represents the expected yield on a portfolio of high
grade (AA to AAA rated or equivalent) fixed income investments with cash flow
streams sufficient to satisfy benefit obligations under the plan when due.
Fluctuations in the discount rate assumptions primarily reflect changes in U.S.
interest rates. The estimated health care cost inflation rates used to
measure the accumulated post retirement benefit obligation was 6.25% in 2004,
which was projected to decline annually to an ultimate rate of 4.20% in 2017. If the estimated health care cost inflation rate assumptions were
increased by one percent, the accumulated post retirement benefit obligation as
of fiscal year-end would increase by approximately $348,551. A decrease in the
estimated health care cost inflation rate assumption of one percent would
decrease the accumulated post retirement benefit obligation as of fiscal
year-end by $373,760. F-27




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##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED) Post employment benefits provided by the company, other than retirement,
are not material. Stock Option Plan Not applicable Note 15: Reinsurance During their normal course of business, our insurance subsidiaries assume
and cede reinsurance on both a coinsurance and a risk premium basis. They also
obtain reinsurance for that portion of risks exceeding their retention limits.
The maximum amount of life insurance retained on any one life is $150,000. Ceded to
    
    Assumed
    
    
    
    
    
    Percentage ofDirect
    
    Other
    
    from Other
    
    Net
    
    AmountAmount (a)
    
    Companies
    
    Companies
    
    Amount (a)
    
    Assumed to Net(In thousands)Year ended December 31, 2003
Life insurance in force
    
    $
    1,134,051
    
    
    $
    218,682
    
    
    $
    1,842,666
    
    
    $
    2,758,035
    
    
    
    67
    %Premiums earned:Life
    
    
    17,301
    
    
    
    2,840
    
    
    
    7,626
    
    
    
    22,087
    
    
    
    35
    %Accident and health
    
    
    109,135
    
    
    
    5,346
    
    
    
    14,561
    
    
    
    118,350
    
    
    
    12
    %Annuity
    
    
    1,954
    
    
    
    
    
    
    
    2,692
    
    
    
    4,646
    
    
    
    58
    %Property and casualty
    
    
    106,598
    
    
    
    32,969
    
    
    
    18,406
    
    
    
    92,035
    
    
    
    20
    %Total
    
    $
    234,988
    
    
    $
    41,155
    
    
    $
    43,285
    
    
    $
    237,118
    
    
    
    
 Ceded to
    
    Assumed
    
    
    
    
    
    Percentage ofDirect
    
    Other
    
    from Other
    
    Net
    
    AmountAmount (a)
    
    Companies
    
    Companies
    
    Amount (a)
    
    Assumed to Net(In thousands)Year ended December 31, 2002
Life insurance in force
    
    $
    2,036,998
    
    
    $
    1,045,011
    
    
    $
    1,613,812
    
    
    $
    2,605,789
    
    
    
    62
    %Premiums earned:Life
    
    
    22,973
    
    
    
    10,078
    
    
    
    15,111
    
    
    
    28,006
    
    
    
    54
    %Accident and health
    
    
    114,526
    
    
    
    15,274
    
    
    
    26,581
    
    
    
    125,833
    
    
    
    21
    %Annuity
    
    
    1,272
    
    
    
    
    
    
    
    3,609
    
    
    
    4,881
    
    
    
    74
    %Property and casualty
    
    
    166,677
    
    
    
    69,374
    
    
    
    51,902
    
    
    
    149,205
    
    
    
    35
    %Total
    
    $
    305,448
    
    
    $
    94,726
    
    
    $
    97,203
    
    
    $
    307,925
    
    
    
    
 F-28




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##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED) Ceded to
    
    Assumed
    
    
    
    
    
    Percentage ofDirect
    
    Other
    
    from Other
    
    Net
    
    AmountAmount (a)
    
    Companies
    
    Companies
    
    Amount (a)
    
    Assumed to Net(In thousands)Year ended December 31, 2001
Life insurance in force
    
    $
    2,088,898
    
    
    
    925,608
    
    
    
    1,732,122
    
    
    $
    2,895,412
    
    
    
    60
    %Premiums earned:Life
    
    $
    21,437
    
    
    
    8,889
    
    
    
    14,083
    
    
    
    26,631
    
    
    
    53
    %Accident and health
    
    
    115,364
    
    
    
    18,265
    
    
    
    28,051
    
    
    
    125,150
    
    
    
    22
    %Annuity
    
    
    1,651
    
    
    
    
    
    
    
    3,939
    
    
    
    5,590
    
    
    
    70
    %Property and casualty
    
    
    217,401
    
    
    
    55,301
    
    
    
    91,699
    
    
    
    253,799
    
    
    
    36
    %Total
    
    $
    355,853
    
    
    
    82,455
    
    
    
    137,772
    
    
    $
    411,170
    
    
    
    
  (a)
    
    Balances are reported net of inter-segment transactions. Premiums
eliminated in consolidation were as follows: RepWest
    
    Oxford(In thousands)2003
    
    $
    1,207
    
    
    $
    2,6712002
    
    
    3,412
    
    
    
    2,6792001
    
    
    8,176
    
    
    
    2,009
 To the extent that a re-insurer is unable to meet its obligation under the
related reinsurance agreements, RepWest would remain liable for the unpaid
losses and loss expenses. Pursuant to certain of these agreements, RepWest
holds letters of credit at years-end in the amount of $9.4 million from
re-insurers and has issued letters of credit in the amount of $10.3 million in
favor of certain ceding companies. Prior to December 1, 2002, RepWest was a re-insurer of municipal bond
insurance through an agreement with MBIA, Inc. Premiums generated through this
agreement were recognized on a pro rata basis over the contract coverage
period. On December 1, 2002, MBIA, Inc. and RepWest entered into a termination
agreement to terminate the agreement on a cut-off basis. In conjunction with
the termination agreement, RepWest paid MBIA, Inc. $3.4 million in December
2002 for reimbursement of unearned premiums. F-29




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##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED) Note 16: Contingent Liabilities and Commitments The company leases a portion of its rental equipment and certain of its
facilities under operating leases with terms that expire at various dates
substantially through 2034. AMERCO has guaranteed $235.3 million of
residual values at March 31, 2004, for these assets at the end of the
respective lease terms. Certain leases contain renewal and fair market value
purchase options as well as other restrictions. The Company, at the
expiration of the leases, has options to renew the lease, purchase for fair
market value, or sell to a third party on behalf of the lessor.
AMERCO has been leasing equipment since 1987 and has had no shortfall
in proceeds from the sale of underlying assets. Lease expense
during each fiscal years-end was as follows: March 31,2004
    
    2003
    
    2002(Millions)Lease expense
    
    
    $160.7
    
    
    
    $166.1
    
    
    
    $164.1
 Lease commitments for leases having terms of more than one year as of
fiscal year-end were as follows: Capitalized
    
    PropertyPortion of
    
    Plant and
    
    RentalSynthetic Lease
    
    Equipment
    
    Equipment
    
    Total(In thousands)Year-ended:2005
    
    $
    105,081
    (a)
    
    
    $120,882
    (c)
    
    
    $125,243
    
    
    
    $351,2062006
    
    
    
    
    
    
    1,385
    
    
    
    91,838
    
    
    
    93,2232007
    
    
    
    
    
    
    1,261
    
    
    
    76,100
    
    
    
    77,3612008
    
    
    
    
    
    
    940
    
    
    
    28,495
    
    
    
    29,4352009
    
    
    
    
    
    
    761
    
    
    
    7,341
    
    
    
    8,102Thereafter
    
    
    
    
    
    
    3,358
    
    
    
    2,938
    
    
    
    6,296Total
    
    
    105,081
    
    
    
    $128,587
    
    
    
    $331,955
    
    
    
    $565,623Less: amount representing interest
    
    
    5,472
    (b)Present value of minimum lease
payments
    
    $
    99,609
   (a)
    
    see Note 23(b)
    
    As presented above,
contractual obligations on debt and guarantees represent principal
payments while contractual obligations for capital and operating
leases represent the notional payments under the lease arrangements,
including anticipated future cash payments for interest on capital
leases. Certain other liabilities are reported in the Companys
consolidated balance sheets but are not reflected in the table above
due to the absence of stated maturities.(c)
    
    Includes $119,038 of
lease payments under synthetic leases, which were prepaid in full and terminated in
April 2004. See Note 23 to the Consolidated Financial Statements. Note 17: Contingencies Kocher On July 20, 2000, Charles Kocher (Kocher) filed suit in Wetzel County,
West Virginia, Civil Action No. 00-C-51-K, entitled Charles Kocher v. Oxford
Life Insurance Co. (Oxford) seeking compensatory and punitive damages for
breach of contract, bad faith and unfair claims settlement practices arising
from an alleged failure of Oxford to properly and timely pay a claim under a
disability and dismemberment policy. On March 22, 2002, the jury returned a
verdict of $5 million in compensatory damages and $34 million in punitive
damages. On November 5, 2002, the trial court entered an Order (Order)
affirming the $39 million jury verdict and denying Oxfords motion for New
Trial Or, in The Alternative, Remittitur. Oxford has perfected its appeal to
the West Virginia Supreme Court. On January 27, 2004, the matter was argued
before the West Virginia Supreme Court and taken under advisement. Management
does not believe that the Order is sustainable and expects the Order to be
overturned by the West Virginia Supreme Court, in part because the jury award
has no reasonable nexus to the actual harm suffered by Kocher. The Company has
accrued $725,000, which represents managements best estimate of the costs associated with legal fees to
appeal and re-try the case. The Company has notified its E & O carrier, who is
disputing coverage, in the event of an unfavorable outcome. F-30




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##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED) Shoen On September 24, 2002, Paul F. Shoen filed a derivative action in the
Second Judicial District Court of the State of Nevada, Washoe County, captioned
Paul F. Shoen vs. SAC Holding Corporation et al., CV02-05602, seeking damages
and equitable relief on behalf of AMERCO from SAC Holdings and certain current
and former members of the AMERCO Board of Directors, including Edward J. Shoen,
Mark V. Shoen and James P. Shoen as defendants. AMERCO is named a nominal
defendant for purposes of the derivative action. The complaint alleges breach
of fiduciary duty, self-dealing, usurpation of corporate opportunities,
wrongful interference with prospective economic advantage and unjust enrichment
and seeks the unwinding of sales of self-storage properties by subsidiaries of
AMERCO to SAC Holdings over the last several years. The complaint seeks a
declaration that such transfers are void as well as unspecified damages. On
October 28, 2002, AMERCO, the Shoen directors, the non-Shoen directors and SAC
Holdings filed Motions to Dismiss the complaint. In addition, on October 28,
2002, Ron Belec filed a derivative action in the Second Judicial District Court
of the State of Nevada, Washoe County, captioned Ron Belec vs. William E.
Carty, et al., CV 02-06331 and on January 16, 2003, M.S. Management Company,
Inc. filed a derivative action in the Second Judicial District Court of the
State of Nevada, Washoe County, captioned M.S. Management Company, Inc. vs.
William E. Carty, et al., CV 03-00386. Two additional derivative suits were
also filed against these parties. These additional suits are substantially
similar to the Paul F. Shoen derivative action. The five suits assert
virtually identical claims. In fact, three of the five plaintiffs are parties
who are working closely together and chose to file the same claims multiple
times. The court consolidated all five complaints before dismissing them on
May 28, 2003. Plaintiffs have filed a notice of appeal. These lawsuits
falsely alleged that the AMERCO Board lacked independence. In reaching its
decision to dismiss these claims, the court determined that the AMERCO Board of
Directors had the requisite level of independence required in order to have
these claims resolved by the Board. Article Four Trust AMERCO is a defendant in four putative class action lawsuits. Article
Four Trust v. AMERCO, et al., District of Nevada, United States District Court,
Case No. CV-N-03-0050-DWH-VPC. Article Four Trust, a purported AMERCO
shareholder, commenced this action on January 28, 2003 on behalf of all persons
and entities who purchased or acquired AMERCO securities between February 12,
1998 and September 26, 2002. The Article Four Trust action alleges one claim
for violation of Section 10(b) of the Securities Exchange Act and Rule 10b-5
thereunder. Mates v. AMERCO, et al., United States District Court, District of
Nevada, Case No. CV-N-03-0107. Maxine Mates, an AMERCO shareholder, commenced
this putative class action on behalf of all persons and entities who purchased
or acquired AMERCO securities between February 12, 1998 and September 26, 2002.
The Mates action asserts claims under section 10(b) and Rule 10b-5, and
section 20(a) of the Securities Exchange Act. Klug v. AMERCO, et al., United
States District Court of Nevada, Case No. CV-S-03-0380. Edward Klug, an AMERCO
shareholder, commenced this putative class action on behalf of all persons and
entities who purchased or acquired AMERCO securities between February 12, 1998
and September 26, 2002. The Klug action asserts claims under section 10(b) and
Rule 10b-5 and section 20(a) of the Securities Exchange Act. IG Holdings v.
AMERCO, et al., United States District Court, District of Nevada, Case No.
CV-N-03-0199. IG Holdings, an AMERCO bondholder, commenced this putative class
action on behalf of all persons and entities who purchased, acquired, or traded
AMERCO bonds between February 12, 1998 and September 26, 2002, alleging claims
under section 11 and section 12 of the Securities Act of 1933 and section 10(b)
and Rule 10b-5, and section 20(a) of the Securities Exchange Act. Each of
these four securities class actions allege that AMERCO engaged in transactions
with SAC entities that falsely improved AMERCOs financial 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 investigating of the AMERCO Employee Savings, Profit Sharing, and Employee
Stock Ownership Plan (the Plan), its fiduciaries, 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 first 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 financial statements and any other
issues that may arise. F-31




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AMERCO AND CONSOLIDATED ENTITIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED) 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 filed 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 different 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 filed 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. In the normal course of business, AMERCO is a defendant in a number of
suits and claims. AMERCO is also a party to several administrative proceedings
arising from state and local provisions that regulate the removal and/or
cleanup of underground fuel storage tanks. It is the opinion of management
that none of these suits, claims or proceedings involving AMERCO; individually
or in the aggregate; are expected to result in a material loss. Also see Note
18. Compliance with environmental requirements of federal, state and local
governments significantly affects Real Estates business operations. Among
other things, these requirements regulate the discharge of materials into the
water, air and land and govern the use and disposal of hazardous substances.
Real Estate is aware of issues regarding hazardous substances on some of its
properties. Real Estate regularly makes capital and operating expenditures to
stay in compliance with environmental laws and has put in place a remedial plan
at each site where it believes such a plan is necessary. Since 1988, Real
Estate has managed a testing and removal program for underground storage tanks.
Under this program we have spent $43.7 million. Based
upon the information currently available to Real Estate, compliance with
the environmental laws and its share of the costs of investigation and cleanup
of known hazardous waste sites are not expected to have a material adverse
effect on AMERCOs financial position or operating results. Note 18: Preferred Stock Purchase Rights The Board of Directors of AMERCO adopted a stockholder-rights plan in July
1998. The rights were declared as a dividend of one preferred share purchase
right for each outstanding share of the common stock of AMERCO. The dividend
distribution was payable on August 17, 1998 to stockholders of record on that
date. When exercisable, each right will entitle its holder to purchase from
AMERCO one one-hundredth of a share of AMERCO Series C Junior Participating
Preferred Stock (Series C), no par value, at a price of $132.00 per one
one-hundredth of a share of Series C, subject to adjustment. AMERCO has
created a series of 3,000,000 shares of authorized but not issued preferred
stock for the Series C stock authorized in this stockholder-rights plan. The rights will become exercisable if a person or group of affiliated or
associated persons acquire or obtain the right to acquire beneficial ownership
of 10% or more of the common stock without approval of a majority of the Board
of Directors of AMERCO. The rights expire on August 7, 2008 unless earlier
redeemed or exchanged by AMERCO. In the event AMERCO is acquired in a merger or other business combination
transaction after the rights become exercisable, each holder of a right would
be entitled to receive that number of shares of the acquiring companys common
stock equal to the result obtained by multiplying the then current purchase
price by the number one one-hundredths of a share of Series C for which a right
is then exercisable and dividing that product by 50% of the then current market
price per share of the acquiring company. Note 19: Related Party Transactions AMERCO has engaged in related party transactions, and has continuing
related party interests, with certain major F-32




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AMERCO AND CONSOLIDATED ENTITIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED) stockholders, directors and
officers of the consolidated group as disclosed below. Management believes that
the transactions described below and in the related notes were consummated on
terms equivalent to those that would prevail in
arms-length transactions. On December 23, 2002, Mark V. Shoen, a significant shareholder purchased a
condominium in Phoenix, Arizona from Oxford Life Insurance Company. The
purchase price was $279,573, which was in excess of the appraised value. Samuel J. Shoen, the son of Edward J. Shoen, is employed by U-Haul as
project group supervisor. Mr. Shoen was paid an aggregate salary and bonus of
$86,532 and $77,327 for his services during the fiscal year 2004 and 2003. James
P. Shoen, the brother of Edward J. Shoen and Mark V. Shoen is Vice
President of AMERCO Business Consultants, a subsidiary of the
Company. Mr. Shoen was paid an aggregate of $228,003 for his services
during fiscal 2004. During fiscal 2004 a subsidiary of the Company held various senior and
junior unsecured notes of SAC Holdings. Substantially all of the equity
interest of SAC Holdings is controlled by Mark V. Shoen, a significant
shareholder and executive officer of AMERCO. The Company does not have an
equity ownership interest in SAC Holdings, except for minority investments made
by RepWest and Oxford in a SAC Holdings-controlled limited partnership which
holds Canadian self-storage properties. The Company received cash interest
payments of $26.5 million and $26.6 million, from SAC Holdings during fiscal
year 2004 and 2003. The notes receivable balance outstanding at March 31, 2004
and 2003 was, in the aggregate, $203.8 million and $394.6 million. The largest
aggregate amount outstanding during the fiscal year ended March 31, 2004 was
$403.5 million. Interest accrues on the outstanding principal balance of junior notes of
SAC Holdings that the Company holds at a stated rate of basic interest. A fixed
portion of that basic interest is paid on a monthly basis. Additional interest is paid on the same payment date based on the amount
of remaining basic interest and of the cash flow generated by the underlying
property. This amount is referred to as the cash flow-based calculation. To the extent that this cash flow-based calculation exceeds the amount of
remaining basic interest, contingent interest is paid on the same monthly date
as the fixed portion of basic interest. To the extent that the cash flow-based
calculation is less than the amount of remaining basic interest, the additional
interest payable on the applicable monthly date is limited to the amount of
that cash flow-based calculation. In such a case, the excess of the remaining
basic interest over the cash flow-based calculation is deferred and all amounts
so deferred bear the stated rate of basic interest until maturity of the junior
note. In addition, subject to certain contingencies, the junior notes provide
that the holder of the note is entitled to receive 90% of the appreciation
realized upon, among other things, the sale of such property by SAC Holdings. The Company currently manages the self-storage properties owned by SAC
Holdings pursuant to a standard form of management agreement with each SAC
Holdings subsidiary, under which the Company receives a management fee equal to
6% of the gross receipts. The Company received management fees of
$12.9 million, and $12.3 million during fiscal year 2004 and 2003. This management
fee is consistent with the fees received for other properties the Company
manages for third parties. RepWest and Oxford currently hold a 46% limited partnership interest in
Securespace Limited Partnership (Securespace), a Nevada limited partnership.
A SAC Holdings subsidiary serves as the general partner of Securespace and owns
a 1% interest. Another SAC Holdings subsidiary owns the remaining 53% limited
partnership interest in Securespace. Securespace was formed by SAC Holdings to
be the owner of various Canadian self-storage properties. During fiscal year 2004, the Company leased space for marketing company
offices, vehicle repair shops and hitch installation centers owned by
subsidiaries of SAC Holdings. Total lease payments pursuant to such leases were
$2.6 million and $2.1 million during fiscal year 2004 and 2003. The terms of
the leases are similar to the terms of leases for other properties owned by
unrelated parties that are leased to the Company. At March 31, 2004, subsidiaries of SAC Holdings acted as U-Haul
independent dealers. The financial and other terms of the dealership contracts
with subsidiaries of SAC Holdings are substantially identical to the terms of
those with the Companys other independent dealers. During fiscal 2004 and
2003, the Company paid subsidiaries of SAC Holdings $29.1 million and $27.7
million in commissions pursuant to such dealership contracts. SAC Holdings were established in order to acquire self-storage properties.
These properties are being managed by the Company pursuant to management
agreements. The sale of self-storage properties by the Company to SAC Holdings
has in the past provided significant cash flows to the Company and the
Companys outstanding loans to SAC Holdings entitle the Company to participate
in SAC Holdings excess cash flows (after senior debt service). However, in
connection with SAC Holdings issuance of the New SAC Holdings Notes to
AMERCOs creditors in AMERCOs Chapter 11 F-33




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AMERCO AND CONSOLIDATED ENTITIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED) proceeding, certain SAC Holdings
notes payable to the Company were eliminated thereby extinguishing the
participation in certain SAC entity excess cash flows. Management believes that its sales of self-storage properties to SAC
Holding over the past several years provided a
unique structure for the Company to earn rental revenues from the SAC
Holdings self-storage properties that the Company manages and to participate in
SAC Holdings excess cash flows as described above. During fiscal 2004 AMERCO purchased $121,608 of refinishing supplies from
Space Age Auto Paint Store Inc. E.J. Shoen, a major stock holder, officer and
director of AMERCO, owns Space Age Auto Paint Store Inc. No
real estate transactions with SAC Holdings that involve the Company
or its subsidiaries are expected in the
foreseeable future. Independent fleet owners own approximately 4% of all U-Haul rental
trailers and 0.01% of certain other rental equipment. There are approximately
1,290 independent fleet owners, including certain officers, directors,
employees and stockholders of AMERCO. Such AMERCO officers, directors,
employees and stockholders owned less than 1% of all U-Haul rental trailers
during the fiscal years 2004, 2003 and 2002, respectively. All rental
equipment is operated under contract with U-Haul whereby U-Haul administers the
operations and marketing of such equipment and in return receives a percentage
of rental fees paid by customers. Based on the terms of various contracts,
rental fees are distributed to U-Haul (for services as operators), to the fleet
owners (including certain subsidiaries and related parties of U-Haul) and to
Rental Dealers (including Company-operated U-Haul Centers). During the years ended 2004, 2003, and 2002, AMERCO purchased $0.0
million, $2.1 million and $3.2 million, respectively, of printing services from
a company wherein an owner is related to a major stockholder, director and
officer of AMERCO. The company ceased doing business with this entity on April
18, 2003. In February 1997, AMERCO, through its insurance subsidiaries, invested in
the equity of Private Mini Storage Realty, L.P. (Private Mini), a Texas-based
self-storage operator. RepWest invested $13.5 million and had a direct 30.6%
interest an indirect 13.2% interest. Oxford invested $11 million and had a
direct 24.9% interest and an indirect 10.8% interest. U-Haul is a 50% owner of
Storage Realty L.L.C., which serves as the general partner and has a direct 1%
interest in Private Mini. AMERCO does not maintain operating control of Private
Mini and the minority holders have a substantial participation rights. During
1997, Private Mini secured a line of credit $225.0 million with a financing
institution, which was subsequently reduced in accordance with its terms to
$125.0 million in December 2001. Under the terms of this credit facility,
AMERCO entered into a support party agreement with Private Mini whereby upon
default or noncompliance with debt covenants by Private Mini, AMERCO assumes
responsibility in fulfilling all obligations related to this credit facility. At March 31, 2003 AMERCO had become contingently liable under the terms of
the support agreement for Private Mini. This guarantee is still in place at
March 31, 2004. This resulted in increasing notes and loans payable by $55.0
million and increasing our investment in a receivable from Private Mini by
$55.0 million. As of March 15, 2004 AMERCO paid $55.0 million as part of the
bankruptcy settlement. Under the terms of FIN 45, the Company recognized a
liability in the amount of $70.0 million, which is managements estimate on the
liability associated with the guarantee. This resulted in increasing other
liabilities by $70.0 million and our receivable from Private Mini by $70.0
million. The receivable from Private Mini Storage Realty, L.P. represents amounts
due the company from Private Mini Storage Realty, L.P. under a support
agreement the Company entered to enhance the credit of Private Mini Storage,
L.P. The company expects to fully recover these amounts. On June 30, 2003, RepWest and Oxford exchanged their respective interests
in Private Mini for certain real property owned by certain SAC Holdings
entities. The exchanges were non-monetary and were recorded on the basis of
the book values of the assets exchanged. Private Mini has been determined not
to be a variable interest entity as defined by FIN 46R. F-34




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AMERCO AND CONSOLIDATED ENTITIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED) Related Party Receivables March 31,2004
    
    2003(In thousands)PMSR Guarantee
    
    $
    70,000
    
    
    $
    125,000PMSR
Receivables
    
    
    55,000PMSI Note
    
    
    10,000
    
    
    
    10,000SAC Holdings & Oxford Note
    
    
    5,039
    
    
    
    SAC Holdings & UHI Note
    
    
    123,661
    
    
    
    SAC Holdings & UHI Interest
    
    
    29,396
    
    
    
    Securespace & Oxford Investment
    
    
    5,675
    
    
    
    Securespace & RepWest Investment
    
    
    5,675
    
    
    
    $
    304,446
    
    
    $
    135,000
 In
February 2004, SAC Holding Corporation restructured the financing of
three subsidiaries and then distributed its interest in those
subsidiaries to its sole shareholder. This triggered a requirement to
reassess the Companys involvement with those subsidiaries,
which led to a conclusion that the Company ceased to be the primary
beneficiary of those three subsidiaries at that date. Also in
February 2004, SAC Holding Corporation returned the sole
shareholders original contribution of 184,000 shares of AMERCO
common stock with an original cost basis of $3.2 million, which
was treated as a distribution. In March 2004, SAC Holding Corporation
restructured its financing, triggering a similar reassessment that led
to a conclusion that the Company ceased to be the primary beneficiary
of SAC Holding Corporation and its remaining subsidiaries.
Accordingly, at the dates the Company ceased to be the primary
beneficiary, it deconsolidated those entities. The deconsolidation
was accounted for as a distribution of the Companys interests
to the sole shareholder of the SAC entities. The above distributions
amounted to $47.5 million and are reflected in the
Companys Statement of Changes in Stockholders Equity for
the year ended March 31, 2004. In
prior years, U-Haul sold various properties to SAC Holding
Corporation at prices in excess of U-Hauls carrying values
resulting in gains which U-Haul deferred and treated as additional
paid-in capital. The transferred properties have historically been
stated at the original cost basis as the gains were eliminated in
consolidation. In March 2004, these deferred gains were recognized
and treated as contributions from a related party in the amount of
$111.0 million as a result of the deconsolidation of SAC Holding
Corporation. F-35




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AMERCO AND CONSOLIDATED ENTITIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED) Note 20: Statutory Financial Information of Insurance Subsidiaries Applicable laws and regulations of the State of Arizona require Republic
Western Insurance Company and Oxford Life Insurance Company to maintain minimum
capital and surplus determined in accordance with statutory accounting
principles. Audited statutory net income and statutory capital and surplus for
the years-ended are listed below: December 31,2003
    
    2002
    
    2001(In thousands)Rep West:Audited statutory net income (loss)
    
    $
    (17,051
    )
    
    $
    4,130
    
    
    $
    (36,615
    )Audited statutory capital and surplus
    
    
    69,122
    
    
    
    65,365
    
    
    
    151,604NAFCIC:Audited statutory net income (loss)
    
    
    732
    
    
    
    (346
    )
    
    
    558Audited statutory capital and surplus
    
    
    4,001
    
    
    
    3,825
    
    
    
    4,173Oxford:Audited statutory net income (loss)
    
    
    3,335
    
    
    
    (11,565
    )
    
    
    (1,289
    )Audited statutory capital and surplus
    
    
    64,034
    
    
    
    39,084
    
    
    
    77,956CFLIC:Audited statutory net income (loss)
    
    
    4,057
    
    
    
    3,195
    
    
    
    3,552Audited statutory capital and surplus
    
    
    22,545
    
    
    
    17,181
    
    
    
    20,015NAI:Audited statutory net income (loss)
    
    
    3,067
    
    
    
    3,064
    
    
    
    (684
    )Audited statutory capital and surplus
    
    
    12,489
    
    
    
    9,474
    
    
    
    11,575
 The amount of dividends that can be paid to shareholders by insurance
companies domiciled in the State of Arizona is limited. Any dividend in excess
of the limit requires prior regulatory approval. At December 31, 2003, Oxford
cannot distribute any of their statutory surplus as dividends without
regulatory approval. At December 31, 2003, RepWest had $6.9 million of
statutory surplus available for distribution. However, as discussed elsewhere,
as a result of the Order of Supervision issued by the Department of Insurance,
State of Arizona, RepWest must obtain approval from the Department of Insurance
prior to any dividend payments to AMERCO. Audited statutory net income (loss) for RepWest for the years ended
December 31, 2003, 2002 and 2001 was $(17.1) million, $4.1 million and $(36.6
million), respectively; audited statutory capital and surplus was $69.1 million
and $65.4 million at December 31, 2003 and 2002, respectively. Audited
statutory net income (loss) for NAFCIC for the years ended December 31, 2003,
2002 and 2001 was $732,000, $(346,000) and $558,000, respectively; audited
statutory capital and surplus was $4.0 million and $3.8 million at December 31,
2003 and 2002, respectively. On May 20, 2003, RepWest consented to an Order for Supervision issued by
the Arizona Department of Insurance (DOI). The DOI determined that RepWests
level of risk based capital (RBC) allowed for regulatory control. Pursuant to
this order and Arizona law, during the period of supervision, RepWest may not
engage in certain activities without the prior approval of the DOI. If RepWest fails to satisfy the requirements to abate the DOIs concerns,
the DOI may take further action, including, but not limited to, commencing a
conservatorship. Audited statutory net income (loss) for Oxford for the years ended
December 31, 2003, 2002 and 2001 was $3.3 million, $(11.6 million) and $(1.3
million), respectively; audited statutory capital and surplus was $64.0 million
and $39.1 million at December 31, 2003 and 2002, respectively. Audited
statutory net income for CFLIC for the years ended December 31, 2003, 2002 and
2001 was $4.1 million, $3.2 million and $3.6 million, respectively; audited
statutory capital and surplus was $22.5 million and $17.2 million at December
31, 2003 and 2002, respectively. Audited statutory net income (loss) for NAI
for the years ended December 31, 2003, 2002 and 2001 was $3.1 million, $3.1
million and $(0.7) million, respectively; audited statutory capital and surplus
was $12.5 million and $9.5 million at December 31, 2003 and 2002, respectively. F-36




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AMERCO AND CONSOLIDATED ENTITIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED) Note 21: Financial Information by Geographic Area Financial information by geographic area for fiscal year 2004 is as
follows: Year Ended
    
    United States
    
    Canada
    
    Consolidated(All amounts are in
thousands U.S. $s)March 31, 2004Total revenues
    
    $
    2,101,332
    
    
    $
    66,163
    
    
    $
    2,167,495Depreciation / amortization, net
    
    
    180,538
    
    
    
    7,358
    
    
    
    187,896Interest expense / (benefit)
    
    
    118,310
    
    
    
    3,380
    
    
    
    121,690Pretax earnings
    
    
    (1,166
    )
    
    
    6,391
    
    
    
    5,225Income tax expense / (benefit)
    
    
    6,963
    
    
    
    1,114
    
    
    
    8,077Identifiable assets
    
    $
    3,309,268
    
    
    $
    66,337
    
    
    $
    3,375,605
 Financial information by geographic area for fiscal year 2003 is as
follows: Year Ended
    
    United States
    
    Canada
    
    Consolidated(All amounts are in
thousands U.S. $s)March 31, 2003Total revenues
    
    $
    2,077,333
    
    
    $
    55,054
    
    
    $
    2,132,387Depreciation / amortization, net
    
    
    169,799
    
    
    
    5,466
    
    
    
    175,265Interest expense / (benefit)
    
    
    146,144
    
    
    
    1,987
    
    
    
    148,131Pretax earnings / (loss)
    
    
    (45,628
    )
    
    
    6,707
    
    
    
    (38,921
    )Income tax expense / (benefit)
    
    
    (14,775
    )
    
    
    840
    
    
    
    (13,935
    )Identifiable assets
    
    $
    3,700,444
    
    
    $
    131,928
    
    
    $
    3,832,372
 Financial information by geographic area for fiscal year 2002 is as
follows: Year Ended
    
    United States
    
    Canada
    
    Consolidated(All amounts are in
thousands U.S. $s)March 31, 2002Total revenues
    
    $
    2,141,229
    
    
    $
    52,350
    
    
    $
    2,193,579Depreciation / amortization, net
    
    
    138,401
    
    
    
    5,230
    
    
    
    143,631Interest expense / (benefit)
    
    
    107,370
    
    
    
    2,095
    
    
    
    109,465Pretax earnings / (loss)
    
    
    (74,828
    )
    
    
    7,497
    
    
    
    (67,331
    )Income tax expense / (benefit)
    
    
    (20,814
    )
    
    
    923
    
    
    
    (19,891
    )Identifiable assets
    
    $
    3,615,108
    
    
    $
    117,209
    
    
    $
    3,732,317
 F-37




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##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED) Note 21A: Consolidating Financial Information by Industry Segment AMERCO has
three industry segments represented by moving and storage
operations (U-Haul and Real Estate), property and casualty insurance and life
insurance. SAC Holdings is part of the moving and storage industry
segment, but is not a part of the Obligated Group.
Management tracks revenues separately, but does not report any separate measure
of the profitability for rental vehicles, rentals or self-storage spaces and
sales of products that are required to be classified as a separate operating
segment and accordingly does not present these as separate operating segments.
Deferred income taxes are shown as liabilities on the consolidating statements. The notes
of the Company are fully and unconditionally guaranteed, jointly and severally, by all of
AMERCOs legal subsidiaries, except for our insurance company subsidiaries and
except for SAC Holdings on a consolidated basis. Footnote 21A includes
condensed consolidating financial information which presents the condensed
consolidating balance sheets as of March 31, 2004 and 2003 and the related
condensed consolidating statements of earnings and condensed consolidating cash
flow statements for the year ended March 31, 2004, 2003, and 2002 for: (a) AMERCO; (b) the guarantor subsidiaries (comprised by U-Haul and Amerco Real Estate
Company and each of their respective subsidiaries); (c) the nonguarantor subsidiaries (comprised of Oxford and RepWest and
each of their respective subsidiaries); and (d) SAC Holdings. The information includes elimination entries necessary to consolidate
AMERCO, the parent, with the guarantor and nonguarantor subsidiaries. Investments in subsidiaries are accounted for by the parent using the
equity method of accounting. The guarantor and nonguarantor subsidiaries are
presented on a combined basis. F-38




---



##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 21A: Financial Information by Consolidating Industry Segment: Consolidating balance sheets by industry segment as of March 31, 2004 are
as follows: Obligated GroupObligatedReal
    
    
    
    
    
    GrpAMERCO
    
    U-Haul
    
    Estate
    
    Elim
    
    Cons(In thousands)Assets:Cash and cash equivalents
    
    $
    
    
    
    $
    64,717
    
    
    $
    661
    
    
    $
    
    
    
    $
    65,378Trade receivables, net
    
    
    
    
    
    
    13,404
    
    
    
    14,856
    
    
    
    
    
    
    
    28,260Notes and mortgage receivables, net
    
    
    
    
    
    
    2,973
    
    
    
    1,564
    
    
    
    
    
    
    
    4,537Inventories, net
    
    
    
    
    
    
    51,922
    
    
    
    
    
    
    
    
    
    
    
    51,922Prepaid expenses
    
    
    81
    
    
    
    12,947
    
    
    
    2
    
    
    
    
    
    
    
    13,030Investments, fixed maturities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Investments, other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Deferred policy acquisition costs, net
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other assets
    
    
    26,001
    
    
    
    26,762
    
    
    
    2,989
    
    
    
    
    
    
    
    55,752Related party assets
    
    
    531,458
    
    
    
    397,406
    
    
    
    13,300
    
    
    
    (551,450
    )(d)
    
    
    390,714557,540
    
    
    
    570,131
    
    
    
    33,372
    
    
    
    (551,450
    )
    
    
    609,593Investment in Subsidiaries
    
    
    1,137,579
    
    
    
    
    
    
    
    
    
    
    
    (847,545
    )(c)
    
    
    290,034Investment
in SAC Holding II
    
    
    (12,427
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (12,427
    )Total investment in subsidiaries
    
    
    1,125,152
    
    
    
    
    
    
    
    
    
    
    
    (847,545
    )
    
    
    277,607Property, plant, and equipment, at cost:Land
    
    
    
    
    
    
    20,923
    
    
    
    137,671
    
    
    
    
    
    
    
    158,594Buildings and improvements
    
    
    
    
    
    
    271,223
    
    
    
    603,762
    
    
    
    
    
    
    
    874,985Furniture and equipment
    
    
    413
    
    
    
    274,600
    
    
    
    18,102
    
    
    
    
    
    
    
    293,115Rental trailers and other rental equipment
    
    
    
    
    
    
    159,586
    
    
    
    
    
    
    
    
    
    
    
    159,586Rental trucks
    
    
    
    
    
    
    1,219,002
    
    
    
    
    
    
    
    
    
    
    
    1,219,002SAC Holdings  Property, plant and
equipment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    413
    
    
    
    1,945,334
    
    
    
    759,535
    
    
    
    
    
    
    
    2,705,282Less: Accumulated depreciation
    
    
    (353
    )
    
    
    (1,069,605
    )
    
    
    (265,279
    )
    
    
    
    
    
    
    (1,335,237
    )Total property, plant and equipment
    
    
    60
    
    
    
    875,729
    
    
    
    494,256
    
    
    
    
    
    
    
    1,370,045Total Assets
    
    $
    1,682,752
    
    
    $
    1,445,860
    
    
    $
    527,628
    
    
    $
    (1,398,995
    )
    
    $
    2,257,245
   [Continued from above table, first column(s) repeated] AMERCO Legal Group
    
    AMERCO as ConsolidatedProperty
    
    
    
    
    
    
    
    
    
    
    
    
    
    SACand
    
    
    
    
    
    
    
    
    
    
    
    
    
    MovingCasualty
    
    Life
    
    
    
    
    
    
    
    
    
    andInsurance
    
    Insurance
    
    
    
    
    
    AMERCO
    
    Storage
    
    
    
    
    
    Total(a)
    
    (a)
    
    Elim
    
    Consolidated
    
    Operations
    
    Elim
    
    Consolidated(In thousands)Assets:Cash and cash equivalents
    
    $
    
    
    
    $
    15,168
    
    
    $
    
    
    
    $
    80,546
    
    
    $
    1,011
    
    
    $
    
    
    
    $
    81,557Trade receivables, net
    
    
    223,747
    
    
    
    16,379
    
    
    
    
    
    
    
    268,386
    
    
    
    
    
    
    
    
    
    
    
    268,386Notes and mortgage receivables, net
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,537
    
    
    
    
    
    
    
    
    
    
    
    4,537Inventories, net
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    51,922
    
    
    
    880
    
    
    
    
    
    
    
    52,802Prepaid expenses
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    13,030
    
    
    
    142
    
    
    
    
    
    
    
    13,172Investments, fixed maturities
    
    
    148,903
    
    
    
    560,450
    
    
    
    
    
    
    
    709,353
    
    
    
    
    
    
    
    
    
    
    
    709,353Investments, other
    
    
    143,163
    
    
    
    204,374
    
    
    
    
    
    
    
    347,537
    
    
    
    
    
    
    
    
    
    
    
    347,537Deferred policy acquisition costs, net
    
    
    3,843
    
    
    
    73,096
    
    
    
    
    
    
    
    76,939
    
    
    
    
    
    
    
    
    
    
    
    76,939Other assets
    
    
    3,686
    
    
    
    1,000
    
    
    
    
    
    
    
    60,438
    
    
    
    4,633
    
    
    
    
    
    
    
    65,071Related party assets
    
    
    104,543
    
    
    
    50,187
    
    
    
    (155,341
    )(d)
    
    
    390,103
    
    
    
    
    
    
    
    (85,657
    )(d)
    
    
    304,446627,885
    
    
    
    920,654
    
    
    
    (155,341
    )
    
    
    2,002,791
    
    
    
    6,666
    
    
    
    (85,657
    )
    
    
    1,923,800Investment in Subsidiaries
    
    
    
    
    
    
    
    
    
    
    (290,034
    )(c)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Investment
in SAC Holding II
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (12,427
    )
    
    
    
    
    
    
    12,427
    (c)
    
    
    Total investment in subsidiaries
    
    
    
    
    
    
    
    
    
    
    (290,034
    )
    
    
    (12,427
    )
    
    
    
    
    
    
    12,427
    
    
    
    Property, plant, and equipment, at cost:Land
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    158,594
    
    
    
    
    
    
    
    
    
    
    
    158,594Buildings and improvements
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    874,985
    
    
    
    
    
    
    
    
    
    
    
    874,985Furniture and equipment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    293,115
    
    
    
    
    
    
    
    
    
    
    
    293,115Rental trailers and other rental equipment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    159,586
    
    
    
    
    
    
    
    
    
    
    
    159,586Rental trucks
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,219,002
    
    
    
    
    
    
    
    
    
    
    
    1,219,002SAC
Holding II Property, plant and
equipment(b)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    152,575
    
    
    
    (74,212
    )(e)
    
    
    78,363
    
    
    
    
    
    
    
    
    
    
    
    2,705,282
    
    
    
    152,575
    
    
    
    (74,212
    )
    
    
    2,783,645Less: Accumulated depreciation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,335,237
    )
    
    
    (5,147
    )
    
    
    8,544
    (e)
    
    
    (1,331,840
    )Total property, plant and equipment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,370,045
    
    
    
    147,428
    
    
    
    (65,668
    )
    
    
    1,451,805Total Assets
    
    $
    627,885
    
    
    $
    920,654
    
    
    $
    (445,375
    )
    
    $
    3,360,409
    
    
    $
    154,094
    
    
    $
    (138,898
    )
    
    $
    3,375,605
   (a)
    
    Balances for the year ended December 31, 2003(b)
    
    Included in this caption is land of $57,123, buildings and
improvements of $95,326, and furniture and equipment of $126(c)
    
    Eliminate investment in subsidiaries(d)
    
    Eliminate intercompany receivables and payables(e)
    
    Eliminate gain on sale of surplus property from U-Haul to SAC F-39




---



##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 21A: Financial Information by Consolidating Industry Segment: Consolidating balance sheets by industry segment as of March 31, 2004 are
as follows: Obligated GroupObligatedReal
    
    
    
    
    
    GrpAMERCO
    
    U-Haul
    
    Estate
    
    Elim
    
    Cons(In thousands)Liabilities:Accounts payable and accrued expenses
    
    $
    80,775
    
    
    $
    276,784
    
    
    $
    2,619
    
    
    $
    
    
    
    $
    360,178Capital leases
    
    
    
    
    
    
    99,609
    
    
    
    
    
    
    
    
    
    
    
    99,609AMERCOs notes and loans payable
    
    
    884,193
    
    
    
    17,892
    
    
    
    3
    
    
    
    
    
    
    
    902,088SAC Holding notes and loans payable,
non-recourse to AMERCO
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Policy benefits and losses, claims and
loss expenses payable
    
    
    
    
    
    
    206,595
    
    
    
    
    
    
    
    
    
    
    
    206,595Liabilities from investment contracts
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other policyholders funds and liabilities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Deferred income
    
    
    
    
    
    
    21,278
    
    
    
    36
    
    
    
    
    
    
    
    21,314Deferred income taxes
    
    
    163,652
    
    
    
    222,188
    
    
    
    94,914
    
    
    
    (355,399
    )(c)
    
    
    125,355Other liabilities
    
    
    
    
    
    
    
    
    
    
    196,051
    
    
    
    (196,051
    )(c)
    
    
    Total liabilities
    
    
    1,128,620
    
    
    
    844,346
    
    
    
    293,623
    
    
    
    (551,450
    )
    
    
    1,715,139Minority Interest
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Stockholders equity:Series preferred stock:Series A preferred stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Series B preferred stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Series A common stock
    
    
    1,416
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,416Common Stock
    
    
    9,081
    
    
    
    540
    
    
    
    1
    
    
    
    (541
    )(b)
    
    
    9,081Additional paid in-capital
    
    
    395,803
    
    
    
    121,230
    
    
    
    147,481
    
    
    
    (268,711
    )(b)
    
    
    395,803Additional paid-in-capital  SAC
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Accumulated other comprehensive (loss)
    
    
    (21,446
    )
    
    
    (34,913
    )
    
    
    
    
    
    
    34,913
    (b)
    
    
    (21,446
    )Accumulated other comprehensive
income/(loss)  SAC Holding II
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Retained earnings
    
    
    587,370
    
    
    
    526,683
    
    
    
    86,523
    
    
    
    (613,206
    )(b)
    
    
    587,370Cost of common shares in treasury, net
    
    
    (418,092
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (418,092
    )Unearned employee stock ownership plan shares
    
    
    
    
    
    
    (12,026
    )
    
    
    
    
    
    
    
    
    
    
    (12,026
    )Total stockholders equity
    
    
    554,132
    
    
    
    601,514
    
    
    
    234,005
    
    
    
    (847,545
    )
    
    
    542,106Total liabilities and stockholders equity
    
    $
    1,682,752
    
    
    $
    1,445,860
    
    
    $
    527,628
    
    
    $
    (1,398,995
    )
    
    $
    2,257,245
   [Continued from above table, first column(s) repeated] AMERCO Legal Group
    
    AMERCO as ConsolidatedProperty
    
    
    
    
    
    
    
    
    
    
    
    
    
    SACand
    
    
    
    
    
    
    
    
    
    
    
    
    
    MovingCasualty
    
    Life
    
    
    
    
    
    
    
    
    
    andInsurance
    
    Insurance
    
    
    
    
    
    AMERCO
    
    Storage
    
    
    
    
    
    Total(a)
    
    (a)
    
    Elim
    
    Consolidated
    
    Operations
    
    Elim
    
    Consolidated(In thousands)Liabilities:Accounts payable and accrued expenses
    
    
    734
    
    
    
    5,522
    
    
    
    (90,972
    )(c)
    
    
    275,462
    
    
    
    15,703
    
    
    
    (10,569
    )(c)
    
    
    280,596Capital leases
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    99,609
    
    
    
    
    
    
    
    
    
    
    
    99,609AMERCOs notes and loans payable
    
    
    
    
    
    
    
    
    
    
    (21,569
    )(c)
    
    
    880,519
    
    
    
    
    
    
    
    
    
    
    
    880,519SAC
Holding II notes and loans payable,
non-recourse to AMERCO
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    153,725
    
    
    
    (75,088
    )(c)
    
    
    78,637Policy benefits and losses, claims and
loss expenses payable
    
    
    436,593
    
    
    
    177,550
    
    
    
    (7,000
    )(c)
    
    
    813,738
    
    
    
    
    
    
    
    
    
    
    
    813,738Liabilities from investment contracts
    
    
    
    
    
    
    574,745
    
    
    
    
    
    
    
    574,745
    
    
    
    
    
    
    
    
    
    
    
    574,745Other policyholders funds and liabilities
    
    
    18,369
    
    
    
    10,363
    
    
    
    
    
    
    
    28,732
    
    
    
    
    
    
    
    
    
    
    
    28,732Deferred income
    
    
    15,229
    
    
    
    14,279
    
    
    
    
    
    
    
    50,822
    
    
    
    561
    
    
    
    
    
    
    
    51,383Deferred income taxes
    
    
    (12,080
    )
    
    
    5,953
    
    
    
    (24,552
    )(c)
    
    
    94,676
    
    
    
    (3,468
    )
    
    
    (27,408
    )(c)
    
    
    63,800Other liabilities
    
    
    
    
    
    
    11,248
    
    
    
    (11,248
    )(c)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total liabilities
    
    
    458,845
    
    
    
    799,660
    
    
    
    (155,341
    )
    
    
    2,818,303
    
    
    
    166,521
    
    
    
    (113,065
    )
    
    
    2,871,759Minority Interest
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Stockholders equity:Series preferred stock:Series A preferred stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Series B preferred stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Series A common stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,416
    
    
    
    
    
    
    
    
    
    
    
    1,416Common Stock
    
    
    3,300
    
    
    
    2,500
    
    
    
    (5,800
    )(b)
    
    
    9,081
    
    
    
    
    
    
    
    
    
    
    
    9,081Additional paid in-capital
    
    
    70,023
    
    
    
    16,435
    
    
    
    (86,458
    )(b)
    
    
    395,803
    
    
    
    
    
    
    
    (46,071
    )(b)
    
    
    349,732Additional paid-in-capital  SAC
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Accumulated other comprehensive (loss)
    
    
    6,975
    
    
    
    7,299
    
    
    
    (14,274
    )(b)
    
    
    (21,446
    )
    
    
    
    
    
    
    
    
    
    
    (21,446
    )Accumulated other comprehensive
income/(loss)  SAC Holdings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Retained earnings
    
    
    88,742
    
    
    
    94,760
    
    
    
    (183,502
    )(b)
    
    
    587,370
    
    
    
    (12,427
    )
    
    
    20,238
    (b)
    
    
    595,181Cost of common shares in treasury, net
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (418,092
    )
    
    
    
    
    
    
    
    
    
    
    (418,092
    )Unearned employee stock ownership plan shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (12,026
    )
    
    
    
    
    
    
    
    
    
    
    (12,026
    )Total stockholders equity
    
    
    169,040
    
    
    
    120,994
    
    
    
    (290,034
    )
    
    
    542,106
    
    
    
    (12,427
    )
    
    
    (25,833
    )
    
    
    503,846Total liabilities and stockholders equity
    
    
    627,885
    
    
    
    920,654
    
    
    
    (445,375
    )
    
    
    3,360,409
    
    
    
    154,094
    
    
    
    (138,898
    )
    
    
    3,375,605
   (a)
    
    Balances for the year ended December 31, 2003(b)
    
    Eliminate investment in subsidiaries(c)
    
    Eliminate intercompany receivables and payables F-40




---



##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 21A: Financial Information by Consolidating Industry Segment  Continued: Consolidating balance sheets by industry segment as of March 31, 2003 are
as follows: Obligated GroupObligatedReal
    
    
    
    
    
    GrpAMERCO
    
    U-Haul
    
    Estate
    
    Elim
    
    Cons(In thousands)Assets:Cash and cash equivalents
    
    $
    18,524
    
    
    $
    30,046
    
    
    $
    174
    
    
    $
    
    
    
    $
    48,744Trade receivables, net
    
    
    
    
    
    
    14,690
    
    
    
    12,823
    
    
    
    
    
    
    
    27,513Notes and mortgage receivables, net
    
    
    
    
    
    
    5,985
    
    
    
    2,324
    
    
    
    
    
    
    
    8,309Inventories, net
    
    
    
    
    
    
    49,229
    
    
    
    4
    
    
    
    
    
    
    
    49,233Prepaid expenses
    
    
    87
    
    
    
    20,937
    
    
    
    11
    
    
    
    
    
    
    
    21,035Investments, fixed maturities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Investments, other
    
    
    
    
    
    
    811
    
    
    
    
    
    
    
    
    
    
    
    811Deferred policy acquisition costs, net
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other assets
    
    
    12,429
    
    
    
    17,370
    
    
    
    3,991
    
    
    
    
    
    
    
    33,790Related party assets
    
    
    594,455
    
    
    
    359,930
    
    
    
    221,315
    
    
    
    (603,910
    )(d)
    
    
    571,790625,495
    
    
    
    498,998
    
    
    
    240,642
    
    
    
    (603,910
    )
    
    
    761,225Investment in subsidiaries
    
    
    1,037,756
    
    
    
    
    
    
    
    
    
    
    
    (727,559
    )(c)
    
    
    310,197Investment in SAC
    
    
    (41,938
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (41,938
    )Total investment in subsidiaries
    
    
    995,818
    
    
    
    
    
    
    
    
    
    
    
    (727,559
    )
    
    
    268,259Property, plant, and equipment, at cost:Land
    
    
    
    
    
    
    18,849
    
    
    
    139,138
    
    
    
    
    
    
    
    157,987Buildings and improvements
    
    
    
    
    
    
    145,177
    
    
    
    602,676
    
    
    
    
    
    
    
    747,853Furniture and equipment
    
    
    459
    
    
    
    272,884
    
    
    
    18,040
    
    
    
    
    
    
    
    291,383Rental trailers and other rental equipment
    
    
    
    
    
    
    149,707
    
    
    
    
    
    
    
    
    
    
    
    149,707Rental trucks
    
    
    
    
    
    
    1,140,294
    
    
    
    
    
    
    
    
    
    
    
    1,140,294SAC Holdings  Property, plant and
equipment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    459
    
    
    
    1,726,911
    
    
    
    759,854
    
    
    
    
    
    
    
    2,487,224Less: Accumulated depreciation
    
    
    (315
    )
    
    
    (990,412
    )
    
    
    (254,409
    )
    
    
    
    
    
    
    (1,245,136
    )Total property, plant and equipment
    
    
    144
    
    
    
    736,499
    
    
    
    505,445
    
    
    
    
    
    
    
    1,242,088Total assets
    
    $
    1,621,457
    
    
    $
    1,235,497
    
    
    $
    746,087
    
    
    $
    (1,331,469
    )
    
    $
    2,271,572
   [Continued from above table, first column(s) repeated] AMERCO Legal Group
    
    AMERCO as ConsolidatedProperty
    
    
    
    
    
    
    
    
    
    
    
    
    
    SACand
    
    
    
    
    
    
    
    
    
    
    
    
    
    MovingCasualty
    
    Life
    
    
    
    
    
    
    
    
    
    andInsurance
    
    Insurance
    
    
    
    
    
    AMERCO
    
    Storage
    
    
    
    
    
    Total(a)
    
    (a)
    
    Elim
    
    Consolidated
    
    Operations
    
    Elim
    
    Consolidated(In thousands)Assets:Cash and cash equivalents
    
    $
    4,108
    
    
    $
    9,320
    
    
    $
    
    
    
    $
    62,172
    
    
    $
    4,662
    
    
    $
    
    
    
    $
    66,834Trade receivables, net
    
    
    224,427
    
    
    
    23,062
    
    
    
    
    
    
    
    275,002
    
    
    
    
    
    
    
    
    
    
    
    275,002Notes and mortgage receivables, net
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,309
    
    
    
    
    
    
    
    
    
    
    
    8,309Inventories, net
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    49,233
    
    
    
    4,037
    
    
    
    
    
    
    
    53,270Prepaid expenses
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    21,035
    
    
    
    811
    
    
    
    
    
    
    
    21,846Investments, fixed maturities
    
    
    253,871
    
    
    
    606,729
    
    
    
    
    
    
    
    860,600
    
    
    
    
    
    
    
    
    
    
    
    860,600Investments, other
    
    
    97,782
    
    
    
    165,659
    
    
    
    
    
    
    
    264,252
    
    
    
    
    
    
    
    
    
    
    
    264,252Deferred policy acquisition costs, net
    
    
    13,206
    
    
    
    91,894
    
    
    
    
    
    
    
    105,100
    
    
    
    
    
    
    
    
    
    
    
    105,100Other assets
    
    
    3,884
    
    
    
    1,291
    
    
    
    
    
    
    
    38,965
    
    
    
    24,635
    
    
    
    
    
    
    
    63,600Related party assets
    
    
    107,366
    
    
    
    66,420
    
    
    
    (165,481
    )(d)
    
    
    580,095
    
    
    
    
    
    
    
    (445,095
    )(d)
    
    
    135,000704,644
    
    
    
    964,375
    
    
    
    (165,481
    )
    
    
    2,264,763
    
    
    
    34,145
    
    
    
    (445,095
    )
    
    
    1,853,813Investment in subsidiaries
    
    
    
    
    
    
    
    
    
    
    (310,197
    )(c)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Investment
in SAC Holdings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (41,938
    )
    
    
    
    
    
    
    41,938
    (c)
    
    
    Total investment in subsidiaries
    
    
    
    
    
    
    
    
    
    
    (310,197
    )
    
    
    (41,938
    )
    
    
    
    
    
    
    41,938
    
    
    
    Property, plant, and equipment, at cost:Land
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    157,987
    
    
    
    
    
    
    
    
    
    
    
    157,987Buildings and improvements
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    747,853
    
    
    
    
    
    
    
    
    
    
    
    747,853Furniture and equipment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    291,383
    
    
    
    
    
    
    
    
    
    
    
    291,383Rental trailers and other rental equipment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    149,707
    
    
    
    
    
    
    
    
    
    
    
    149,707Rental trucks
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,140,294
    
    
    
    
    
    
    
    
    
    
    
    1,140,294SAC Holdings  Property, plant and
equipment(b)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,015,563
    
    
    
    (258,271
    )(e)
    
    
    757,292
    
    
    
    
    
    
    
    
    
    
    
    2,487,224
    
    
    
    1,015,563
    
    
    
    (258,271
    )
    
    
    3,244,516Less: Accumulated depreciation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,245,136
    )
    
    
    (59,679
    )
    
    
    6,616
    (e)
    
    
    (1,298,199
    )Total property, plant and equipment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,242,088
    
    
    
    955,884
    
    
    
    (251,655
    )
    
    
    1,946,317Total assets
    
    $
    704,644
    
    
    $
    964,375
    
    
    $
    (475,678
    )
    
    $
    3,464,913
    
    
    $
    990,029
    
    
    $
    (654,812
    )
    
    $
    3,800,130
   (a)
    
    Balances for the year ended December 31, 2002(b)
    
    Included in this caption is land of $273,470,
buildings and improvements of $739,534, and furniture and equipment
of $2,559(c)
    
    Eliminate investment in subsidiaries(d)
    
    Eliminate intercompany receivable and payables(e)
    
    Eliminate gain on sale of surplus property from
U-Haul to SAC F-41




---



##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 21A: Financial Information by Consolidating Industry Segment  Continued: Consolidating balance sheets by industry segment as of March 31, 2003 are
as follows: Obligated GroupObligatedReal
    
    
    
    
    
    GrpAMERCO
    
    U-Haul
    
    Estate
    
    Elim
    
    Cons(In thousands)Liabilities:Accounts payable and accrued expenses
    
    $
    139,496
    
    
    $
    290,100
    
    
    $
    7,892
    
    
    $
    34,066
    (c)
    
    $
    471,554Capital leases
    
    
    
    
    
    
    14,793
    
    
    
    
    
    
    
    
    
    
    
    14,793AMERCOs notes and loans payable
    
    
    861,158
    
    
    
    16,900
    
    
    
    101,505
    
    
    
    
    
    
    
    979,563SAC Holdings notes and loans payable,
non-recourse to AMERCO
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Policy benefits and losses, claims and
loss expenses payable
    
    
    
    
    
    
    168,666
    
    
    
    
    
    
    
    
    
    
    
    168,666Liabilities from investment contracts
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other policyholders funds and liabilities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Deferred income
    
    
    2,863
    
    
    
    30,943
    
    
    
    1,011
    
    
    
    
    
    
    
    34,817Deferred income taxes
    
    
    120,446
    
    
    
    214,715
    
    
    
    94,914
    
    
    
    (312,193
    )(c)
    
    
    117,882Other liabilities
    
    
    
    
    
    
    
    
    
    
    325,783
    
    
    
    (325,783
    )(c)
    
    
    Total liabilities
    
    
    1,123,963
    
    
    
    736,117
    
    
    
    531,105
    
    
    
    (603,910
    )
    
    
    1,787,275Minority interest
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Stockholders equity:Series preferred stock:Series A preferred stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Series B preferred stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Series A common stock
    
    
    1,416
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,416Common stock
    
    
    9,081
    
    
    
    540
    
    
    
    1
    
    
    
    (541
    )(b)
    
    
    9,081Additional paid in-capital
    
    
    396,116
    
    
    
    121,230
    
    
    
    147,481
    
    
    
    (268,711
    )(b)
    
    
    396,116Additional paid-in-capital  SAC
    
    
    3,199
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,199Accumulated other comprehensive (loss)
    
    
    (54,278
    )
    
    
    (39,849
    )
    
    
    
    
    
    
    39,849
    (b)
    
    
    (54,278
    )Accumulated other comprehensive income/(loss) -
SAC Holdings
    
    
    (1,487
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,487
    )Retained earnings
    
    
    561,606
    
    
    
    430,656
    
    
    
    67,500
    
    
    
    (498,156
    )(b)
    
    
    561,606Cost of common shares in treasury, net
    
    
    (418,179
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (418,179
    )Unearned employee stock ownership plan shares
    
    
    20
    
    
    
    (13,197
    )
    
    
    
    
    
    
    
    
    
    
    (13,177
    )Total stockholders equity
    
    
    497,494
    
    
    
    499,380
    
    
    
    214,982
    
    
    
    (727,559
    )
    
    
    484,297Total liabilities and stockholders equity
    
    $
    1,621,457
    
    
    $
    1,235,497
    
    
    $
    746,087
    
    
    $
    (1,331,469
    )
    
    $
    2,271,572
   [Continued from above table, first column(s) repeated] AMERCO Legal Group
    
    AMERCO as ConsolidatedProperty
    
    
    
    
    
    
    
    
    
    
    
    
    
    SACand
    
    
    
    
    
    
    
    
    
    
    
    
    
    MovingCasualty
    
    Life
    
    
    
    
    
    
    
    
    
    andInsurance
    
    Insurance
    
    
    
    
    
    AMERCO
    
    Storage
    
    
    
    
    
    Total(a)
    
    (a)
    
    Elim
    
    Consolidated
    
    Operations
    
    Elim
    
    Consolidated(In thousands)Liabilities:Accounts payable and accrued expenses
    
    $
    
    
    
    $
    570
    
    
    $
    (73,801
    )(c)
    
    $
    398,323
    
    
    $
    48,033
    
    
    $
    (32,633
    )(c)
    
    $
    413,723Capital leases
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14,793
    
    
    
    122,238
    
    
    
    
    
    
    
    137,031AMERCOs notes and loans payable
    
    
    
    
    
    
    
    
    
    
    (39,500
    )(c)
    
    
    940,063
    
    
    
    
    
    
    
    
    
    
    
    940,063SAC Holdings notes and loans payable,
non-recourse to AMERCO
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    860,952
    
    
    
    (394,171
    )(c)
    
    
    466,781Policy benefits and losses, claims and
loss expenses payable
    
    
    485,383
    
    
    
    182,583
    
    
    
    
    
    
    
    836,632
    
    
    
    
    
    
    
    
    
    
    
    836,632Liabilities from investment contracts
    
    
    
    
    
    
    639,998
    
    
    
    
    
    
    
    639,998
    
    
    
    
    
    
    
    
    
    
    
    639,998Other policyholders funds and liabilities
    
    
    20,164
    
    
    
    10,145
    
    
    
    
    
    
    
    30,309
    
    
    
    
    
    
    
    
    
    
    
    30,309Deferred income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    34,817
    
    
    
    12,033
    
    
    
    (6,463
    )(c)
    
    
    40,387Deferred income taxes
    
    
    
    
    
    
    8,664
    
    
    
    (40,865
    )(c)
    
    
    85,681
    
    
    
    (19,918
    )
    
    
    (98,005
    )(c)
    
    
    (32,242
    )Other liabilities
    
    
    
    
    
    
    11,315
    
    
    
    (11,315
    )(c)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total liabilities
    
    
    505,547
    
    
    
    853,275
    
    
    
    (165,481
    )
    
    
    2,980,616
    
    
    
    1,023,338
    
    
    
    (531,272
    )
    
    
    3,472,682Minority interest
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    11,828
    
    
    
    (11,828
    )
    
    
    Stockholders equity:Series preferred stock:Series A preferred stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Series B preferred stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Series A common stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,416
    
    
    
    
    
    
    
    
    
    
    
    1,416Common stock
    
    
    3,300
    
    
    
    2,500
    
    
    
    (5,800
    )(b)
    
    
    9,081
    
    
    
    
    
    
    
    
    
    
    
    9,081Additional paid in-capital
    
    
    70,023
    
    
    
    16,435
    
    
    
    (86,458
    )(b)
    
    
    396,116
    
    
    
    
    
    
    
    (160,266
    )(b)
    
    
    235,850Additional paid-in-capital  SAC
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,199
    
    
    
    3,199
    
    
    
    (3,199
    )(b)
    
    
    3,199Accumulated other comprehensive (loss)
    
    
    13,589
    
    
    
    4,166
    
    
    
    (17,755
    )(b)
    
    
    (54,278
    )
    
    
    
    
    
    
    
    
    
    
    (54,278
    )Accumulated other comprehensive income/(loss) -
SAC Holdings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,487
    )
    
    
    (1,487
    )
    
    
    1,487
    (b)
    
    
    (1,487
    )Retained earnings
    
    
    112,185
    
    
    
    87,999
    
    
    
    (200,184
    )(b)
    
    
    561,606
    
    
    
    (43,650
    )
    
    
    50,266
    (b)
    
    
    568,222Cost of common shares in treasury, net
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (418,179
    )
    
    
    (3,199
    )
    
    
    
    
    
    
    (421,378
    )Unearned employee stock ownership plan shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (13,177
    )
    
    
    
    
    
    
    
    
    
    
    (13,177
    )Total stockholders equity
    
    
    199,097
    
    
    
    111,100
    
    
    
    (310,197
    )
    
    
    484,297
    
    
    
    (45,137
    )
    
    
    (111,712
    )
    
    
    327,448Total liabilities and stockholders equity
    
    $
    704,644
    
    
    $
    964,375
    
    
    $
    (475,678
    )
    
    $
    3,464,913
    
    
    $
    990,029
    
    
    $
    (654,812
    )
    
    $
    3,800,130
   (a)
    
    Balances for the year ended December 31, 2002(b)
    
    Eliminate investment in subsidiaries(c)
    
    Eliminate intercompany receivables and payables F-42




---



##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 21A: Financial Information by Consolidating Industry Segment  Continued: Consolidating income statements by industry segment for period ending
March 31, 2004 are as follows Obligated GroupObligatedReal
    
    
    
    
    
    GrpAMERCO
    
    U-Haul
    
    Estate
    
    Elim
    
    Cons(In thousands)Revenues:Rental revenue
    
    $
    
    
    
    $
    1,548,408
    
    
    $
    59,754
    
    
    $
    (61,159
    )(b)
    
    $
    1,547,003Net sales
    
    
    
    
    
    
    181,799
    
    
    
    61
    
    
    
    
    
    
    
    181,860Premiums
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net investment and interest
income
    
    
    866
    
    
    
    21,504
    
    
    
    16,089
    
    
    
    
    
    
    
    38,459Total revenues
    
    
    866
    
    
    
    1,751,711
    
    
    
    75,904
    
    
    
    (61,159
    )
    
    
    1,767,322Costs and expenses:Operating expenses
    
    
    35,530
    
    
    
    1,062,695
    
    
    
    8,063
    
    
    
    (61,159
    )(b)
    
    
    1,045,129Commission expenses
    
    
    
    
    
    
    176,165
    
    
    
    
    
    
    
    
    
    
    
    176,165Cost of sales
    
    
    
    
    
    
    87,430
    
    
    
    26
    
    
    
    
    
    
    
    87,456Benefits and losses
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Amortization of deferred
policy acquisition costs
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Lease expense
    
    
    786
    
    
    
    159,869
    
    
    
    2,653
    
    
    
    
    
    
    
    163,308Depreciation, net
    
    
    39
    
    
    
    125,093
    
    
    
    4,209
    
    
    
    
    
    
    
    129,341Restructuring expenses
    
    
    44,097
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    44,097Total costs and expenses
    
    
    80,452
    
    
    
    1,611,252
    
    
    
    14,951
    
    
    
    (61,159
    )
    
    
    1,645,496Equity in earnings of AREC,
UHI, RW & OLIC
    
    
    98,368
    
    
    
    
    
    
    
    
    
    
    
    (115,050
    )(f)
    
    
    (16,682
    )Equity in earnings of SAC
    
    
    (11,551
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (11,551
    )Total  equity earnings in
subsidiaries
    
    
    86,817
    
    
    
    
    
    
    
    
    
    
    
    (115,050
    )
    
    
    (28,233
    )Earnings (losses) from operations
    
    
    7,231
    
    
    
    140,459
    
    
    
    60,953
    
    
    
    (115,050
    )
    
    
    93,593Interest expense
    
    
    56,968
    
    
    
    (8,560
    )
    
    
    29,154
    
    
    
    
    
    
    
    77,562Pretax earnings (loss)
    
    
    (49,737
    )
    
    
    149,019
    
    
    
    31,799
    
    
    
    (115,050
    )
    
    
    16,031Income tax benefit (expense)
    
    
    45,690
    
    
    
    (52,992
    )
    
    
    (12,776
    )
    
    
    
    
    
    
    (20,078
    )Net earnings (loss)
    
    
    (4,047
    )
    
    
    96,027
    
    
    
    19,023
    
    
    
    (115,050
    )
    
    
    (4,047
    )Less: Preferred stock dividends
    
    
    (12,963
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (12,963
    )Earnings (loss) available to
common shareholders
    
    $
    (17,010
    )
    
    $
    96,027
    
    
    $
    19,023
    
    
    $
    (115,050
    )
    
    $
    (17,010
    )
   [Continued from above table, first column(s) repeated] AMERCO Legal Group
    
    AMERCO as ConsolidatedProperty
    
    
    
    
    
    
    
    
    
    
    
    
    
    SACand
    
    
    
    
    
    
    
    
    
    
    
    
    
    MovingCasualty
    
    Life
    
    
    
    
    
    
    
    
    
    andInsurance
    
    Insurance
    
    
    
    
    
    AMERCO
    
    Storage
    
    
    
    
    
    Total(a)
    
    (a)
    
    Elim
    
    Consolidated
    
    Operations
    
    Elim
    
    Consolidated(In thousands)Revenues:Rental revenue
    
    $
    
    
    
    $
    
    
    
    $
    (2,521
    )(b)
    
    $
    1,544,482
    
    
    $
    168,378
    
    
    $
    (57,289
    )(b)
    
    $
    1,655,571Net sales
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    181,860
    
    
    
    50,577
    
    
    
    
    
    
    
    232,437Premiums
    
    
    93,242
    
    
    
    147,753
    
    
    
    (3,877
    )(c)
    
    
    237,118
    
    
    
    
    
    
    
    
    
    
    
    237,118Net investment and interest
income
    
    
    21,699
    
    
    
    19,046
    
    
    
    
    
    
    
    79,204
    
    
    
    
    
    
    
    (36,835
    )
    
    
    42,369Total revenues
    
    
    114,941
    
    
    
    166,799
    
    
    
    (6,398
    )
    
    
    2,042,664
    
    
    
    218,955
    
    
    
    (94,124
    )
    
    
    2,167,495Costs and expenses:Operating expenses
    
    
    27,403
    
    
    
    27,098
    
    
    
    (6,398
    )(b)(c)
    
    
    1,093,232
    
    
    
    108,412
    
    
    
    (25,553
    )(b)(c)
    
    
    1,176,091Commission expenses
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    176,165
    
    
    
    
    
    
    
    (29,155
    )
    
    
    147,010Cost of sales
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    87,456
    
    
    
    24,450
    
    
    
    
    
    
    
    111,906Benefits and losses
    
    
    109,362
    
    
    
    103,491
    
    
    
    
    
    
    
    212,853
    
    
    
    
    
    
    
    
    
    
    
    212,853Amortization of deferred
policy acquisition costs
    
    
    14,126
    
    
    
    24,957
    
    
    
    
    
    
    
    39,083
    
    
    
    
    
    
    
    
    
    
    
    39,083Lease expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    163,308
    
    
    
    
    
    
    
    (2,581
    )(b)
    
    
    160,727Depreciation, net
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    129,341
    
    
    
    21,400
    
    
    
    (1,928
    )(e)
    
    
    148,813Restructuring expenses
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    44,097
    
    
    
    
    
    
    
    
    
    
    
    44,097Total costs and expenses
    
    
    150,891
    
    
    
    155,546
    
    
    
    (6,398
    )
    
    
    1,945,535
    
    
    
    154,262
    
    
    
    (59,217
    )
    
    
    2,040,580Equity in earnings of AREC,
UHI, RW & OLIC
    
    
    
    
    
    
    
    
    
    
    16,682
    (f)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Equity in earnings of SAC
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (11,551
    )
    
    
    
    
    
    
    11,551
    (f)
    
    
    Total  equity earnings in
subsidiaries
    
    
    
    
    
    
    
    
    
    
    16,682
    
    
    
    (11,551
    )
    
    
    
    
    
    
    11,551
    
    
    
    Earnings (losses) from operations
    
    
    (35,950
    )
    
    
    11,253
    
    
    
    16,682
    
    
    
    85,578
    
    
    
    64,693
    
    
    
    (23,356
    )
    
    
    126,915Interest expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    77,562
    
    
    
    80,963
    
    
    
    (36,835
    )(d)
    
    
    121,690Pretax earnings (loss)
    
    
    (35,950
    )
    
    
    11,253
    
    
    
    16,682
    
    
    
    8,016
    
    
    
    (16,270
    )
    
    
    13,479
    
    
    
    5,225Income tax benefit (expense)
    
    
    12,508
    
    
    
    (4,493
    )
    
    
    
    
    
    
    (12,063
    )
    
    
    4,719
    
    
    
    (733
    )
    
    
    (8,077
    )Net earnings (loss)
    
    
    (23,442
    )
    
    
    6,760
    
    
    
    16,682
    
    
    
    (4,047
    )
    
    
    (11,551
    )
    
    
    12,746
    
    
    
    (2,852
    )Less: Preferred stock dividends
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (12,963
    )
    
    
    
    
    
    
    
    
    
    
    (12,963
    )Earnings (loss) available to
common shareholders
    
    $
    (23,442
    )
    
    $
    6,760
    
    
    $
    16,682
    
    
    $
    (17,010
    )
    
    $
    (11,551
    )
    
    $
    12,746
    
    
    $
    (15,815
    )
   (a)
    
    Balances for the year ended December 31, 2003(b)
    
    Eliminate intercompany lease income(c)
    
    Eliminate intercompany premiums(d)
    
    Eliminate intercompany interest on debt(e)
    
    Eliminate gain on sale of surplus property from
U-Haul to SAC(f)
    
    Eliminate equity earnings of subsidiaries F-43




---



##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 21A: Financial Information by Consolidating Industry Segment   Continued: Consolidating income statements by industry segment for period ending
March 31, 2003 are as follows Obligated GroupObligatedReal
    
    
    
    
    
    GrpAMERCO
    
    U-Haul
    
    Estate
    
    Elim
    
    Cons(In thousands)Revenues:Rental revenue
    
    $
    
    
    
    $
    1,433,442
    
    
    $
    59,162
    
    
    $
    (60,116
    )(b)
    
    $
    1,432,488Net sales
    
    
    
    
    
    
    174,065
    
    
    
    56
    
    
    
    
    
    
    
    174,121Premiums
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net investment and interest income
    
    
    1,195
    
    
    
    29,358
    
    
    
    10,695
    
    
    
    
    
    
    
    41,248Total revenues
    
    
    1,195
    
    
    
    1,636,865
    
    
    
    69,913
    
    
    
    (60,116
    )
    
    
    1,647,857Costs and expenses:Operating expenses
    
    
    36,934
    
    
    
    1,029,774
    
    
    
    8,041
    
    
    
    (60,116
    )(b)
    
    
    1,014,633Commission expenses
    
    
    
    
    
    
    164,508
    
    
    
    
    
    
    
    
    
    
    
    164,508Cost of sales
    
    
    
    
    
    
    93,735
    
    
    
    21
    
    
    
    
    
    
    
    93,756Benefits and losses
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Amortization of deferred policy acquisition
costs
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Lease expense
    
    
    927
    
    
    
    165,020
    
    
    
    640
    
    
    
    
    
    
    
    166,587Depreciation, net
    
    
    15
    
    
    
    112,815
    
    
    
    5,169
    
    
    
    
    
    
    
    117,999Restructuring expenses
    
    
    6,568
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,568Total costs and expenses
    
    
    44,444
    
    
    
    1,565,852
    
    
    
    13,871
    
    
    
    (60,116
    )
    
    
    1,564,051Equity in earnings of AREC, UHI, RW & OLIC
    
    
    52,951
    
    
    
    
    
    
    
    
    
    
    
    (59,199
    )(e)
    
    
    (6,248
    )Equity in
earnings of SAC Holdings
    
    
    (8,697
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (8,697
    )Total  equity earnings in subsidiaries
    
    
    44,254
    
    
    
    
    
    
    
    
    
    
    
    (59,199
    )
    
    
    (14,945
    )Earnings (losses) from operations
    
    
    1,005
    
    
    
    71,013
    
    
    
    56,042
    
    
    
    (59,199
    )
    
    
    68,861Interest expense
    
    
    42,713
    
    
    
    9,991
    
    
    
    23,652
    
    
    
    
    
    
    
    76,356Fees on early termination of BBATS
    
    
    26,500
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    26,500Pretax earnings (loss)
    
    
    (68,208
    )
    
    
    61,022
    
    
    
    32,390
    
    
    
    (59,199
    )
    
    
    (33,995
    )Income tax benefit (expense)
    
    
    41,296
    
    
    
    (21,211
    )
    
    
    (13,002
    )
    
    
    
    
    
    
    7,083Net earnings (loss)
    
    
    (26,912
    )
    
    
    39,811
    
    
    
    19,388
    
    
    
    (59,199
    )
    
    
    (26,912
    )Less: Preferred stock dividends
    
    
    (12,963
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (12,963
    )Earnings (loss) available to common shareholders
    
    $
    (39,875
    )
    
    $
    39,811
    
    
    $
    19,388
    
    
    $
    (59,199
    )
    
    $
    (39,875
    )
   [Continued from above table, first column(s) repeated] AMERCO Legal Group
    
    AMERCO as ConsolidatedProperty
    
    
    
    
    
    
    
    
    
    
    
    
    
    SACand
    
    
    
    
    
    
    
    
    
    
    
    
    
    MovingCasualty
    
    Life
    
    
    
    
    
    
    
    
    
    andInsurance
    
    Insurance
    
    
    
    
    
    AMERCO
    
    Storage
    
    
    
    
    
    Total(a)
    
    (a)
    
    Elim
    
    Consolidated
    
    Operations
    
    Elim
    
    Consolidated(In thousands)Revenues:Rental revenue
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    1,432,488
    
    
    $
    168,027
    
    
    $
    (40,510
    )(b)
    
    $
    1,560,005Net sales
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    174,121
    
    
    
    48,768
    
    
    
    
    
    
    
    222,889Premiums
    
    
    152,618
    
    
    
    161,398
    
    
    
    
    
    
    
    314,016
    
    
    
    
    
    
    
    
    
    
    
    314,016Net investment and interest income
    
    
    22,318
    
    
    
    13,891
    
    
    
    (6,091
    )
    
    
    71,366
    
    
    
    
    
    
    
    (35,889
    )
    
    
    35,477Total revenues
    
    
    174,936
    
    
    
    175,289
    
    
    
    (6,091
    )
    
    
    1,991,991
    
    
    
    216,795
    
    
    
    (76,399
    )
    
    
    2,132,387Costs and expenses:Operating expenses
    
    
    36,958
    
    
    
    40,549
    
    
    
    (6,091
    )
    
    
    1,086,049
    
    
    
    105,287
    
    
    
    (12,342
    )
    
    
    1,178,994Commission expenses
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    164,508
    
    
    
    
    
    
    
    (27,681
    )
    
    
    136,827Cost of sales
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    93,756
    
    
    
    21,359
    
    
    
    
    
    
    
    115,115Benefits and losses
    
    
    128,680
    
    
    
    115,628
    
    
    
    
    
    
    
    244,308
    
    
    
    
    
    
    
    
    
    
    
    244,308Amortization of deferred policy acquisition
costs
    
    
    17,281
    
    
    
    20,538
    
    
    
    
    
    
    
    37,819
    
    
    
    
    
    
    
    
    
    
    
    37,819Lease expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    166,587
    
    
    
    
    
    
    
    (487
    )(b)
    
    
    166,100Depreciation, net
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    117,999
    
    
    
    21,373
    
    
    
    (1,926
    )(d)
    
    
    137,446Restructuring expenses
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,568
    
    
    
    
    
    
    
    
    
    
    
    6,568Total costs and expenses
    
    
    182,919
    
    
    
    176,715
    
    
    
    (6,091
    )
    
    
    1,917,594
    
    
    
    148,019
    
    
    
    (42,436
    )
    
    
    2,023,177Equity in earnings of AREC, UHI, RW & OLIC
    
    
    
    
    
    
    
    
    
    
    6,248
    (e)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Equity in
earnings of SAC Holdings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (8,697
    )
    
    
    
    
    
    
    8,697
    (e)
    
    
    Total  equity earnings in subsidiaries
    
    
    
    
    
    
    
    
    
    
    6,248
    
    
    
    (8,697
    )
    
    
    
    
    
    
    8,697
    
    
    
    Earnings (losses) from operations
    
    
    (7,983
    )
    
    
    (1,426
    )
    
    
    6,248
    
    
    
    65,700
    
    
    
    68,776
    
    
    
    (25,266
    )
    
    
    109,210Interest expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    76,356
    
    
    
    81,164
    
    
    
    (35,889
    )(c)
    
    
    121,631Fees on early termination of BBATS
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    26,500
    
    
    
    
    
    
    
    
    
    
    
    26,500Pretax earnings (loss)
    
    
    (7,983
    )
    
    
    (1,426
    )
    
    
    6,248
    
    
    
    (37,156
    )
    
    
    (12,388
    )
    
    
    10,623
    
    
    
    (38,921
    )Income tax benefit (expense)
    
    
    2,612
    
    
    
    549
    
    
    
    
    
    
    
    10,244
    
    
    
    3,691
    
    
    
    
    
    
    
    13,935Net earnings (loss)
    
    
    (5,371
    )
    
    
    (877
    )
    
    
    6,248
    
    
    
    (26,912
    )
    
    
    (8,697
    )
    
    
    10,623
    
    
    
    (24,986
    )Less: Preferred stock dividends
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (12,963
    )
    
    
    
    
    
    
    
    
    
    
    (12,963
    )Earnings (loss) available to common shareholders
    
    $
    (5,371
    )
    
    $
    (877
    )
    
    $
    6,248
    
    
    $
    (39,875
    )
    
    $
    (8,697
    )
    
    $
    10,623
    
    
    $
    (37,949
    )
   (a)
    
    Balances for the year ended December 31, 2002(b)
    
    Eliminate intercompany lease income(c)
    
    Eliminate intercompany interest on debt(d)
    
    Eliminate gain on sale of surplus property from
U-Haul to SAC(e)
    
    Eliminate equity earnings of subsidiaries F-44




---



##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 21A: Financial Information by Consolidating Industry Segment  Continued: Consolidating income statements by industry segment for period ending
March 31, 2002 are as follows Obligated GroupObligatedReal
    
    
    
    
    
    GrpAMERCO
    
    U-Haul
    
    Estate
    
    Elim
    
    Cons(In thousands)Revenues:Rental revenue
    
    $
    
    
    
    $
    1,425,685
    
    
    $
    68,245
    
    
    $
    (64,325
    )(b)
    
    $
    1,429,605Net sales
    
    
    
    
    
    
    198,312
    
    
    
    55
    
    
    
    
    
    
    
    198,367Premiums
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net investment and interest income
    
    
    873
    
    
    
    22,686
    
    
    
    8,321
    
    
    
    
    
    
    
    31,880Total revenues
    
    
    873
    
    
    
    1,646,683
    
    
    
    76,621
    
    
    
    (64,325
    )
    
    
    1,659,852Costs and expenses:Operating expenses
    
    
    8,945
    
    
    
    1,088,390
    
    
    
    6,147
    
    
    
    (64,325
    )(b)
    
    
    1,039,157Restructuring expenses
Commission expenses
    
    
    
    
    
    
    153,465
    
    
    
    
    
    
    
    
    
    
    
    153,465Cost of sales
    
    
    
    
    
    
    110,449
    
    
    
    24
    
    
    
    
    
    
    
    110,473Benefits and losses
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Amortization of deferred policy acquisition
costs
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Lease expense
    
    
    918
    
    
    
    171,656
    
    
    
    632
    
    
    
    
    
    
    
    173,206Depreciation, net
    
    
    (500
    )
    
    
    92,351
    
    
    
    (2,039
    )
    
    
    
    
    
    
    89,812Total costs and expenses
    
    
    9,363
    
    
    
    1,616,311
    
    
    
    4,764
    
    
    
    (64,325
    )
    
    
    1,566,113Equity in earnings of AREC, UHI, RW & OLIC
    
    
    (10,495
    )
    
    
    
    
    
    
    
    
    
    
    (35,036
    )(f)
    
    
    (45,531
    )Equity in earnings of SAC
    
    
    (14,025
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (14,025
    )Total  equity earnings in subsidiaries
    
    
    (24,520
    )
    
    
    
    
    
    
    
    
    
    
    (35,036
    )
    
    
    (59,556
    )Earnings (losses) from operations
    
    
    (33,010
    )
    
    
    30,372
    
    
    
    71,857
    
    
    
    (35,036
    )
    
    
    34,183Interest expense
    
    
    30,773
    
    
    
    11,675
    
    
    
    34,299
    
    
    
    
    
    
    
    76,747Pretax earnings (loss)
    
    
    (63,783
    )
    
    
    18,697
    
    
    
    37,558
    
    
    
    (35,036
    )
    
    
    (42,564
    )Income tax benefit (expense)
    
    
    14,417
    
    
    
    (6,117
    )
    
    
    (15,102
    )
    
    
    
    
    
    
    (6,802
    )Net earnings (loss)
    
    
    (49,366
    )
    
    
    12,580
    
    
    
    22,456
    
    
    
    (35,036
    )
    
    
    (49,366
    )Less: Preferred stock dividends
    
    
    (12,963
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (12,963
    )Earnings (loss) available to common shareholders
    
    $
    (62,329
    )
    
    $
    12,580
    
    
    $
    22,456
    
    
    $
    (35,036
    )
    
    $
    (62,329
    )
   [Continued from above table, first column(s) repeated] AMERCO Legal Group
    
    AMERCO as ConsolidatedProperty
    
    
    
    
    
    
    
    
    
    
    
    
    
    SACand
    
    
    
    
    
    
    
    
    
    
    
    
    
    MovingCasualty
    
    Life
    
    
    
    
    
    
    
    
    
    andInsurance
    
    Insurance
    
    
    
    
    
    AMERCO
    
    Storage
    
    
    
    
    
    Total(a)
    
    (a)
    
    Elim
    
    Consolidated
    
    Operations
    
    Elim
    
    Consolidated(In thousands)Revenues:Rental revenue
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    1,429,605
    
    
    $
    112,747
    
    
    $
    (30,102
    )(b)
    
    $
    1,512,250Net sales
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    198,367
    
    
    
    24,449
    
    
    
    
    
    
    
    222,816Premiums
    
    
    261,975
    
    
    
    159,380
    
    
    
    (10,185
    )(c)
    
    
    411,170
    
    
    
    
    
    
    
    
    
    
    
    411,170Net investment and interest income
    
    
    20,651
    
    
    
    23,175
    
    
    
    
    
    
    
    75,706
    
    
    
    
    
    
    
    (28,363
    )
    
    
    47,343Total revenues
    
    
    282,626
    
    
    
    182,555
    
    
    
    (10,185
    )
    
    
    2,114,848
    
    
    
    137,196
    
    
    
    (58,465
    )
    
    
    2,193,579Costs and expenses:Operating expenses
    
    
    77,210
    
    
    
    37,473
    
    
    
    (10,185
    )(c)
    
    
    1,143,655
    
    
    
    68,223
    
    
    
    (7,948
    )(b)
    
    
    1,203,930Restructuring expenses
Commission expenses
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    153,465
    
    
    
    
    
    
    
    (13,023
    )
    
    
    140,442Cost of sales
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    110,473
    
    
    
    12,221
    
    
    
    
    
    
    
    122,694Benefits and losses
    
    
    255,756
    
    
    
    120,917
    
    
    
    
    
    
    
    376,673
    
    
    
    
    
    
    
    
    
    
    
    376,673Amortization of deferred policy acquisition
costs
    
    
    22,091
    
    
    
    18,583
    
    
    
    
    
    
    
    40,674
    
    
    
    
    
    
    
    
    
    
    
    40,674Lease expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    173,206
    
    
    
    
    
    
    
    (9,131
    )(b)
    
    
    164,075Depreciation, net
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    89,812
    
    
    
    15,071
    
    
    
    (1,926
    )(e)
    
    
    102,957Total costs and expenses
    
    
    355,057
    
    
    
    176,973
    
    
    
    (10,185
    )
    
    
    2,087,958
    
    
    
    95,515
    
    
    
    (32,028
    )
    
    
    2,151,445Equity in earnings of AREC, UHI, RW & OLIC
    
    
    
    
    
    
    
    
    
    
    45,531
    (f)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Equity in earnings of SAC
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (14,025
    )
    
    
    
    
    
    
    14,025
    (f)
    
    
    Total  equity earnings in subsidiaries
    
    
    
    
    
    
    
    
    
    
    45,531
    
    
    
    (14,025
    )
    
    
    
    
    
    
    14,025
    
    
    
    Earnings (losses) from operations
    
    
    (72,431
    )
    
    
    5,582
    
    
    
    45,531
    
    
    
    12,865
    
    
    
    41,681
    
    
    
    (12,412
    )
    
    
    42,134Interest expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    76,747
    
    
    
    61,081
    
    
    
    (28,363
    )
    
    
    109,465Pretax earnings (loss)
    
    
    (72,431
    )
    
    
    5,582
    
    
    
    45,531
    
    
    
    (63,882
    )
    
    
    (19,400
    )
    
    
    15,951
    
    
    
    (67,331
    )Income tax benefit (expense)
    
    
    23,736
    
    
    
    (2,418
    )
    
    
    
    
    
    
    14,516
    
    
    
    5,375
    
    
    
    
    
    
    
    19,891Net earnings (loss)
    
    
    (48,695
    )
    
    
    3,164
    
    
    
    45,531
    
    
    
    (49,366
    )
    
    
    (14,025
    )
    
    
    15,951
    
    
    
    (47,440
    )Less: Preferred stock dividends
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (12,963
    )
    
    
    
    
    
    
    
    
    
    
    (12,963
    )Earnings (loss) available to common shareholders
    
    $
    (48,695
    )
    
    $
    3,164
    
    
    $
    45,531
    
    
    $
    (62,329
    )
    
    $
    (14,025
    )
    
    $
    15,951
    
    
    $
    (60,403
    )
   (a)
    
    Balances for the year ended December 31, 2001(b)
    
    Eliminate intercompany lease income(c)
    
    Eliminate intercompany premiums(d)
    
    Eliminate intercompany interest on debt(e)
    
    Eliminate gain on sale of surplus property from
U-Haul to SAC(f)
    
    Eliminate equity earnings of subsidiaries F-45




---



##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 21A: Financial Information by Consolidating Industry Segment  Continued: Consolidating cash flow statement by industry segment for period ending
March 31, 2004 are as follows Obligated GroupReal
    
    
    
    
    
    ObligatedAmerco
    
    U-Haul
    
    Estate
    
    Elim
    
    Group(In thousands)Net cash provided by (used in) operating activities
    
    $
    (13,512
    )
    
    
    210,875
    
    
    
    93,856
    
    
    
    
    
    
    
    291,219Cash flows from investing activities:Purchases of investments:Property, plant and equipment
    
    
    
    
    
    
    (188,521
    )
    
    
    (4,042
    )
    
    
    
    
    
    
    (192,563
    )Fixed maturities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Common stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other asset investments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Real estate
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Mortgage loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Proceeds from sale of investments:Property, plant and equipment
    
    
    45
    
    
    
    42,589
    
    
    
    11,022
    
    
    
    
    
    
    
    53,656Fixed maturities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Common stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Preferred stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Real estate
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Mortgage loans
    
    
    
    
    
    
    329
    
    
    
    1,153
    
    
    
    
    
    
    
    1,482Changes in other investments
    
    
    
    
    
    
    811
    
    
    
    
    
    
    
    
    
    
    
    811Net cash provided by (used in) investing activities
    
    
    45
    
    
    
    (144,792
    )
    
    
    8,133
    
    
    
    
    
    
    
    (136,614
    )Cash flows from financial activities:Net change in short-term borrowings
    
    
    165,041
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    165,041Proceeds from notes
    
    
    620,901
    
    
    
    
    
    
    
    4
    
    
    
    
    
    
    
    620,905Debt issuance costs
    
    
    (24,831
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (24,831
    )Leverage Employee Stock Ownership Plan:Repayments from loan
    
    
    (20
    )
    
    
    1,171
    
    
    
    
    
    
    
    
    
    
    
    1,151Principal payments on notes
    
    
    (762,907
    )
    
    
    (32,583
    )
    
    
    (101,506
    )
    
    
    
    
    
    
    (896,996
    )Preferred stock dividends paid
    
    
    (3,241
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,241
    )Investment contract deposits
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Investment contract withdrawals
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net cash provided by (used in) financing activities
    
    
    (5,057
    )
    
    
    (31,412
    )
    
    
    (101,502
    )
    
    
    
    
    
    
    (137,971
    )Increase (decrease) in cash equivalents
    
    
    (18,524
    )
    
    
    34,671
    
    
    
    487
    
    
    
    
    
    
    
    16,634Cash and cash equivalents at the beginning of period
    
    
    18,524
    
    
    
    30,046
    
    
    
    174
    
    
    
    
    
    
    
    48,744Cash and cash equivalents at the end of period
    
    
    
    
    
    
    64,717
    
    
    
    661
    
    
    
    
    
    
    
    65,378
   [Continued from above table, first column(s) repeated] AMERCO Legal Group
    
    AMERCO as ConsolidatedProperty
    
    
    
    
    
    
    
    
    
    
    
    
    
    SACand
    
    
    
    
    
    
    
    
    
    
    
    
    
    MovingCasualty
    
    Life
    
    
    
    
    
    
    
    
    
    andInsurance
    
    Insurance
    
    
    
    
    
    Amerco
    
    Storage
    
    
    
    
    
    Total(a)
    
    (a)
    
    Elim
    
    Consolidated
    
    Operations
    
    Elim
    
    Consolidated(In thousands)Net cash provided by (used in) operating activities
    
    
    (86,095
    )
    
    
    20,863
    
    
    
    (56,642
    )
    
    
    169,345
    
    
    
    (8,217
    )
    
    
    (201,453
    )
    
    
    (40,325
    )Cash flows from investing activities:Purchases of investments:Property, plant and equipment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (192,563
    )
    
    
    (5,880
    )
    
    
    
    
    
    
    (198,443
    )Fixed maturities
    
    
    (6,290
    )
    
    
    (71,094
    )
    
    
    
    
    
    
    (77,384
    )
    
    
    
    
    
    
    
    
    
    
    (77,384
    )Common stock
    
    
    
    
    
    
    (1,736
    )
    
    
    
    
    
    
    (1,736
    )
    
    
    
    
    
    
    
    
    
    
    (1,736
    )Other asset investments
    
    
    
    
    
    
    (174
    )
    
    
    
    
    
    
    (174
    )
    
    
    
    
    
    
    
    
    
    
    (174
    )Real estate
    
    
    (14,294
    )
    
    
    (2,862
    )
    
    
    
    
    
    
    (17,156
    )
    
    
    
    
    
    
    
    
    
    
    (17,156
    )Mortgage loans
    
    
    
    
    
    
    (450
    )
    
    
    
    
    
    
    (450
    )
    
    
    
    
    
    
    
    
    
    
    (450
    )Proceeds from sale of investments:Property, plant and equipment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    53,656
    
    
    
    9,519
    
    
    
    
    
    
    
    63,175Fixed maturities
    
    
    115,559
    
    
    
    127,931
    
    
    
    
    
    
    
    243,490
    
    
    
    
    
    
    
    
    
    
    
    243,490Common stock
    
    
    
    
    
    
    3,452
    
    
    
    
    
    
    
    3,452
    
    
    
    
    
    
    
    
    
    
    
    3,452Preferred stock
    
    
    
    
    
    
    16,882
    
    
    
    
    
    
    
    16,882
    
    
    
    
    
    
    
    
    
    
    
    16,882Real estate
    
    
    415
    
    
    
    5,923
    
    
    
    
    
    
    
    6,338
    
    
    
    
    
    
    
    
    
    
    
    6,338Mortgage loans
    
    
    
    
    
    
    14,892
    
    
    
    
    
    
    
    16,374
    
    
    
    
    
    
    
    
    
    
    
    16,374Changes in other investments
    
    
    (13,403
    )
    
    
    (43,239
    )
    
    
    56,642
    
    
    
    811
    
    
    
    
    
    
    
    
    
    
    
    811Net cash provided by (used in) investing activities
    
    
    81,987
    
    
    
    49,525
    
    
    
    56,642
    
    
    
    51,540
    
    
    
    3,639
    
    
    
    
    
    
    
    55,179Cash flows from financial activities:Net change in short-term borrowings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    165,041
    
    
    
    
    
    
    
    
    
    
    
    165,041Proceeds from notes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    620,905
    
    
    
    211,068
    
    
    
    
    
    
    
    831,973Debt issuance costs
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (24,831
    )
    
    
    
    
    
    
    
    
    
    
    (24,831
    )Leverage Employee Stock Ownership Plan:Repayments from loan
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,151
    
    
    
    
    
    
    
    
    
    
    
    1,151Principal payments on notes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (896,996
    )
    
    
    (210,141
    )
    
    
    201,453
    (b)
    
    
    (905,684
    )Preferred stock dividends paid
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,241
    )
    
    
    
    
    
    
    
    
    
    
    (3,241
    )Investment contract deposits
    
    
    
    
    
    
    50,990
    
    
    
    
    
    
    
    50,990
    
    
    
    
    
    
    
    
    
    
    
    50,990Investment contract withdrawals
    
    
    
    
    
    
    (115,530
    )
    
    
    
    
    
    
    (115,530
    )
    
    
    
    
    
    
    
    
    
    
    (115,530
    )Net cash provided by (used in) financing activities
    
    
    
    
    
    
    (64,540
    )
    
    
    
    
    
    
    (202,511
    )
    
    
    927
    
    
    
    201,453
    
    
    
    (131
    )Increase (decrease) in cash equivalents
    
    
    (4,108
    )
    
    
    5,848
    
    
    
    
    
    
    
    18,374
    
    
    
    (3,651
    )
    
    
    
    
    
    
    14,723Cash and cash equivalents at the beginning of period
    
    
    4,108
    
    
    
    9,320
    
    
    
    
    
    
    
    62,172
    
    
    
    4,662
    
    
    
    
    
    
    
    66,834Cash and cash equivalents at the end of period
    
    
    
    
    
    
    15,168
    
    
    
    
    
    
    
    80,546
    
    
    
    1,011
    
    
    
    
    
    
    
    81,557
   (a)
    
    Balances for the year ended December 31, 2003(b)
    
    Eliminate intercompany payments on debt F-46




---



##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 21A: Financial Information by Consolidating Industry Segment  Continued: Consolidating cash flow statements by industry segment for the year ended
March 31, 2003 are as follows: Obligated GroupReal
    
    
    
    
    
    ObligatedAmerco
    
    U-Haul
    
    Estate
    
    Elim
    
    Group(In thousands)Net cash provided by (used in) operating activities
    
    $
    200,516
    
    
    
    83,499
    
    
    
    (87,059
    )
    
    
    
    
    
    
    196,956Cash flows from investing activities:Purchases of investments:Property, plant and equipment
    
    
    (64
    )
    
    
    (182,409
    )
    
    
    (30,176
    )
    
    
    
    
    
    
    (212,649
    )Fixed maturities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Common stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Preferred stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other asset investments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Real estate
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Mortgage loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Proceeds from sale of investments:Property, plant and equipment
    
    
    
    
    
    
    85,289
    
    
    
    11,600
    
    
    
    
    
    
    
    96,889Fixed maturities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Common stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Preferred stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Real estate
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Mortgage loans
    
    
    
    
    
    
    73
    
    
    
    130
    
    
    
    
    
    
    
    203Changes in other investments
    
    
    
    
    
    
    
    
    
    
    4,481
    
    
    
    
    
    
    
    4,481Net cash provided by (used in) investing activities
    
    
    (64
    )
    
    
    (97,047
    )
    
    
    (13,965
    )
    
    
    
    
    
    
    (111,076
    )Cash flows from financial activities:Net change in short-term borrowings
    
    
    5,000
    
    
    
    16,900
    
    
    
    
    
    
    
    
    
    
    
    21,900Proceeds from notes
    
    
    257,007
    
    
    
    
    
    
    
    101,329
    
    
    
    
    
    
    
    358,336Debt issuance costs
    
    
    (2,330
    )
    
    
    
    
    
    
    (680
    )
    
    
    
    
    
    
    (3,010
    )Leverage Employee Stock Ownership Plan:Purchase of shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Repayments from loan
    
    
    
    
    
    
    975
    
    
    
    
    
    
    
    
    
    
    
    975Principal payments on notes
    
    
    (433,788
    )
    
    
    
    
    
    
    (27
    )
    
    
    
    
    
    
    (433,815
    )Preferred stock dividends paid
    
    
    (6,480
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (6,480
    )Treasury stock acquisitions, net
    
    
    (1,408
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,408
    )Dividends paid
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Investment contract deposits
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Investment contract withdrawals
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net cash provided by (used in) financing activities
    
    
    (181,999
    )
    
    
    17,875
    
    
    
    100,622
    
    
    
    
    
    
    
    (63,502
    )Increase (decrease) in cash equivalents
    
    
    18,453
    
    
    
    4,327
    
    
    
    (402
    )
    
    
    
    
    
    
    22,378Cash and cash equivalents at the beginning of
period
    
    
    71
    
    
    
    25,719
    
    
    
    576
    
    
    
    
    
    
    
    26,366Cash and cash equivalents at the end of period
    
    
    18,524
    
    
    
    30,046
    
    
    
    174
    
    
    
    
    
    
    
    48,744
   [Continued from above table, first column(s) repeated] AMERCO Legal Group
    
    AMERCO as ConsolidatedProperty
    
    
    
    
    
    
    
    
    
    
    
    
    
    SACand
    
    
    
    
    
    
    
    
    
    
    
    
    
    MovingCasualty
    
    Life
    
    
    
    
    
    
    
    
    
    andInsurance
    
    Insurance
    
    
    
    
    
    Amerco
    
    Storage
    
    
    
    
    
    Total(a)
    
    (a)
    
    Elim
    
    Consolidated
    
    Operations
    
    Elim
    
    Consolidated(In thousands)Net cash provided by (used in) operating activities
    
    
    (75,133
    )
    
    
    (17,982
    )
    
    
    (41,772
    )
    
    
    62,069
    
    
    
    13,472
    
    
    
    (1,011
    )
    
    
    74,530Cash flows from investing activities:Purchases of investments:Property, plant and equipment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (212,649
    )
    
    
    (30,512
    )
    
    
    
    
    
    
    (243,161
    )Fixed maturities
    
    
    (10,408
    )
    
    
    (267,949
    )
    
    
    
    
    
    
    (278,357
    )
    
    
    
    
    
    
    
    
    
    
    (278,357
    )Common stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Preferred stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other asset investments
    
    
    
    
    
    
    (18,910
    )
    
    
    17,500
    
    
    
    (1,410
    )
    
    
    
    
    
    
    
    
    
    
    (1,410
    )Real estate
    
    
    
    
    
    
    (21,759
    )
    
    
    
    
    
    
    (21,759
    )
    
    
    
    
    
    
    
    
    
    
    (21,759
    )Mortgage loans
    
    
    
    
    
    
    (22,000
    )
    
    
    22,000
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Proceeds from sale of investments:Property, plant and equipment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    96,889
    
    
    
    
    
    
    
    
    
    
    
    96,889Fixed maturities
    
    
    101,373
    
    
    
    262,741
    
    
    
    
    
    
    
    364,114
    
    
    
    
    
    
    
    
    
    
    
    364,114Common stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Preferred stock
    
    
    
    
    
    
    2,885
    
    
    
    
    
    
    
    2,885
    
    
    
    
    
    
    
    
    
    
    
    2,885Real estate
    
    
    
    
    
    
    22,043
    
    
    
    
    
    
    
    22,043
    
    
    
    
    
    
    
    
    
    
    
    22,043Mortgage loans
    
    
    561
    
    
    
    17,409
    
    
    
    
    
    
    
    18,173
    
    
    
    
    
    
    
    
    
    
    
    18,173Changes in other investments
    
    
    (18,197
    )
    
    
    (23,575
    )
    
    
    41,772
    
    
    
    4,481
    
    
    
    
    
    
    
    
    
    
    
    4,481Net cash provided by (used in) investing activities
    
    
    73,329
    
    
    
    (49,115
    )
    
    
    81,272
    
    
    
    (5,590
    )
    
    
    (30,512
    )
    
    
    
    
    
    
    (36,102
    )Cash flows from financial activities:Net change in short-term borrowings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    21,900
    
    
    
    
    
    
    
    
    
    
    
    21,900Proceeds from notes
    
    
    
    
    
    
    
    
    
    
    (39,500
    )
    
    
    318,836
    
    
    
    58,827
    
    
    
    (27,827
    )
    
    
    349,836Debt issuance costs
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,010
    )
    
    
    
    
    
    
    
    
    
    
    (3,010
    )Leverage Employee Stock Ownership Plan:Purchase of shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Repayments from loan
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    975
    
    
    
    
    
    
    
    
    
    
    
    975Principal payments on notes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (433,815
    )
    
    
    (37,135
    )
    
    
    28,838
    
    
    
    (442,112
    )Preferred stock dividends paid
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (6,480
    )
    
    
    
    
    
    
    
    
    
    
    (6,480
    )Treasury stock acquisitions, net
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,408
    )
    
    
    
    
    
    
    
    
    
    
    (1,408
    )Dividends paid
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Investment contract deposits
    
    
    
    
    
    
    165,281
    
    
    
    
    
    
    
    165,281
    
    
    
    
    
    
    
    
    
    
    
    165,281Investment contract withdrawals
    
    
    
    
    
    
    (98,022
    )
    
    
    
    
    
    
    (98,022
    )
    
    
    
    
    
    
    
    
    
    
    (98,022
    )Net cash provided by (used in) financing activities
    
    
    
    
    
    
    67,259
    
    
    
    (39,500
    )
    
    
    (35,743
    )
    
    
    21,692
    
    
    
    1,011
    
    
    
    (13,040
    )Increase (decrease) in cash equivalents
    
    
    (1,804
    )
    
    
    162
    
    
    
    
    
    
    
    20,736
    
    
    
    4,652
    
    
    
    
    
    
    
    25,388Cash and cash equivalents at the beginning of
period
    
    
    5,912
    
    
    
    9,158
    
    
    
    
    
    
    
    41,436
    
    
    
    10
    
    
    
    
    
    
    
    41,446Cash and cash equivalents at the end of period
    
    
    4,108
    
    
    
    9,320
    
    
    
    
    
    
    
    62,172
    
    
    
    4,662
    
    
    
    
    
    
    
    66,834
   (a)
    
    Balances for the year ended December 31, 2002 F-47




---



##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 21A: Financial Information by Consolidating Industry Segment  Continued: Consolidating cash flow statements by industry segment for the year ended
March 31, 2002 are as follows: Obligated GroupReal
    
    
    
    
    
    ObligatedAmerco
    
    U-Haul
    
    Estate
    
    Elim
    
    Group(In thousands)Net cash provided by (used in) operating activities
    
    $
    148,589
    
    
    $
    96,245
    
    
    $
    (144,082
    )
    
    $
    
    
    
    $
    100,752Cash flows from investing activities:Purchases of investments:Property, plant and equipment
    
    
    (12
    )
    
    
    (248,670
    )
    
    
    (32,327
    )
    
    
    
    
    
    
    (281,009
    )Fixed maturities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Common stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Preferred stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other asset investments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Real estate
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Mortgage loans
    
    
    
    
    
    
    
    
    
    
    (561
    )
    
    
    
    
    
    
    (561
    )Proceeds from sale of investments:Property, plant and equipment
    
    
    695
    
    
    
    143,317
    
    
    
    173,184
    
    
    
    
    
    
    
    317,196Fixed maturities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Common stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Preferred stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Real estate
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Mortgage loans
    
    
    
    
    
    
    268
    
    
    
    510
    
    
    
    
    
    
    
    778Changes in other investments
    
    
    
    
    
    
    
    
    
    
    2,897
    
    
    
    
    
    
    
    2,897Net cash provided by (used in) investing activities
    
    
    683
    
    
    
    (105,085
    )
    
    
    143,703
    
    
    
    
    
    
    
    39,301Cash flows from financial activities:Net change in short-term borrowings
    
    
    (24,070
    )
    
    
    14,793
    
    
    
    
    
    
    
    
    
    
    
    (9,277
    )Proceeds from notes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Debt issuance costs
    
    
    (390
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (390
    )Leverage Employee Stock Ownership Plan:
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Purchase of shares
    
    
    
    
    
    
    (72
    )
    
    
    
    
    
    
    
    
    
    
    (72
    )Repayments from loan
    
    
    
    
    
    
    1,093
    
    
    
    
    
    
    
    
    
    
    
    1,093Principal payments on notes
    
    
    (101,738
    )
    
    
    
    
    
    
    (33
    )
    
    
    
    
    
    
    (101,771
    )Preferred stock dividends paid
    
    
    (12,963
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (12,963
    )Treasury stock acquisitions, net
    
    
    (10,154
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (10,154
    )Dividends paid
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Investment contract deposits
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Investment contract withdrawals
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net cash provided by (used in) financing activities
    
    
    (149,315
    )
    
    
    15,814
    
    
    
    (33
    )
    
    
    
    
    
    
    (133,534
    )Increase (decrease) in cash equivalents
    
    
    (43
    )
    
    
    6,974
    
    
    
    (412
    )
    
    
    
    
    
    
    6,519Cash and cash equivalents at the beginning of
period
    
    
    114
    
    
    
    18,745
    
    
    
    988
    
    
    
    
    
    
    
    19,847Cash and cash equivalents at the end of period
    
    $
    71
    
    
    $
    25,719
    
    
    $
    576
    
    
    $
    
    
    
    $
    26,366
   [Continued from above table, first column(s) repeated] AMERCO Legal Group
    
    AMERCO as ConsolidatedProperty
    
    
    
    
    
    
    
    
    
    
    
    
    
    SACand
    
    
    
    
    
    
    
    
    
    
    
    
    
    MovingCasualty
    
    Life
    
    
    
    
    
    
    
    
    
    andInsurance
    
    Insurance
    
    
    
    
    
    Amerco
    
    Storage
    
    
    
    
    
    Total(a)
    
    (a)
    
    Elim
    
    Consolidated
    
    Operations
    
    Elim
    
    Consolidated(In thousands)Net cash provided by (used in) operating activities
    
    $
    (61,537
    )
    
    $
    (5,150
    )
    
    $
    492
    
    
    $
    34,557
    
    
    $
    (1,346
    )
    
    $
    (52,842
    )(c)
    
    $
    (19,631
    )Cash flows from investing activities:Purchases of investments:Property, plant and equipment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (281,009
    )
    
    
    (378,873
    )
    
    
    278,399
    (c)
    
    
    (381,483
    )Fixed maturities
    
    
    (8,888
    )
    
    
    (248,671
    )
    
    
    
    
    
    
    (257,559
    )
    
    
    
    
    
    
    
    
    
    
    (257,559
    )Common stock
    
    
    
    
    
    
    (418
    )
    
    
    
    
    
    
    (418
    )
    
    
    
    
    
    
    
    
    
    
    (418
    )Preferred stock
    
    
    
    
    
    
    (2,072
    )
    
    
    
    
    
    
    (2,072
    )
    
    
    
    
    
    
    
    
    
    
    (2,072
    )Other asset investments
    
    
    
    
    
    
    (2,259
    )
    
    
    
    
    
    
    (2,259
    )
    
    
    
    
    
    
    
    
    
    
    (2,259
    )Real estate
    
    
    4,312
    
    
    
    (35
    )
    
    
    
    
    
    
    4,277
    
    
    
    
    
    
    
    
    
    
    
    4,277Mortgage loans
    
    
    
    
    
    
    (790
    )
    
    
    
    
    
    
    (1,351
    )
    
    
    
    
    
    
    
    
    
    
    (1,351
    )Proceeds from sale of investments:Property, plant and equipment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    317,196
    
    
    
    53,214
    
    
    
    (141,035
    )(c)
    
    
    229,375Fixed maturities
    
    
    64,732
    
    
    
    168,984
    
    
    
    
    
    
    
    233,716
    
    
    
    
    
    
    
    
    
    
    
    233,716Common stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Preferred stock
    
    
    
    
    
    
    4,400
    
    
    
    
    
    
    
    4,400
    
    
    
    
    
    
    
    
    
    
    
    4,400Real estate
    
    
    2,662
    
    
    
    1,038
    
    
    
    
    
    
    
    3,700
    
    
    
    
    
    
    
    
    
    
    
    3,700Mortgage loans
    
    
    2
    
    
    
    17,910
    
    
    
    
    
    
    
    18,690
    
    
    
    
    
    
    
    
    
    
    
    18,690Changes in other investments
    
    
    1,566
    
    
    
    (8,575
    )
    
    
    7,009
    
    
    
    2,897
    
    
    
    
    
    
    
    
    
    
    
    2,897Net cash provided by (used in) investing activities
    
    
    64,386
    
    
    
    (70,488
    )
    
    
    7,009
    
    
    
    40,208
    
    
    
    (325,659
    )
    
    
    137,364
    
    
    
    (148,087
    )Cash flows from financial activities:Net change in short-term borrowings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (9,277
    )
    
    
    
    
    
    
    
    
    
    
    (9,277
    )Proceeds from notes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    526,292
    
    
    
    (278,399
    )(b)
    
    
    247,893Debt issuance costs
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (390
    )
    
    
    
    
    
    
    
    
    
    
    (390
    )Leverage Employee Stock Ownership Plan:Purchase of shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (72
    )
    
    
    
    
    
    
    
    
    
    
    (72
    )Repayments from loan
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,093
    
    
    
    
    
    
    
    
    
    
    
    1,093Principal payments on notes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (101,771
    )
    
    
    (199,287
    )
    
    
    193,877
    (b)
    
    
    (107,181
    )Preferred stock dividends paid
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (12,963
    )
    
    
    
    
    
    
    
    
    
    
    (12,963
    )Treasury stock acquisitions, net
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (10,154
    )
    
    
    
    
    
    
    
    
    
    
    (10,154
    )Dividends paid
    
    
    
    
    
    
    7,501
    
    
    
    (7,501
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Investment contract deposits
    
    
    
    
    
    
    150,432
    
    
    
    
    
    
    
    150,432
    
    
    
    
    
    
    
    
    
    
    
    150,432Investment contract withdrawals
    
    
    
    
    
    
    (99,845
    )
    
    
    
    
    
    
    (99,845
    )
    
    
    
    
    
    
    
    
    
    
    (99,845
    )Net cash provided by (used in) financing activities
    
    
    
    
    
    
    58,088
    
    
    
    (7,501
    )
    
    
    (82,947
    )
    
    
    327,005
    
    
    
    (84,522
    )
    
    
    159,536Increase (decrease) in cash equivalents
    
    
    2,849
    
    
    
    (17,550
    )
    
    
    
    
    
    
    (8,182
    )
    
    
    
    
    
    
    
    
    
    
    (8,182
    )Cash and cash equivalents at the beginning of
period
    
    
    3,063
    
    
    
    26,708
    
    
    
    
    
    
    
    49,618
    
    
    
    10
    
    
    
    
    
    
    
    49,628Cash and cash equivalents at the end of period
    
    $
    5,912
    
    
    $
    9,158
    
    
    $
    
    
    
    $
    41,436
    
    
    $
    10
    
    
    $
    
    
    
    $
    41,446
   (a)
    
    Balances for the year ended December 31, 2001(b)
    
    Eliminate intercompany payments on debt(c)
    
    Eliminate sale of properties from U-Haul to SAC F-48




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##### Table of Contents



AMERCO AND CONSOLIDATED ENTITIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED) Note 22. Supplemental Cash Flow Information The (increase) decrease in receivables, and inventories and increase
(decrease) in accounts payable and accrued expenses net of other operating and
investing activities follows: Year Ended
    
    2004
    
    2003
    
    2002(In thousands)Trade receivables, net
    
    $
    6,616
    
    
    $
    11,133
    
    
    $
    (26,778
    )Inventories
    
    
    468
    
    
    
    12,506
    
    
    
    8,643Prepaid expenses
    
    
    8,674
    
    
    
    (6,567
    )
    
    
    (6,577
    )Deferred income taxes
    
    
    96,042
    
    
    
    (26,197
    )
    
    
    (26,303
    )Accounts payable and accrued expenses
    
    
    (133,127
    )
    
    
    28,143
    
    
    
    5,473Deferred income
    
    $
    10,996
    
    
    $
    (2,871
    )
    
    $
    (4,771
    )
 Note 23: Subsequent Events W.P. Carey Transaction In July and September, 1999 AMERCO, U-Haul International, Inc. and Amerco
Real Estate Company entered into financing agreements for the purchase and
construction of self-storage facilities with the Bank of Montreal and Citibank,
respectively (the synthetic leases). As part of the Companys overall plan of reorganization, these leases were
amended and restated on March 15, 2004. As a result, the Company paid down
approximately $31 million of lease obligations and entered into a three year
lease term, with four one year renewal options. After such pay down, our lease
obligation under the amended and restated synthetic leases was approximately
$218.5 million. On March 31, 2004, the amended and restated leases were terminated, the
properties underlying these leases were sold to UH Storage (DE) Limited
Partnership, a W.P. Carey affiliate, and U-Haul entered into a ten year
operating lease with UH Storage (DE) for a portion of each property. The
remainder of each property was leased from UH Storage (DE) to a related party
pursuant to a twenty year capital lease. On March 31, 2004, these transactions
closed into escrow subject to transaction approval by our senior secured
lenders and the Bankruptcy Court. On April 29, 2004, the Bankruptcy Court and
our senior secured lenders approved the W.P. Carey transaction and the
transaction was funded as of April 30, 2004. The amended and restated terms of the synthetic lease caused it to become
a capital lease. Consequently, the Company capitalized these leased properties
as an asset and reported the corresponding lease obligation as a liability as
of March 31, 2004. As a result of the transaction with UH
Storage DE in April 2004, the
Company no longer has a capital lease related to these properties. The affect
of this transaction on our balance sheet is summarized below and is reflected
under the pro-forma column of our consolidated balance sheet on page F-2: AMERCO(In thousands)Cash
    
    $
    41,414Prepaid expense
    
    
    3,215Other assets
    
    
    27,850Building and improvement
    
    
    (192,779
    )Accumulated depreciation
    
    
    (22,804
    )Deferred income
    
    
    2,954Accounts
payable and accrued expenses
    
    
    (841
    )Capital Leases
    
    
    (99,609
    )
 Preferred Stock
Dividends On May 5, 2004, the Board of Directors of AMERCO, the holding company for
U-Haul International, Inc., and other companies, declared a regular quarterly
cash dividend of $0.53125 per share on the Companys Series A, 8 1/2 percent
Preferred Stock. The dividend was paid June 1, 2004 to holders of
record on May 17, 2004. F-49




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##### Table of Contents



ADDITIONAL INFORMATION SUMMARY OF EARNINGS OF INDEPENDENT RENTAL FLEETS
Unaudited The following Summary of Earnings of Independent Rental Fleets is
presented for purposes of analysis and is not a required part of the basic
financial statements. 2004
    
    2003
    
    2002
    
    2001
    
    2000(In thousands, except earnings per $100 of average Investment)Earnings data (Note A):Fleet owner income:Credited to fleet owner gross rental income
    
    $
    739
    
    
    $
    823
    
    
    $
    1,028
    
    
    $
    1,350
    
    
    $
    1,977Credited to trailer accident fund (Notes D and E)
    
    
    46
    
    
    
    49
    
    
    
    61
    
    
    
    79
    
    
    
    114Total fleet owner income
    
    
    785
    
    
    
    872
    
    
    
    1,089
    
    
    
    1,429
    
    
    
    2,091Fleet owner operation expenses:Charged to fleet owner (Note C)
    
    
    437
    
    
    
    422
    
    
    
    532
    
    
    
    719
    
    
    
    999Charged to trailer accident fund (Notes D and E)
    
    
    8
    
    
    
    9
    
    
    
    15
    
    
    
    18
    
    
    
    23Total fleet owner operation expenses
    
    
    445
    
    
    
    431
    
    
    
    547
    
    
    
    737
    
    
    
    1,022Fleet owner earnings before trailer accident fund credit,
depreciation and income taxes
    
    
    304
    
    
    
    402
    
    
    
    496
    
    
    
    631
    
    
    
    978Trailer accident fund credit (Note D)
    
    
    36
    
    
    
    39
    
    
    
    46
    
    
    
    61
    
    
    
    91Net fleet owner earnings before depreciation and
income taxes
    
    
    340
    
    
    
    441
    
    
    
    542
    
    
    
    692
    
    
    
    1,069Investment data (Note A):Amount at end of year
    
    
    1,202
    
    
    
    1,389
    
    
    
    1,663
    
    
    
    2,046
    
    
    
    2,654Average amount during year
    
    
    1,296
    
    
    
    1,526
    
    
    
    1,855
    
    
    
    2,350
    
    
    
    3,574Net fleet owner earnings before depreciation and
income
taxes per $100 of average investment (Note B)
(unaudited)
    
    $
    18.84
    
    
    $
    19.95
    
    
    $
    20.06
    
    
    $
    23.38
    
    
    $
    28.12
 The accompanying notes are an integral part of this Summary of Earnings of Independent Rental Fleets. F-50




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##### Table of Contents



ADDITIONAL INFORMATION
NOTES TO SUMMARY OF EARNINGS OF INDEPENDENT RENTAL FLEETS (A) The accompanying Summary of Earnings of Independent Rental Fleets
includes the operations of rental equipment under the brand name of U-Haul
owned by independent fleet owners. Earnings data represent the aggregate
results of operations before depreciation and taxes. Investment data represent
the cost of the rental equipment and investments before accumulated
depreciation. Fleet owner income is based on Independent Rental Dealer reports of
rentals transacted through the day preceding the last Monday of each month and
received by U-Haul International, Inc. by the end of the month and U-Haul
Center reports of rentals transacted through the last day of each month.
Payments to fleet owners for trailers lost or retired from rental service as a
result of damage by accident have not been reflected in this summary because
such payments do not relate to earnings before depreciation and income taxes
but, rather, investment (depreciation). The investment data is based upon the cost of the rental equipment to the
fleet owners as reflected by sales records of the U-Haul manufacturing
facilities. (B) The summary of earnings data stated in terms of amount per $100 of
average investment represents the aggregate results of operations (earnings
data) divided by the average amount of investment during the periods. The
average amount of investment is based upon a simple average of the month-end
investment during each period. Average earnings data is not necessarily
representative of an individual fleet owners earnings. (C) A summary of operations expenses charged directly to independent fleet
owners follows: Years Ended March 31,2004
    
    2003
    
    2002
    
    2001
    
    2000(In thousands)Licenses
    
    $
    41
    
    
    $
    52
    
    
    $
    86
    
    
    $
    124
    
    
    $
    150Public liability insurance
    
    
    48
    
    
    
    53
    
    
    
    65
    
    
    
    87
    
    
    
    126Repairs and maintenance
    
    
    348
    
    
    
    317
    
    
    
    381
    
    
    
    508
    
    
    
    723$
    437
    
    
    $
    422
    
    
    $
    532
    
    
    $
    719
    
    
    $
    999
 (D) The fleet owners and subsidiary U-Haul rental companies forego normal
commissions on a portion of gross rental fees designated for transfer to the
Trailer Accident Fund. Trailer accident repair expenses, otherwise chargeable
to fleet owners, are paid from this Fund to the extent of the financial
resources of the Fund. The amounts designated Trailer Accident Fund credit in
the accompanying summary of earnings represents independent fleet owner
commissions foregone, which exceed expenses borne by the Fund. F-51




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##### Table of Contents



ADDITIONAL INFORMATION
NOTES TO SUMMARY OF EARNINGS OF INDEPENDENT RENTAL FLEETS  (CONTINUED) (E) Commissions foregone for transfer to the Trailer Accident Fund follow: Fleet OwnersSubsidiaryU-Haul
    
    SubsidiaryCompanies
    
    Companies
    
    Independent
    
    Total(In thousands)Year ended:March 31, 2004
    
    $
    7,704
    
    
    $
    4,102
    
    
    $
    46
    
    
    $
    11,852March 31, 2003
    
    
    6,845
    
    
    
    3,637
    
    
    
    49
    
    
    
    10,531March 31, 2002
    
    
    6,385
    
    
    
    3,377
    
    
    
    61
    
    
    
    9,823March 31, 2001
    
    
    6,073
    
    
    
    3,191
    
    
    
    79
    
    
    
    9,343March 31, 2000
    
    $
    6,061
    
    
    $
    3,150
    
    
    $
    114
    
    
    $
    9,325
 (F) A summary of independent fleet owner expenses borne by the Trailer
Accident Fund follows: Fleet Owners
    
    TotalTrailerSubsidiary
    
    
    
    
    
    
    
    
    
    
    
    
    
    Trailer
    
    AccidentU-Haul
    
    Subsidiary
    
    
    
    
    
    Sub
    
    Accident
    
    RepairCompanies
    
    Companies
    
    Independent
    
    Total
    
    Retirements
    
    Expenses(In thousands)Year ended:March 31, 2004
    
    $
    1,366
    
    
    $
    727
    
    
    $
    8
    
    
    $
    2,101
    
    
    $
    466
    
    
    $
    2,567March 31, 2003
    
    
    1,095
    
    
    
    582
    
    
    
    8
    
    
    
    1,685
    
    
    
    394
    
    
    
    2,079March 31, 2002
    
    
    1,225
    
    
    
    647
    
    
    
    12
    
    
    
    1,884
    
    
    
    455
    
    
    
    2,339March 31, 2001
    
    
    1,067
    
    
    
    561
    
    
    
    18
    
    
    
    1,646
    
    
    
    498
    
    
    
    2,144March 31, 2000
    
    $
    1,233
    
    
    $
    641
    
    
    $
    23
    
    
    $
    1,897
    
    
    $
    354
    
    
    $
    2,251
 F-52




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##### Table of Contents



SCHEDULE I CONDENSED FINANCIAL INFORMATION OF AMERCO
BALANCE SHEETS March 31,2004
    
    2003(In thousands)ASSETSCash
    
    $
    
    
    
    $
    18,524Investment in subsidiaries
    
    
    1,125,152
    
    
    
    995,818Due from consolidated subsidiaries
    
    
    531,599
    
    
    
    594,686Other assets
    
    
    26,001
    
    
    
    12,429Total assets
    
    
    1,682,752
    
    
    
    1,621,457LIABILITIES AND STOCKHOLDERS EQUITYLiabilities:Notes and loans payable
    
    $
    884,193
    
    
    $
    861,158Other liabilities
    
    
    244,427
    
    
    
    262,8051,128,620
    
    
    
    1,123,963Stockholders equity:Preferred stock
    
    
    
    
    
    
    Common stock
    
    
    10,497
    
    
    
    10,497Additional paid-in capital
    
    
    395,803
    
    
    
    399,315Accumulated other comprehensive income
    
    
    (21,446
    )
    
    
    (55,765
    )Retained earnings / (loss):Beginning of year
    
    
    561,606
    
    
    
    601,481Net earnings / (loss)
    
    
    (4,047
    )
    
    
    (26,912
    )Dividends accrued / paid
    
    
    29,811
    
    
    
    (12,963
    )587,370
    
    
    
    561,606Less:Cost of common shares in treasury
    
    
    (418,092
    )
    
    
    (418,179
    )Unearned employee stock ownership plan shares
    
    
    
    
    
    
    20Total stockholders equity
    
    
    554,132
    
    
    
    497,494Total liabilities and stockholders equity
    
    $
    1,682,752
    
    
    $
    1,621,457
 The accompanying notes are an integral part of these consolidated financial statements. F-53




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##### Table of Contents



CONDENSED FINANCIAL INFORMATION OF AMERCO
STATEMENTS OF OPERATIONS Years Ended March 31,2004
    
    2003
    
    2002(In thousands, except share and per share data)RevenuesNet interest income from subsidiaries
    
    $
    866
    
    
    $
    1,195
    
    
    $
    873ExpensesOperating expenses
    
    
    35,530
    
    
    
    36,934
    
    
    
    8,945Restructuring expenses
    
    
    44,097
    
    
    
    6,568Other expenses
    
    
    825
    
    
    
    942
    
    
    
    418Total expenses
    
    
    80,452
    
    
    
    44,444
    
    
    
    9,363Equity in earnings of unconsolidated
subsidiaries
    
    
    86,817
    
    
    
    44,254
    
    
    
    (24,520
    )Interest expenses
    
    
    56,968
    
    
    
    69,213
    
    
    
    30,773Income tax (expense) / benefit
    
    
    45,690
    
    
    
    41,296
    
    
    
    14,417Net earnings / (loss)
    
    
    (4,047
    )
    
    
    (26,912
    )
    
    
    (49,366
    )Less: preferred stock dividend
    
    
    (12,963
    )
    
    
    (12,963
    )
    
    
    (12,963
    )Earnings / (loss) available to common
shareholders
    
    
    (17,010
    )
    
    
    (39,875
    )
    
    
    (62,329
    )Earnings / (loss) per common share
(both basic and diluted):
    
    $
    (0.71
    )
    
    $
    (1.91
    )
    
    $
    (2.96
    )Weighted average common shares outstanding
    
    
    20,749,998
    
    
    
    20,824,618
    
    
    
    21,063,720
 The accompanying notes are an integral part of these consolidated financial statements. F-54




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##### Table of Contents



CONDENSED FINANCIAL INFORMATION OF AMERCO
STATEMENTS OF CASH FLOWS Year Ended March 31,2004
    
    2003
    
    2002(In thousands)Cash flow from operating activities:Net earnings / (loss)
    
    $
    (4,047
    )
    
    $
    (26,912
    )
    
    $
    (49,366
    )Amortization, net
    
    
    39
    
    
    
    1,752
    
    
    
    2,046Gain / (loss) on sale
    
    
    
    
    
    
    
    
    
    
    (559
    )Equity in earnings of subsidiaries
    
    
    
    
    
    
    
    
    
    
    (Increase) decrease in amounts due from unconsolidated
subsidiaries
    
    
    
    
    
    
    
    
    
    
    Net change in operating assets and liabilities
    
    
    (9,504
    )
    
    
    222,436
    
    
    
    196,468Net cash provided by operating activities
    
    
    (13,512
    )
    
    
    197,276
    
    
    
    148,589Cash flows from investing activities:Purchases of property, plant and equipment
    
    
    
    
    
    
    (64
    )
    
    
    (12
    )Proceeds from sale of property, plant and equipment
    
    
    45
    
    
    
    
    
    
    
    695Net cash used by investing activities
    
    
    45
    
    
    
    (64
    )
    
    
    683Cash flows from financing activities:Net change in short term borrowings
    
    
    165,041
    
    
    
    5,000
    
    
    
    (24,070
    )Proceeds from notes
    
    
    620,901
    
    
    
    257,007
    
    
    
    Leveraged employee stock ownership plan-repayments
from loan
    
    
    (20
    )
    
    
    
    
    
    
    Issuance of common shares under ESOP
    
    
    Treasury stock contributions
    
    
    Principal payments on notes
    
    
    (762,907
    )
    
    
    (433,788
    )
    
    
    (101,738
    )Debt issuance costs
    
    
    (24,831
    )
    
    
    (2,330
    )
    
    
    (390
    )Repurchase of preferred stock
    
    
    
    
    
    
    
    
    
    
    Preferred stock dividends paid
    
    
    (3,241
    )
    
    
    (3,240
    )
    
    
    (12,963
    )Treasury stock purchase, net
    
    
    
    
    
    
    (1,408
    )
    
    
    (10,154
    )Distributions
    
    
    
    
    
    
    
    
    
    
    Extraordinary loss on early extinguishment of debt, net
    
    
    
    
    
    
    
    
    
    
    Net cash used by financing activities
    
    
    (5,057
    )
    
    
    (178,759
    )
    
    
    (149,315
    )Effect of foreign currency translations
    
    
    Increase (decrease) in cash and cash equivalents
    
    
    (18,524
    )
    
    
    18,453
    
    
    
    (43
    )Cash and cash equivalents at beginning of year
    
    
    18,524
    
    
    
    71
    
    
    
    114Cash and cash equivalents at end of year
    
    $
    
    
    
    $
    18,524
    
    
    $
    71
 Income taxes paid in cash amounted to $4.0 million, $11.4 million and $5.9
million for 2004, 2003 and 2002, respectively. Interest paid in cash amounted
to $40.3 million, $76.6 million and $77.9 million for 2004, 2003 and 2002,
respectively. The accompanying notes are an integral part of these consolidated
financial statements. F-55




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##### Table of Contents



CONDENSED FINANCIAL INFORMATION OF AMERCO NOTES TO CONDENSED FINANCIAL INFORMATION
MARCH 31, 2004, 2003, AND 2002 1. Summary of Significant Accounting Policies AMERCO, a Nevada corporation, was incorporated in April, 1969, and is the
holding company for U-Haul International, Inc., Republic Western Insurance Company, Oxford
Life Insurance Company and Amerco Real Estate Company. The financial statements
of the Registrant should be read in conjunction with the Consolidated Financial
Statements and notes thereto included in this Form 10-K. AMERCO is included in a consolidated Federal income tax return with all of
its U.S. subsidiaries. Accordingly, the provision for income taxes has been
calculated for Federal income taxes of AMERCO and subsidiaries included in the
consolidated return of the Registrant. State taxes for all subsidiaries are
allocated to the respective subsidiaries. The financial statements include only the accounts of the Registrant (a
Nevada corporation), which include certain of the corporate operations of
AMERCO (excluding SAC Holdings). The interest in AMERCOs majority owned
subsidiaries and its interest in its variable interest entities is accounted
for on the equity method. The debt and related interest expense of AMERCO have
been allocated to the consolidated subsidiaries. The intercompany interest
income and expenses are eliminated in the consolidated financial statements. 2. Guarantees AMERCO has guaranteed performance of certain long-term leases and other
obligations. See Note 16 of Notes to Consolidated Financial Statements. F-56




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##### Table of Contents



CONDENSED FINANCIAL INFORMATION OF AMERCO NOTES TO CONDENSED FINANCIAL INFORMATION
MARCH 31, 2004 AND 2003 3. Notes and Loans Payable Notes and loans payable consist of the following: March 31,2004
    
    2003(In thousands)Revolving credit facility, senior secured first lien
    
    $
    164,051
    
    
    $
    Senior amortizing notes, secured, first lien, 9.0% interest rate,
due 2009
    
    
    350,000
    
    
    
    Senior notes, secured, 9.0% interest rate, due 2009
    
    
    200,000
    
    
    
    Senior notes, secured, 12.0% interest rate, due 2011
    
    
    148,646
    
    
    
    Medium-term notes, payable, unsecured, 7.23% to 8.08% interest
rate due through 2027
    
    
    
    
    
    
    109,500Notes payable under Bond Backed Asset Trust, unsecured, 7.14%
interest rates, due through 2002
    
    
    
    
    
    
    100,000Senior notes, unsecured, 7.85% interest rate, due 2003
    
    
    
    
    
    
    175,000Senior Note, unsecured, 8.80% interest rate, due 2005
    
    
    
    
    
    
    200,000Other notes payable, unsecured, 8.15% interest rate,
due through 2017
    
    
    21,496
    
    
    
    22,000Revolving credit facility, secured by intercompany notes
    
    
    
    
    
    
    205,000Debt related to SWAP termination
    
    
    
    
    
    
    5,582Debt related to BBAT option termination
    
    
    
    
    
    
    26,551Other short-term promissory notes, 2.88% interest rate
    
    
    
    
    
    
    17,525$
    884,193
    
    
    $
    861,158
 For additional information,
see Note 9 of Notes to Consolidated Financial Statements on page F-18. F-57




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##### Table of Contents



SCHEDULE V AMERCO AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL INFORMATION (FOR PROPERTY-CASUALTY INSURANCE UNDERWRITERS)
YEARS ENDED DECEMBER 31, 2003, 2002 AND 2001 ReservesDeferred
    
    for UnpaidPolicy
    
    Claims and
    
    Discount
    
    
    
    
    
    
    
    
    
    NetFiscal
    
    Affiliation with
    
    Acquisition
    
    Adjustment
    
    if any,
    
    Unearned
    
    Net Earned
    
    InvestmentYear
    
    Registrant
    
    Cost
    
    Expenses
    
    Deducted
    
    Premiums
    
    Premiums(1)
    
    Income(2)(In thousands)2004
    
    Consolidated
property
casualty entity
    
    $
    3,843
    
    
    $
    416,259
    
    
    N/A
    
    $
    11,308
    
    
    $
    92,035
    
    
    $
    20,5482003
    
    Consolidated
property
casualty entity
    
    
    13,206
    
    
    
    399,448
    
    
    N/A
    
    
    62,346
    
    
    
    149,209
    
    
    
    27,9312002
    
    Consolidated
property
casualty entity
    
    
    15,946
    
    
    
    448,984
    
    
    N/A
    
    
    91,725
    
    
    
    253,799
    
    
    
    27,876
   [Continued from above table, first column(s) repeated] Claim and ClaimAdjustmentExpenses Incurred
    
    Amortization
    
    PaidRelated to
    
    of Deferred
    
    Claims andPolicy
    
    Claim
    
    NetFiscal
    
    Affiliation with
    
    Current
    
    Prior
    
    Acquisition
    
    Adjustment
    
    PremuimsYear
    
    Registrant
    
    Year
    
    Year
    
    Costs
    
    Expense
    
    Written(1)(In thousands)2004
    
    Consolidated
property
casualty entity
    
    $
    56,454
    
    
    $
    53,127
    
    
    $
    14,126
    
    
    $
    123,782
    
    
    $
    57,0632003
    
    Consolidated
property
casualty entity
    
    
    112,284
    
    
    
    16,396
    
    
    
    17,143
    
    
    
    196,798
    
    
    
    120,9462002
    
    Consolidated
property
casualty entity
    
    
    232,984
    
    
    
    23,042
    
    
    
    22,067
    
    
    
    236,866
    
    
    
    227,378
   (1)
    
    The earned and written premiums are reported net of intersegment
transactions. Earned premiums eliminated in consolidation amount to $1.2
million, $3.4 million and $8.2 million for the years ended 2003, 2002 and
2001, respectively.(2)
    
    Net Investment Income excludes net realized gains (losses) on investments
of $1.2 million, ($5.6 million) and ($7.2 million) for the years ended
2003, 2002 and 2001, respectively. F-58




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##### Table of Contents



SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized. AMERCOBy:
    
    /s/ EDWARD J. SHOENEdward J. ShoenChairman of the Board and PresidentDated: June 17, 2004
 POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS,that each person whose signature appears
below constitutes and appoints Edward J. Shoen his true and lawful
attorney-in-fact and agent, with full power of substitution and resubstitution,
for him and in his name, place and stead, in any and all capacities, to sign
any and all amendments to this Form 10-K Annual Report, and to file the same,
with all exhibits thereto and other documents in connection therewith with the
Securities and Exchange Commission, granting unto said attorney-in-fact and
agent, full power and authority to do and perform each and every act or things
requisite and necessary to be done in and about the premises, as fully and to
all intents and purposes as he might or could do in person hereby ratifying and
confirming all that said attorney-in-fact and agent, or his substitute or
substitutes, may lawfully do or cause to be done by virtue hereof. Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated. Signature
    
    Title
    
    Date/s/           EDWARD J. SHOEN
Edward J. Shoen
    
    Chairman of the Board and President
(Principal Executive Officer)
    
    June 17, 2004/s/           JACK A. PETERSON
Jack A. Peterson
    
    Chief Financial Officer
(Principal Financial and Accounting Officer)
    
    June 17, 2004/s/           WILLIAM E. CARTY
William E. Carty
    
    Director
    
    June 17, 2004/s/           JAMES P. SHOEN
James P. Shoen
    
    Director
    
    June 17, 2004/s/           CHARLES J. BAYER
Charles J. Bayer
    
    Director
    
    June 17, 2004/s/           JOHN M. DODDS
John M. Dodds
    
    Director
    
    June 17, 2004/s/           JAMES J. GROGAN
James J. Grogan
    
    Director
    
    June 17, 2004/s/           JOHN P. BROGAN
John P. Brogan
    
    Director
    
    June 17, 2004/s/           M. FRANK LYONS
M. Frank Lyons
    
    Director
    
    June 17, 2004




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##### Table of Contents



SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized. U-HAUL INTERNATIONAL, INC.By:
    
    /s/ EDWARD J. SHOENEdward J. ShoenChairman of the Board and PresidentDated: June 17, 2004
 POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS,that each person whose signature appears
below constitutes and appoints Edward J. Shoen his true and lawful
attorney-in-fact and agent, with full power of substitution and resubstitution,
for him and in his name, place and stead, in any and all capacities, to sign
any and all amendments to this Form 10-K Annual Report, and to file the same,
with all exhibits thereto and other documents in connection therewith with the
Securities and Exchange Commission, granting unto said attorney-in-fact and
agent, full power and authority to do and perform each and every act or things
requisite and necessary to be done in and about the premises, as fully and to
all intents and purposes as he might or could do in person hereby ratifying and
confirming all that said attorney-in-fact and agent, or his substitute or
substitutes, may lawfully do or cause to be done by virtue hereof. Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated. Signature
    
    Title
    
    Date/s/           EDWARD J. SHOEN
Edward J. Shoen
    
    Chairman of the Board and President
(Principal Executive Officer)
    
    June 17, 2004/s/           JACK A. PETERSON
Jack A. Peterson
    
    Chief Financial Officer
(Principal Financial and Accounting Officer)
    
    June 17, 2004/s/           WILLIAM E. CARTY
William E. Carty
    
    Director
    
    June 17, 2004/s/           JAMES P. SHOEN
James P. Shoen
    
    Director
    
    June 17, 2004/s/           JOHN M. DODDS
John M. Dodds
    
    Director
    
    June 17, 2004/s/           JOHN C. TAYLOR
John C. Taylor
    
    Director
    
    June 17, 2004




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##### Table of Contents



EXHIBIT INDEX Exhibit Number
    
    Description
    
    Page or Method of Filing2.1
    
    Joint Plan of Reorganization of AMERCO and AMERCO
Real Estate Company
    
    Incorporated by
reference to AMERCOs
Current Report on Form
8-K filed October 20,
2003, file no. 1-112552.2
    
    Disclosure Statement Concerning the Debtors Joint
Plan of Reorganization
    
    Incorporated by
reference to AMERCOs
Current Report on Form
8-K filed October 20,
2003, file no. 1-112552.3
    
    Amended Joint Plan of Reorganization of AMERCO and
AMERCO Real Estate Company
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended December
31, 2003, file No.
1-112553.1
    
    Restated Articles of Incorporation of AMERCO
    
    Incorporated by
reference to AMERCOs
Current Report on the
S-4 filed March 30,
2004, file number
1-112553.2
    
    Restated By-Laws of AMERCO
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended September
30, 1996, file No.
1-112553.3
    
    Restated Articles of Incorporation of U-Haul
International, Inc.
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 2003, file
no. 1-112553.4
    
    Bylaws of U-Haul International, Inc.
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 2003, file
no. 1-112554.1
    
    Indenture, dated as of March 1, 2004, among
AMERCO, the subsidiary guarantors listed therein,
and Wells Fargo Bank, N.A.
    
    Incorporated by
reference to AMERCOs
Current Report on Form
8-K filed on March 26,
2004, file no. 1-11255.4.2
    
    Indenture dated as of March 15, 2004 among AMERCO,
the subsidiary guarantors listed therein, and The
Bank of New York
    
    Incorporated by
reference to AMERCOs
Current Report on Form
8-K filed on March 26,
2004, file no. 1-11255.4.3
    
    Indenture dated as of March 15, 2004 among SAC
Holding Corporation and SAC Holding II Corporation
and Law Debenture Trust Company of New York
    
    Incorporated by
reference to AMERCOs
Current Report on Form
8-K filed on March 26,
2004, file no. 1-11255.4.4
    
    Rights Agreement, dated as of August 7, 1998
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended June 30,
1998, file no. 1-1125510.1*
    
    AMERCO Employee Savings, Profit Sharing and
Employee Stock Ownership Plan
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 1993, file
no. 1-1125510.1A*
    
    First Amendment to the AMERCO Employee Savings,
Profit Sharing and Employee Stock Ownership Plan
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 2000, file
no. 1-1125510.2
    
    Loan and Security Agreement among AMERCO and Wells
Fargo Foothill, Inc., dated as of March 1, 2004
    
    Incorporated by
reference to AMERCOs
Current Report on Form
8-K filed on March 26,
2004, file no. 1-11255.10.3
    
    SAC Participation and Subordination Agreement,
dated as of March 15, 2004 among SAC Holding
Corporation, SAC Holding II Corporation, AMERCO,
U-Haul International, Inc., and Law Debenture
Trust Company of New York
    
    Incorporated by
reference to AMERCOs
Current Report on Form
8-K filed on March 26,
2004, file no. 1-11255.10.4
    
    Intercreditor Agreement, dated as of March 1,
2004, between Wells Fargo Bank, N.A. and Wells
Fargo Foothill, Inc.
    
    Incorporated by
reference to AMERCOs
Current Report on Form
8-K filed on March 26,
2004, file no. 1-11255.10.5
    
    U-Haul Dealership Contract
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 1993, file
no. 1-1125510.6
    
    Share Repurchase and Registration Rights Agreement
with Paul F. Shoen
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 1993, file
no. 1-1125510.7
    
    ESOP Loan Credit Agreement
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 1990, file
no. 1-1125510.8
    
    ESOP Loan Agreement
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 1990, file
no. 1-1125510.9
    
    Trust Agreement for the AMERCO Employee Savings,
Profit Sharing and Employee Stock Ownership Plan
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 1990, file
no. 1-11255




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##### Table of Contents



Exhibit Number
    
    Description
    
    Page or Method of Filing10.10
    
    Amended Indemnification Agreement
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 1990, file
no. 1-1125510.11
    
    Indemnification Trust Agreement
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 1990, file
no. 1-1125510.12
    
    Management Agreement between Three SAC
Self-Storage Corporation and subsidiaries of
AMERCO
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 1997, file
no. 1-1125510.13
    
    Management Agreement between Four SAC Self-Storage
Corporation and subsidiaries of AMERCO
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 1997, file
no. 1-1125510.14
    
    Agreement, dated October 17, 1995, among AMERCO,
Edward J. Shoen, James P. Shoen, Aubrey K.
Johnson, John M. Dodds and William E. Carty
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended September
30, 1995, file no.
1-1125510.15
    
    Directors Release, dated October 17, 1995,
executed by Edward J. Shoen, James P. Shoen,
Aubrey K. Johnson, John M. Dodds and William E.
Carty in favor of AMERCO
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended September
30, 1995, file no.
1-1125510.16
    
    AMERCO Release, dated October 17, 1995, executed
by AMERCO in favor of Edward J. Shoen, James P.
Shoen, Aubrey K. Johnson, John M. Dodds and
William E. Carty
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended September
30, 1995, file no.
1-1125510.17
    
    Management Agreement between Five SAC Self-Storage
Corporation and subsidiaries of AMERCO
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 1999, file
no. 1-1125510.18
    
    Management Agreement between Eight SAC
Self-Storage Corporation and subsidiaries of
AMERCO
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 1999, file
no. 1-1125510.19
    
    Management Agreement between Nine SAC Self-Storage
Corporation and subsidiaries of AMERCO
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 1999, file
no. 1-1125510.20
    
    Management Agreement between Ten SAC Self-Storage
Corporation and subsidiaries of AMERCO
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 1999, file
no. 1-1125510.21
    
    Management Agreement between Six-A SAC
Self-Storage Corporation and subsidiaries of
AMERCO
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 2000, file
no. 1-1125510.22
    
    Management Agreement between Six-B SAC
Self-Storage Corporation and subsidiaries of
AMERCO
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 2000, file
no. 1-1125510.23
    
    Management Agreement between Six-C SAC
Self-Storage Corporation and subsidiaries of
AMERCO
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 2000, file
no. 1-1125510.24
    
    Management Agreement between Eleven SAC
Self-Storage Corporation and subsidiaries of
AMERCO
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 2000, file
no. 1-1125510.25
    
    Management Agreement between Twelve SAC
Self-Storage Corporation and subsidiaries of
AMERCO
    
    Incorporated by
reference to AMERCOs
Form S-4 registration
statement, No.
333-11404210.26
    
    Management Agreement between Thirteen SAC
Self-Storage Corporation and subsidiaries of
AMERCO
    
    Incorporated by
reference to AMERCOs
Form S-4 registration
statement, No.
333-11404210.27
    
    Management Agreement between Fourteen SAC
Self-Storage Corporation and subsidiaries of
AMERCO
    
    Incorporated by
reference to AMERCOs
Form S-4 registration
statement, No.
333-11404210.28
    
    Management Agreement between Fifteen SAC
Self-Storage Corporation and subsidiaries of
AMERCO
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended December
31, 2000, file no.
1-1125510.29
    
    Management Agreement between Sixteen SAC
Self-Storage Corporation and subsidiaries of
AMERCO
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended December
31, 2000, file no.
1-1125510.30
    
    Management Agreement between Seventeen SAC
Self-Storage Corporation and subsidiaries of
AMERCO
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 2001, file
no. 1-1125510.31
    
    Management Agreement between Eighteen SAC
Self-Storage Corporation and U-Haul
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended September
30, 200210.32
    
    Management Agreement between Nineteen SAC
Self-Storage Limited Partnership and U-Haul
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended September
30, 2002




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##### Table of Contents



Exhibit Number
    
    Description
    
    Page or Method of Filing10.33
    
    Management Agreement between Twenty SAC
Self-Storage Corporation and U-Haul
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended September
30, 200210.34
    
    Management Agreement between Twenty-One SAC
Self-Storage Corporation and U-Haul
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended September
30, 200210.35
    
    Management Agreement between Twenty-Two SAC
Self-Storage Corporations and U-Haul
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended September
30, 200210.36
    
    Management Agreement between Twenty-Three SAC
Self-Storage Corporation and U-Haul
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended September
30, 200210.37
    
    Management Agreement between Twenty-Four SAC
Self-Storage Limited Partnership and U-Haul
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended September
30, 200210.38
    
    Management Agreement between Twenty-Five SAC
Self-Storage Limited Partnership and U-Haul
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended September
30, 200210.39
    
    Management Agreement between Twenty-Six SAC
Self-Storage Limited Partnership and U-Haul
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended September
30, 200210.40
    
    Management Agreement between Twenty-Seven SAC
Self-Storage Limited Partnership and U-Haul
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended September
30, 200210.41
    
    Promissory Note between SAC Holding Corporation
and Oxford Life Insurance Company
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended September
30, 200210.42
    
    Promissory Note between SAC Holding Corporation
and Oxford Life Insurance Company
    
    Incorporated by
reference to AMERCOs
Quarterly Report on
Form 10-Q for the
quarter ended September
30, 200210.42A
    
    Amendment and Addendum to Promissory Note between
SAC Holding Corporation and Oxford Life Insurance
Company
    
    Incorporated by
reference to AMERCOs
Form S-4 registration
statement, No.
373-11404210.43
    
    2003 AMERCO Support Party Agreement for the
benefit of GMAC Commercial Holding Capital Corp.
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 2003, file
no. 1-1125510.44
    
    State of Arizona Department of Insurance Notice of
Determination, Order for Supervision and Consent
Thereto
    
    Incorporated by
reference to AMERCOs
Annual Report on Form
10-K for the year ended
March 31, 2003, file
no. 1-1125510.45
    
    Fixed Rate Note between SAC Holding Corporation and
U-Haul International, Inc.
    
    Incorporated by
reference to AMERCOs
Form S-4 registration
statement, No.
333-11404210.46
    
    Promissory Note between SAC Holding Corporation and
U-Haul International, Inc.
    
    Incorporated by
reference to AMERCOs
Form S-4 registration
statement, No.
333-11404210.47
    
    Amended and Restated Promissory Note between SAC
Holding Corporation and U-Haul International, Inc.
(in an aggregate principal amount up to
$21,000,000)
    
    Incorporated by
reference to AMERCOs
Form S-4 registration
statement, No.
333-11404210.48
    
    Amended and Restated Promissory Note between SAC
Holding Corporation and U-Haul International, Inc.
(in an aggregate principal amount up to
$47,500,000)
    
    Incorporated by
reference to AMERCOs
Form S-4 registration
statement, No.
333-11404210.49
    
    Amended and Restated Promissory Note between SAC
Holding Corporation and U-Haul International, Inc.
(in an aggregate principal amount up to
$76,000,000)
    
    Incorporated by
reference to AMERCOs
Form S-4 registration
statement, No.
333-11404210.50
    
    Property Management Agreement
    
    Filed herewith14
    
    Code of Ethics
    
    Incorporated by
reference to AMERCOs
Current Report on Form
8-K, filed on May 5,
2004, file No.
1-1125521
    
    Subsidiaries of AMERCO
    
    Filed herewith23.1
    
    Consent of BDO Seidman, LLP
    
    Filed herewith24
    
    Power of Attorney
    
    See signature page31.1
    
    Rule 13a-14(a)/15d-14(a) Certificate of Edward J.
Shoen, President and Chairman of the Board of
AMERCO and U-Haul International, Inc.
    
    Filed herewith31.2
    
    Rule 13a-14(a)/15d-14(a) Certificate of Jack A.
Peterson, Chief Financial Officer of AMERCO and
U-Haul International, Inc.
    
    Filed herewith




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##### Table of Contents



Exhibit Number
    
    Description
    
    Page or Method of Filing32.1
    
    Certificate of Edward J. Shoen, President and
Chairman of the Board of AMERCO and U-Haul
International, Inc. pursuant to Section 906 of the
Sabanes-Oxley Act of 2002
    
    Filed herewith32.2
    
    Certificate of Jack A. Peterson, Chief Financial
Officer of AMERCO and U-Haul International, Inc.
pursuant to Section 906 of the Sabanes-Oxley Act
of 2002
    
    Filed herewith
   *
    
    Indicates compensatory plan arrangement.