Public Storage 1997 Annual Report Download - page 27

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Public Storage, Inc. 1997 Annual Report
Note 13. Recent Accounting Pronouncements
In June 1997, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards No. 130, “Reporting
Comprehensive Income” (“FAS 130”), which establishes standards for reporting and display of comprehensive income and its components.
This statement requires a separate statement to report the components of comprehensive income for each period reported. The provisions of
this statement are effective for fiscal years beginning after December 15, 1997. The Company will implement FAS 130 for the fiscal year
ended December 31, 1998, but the Company does not expect the impact of FAS 130 to be material.
In July 1997, the FASB issued Statement of Financial Accounting Standards No. 131, “Disclosures about Segments of an Enterprise and
Related Information” (“FAS 131”), which establishes standards for the way that public business enterprises report information about operating
segments in annual financial statements and requires that those enterprises report selected information about operating segments in interim
financial reports issued to shareholders. This statement is effective for financial statements for periods beginning after December 15, 1997.
Management does not expect FAS 131 to have a significant impact upon the Company’s reporting presentation.
Note 14. Commitments and Contingencies
Lease obligations
Each of the 49 facilities operated by PSPUD as of December 31, 1997 are located in buildings leased from third parties. The lease terms range
from four to nine years with renewal options at varying terms. Future minimum lease payments at December 31, 1997 under noncancelable
operating leases are as follows:
(in thousands)
1998 $11,413
1999 10,752
2000 10,313
2001 9,633
2002 6,336
Thereafter 3,135
Total $51,582
Legal proceedings
During 1997, three cases were filed against the Company. Each of the plaintiffs in these cases is suing the Company on behalf of a purported class of
California tenants who rented storage spaces from the Company and contends that the Company’s fees for late payments under its rental agree-
ments for storage space constitutes unlawful “penalties” under California law. None of the plaintiffs has assigned any dollar amount to the claims.
The lower court has dismissed one of the cases and the plaintiff in that case is in the process of appealing that dismissal. The plaintiffs in
the other two cases have voluntarily dismissed their cases, reserving their rights to refile their cases. The Company is continuing to vigorously
contest the claims in all three cases.
There are no other material proceedings pending against the Company or any of its subsidiaries.
Note 15. Supplementary Quarterly Financial Data (Unaudited)
Three months ended
March 31, June 30, September 30, December 31,
(In thousands, except per share data) 1997 1997 1997 1997
Revenues $100,740 $109,362 $126,008 $134,734
Net income $ 42,318 $ 44,251 $ 46,548 $ 45,532
Per Common Share (Note 2):
Net income — Basic $0.26 $0.14
(1)
$0.27 $0.24
Net income — Diluted $0.26 $0.14
(1)
$0.27 $0.24
Three months ended
March 31, June 30, September 30, December 31,
(In thousands, except per share data) 1996 1996 1996 1996
Revenues $74,527 $82,688 $87,518 $94,218
Net income $32,341 $37,739 $40,366 $43,103
Per Common Share (Note 2):
Net income — Basic $0.24 $0.27 $0.30 $0.29
Net income — Diluted $0.24 $0.27 $0.30 $0.29
(1) Includes the effect of a $13,412,000 special dividend on the Company’s Series CC Convertible Preferred Stock.
Revenues for each of the three-month periods in 1997 and 1996 reflect reclassification to conform with the fiscal 1997 presentation. The
1996 and the first three quarters of 1997 earnings per share amounts have been restated to comply with Statement of Financial Accounting
Standards 128 – Earnings Per Share.