Public Storage 2000 Annual Report Download - page 28

P UBLIC S TORAGE , I NC . 2000 A NNUAL R EPORT
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Description of each reportable segment
Our reportable segments reflect significant operating activities that are evaluated separately by management. We have three reportable
segments: self-storage operations, containerized storage operations, and commercial property operations.
The self-storage segment comprises the direct ownership, development, and operation of traditional storage facilities, and the
ownership of equity interests in entities that own storage properties. PSPUD operates the containerized storage segment. The
commercial property segment reflects our interest in the ownership, operation, and management of commercial properties. The vast
majority of the commercial property operations are conducted through PSB, and to a much lesser extent the Company and certain of
its unconsolidated subsidiaries own commercial space, managed by PSB, within facilities that combine storage and commercial space
for rent.
Measurement of segment profit or loss
We evaluate performance and allocate resources based upon the net segment income of each segment. Net segment income
represents net income in conformity with generally accepted accounting principles and our significant accounting policies as denoted
in Note 2, before interest and other income, depreciation of real estate facilities, amortization expense, interest expense, corporate
general and administrative expense, and minority interest in income. The accounting policies of the reportable segments are the same
as those described in the Summary of Significant Accounting Policies.
Interest and other income, depreciation of real estate facilities, amortization expense, interest expense, corporate general and
administrative expense, and minority interest in income are not allocated to segments because management does not utilize them
to evaluate the results of operations of each segment.
Measurement of segment assets
No segment data relative to assets or liabilities is presented, because we do not evaluate performance based upon the assets or
liabilities of the segments. We believe that the historical cost of the Company’s real property does not have any significant bearing
upon the performance of the commercial property and storage segments. In the same manner, management believes that the book
value of investment in real estate entities as having no bearing upon the results of those investments. The only other types of assets
that might be allocated to individual segments are trade receivables, payables, and other assets which arise in the ordinary course of
business, but they are also not a significant factor in the measurement of segment performance. We perform post-acquisition analysis
of various investments; however, such evaluations are beyond the scope of FAS 131.
Presentation of segment information
Our income statement provides most of the information required in order to determine the performance of each of the Company’s
three segments. The following tables reconcile the performance of each segment, in terms of segment revenues and segment income,
to our consolidated revenues and net income. It further provides detail of the segment components of the income statement item,
“Equity in earnings of real estate entities.”