Public Storage 2003 Annual Report Download - page 57

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Accordingly, our future equity income from PSB will be dependent entirely upon PSBs operating results.
PSBs filings and selected financial information can be accessed through the Securities and Exchange Commission,
and on its website, www.psbusinessparks.com.
On January 16, 2002, we acquired the remaining 70% ownership interest in the Development Joint Venture
for cash totaling approximately $153,078,000. As a result, we began consolidating the operating results of the
Development Joint Venture and no further equity in earnings will be recorded with respect to this entity for periods
after January 16, 2002. Effective January 1, 2002 (see Note 3 to the financial statements), we began consolidating
the operating results of two other partnerships and no longer record equity in these entitys earnings with respect to
our investments in these partnerships. Our earnings with respect our interests in these entities are included in the
table above in the line Disposed Investments. No further equity in earnings will be recorded with respect to these
entities for periods after their respective dates of consolidation or disposal.
The Other Investments includes our equity in earnings with respect to our pro-rata share of earnings with
respect to seven limited partnerships, for which we held an approximately consistent level of equity interest during
the three years ended December 31, 2002. These limited partnerships were formed by the Company during the
1980s. The Company is the general partner in each limited partnership, and manages each of these facilities for a
management fee that is included in interest and other income. The limited partners consist of numerous individual
investors, including the Company, which throughout the 1990s acquired units of limited partnership interests in
these limited partnerships in various transactions.
Our future earnings with respect to the Other investments will be dependent upon the operating results of
the 36 self-storage facilities that these entities own. The operating characteristics of these facilities are similar to
those of the Companys self-storage facilities, and are subject to the same operational issues as the Consistent Group
of self-storage facilities as discussed above with respect to Self-Storage Operations. See Note 6 to the consolidated
financial statements for the operating results of these entities for the years ended December 31, 2003 and 2002.
Other Income and Expense Items
Interest and other income: Interest in other income includes (i) the net operating results from our third
party property management operations, (ii) the net operating results from our merchandise sales and consumer truck
rentals and (iii) interest income.
Interest and other income remained constant in 2003 as compared to 2002, reflecting the impact of
improved operating results from our merchandise sales and consumer truck rentals, offset by lower interest income
attributable to lower average interest rates on short-term cash investments and principal payments received on notes
receivable.
Interest and other income has decreased in 2002 as compared to 2001 principally as a result of lower cash
balances invested in interest bearing accounts, lower interest rates, and the reduction in income generated from
affiliated entities that were acquired by the Company.
Depreciation and amortization: Depreciation and amortization expense was $185,775,000 in 2003,
$177,978,000 in 2002, and $164,914,000 in 2001. Included in depreciation expense with respect to our real estate
facilities was $171,561,000 in 2003, $166,871,000 in 2002, and $151,999,000 in 2001; the increases are due to the
acquisition and development of additional real estate facilities in 1999 through 2003. Depreciation expense with
respect to other assets, primarily depreciation of equipment and containers associated with the containerized storage
operations, was $7,610,000 in 2003, $4,503,000 in 2002, and $3,606,000 in 2001. Amortization expense with
respect to intangible assets totaled $6,604,000 for the years ended December 31, 2003 and 2002, respectively, and
$9,309,000 for the year ended December 31, 2001.
Depreciation and amortization during 2003 with respect to real estate facilities acquired or developed
during 2003 amounted to $971,000 which was for a partial period for the time they were acquired until December