Public Storage 2003 Annual Report Download - page 60

50
respect to the Consolidated Development Joint Venture is due to the opening and fill-up of the facilities owned by
this entity. We expect that such minority interest in income will continue to increase during 2004 as the facilities
continue to fill-up and increase the earnings of this entity.
Newly Consolidated Partnerships reflect the minority interests in two partnerships that we began
consolidating effective January 1, 2002, as described in Note 3 to the consolidated financial statements. In addition,
as described in Note 8, during 2002 we recorded the pending sale of a partnership interest in the Newly
Consolidated Partnerships, and for all periods following the sale of this interest, income will be allocated to these
interests.
The acquired minority interests reflect interests in the consolidated entities that the Company acquired as of
December 31, 2003 and are therefore no longer outstanding. There will be no further income allocated to these
interests in 2004 and beyond.
Other minority interests reflect income allocated to minority interests that have maintained a consistent
level of interest throughout the three years ended December 31, 2003, comprised of investments in the Consolidated
Entities and the Operating Partnership Units described in Note 9 to the Companys financial statements. The level
of income allocated to these interests in the future is dependent upon the operating results of the storage facilities
that these entities own, as well as any acquisitions of minority interests that the Company does in the future.
Discontinued Operations: As described more fully in the Note 4 to the consolidated financial statements,
during 2002 and 2003 we implemented a business plan which included the closure of 31 of the 55 containerized
storage facilities that were open at December 31, 2001 (these 31 facilities are referred to hereinafter as the Closed
Facilities). Also, in 2003, we sold five self-storage facilities (the Sold Self-Storage Facilities), and in 2002 we
sold one of our commercial facilities (the Sold Commercial Property) to a third party for an aggregate $3.9 million
in cash.
During 2002, in connection primarily with the closure or planned closure of 22 of the Closed Facilities, we
recorded asset impairment losses with respect to the containers and equipment utilized by these facilities totaling
$6,504,000. In 2003, we recorded impairment charges on assets for nine Closed Facilities of $2,479,000 and a
$750,000 impairment charge on a real estate facility previously used by the containerized storage business, as well
as an additional $355,000 loss upon sale of this real estate facility.
During 2002, lease termination costs, representing the expected remaining lease liability following closure
of the facilities, were accrued in the amount of $2,447,000 for 2002. In accordance with the provisions of Statement
of Financial Accounting Standards No. 146, Accounting for Costs Associated with Exit or Disposal Activities
which we adopted on January 1, 2003, we no longer accrue for such lease termination or other liabilities and instead
recognize such expenses as they are incurred. Such lease termination accruals would have been approximately
$610,000 in the year ended December 31, 2003.
The historical operations of the aforementioned facilities (including the asset impairment losses and lease
termination costs) are classified as discontinued operations, with the rental income, cost of operations, and
depreciation expense with respect to these facilities for current and prior periods included in the line-item
Discontinued Operations on the consolidated income statement. These amounts are set forth below: