Public Storage 2003 Annual Report Download - page 61

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51
Discontinued Operations:
Year Ended December 31,
Year Ended December 31,
2003 2002 Change 2002 2001 Change
(Dollar amounts in thousand)
Rental income (a):
Sold self-storage facilities............... $1,579 $1,841 $(262) $1,841 $1,897 $(56)
Closed facilities .............................. 9,385 22,396 (13,011) 22,396 19,212 3,184
Sold commercial property............... - 268 (268) 268 460 (192)
Total rental income ................... 10,964 24,505 (13,541) 24,505 21,569 2,936
Cost of operations (a):
Sold self-storage facilities............... 617 742 (125) 742 769 (27)
Closed facilities .............................. 8,178 22,588 (14,410) 22,588 18,063 4,525
Sold commercial property............... - 84 (84) 84 111 (27)
Total cost of operations............. 8,795 23,414 (14,619) 23,414 18,943 4,471
Depreciation and amortization (a):
Sold self-storage facilities............... 424 528 (104) 528 523 5
Closed facilities .............................. 1,804 3,035 (1,231) 3,035 2,508 527
Sold commercial property............... - 107 (107) 107 116 (9)
Total depreciation and
amortization ...........................................
2,228
3,670
(1,442)
3,670
3,147
523
Loss before other items .......................... (59) (2,579) 2,520 (2,579) (521) (2,058)
Other items:
Sold self-storage facilities (b) ......... 5,476 - 5,476 - - -
Closed facilities (c) ......................... (3,584) (8,951) 5,367 (8,951) - (8,951)
Sold commercial property............... - - - - - -
Total other items ........................ 1,892 (8,951) 10,843 (8,951) - (8,951)
Net discontinued operations (d).............. $1,833 ($11,530) $13,363 ($11,530) $521 ($11,009)
(a) These amounts represent the historical operations of the Closed Facilities and the Sold Facilities. Amounts with respect to
these facilities for periods prior to 2002 were previously classified as rental income, cost of operations, and depreciation
expense and gain/(loss) on sales in the financial statements.
(b) This represents the gain on sale recorded upon the completion of the sale of the Sold Self-storage facilities.
(c) Other charges include asset impairment charges with respect to the furniture, fixtures, and other assets of the Closed
Facilities totaling $2,479,000 and $6,504,000 for the years ended December 31, 2003 and 2002, respectively. Amounts for
2003 also include a $750,000 impairment charge and a $355,000 loss on sale with respect to a real estate facility previously
used by one of the Closed Facilities, which was sold in December 2003. Amounts for 2002 also include lease termination
accruals.
(d) The net discontinued operations have resulted in an increase in our earnings per share of $0.01 per diluted common share for
2003 and reductions to our earnings per share of $0.09 and $0.00 per diluted common share for each of the two years ended
December 31, 2002 and 2001, respectively.
Six of the Closed Facilities are in the process of closing which may take up to several months to complete.
We expect that these facilities will continue to generate operating losses until final closure.