Public Storage 2003 Annual Report Download - page 96

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PUBLIC STORAGE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2003
F-17
(c) Other items include asset impairment charges with respect to the containers and equipment 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 facility previously used by one of the Closed
Facilities, which was sold in December 2003. Amounts for 2002 also include $2,447,000 in lease termination accruals.
There are no significant assets or liabilities of discontinued operations at December 31, 2003 or 2002.
5. Real estate facilities
Activity in real estate facilities during 2003, 2002 and 2001 is as follows:
2003 2002 2001
(Amounts in thousands)
Operating facilities, at cost:
Beginning balance .................................................................... $ 4,988,526 $ 4,431,054 $ 4,134,417
Property acquisitions:
Business combinations (Note 3) .......................................... - 330,426 -
Other acquisitions ................................................................ - 30,117 3,503
Disposition of facilities............................................................. (31,327) (4,619) (9,603)
Newly developed facilities opened for operations .................... 121,437 134,775 264,161
Acquisition of minority interest (Note 9).................................. 16,687 39,780 3,098
Capital improvements............................................................... 30,175 26,993 35,478
Ending balance ......................................................................... 5,125,498 4,988,526 4,431,054
Accumulated depreciation:
Beginning balance .................................................................... (987,546) (819,932) (668,018)
Additions during the year (a).................................................... (172,328) (168,023) (152,901)
Disposition of facilities............................................................. 6,815 409 987
Ending balance ......................................................................... (1,153,059) (987,546) (819,932)
Construction in process:
Beginning balance.................................................................... 87,516 121,181 217,140
Current development................................................................ 102,428 101,110 171,865
Transfers to land held for development.................................... 1,113 - (3,663)
Newly developed facilities opened for operations.................... (121,437) (134,775) (264,161)
Ending balance......................................................................... 69,620 87,516 121,181
Land held for development:
Beginning balance .................................................................... 17,807 30,001 21,447
Acquisitions.............................................................................. - - 12,425
Transfers to land held for development .................................... (1,113) - 3,663
Dispositions .............................................................................. (4,458) (12,194) (7,534)
Ending balance ......................................................................... 12,236 17,807 30,001
Total real estate facilities.............................................................. $ 4,054,295 $ 4,106,303 $ 3,762,304
(a) Included in additions for the years ended December 31, 2003, 2002, and 2001, respectively, is $767,000, $635,000, and
$902,000 in real estate depreciation expense with respect to discontinued operations. See Note 4.
Operating Facilities
During 2003, we opened 14 newly developed self-storage facilities with an aggregate cost of
$107,126,000. We also completed expansions to eight existing self-storage facilities with a total cost of
$12,533,000 and incurred additional costs with respect to facilities opened in prior years of $1,778,000.
During 2003 we sold five self-storage facilities and an industrial facility previously used by the
containerized storage operations for aggregate net proceeds of $20,950,000 of cash. An aggregate net gain on