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PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2010
F-31
disposition gains, and foreign currency exchange gains and losses that management considers in evaluating our
investment in Shurgard Europe. At December 31, 2010, our consolidated balance sheet includes an investment
in Shurgard Europe with a book value of $264.7 million ($272.3 million at December 31, 2009) and a loan
receivable from Shurgard Europe totaling $495.2 million ($561.7 million at December 31, 2009).
Commercial Segment
The Commercial segment comprises our investment in PSB, a self-managed REIT with a separate
management team that makes the financing, capital allocation and other significant decisions. The Commercial
segment also includes our direct interest in certain commercial facilities, substantially all of which are managed
by PSB. The Commercial segment presentation includes our equity income from PSB, as well as the revenues
and expenses of our commercial facilities. At December 31, 2010, the assets of the Commercial segment are
comprised principally of our investment in PSB which has a book value of $323.8 million ($326.1 million at
December 31, 2009).
Presentation of Segment Information
The following tables reconcile the performance of each segment, in terms of segment income, to our
consolidated net income (amounts in thousands):
For the year ended December 31, 2010
Domestic
Self-Storage
Europe
Self-Storage
Commercial
Other Items
Not Allocated to
Segments
Total
Consolidated
(Amounts in thousands)
Revenues:
Self-storage facilities .............................................
.
$ 1,513,324 $ -
$ -
$ - $ 1,513,324
Ancillary operations ...............................................
.
- -
14,261
90,120 104,381
Interest and other income .......................................
.
-25,121
-
3,896 29,017
1,513,324 25,121
14,261
94,016 1,646,722
Ex
p
enses:
Cost of operations:
Self-storage facilities ........................................
.
496,302 -
-
- 496,302
Ancillary operations .........................................
.
- -
5,748
27,941 33,689
Depreciation and amortization................................
.
351,386 -
2,620
- 354,006
General and administrative .....................................
.
- -
-
38,487 38,487
Interest expense ......................................................
.
- -
-
30,225 30,225
847,688 -
8,368
96,653 952,709
Income (loss) from continuing operations before
equity in earnings of real estate entities, foreign
currency exchange loss, gains on disposition of
other real estate investments, gain on early
retirement of debt and asset impairment charges ...
.
665,636 25,121
5,893
(2,637) 694,013
Equity in earnings of real estate entities .....................
.
1,761 15,872
20,719
- 38,352
Foreign currency exchange loss .................................
.
- (42,264)
-
- (42,264)
Gains on disposition of other real estate
investments ............................................................
.
--
-
396 396
Gain on early retirement of debt ................................
.
- -
-
431 431
Asset impairment charges ..........................................
.
- -
-
(2,332) (2,332)
Income (loss) from continuing operations ..................
.
667,397 (1,271)
26,612
(4,142) 688,596
Discontinued operations .............................................
.
- -
-
7,518 7,518
Net income (loss) .......................................................
.
$ 667,397 $ (1,271)
$ 26,612
$ 3,376 $ 696,114