Public Storage 2010 Annual Report Download - page 92

PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2010
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Section 820-10-35-52.
Other Assets
Other assets primarily consist of prepaid expenses, accounts receivable, interest receivable, and
restricted cash. During the year ended December 31, 2010, we recorded impairment charges with respect to
other assets totaling $994,000.
Accrued and Other Liabilities
Accrued and other liabilities consist primarily of trade payables, property tax accruals, tenant
prepayments of rents, accrued interest payable, accrued payroll, contingent casualty and other losses which are
accrued when probable and to the extent they are estimable, and estimated losses we expect to pay related to our
tenant reinsurance activities. When it is at least reasonably possible that a significant unaccrued contingent loss
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Financial Instruments
We have estimated the fair value of our financial instruments using available market information and
generally accepted valuation methodologies. Considerable judgment is required in interpreting market data to
develop estimates of market value. Accordingly, estimated fair values are not necessarily indicative of the
amounts that could be realized in current market exchanges.
For purposes of financial statement presentation, we consider all highly liquid financial instruments
such as short-term treasury securities, money market funds with daily liquidity and a rating of at least AAA by
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remaining maturities of three months or less at the date of acquisition to be cash equivalents. Any such cash
and cash equivalents which are restricted from general corporate use due to insurance or other regulations, or
based upon contractual requirements, are included in other assets.
Marketable securities consist of short-term investments in high-grade corporate securities rated A1 by
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securities are stated at amortized cost and the related unrecognized gains and losses are excluded from earnings
and other comprehensive income. The difference between interest income that is imputed using the effective
interest method and the actual note interest collected is recorded as an adjustment to the marketable security
balance; marketable securities were decreased $501,000 during the year ended December 31, 2010 in applying
the effective interest method. The amortized cost, gross unrecognized holding losses, and fair value of our
marketable securities were $102,279,000, ($41,000) and $102,238,000, respectively, at December 31, 2010.
The characteristics of the marketable securities and comparative metrics utilized in our evaluation represent
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Section 820-10-35-47. All of our marketable securities have a maturity of one year or less as of December 31,
2010. We periodically assess our marketable securities for other-than-temporary impairment. Any such other-
than-temporary impairment from credit loss is recognized as a realized loss and measured as the excess of
carrying value over fair value at the time the assessment is made. During the year ended December 31, 2010,
we had no other-than-temporary impairment losses.
Due to the short maturity and the underlying characteristics of our cash and cash equivalents, other
assets, and accrued and other liabilities, we believe the carrying values as presented on the consolidated balance
sheets are reasonable estimates of fair value.
Financial assets that are exposed to credit risk consist primarily of cash and cash equivalents,
marketable securities, accounts receivable, the loan receivable from Shurgard Europe, and restricted cash. Cash