Public Storage 1998 Annual Report Download - page 30

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Public Storage, Inc. 1998 Annual Report
28
Measurement of segment assets
No segment data relative to assets or liabilities is presented by the Company, because management does not evaluate performance based upon the
assets or liabilities of the segments. Management believes that the historical cost of the Company’s real property does not have any significant bearing
upon the performance of the commercial property and self-storage segments. In the same manner, management believes that the book value of
investment in real estate entities as having no bearing upon the results of those investments. The only other types of assets that might be allocated to
individual segments are trade receivables, payables, and other assets which arise in the ordinary course of business, but they are also not a significant
factor in the measurement of segment performance. The Company performs post-acquisition analysis of various investments; however, such
evaluations are beyond the scope of FAS 131.
Presentation of segment information
The Company’s income statement provides most of the information required in order to determine the performance of each of the Company’s three
segments. The following tables reconcile the performance of each segment, in terms of segment revenues and segment income, to the consolidated
revenues and net income of the Company. It further provides details of the segment components of the income statement item, “Equity in earnings
of real estate entities.”
Year Ended December 31, Year Ended December 31,
(dollar amounts in thousands) 1998 1997 Change 1997 1996 Change
Reconciliation of Revenues by Segment:
Self storage
Self-storage property rentals $488,291 $385,540 $102,751 $385,540 $270,429 $115,111
Facility management fees 6,123 9,706 (3,583) 9,706 13,474 (3,768)
Equity in earnings – self storage
property operations 20,704 31,026 (10,322) 31,026 41,722 (10,696)
Self storage segment revenues 515,118 426,272 88,846 426,272 325,625 100,647
Portable self storage 24,466 7,893 16,573 7,893 421 7,472
Commercial properties
Commercial property rentals 23,112 40,575 (17,463) 40,575 23,576 16,999
Facility management 98 435 (337) 435 954 (519)
Equity in earnings – commercial
property operations 23,655 1,428 22,227 1,428 2,667 (1,239)
Commercial properties —
segment revenues 46,865 42,438 4,427 42,438 27,197 15,241
Other items not allocated to segments:
Equity in earnings — Depreciation
(self storage) (6,522) (10,935) 4,413 (10,935) (15,709) 4,774
Equity in earnings — Depreciation
(commercial properties) (7,362) (539) (6,823) (539) (1,741) 1,202
Equity in earnings — general and
administrative and other (3,873) (3,411) (462) (3,411) (4,818) 1,407
Interest and other income 13,459 9,126 4,333 9,126 7,976 1,150
Total other items not allocated to segments (4,298) (5,759) 1,461 (5,759) (14,292) 8,533
Total consolidated Company revenues $582,151 $470,844 $111,307 $470,844 $338,951 $131,893