Public Storage 1999 Annual Report Download - page 36

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U B LI C T O RAG E,N C . 1999 N N U AL REP O RT
34
OTE 15. Commitments and Contingencies
Lease obligations
As of December 31, 1999, we leased thirty portable self-storage facilities from third parties; in addition, certain trucks and related equipment are
leased. Total lease expense for the facilities and equipment was approximately $13.6 million, $19.2 million, and $8.8 million for the years ended
December 31, 1999, 1998, and 1997, respectively. Future minimum lease payments at December 31, 1999 under these non-cancelable operating
leases are as follows (in thousands):
2000 $13,559
2001 12,216
2002 8,508
2003 3,385
2004 2,016
Thereafter 388
$40,072
Legal proceedings
During 1997, three cases were filed against the Company. Each of the plaintiffs in these cases is suing the Company on behalf of a purported
class of California tenants who rented storage spaces from the Company and contends that our fees for late payments under our rental
agreements for storage space constitute unlawful “penalties” under the liquidated damages provisions of California law and under California’s
unfair business practices act.
The Company has reached an agreement in principle to settle one of the cases with no material amount incurred by the Company. The
plaintiffs in the other two cases have voluntarily dismissed their cases without prejudice.
In another case, a plaintiff is suing the Company on behalf of a purported class of Maryland tenants who rented storage spaces from the
Company and contends that the Company’s fees for late payments under its rental agreements for storage space exceeds the amount of interest
that can be charged under the Maryland constitution and are therefore unlawful “penalties.” None of the plaintiffs has assigned any dollar
amount to the claims. The Company has reached an agreement in principle to settle the proceeding with no material amount incurred by
the Company. Any such agreement would require court approval.
In addition, the Company is a party to various claims, complaints and other legal actions that have arisen in the normal course of business
from time to time. The Company believes the outcome of these pending legal proceedings, in the aggregate, will not have a material adverse
effect on the operations or financial position of the Company.
Note 16. Supplementary Quarterly Financial Data (Unaudited)
Three Months Ended
March 31, June 30, September 30, December 31,
(In thousands, except per share data) 1999 1999 1999 1999
Revenues $148,015 $172,237 $178,963 $177,519
Net income $ 61,842 $ 73,651 $ 76,752 $ 75,640
Per Common Share (Note 2):
Net income — Basic $ 0.34 $ 0.39 $ 0.41 $ 0.39
Net income — Diluted $ 0.34 $ 0.39 $ 0.40 $ 0.39
Three Months Ended
March 31, June 30, September 30, December 31,
(In thousands, except per share data) 1998 1998 1998 1998
Revenues $142,280 $140,773 $149,743 $148,289
Net income $ 48,364 $ 57,199 $ 62,286 $ 59,170
Per Common Share (Note 2):
Net income — Basic $ 0.26 $ 0.33 $ 0.37 $ 0.35
Net income — Diluted $ 0.26 $ 0.32 $ 0.37 $ 0.35