Public Storage 2000 Annual Report Download - page 27

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25
P
UBLIC
S
TORAGE
, I
NC
. 2000 A
NNUAL
R
EPORT
employees and service providers on terms determined by an authorized committee of the Board of Directors; no shares of restricted
stock have been granted. In connection with the Storage Trust merger in March 1999, we assumed the outstanding non-qualified
options under the Storage Trust Realty 1994 Share Incentive Plan (the “Storage Trust Plan”), which were converted into non-qualified
options to purchase our common stock (the PSI Plans and the Storage Trust Plan are collectively referred to as the “Plans”). The
Company determined there was no material impact from the use of the fair value method for the years ended December 31, 2000,
1999 and 1998.
Information with respect to the Plans during 2000, 1999, and 1998 is as follows:
2000 1999 1998
Number Average Number Average Number Average
of Price per of Price per of Price per
Options Share Options Share Options Share
Options outstanding January 1 3,024,274 $24.08 2,054,285 $22.85 1,696,215 $20.03
Granted or assumed 3,762,500 23.06 1,576,626 24.39 590,000 28.23
Exercised (242,598) 18.99 (511,989) 19.53 (219,596) 15.20
Canceled (131,600) 26.01 (94,648) 27.28 (12,334) 28.66
Options outstanding December 31 6,412,576 23.65 3,024,274 $24.08 2,054,285 $22.85
$14.125 $9.375 $9.375
Option price range at December 31
(A)
to $33.563 to $33.563 to $33.563
Options exercisable at December 31 1,680,083 $23.83 1,259,771 $21.97 1,044,249 $19.94
Options available for grant at
December 31 33,171 1,683,505 2,881,337
(A) Approximately 5,772,160, 2,210,695 and 1,037,500 of options outstanding at December 31, 2000, 1999 and 1998, respectively, had
exercise prices in excess of $23.
In 1996, the Company adopted the disclosure requirement provision of SFAS 123 in accounting for stock-based compensation
issued to employees. As of December 31, 2000, 1999, and 1998 there were 6,372,741, 2,935,338 and 1,900,837 options outstanding,
respectively, that were subject to SFAS 123 disclosure requirements. The fair value of these options was estimated utilizing the Black-
Scholes method with a risk-free interest rate of 5.63% for 1998, 5.55% for 1999 and 6.16% for 2000, an expected life of 5 years for
each of 1998, 1999 and 2000, an expected volatility of .192 for 1998, .201 for 1999 and .191 for 2000, and an expected dividend
yield of 7% for each of 1998, 1999 and 2000. Based upon the results of such estimates, the Company determined that there was
no material impact from the use of the fair value method for the years ended December 31, 2000, 1999 and 1998. The remaining
contractual lives were 8.9 years, 8.2 years, and 7.8 years, respectively, at December 31, 2000, 1999, and 1998.
Note 11 —
Disclosures Regarding Segment Reporting
In July 1997, the Financial Accounting Standards Board issued Statement No. 131, “Disclosures about Segments of an Enterprise and
Related Information” (“FAS 131”), which establishes standards for the way that public business enterprises report information about
operating segments. This statement is effective for financial statements for periods beginning after December 15, 1997. We adopted
this standard effective for the year ended December 31, 1998.