Public Storage 2001 Annual Report Download - page 18

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16
P
UBLIC
S
TORAGE
,I
NC
. 2001 A
NNUAL
R
EPORT
Each of the business combinations, indicated above, has been accounted for using the purchase method. Accordingly, allocations
of the total acquisition cost to the net assets acquired were made based upon the fair value of such assets and liabilities assumed
with respect to the transactions, with the remainder, if any, allocated to goodwill. Accordingly, allocations of the total acquisition
cost to the net assets acquired were made based upon the fair value of such assets and liabilities assumed with respect to the
transactions occurring in 2001, 2000, and 1999 are summarized as follows:
PS Insurance Partnership Storage Trust
(Amounts in thousands) Acquisition Acquisitions Merger Total
2001 business combinations:
Goodwill $26,993 $ — $ — $ 26,993
Other assets 4,538 — — 4,538
Accrued and other liabilities (6,993) — — (6,993)
$24,538 $ — $ — $ 24,538
2000 business combinations:
Real estate facilities $ — $ 82,163 $ — $ 82,163
Other assets — 183 — 183
Accrued and other liabilities — (1,177) — (1,177)
$ — $ 81,169 $ — $ 81,169
1999 business combinations:
Real estate facilities $ — $129,348 $598,577 $727,925
Construction in process — — 11,449 11,449
Investment in real estate entities — — 356 356
Mortgage notes receivable — — 6,739 6,739
Other assets — 386 2,909 3,295
Accrued liabilities — (6,089) (17,345) (23,434)
Minority interest — (5,192) (27,009) (32,201)
$ — $118,453 $575,676 $694,129
The historical operating results of the above acquisitions prior to each respective acquisition date have not been included in the
Company’s historical operating results. Pro forma data (unaudited) for the two years ended December 31, 2001 as though the
business combinations above had been effective at the beginning of fiscal 2000 are as follows:
For the Year
Ended December 31,
(In thousands except per share data) 2001 2000
Revenues $853,280 $782,972
Net income $333,739 $305,498
Net income per common share (Basic) $ 1.59 $ 1.46
Net income per common share (Diluted) $ 1.57 $ 1.46
The pro forma data does not purport to be indicative either of results of operations that would have occurred had the
transactions occurred at the beginning of fiscal 2000 or future results of operations of the Company. Certain pro forma
adjustments were made to the combined historical amounts to reflect (i) expected reductions in general and administrative
expenses, (ii) estimated increased interest expense from bank borrowings to finance the cash portion of the acquisition cost
and (iii) estimated increase in depreciation expense.