Public Storage 2001 Annual Report Download - page 36

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34
P
UBLIC
S
TORAGE
,I
NC
. 2001 A
NNUAL
R
EPORT
Note 15 — Commitments and Contingencies
Lease Obligations
As of December 31, 2001, we leased 18 containerized storage facilities from third parties; in addition, certain trucks and related
equipment are leased. Total lease expense for the facilities and equipment, comprised entirely of minimum lease payments, was
approximately $8.0 million, $10.7 million and $13.6 million for the years ended December 31, 2001, 2000 and 1999, respectively.
Future minimum lease payments at December 31, 2001 under these non-cancelable operating leases are as follows (in thousands):
2002 $ 4,613
2003 2,926
2004 2,024
2005 1,249
2006 860
Thereafter 325
$11,997
Legal Proceedings
In February 2000, a lawsuit was filed against the Company. The plaintiffs in this case are suing the Company on behalf of a
purported class of California resident property managers who claim that they were not compensated for all the hours they
worked. The named plaintiffs have indicated that their claims total less than $20,000 in aggregate. This maximum potential
liability can only be increased if a class is certified or if claims are permitted to be brought on behalf of the others under the
California Unfair Business Practices Act.
The Company is continuing to vigorously contest the claims in this case and intends to resist any expansion beyond the named
plaintiffs on the grounds of lack of commonality of claims. The Company does not believe that this case will have any material
adverse effect.
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 that the outcome of these other pending legal proceedings, in the aggregate, will not
have a material adverse effect upon 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) 2001 2001 2001 2001
Rental revenues $184,959 $194,484 $202,715 $199,720
Cost of operations $ 66,897 $ 66,536 $ 70,521 $ 72,233
Net income $ 74,635 $ 81,773 $ 83,604 $ 84,196
Per Common Share (Note 2):
Net income – Basic $ 0.34 $ 0.40 $ 0.41 $ 0.38
Net income – Diluted $ 0.34 $ 0.39 $ 0.41 $ 0.38
Three months ended
March 31, June 30, September 30, December 31,
(In thousands, except per share data) 2000 2000 2000 2000
Rental revenues $164,866 $173,278 $181,792 $182,429
Cost of operations $ 59,160 $ 60,801 $ 64,810 $ 67,315
Net income $ 72,561 $ 74,303 $ 75,652 $ 74,572
Per Common Share (Note 2):
Net income – Basic $ 0.34 $ 0.35 $ 0.37 $ 0.35
Net income – Diluted $ 0.34 $ 0.35 $ 0.37 $ 0.35