Public Storage 2002 Annual Report Download - page 110

PUBLIC STORAGE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2002
F-33
The self-storage segment comprises the direct ownership, development, and operation of traditional
storage facilities, and the ownership of equity interests in entities that own storage properties. The
containerized storage operations represent another segment. The commercial property segment reflects our
interest in the ownership, operation, and management of commercial properties. The vast majority of the
commercial property operations are conducted through PSB, and to a much lesser extent the Company and
certain of its unconsolidated subsidiaries own commercial space, managed by PSB, within facilities that
combines storage and commercial space for rent. The tenant reinsurance segment reflects the operations of PS
Insurance Company, which reinsures policies against losses to goods stored by tenants in our self-storage
facilities
Measurement of segment profit or loss
We evaluate performance and allocate resources based upon the net segment income of each segment.
Net segment income represents net income in conformity with accounting principles generally accepted in the
United States and our significant accounting policies as denoted in Note 2, before interest and other income,
interest expense, corporate general and administrative expense, and minority interest in income. The
accounting policies of the reportable segments are the same as those described in the Summary of Significant
Accounting Policies.
Interest and other income, interest expense, corporate general and administrative expense, and minority
interest in income are not allocated to segments because management does not utilize them to evaluate the
results of operations of each segment.
Measurement of segment assets
No segment data relative to assets or liabilities is presented, because management does not consider the
historical cost of the Company’s real estate facilities and investments in real estate entities in evaluating the
performance of operating management or in evaluating alternative courses of action. 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.
Presentation of segment information
Our 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 our consolidated revenues and net income. It further
provides detail of the segment components of the income statement item, “Equity in earnings of real estate
entities.”
The following table reconciles revenue by segment to the Company’s consolidated revenues:
Reconciliation of Revenues by Segment Year Ended December 31, Year Ended December 31,
2002 2001 Change 2001 2000 Change
(amounts in thousands)
Self-storage facility rentals .................... $ 763,287 $ 721,662 $ 41,625 $ 721,662 $ 653,110 $ 68,552
Commercial property rentals.................. 11,781 12,070 (289) 12,070 10,849 1,221
Containerized storage rentals................. 37,776 34,212 3,564 34,212 32,091 2,121
Tenant re-insurance premiums............... 19,947 - 19,947 - - -
Interest and other income (not allocated
to segments)........................................ 8,661 14,225 (5,564)
14,225 18,836 (4,611)
Total revenues ................................ $ 841,452 $ 782,169 $ 59,283 $ 782,169 $ 714,886 $ 67,283