Public Storage 2003 Annual Report Download - page 112

PUBLIC STORAGE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2003
F-33
December 31, 2003. Also, in December 2001, the Company loaned $35,000,000 to PSB. This loan bore
interest at the rate of 3.25% per year. This loan was repaid in full on January 28, 2002.
In June 2002, we sold an undeveloped parcel of land at cost to PSB for an aggregate of $1,100,000
cash.
PSB manages certain of the commercial facilities owned by the Company pursuant to management
agreements for a management fee equal to 5% of revenues. The Company paid a total of $581,000, $578,000,
and $642,000, respectively, in 2003, 2002 and 2001 in management fees with respect to PSBs property
management services.
12. Stock-based compensation
Stock Options
The Company has a 1990 Stock Option Plan (the 1990 Plan) which provides for the grant of non-
qualified stock options. The Company has a 1994 Stock Option Plan (the 1994 Plan), a 1996 Stock Option
and Incentive Plan (the 1996 Plan) and a 2000 Non-Executive/Non-Director Stock Option and Incentive Plan
(the 2000 Plan), each of which provides for the grant of non-qualified options and incentive stock options.
(The 1990 Plan, the 1994 Plan, the 1996 Plan and the 2000 Plan are collectively referred to as the PSI Plans).
Under the PSI Plans, the Company has granted non-qualified options to certain directors, officers and key
employees to purchase shares of the Companys common stock at a price equal to the fair market value of the
common stock at the date of grant. Generally, options under the Plans vest over a three-year period from the
date of grant at the rate of one-third per year and expire (i) under the 1990 Plan, five years after the date they
became exercisable and (ii) under the 1994 Plan, the 1996 Plan and the 2000 Plan, ten years after the date of
grant. The 1996 Plan and the 2000 Plan also provide for the grant of restricted stock to officers, key 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.)
Information with respect to the Plans during 2003, 2002 and 2001 is as follows:
2003 2002 2001
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 5,939,224 $25.79 6,677,334 $24.81 6,412,576 $23.65
Granted 272,500 34.50 792,000 33.20 1,776,500 27.93
Exercised (2,743,420) 24.85 (948,932) 24.59 (704,901) 22.50
Canceled (379,686) 28.33 (581,178) 26.61 (806,841) 24.51
Options outstanding December 31 3,088,618 $27.14 5,939,224 $25.79 6,677,334 $24.81
$14.88 $14.88 $14.88
Option price range at December 31 (a) to $39.23 to $37.40 to $34.68
Options exercisable at December 31 2,305,868 $25.24 3,666,641 $24.46 2,618,889 $24.14
Options available for grant at December 31 4,459,876 4,352,690 4,563,512
(a) Approximately 2,159,944, 5,059,000, and 6,532,334 of options outstanding at December 31, 2003, 2002 and 2001, had
exercise prices less than $30.