Public Storage 2003 Annual Report Download - page 117

PUBLIC STORAGE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2003
F-38
14. Events subsequent to December 31, 2003 (unaudited)
On January 30, 2004, we called for redemption all of the outstanding shares of our 8.25% Cumulative
Preferred Stock, Series L, at $25 per share plus accrued dividends. The redemption will be completed on March
10, 2004.
On January 2, 2004, we issued in a private transaction 1,600,000 shares of our 6.850% Cumulative
Preferred Stock, Series Y (par value $40,000,000) and on March 5, 2004, 4,500,000 depositary shares, with
each representing 1/1,000 of a share of our 6.250% Cumulative Preferred Stock, Series Z (par value
($112,500,000).
On January 1, 2004, we entered into a joint venture with an institutional investor for the purpose of
acquiring up to $125.0 million of existing self-storage properties in the United States from third parties. The
venture will be funded entirely with equity consisting of 30% from the Company and 70% from the institutional
investor. The venture has a nine month investment period (through September 2004) to identify and acquire
facilities. To date no facilities have been acquired by the venture.
15. Recent accounting pronouncements and guidance
Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity
In May 2003, the FASB issued Statement of Financial Accounting Standards No. 150  Accounting
for Certain Financial Instruments with Characteristics of both Liabilities and Equity (SFAS 150). This
statement prescribes reporting standards for financial instruments that have characteristics of both liabilities and
equity. This standard generally indicates that certain financial instruments that give the issuer a choice of
settling an obligation with a variable number of securities or settling an obligation with a transfer of assets, any
mandatorily redeemable security, and certain put options and forward purchase contracts, should be classified as
a liability on the balance sheet. With the exception of minority interests, described below, we implemented this
Statement on July 1, 2003, and the adoption had no impact on our financial statements.
The provisions of SFAS 150 indicate certain minority interests in consolidated entities are to be
classified as liabilities at fair value. However, on October 29, 2003, the FASB decided to defer indefinitely the
implementation of SFAS 150 as it relates to these minority interests.
Assuming the FASB had not deferred the implementation of SFAS 150 as it relates to minority
interests, the impact on the Companys balance sheet at December 31, 2003 would have been to reclassify the
Companys minority interests described in Note 9 as the Consolidated Development Joint Venture and the
Other Consolidated Partnerships, as liabilities at their estimated fair value. Such adoption would reduce the
Companys common minority interest by $134,878,000, and increase liabilities by $317,763,000, representing
the estimated settlement value of these minority interests at December 31, 2003.
FASB Interpretation No. 46  Consolidation of Variable Interest Entities
In January 2003, the Financial Accounting Standards Board issued FASB Interpretation No. 46 
Consolidation of Variable Interest Entities, an interpretation of Accounting Research Bulletin No. 51. This
interpretation explains how to identify variable interest entities and how an enterprise assesses its interests in a
variable interest entity to decide whether to consolidate that entity. In general, a variable interest entity is a
corporation, partnership, trust, or any other legal structure used for business purposes that either (a) does not
have equity investors with voting rights, or (b) has equity investors that do not provide sufficient financial