Public Storage 2009 Annual Report Download - page 101

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PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2009
F-14
51% of the aggregate interest on the loans, with the other 49%, reflecting our ownership interest in
Shurgard Europe, classified as equity in earnings of real estate entities. Loan fees collected from
Shurgard Europe are amortized on a straight-line basis as interest income over the applicable term to
which the fee applies.
Although there can be no assurance, we believe that Shurgard Europe has sufficient liquidity
and collateral, and we have sufficient creditor rights, such that credit risk is minimal. In addition, we
believe the interest rate on the loan approximates the market rate for loans with similar credit
characteristics and tenor, and that the carrying value of the loan approximates fair value. The
characteristics of the loan and comparative metrics utilized in our evaluation represent significant
unobservable inputs, which are “Level 3” inputs as the term is utilized in FASB Codification
Section 820-10-35-52.
Other Comprehensive Income
Other comprehensive income consists of foreign currency translation adjustments that are not
already recognized in our net income. Other comprehensive income is reflected as an adjustment to
“Accumulated Other Comprehensive Income” in the equity section of our consolidated balance sheet,
and is added to our net income in determining total comprehensive income for the period as reflected
in the following table:
For the Year Ended December 31,
2009
2008
2007
(Amounts in thousands)
Net income .......................................................
$ 790,456
$ 973,872
$ 487,078
Other comprehensive income (loss):
Aggregate foreign currency translation
adjustments for the period ......................
26,591
(69,504)
89,180
Less: foreign currency translation
adjustments recognized during the
period and reflected in “Gain (loss) on
disposition of real estate investments” ...
-
(37,854)
-
Less: foreign currency translation
adjustments reflected in net income as
“Foreign currency (gain) loss” ...............
(9,662)
25,362
(58,444)
Other comprehensive income (loss) income
for the period ..........................................
16,929
(81,996)
30,736
Total comprehensive income............................
$ 807,385
$ 891,876
$ 517,814
Discontinued Operations
Discontinued operations reflect those operations that have or will soon be eliminated from the
ongoing operations of the Company pursuant to a plan. We segregate all of our discontinued
operations that can be distinguished from the rest of the Company and reclassify all historical revenues
and expenses of discontinued operations, for all periods, into “discontinued operations”.
During 2009, we discontinued our truck rental and our containerized storage operations. We
also disposed of real estate facilities in 2009 and in 2007. In addition to the historical revenues and
expenses of these operations, discontinued operations includes $3,500,000 in truck disposal expenses
for the truck operations in 2009, gains on the sale of real estate facilities totaling $6,018,000 and
$4,336,000, respectively, in 2009 and 2007, as well as an $8,205,000 impairment charge on intangible
assets incurred at a discontinued facility in 2009.