Public Storage 2009 Annual Report Download - page 95

PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2009
F-8
1. Description of the Business
Public Storage (referred to herein as “the Company”, “the Trust”, “we”, “us”, or “our”), a
Maryland real estate investment trust, was organized in 1980. Our principal business activities include
the acquisition, development, ownership and operation of self-storage facilities which offer storage
spaces for lease, generally on a month-to-month basis, for personal and business use. Our self-storage
facilities are located primarily in the United States (“U.S.”). We also have interests in self-storage
facilities located in seven Western European countries.
At December 31, 2009, we had direct and indirect equity interests in 2,010 self-storage
facilities located in 38 states operating under the “Public Storage” name, and 188 self-storage facilities
located in Europe which operate under the “Shurgard Storage Centers” name. We also have direct and
indirect equity interests in approximately 21 million net rentable square feet of commercial space
located in 11 states in the U.S. primarily operated by PS Business Parks, Inc. (“PSB”) under the “PS
Business Parks” name.
Any reference to the number of properties, square footage, number of tenant reinsurance
policies outstanding and the aggregate coverage of such reinsurance policies are unaudited and outside
the scope of our independent registered public accounting firm’s review and audit of our financial
statements in accordance with the standards of the Public Company Accounting Oversight Board.
2. Summary of Significant Accounting Policies
Basis of Presentation
The consolidated financial statements are presented on an accrual basis in accordance with
U.S. generally accepted accounting principles (“GAAP”) and include the accounts of the Company and
our consolidated subsidiaries. All intercompany balances and transactions have been eliminated in
consolidation.
Certain amounts previously reported in our December 31, 2008 and 2007 financial statements
have been reclassified to conform to the December 31, 2009 presentation, including discontinued
operations, the grouping of the separate captions “cumulative earnings” and “cumulative distributions”
into “accumulated deficit” on our consolidated balance sheet, as well as reclassifications required by
newly implemented accounting standards described below.
Adjustments due to accounting pronouncements becoming effective January 1, 2009
On January 1, 2009, accounting standards promulgated by the Financial Accounting
Standards Board (“FASB”) became effective which affected the classification of ownership interests
other than those in the Company, such as limited partnership interests in entities that are consolidated
in the financial statements of the Company. In accordance with these standards, we have reclassified
the equity interests previously referred to as minority interests on our balance sheet at December 31,
2008 to “equity of permanent noncontrolling interests in subsidiaries” or “redeemable noncontrolling
interests in subsidiaries.” These reclassifications increased equity by $351,640,000, increased
accumulated deficit by $6,469,000, increased redeemable noncontrolling interests in subsidiaries by
$12,777,000, and decreased minority interest by $364,417,000, as compared to the amounts previously
presented as of December 31, 2008. On our consolidated statement of income, income allocations to
the aforementioned equity interests were reclassified from “minority interest in income”, a reduction to
income, to “net income allocated to noncontrolling interests in subsidiaries,” an allocation of net
income in calculating net income allocable to our common shareholders. These adjustments increased
net income $38,696,000 and $29,543,000 for the years ended December 31, 2008 and 2007,