Public Storage 2010 Annual Report Download - page 110

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PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2010
F-28
We recognize compensation expense for stock options based upon their estimated fair value on the
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forfeitures. We estimate the fair value of our stock options based upon the Black-Scholes option valuation
model.
Outstanding stock options are included on a one-for-one basis in our diluted weighted average shares,
less a reduction for the treasury stock method applied to a) the average cumulative measured but unrecognized
compensation expense during the period and b) the strike price proceeds expected from the employee upon
exercise.
The stock options outstanding at December 31, 2010 have an aggregate intrinsic value of
approximately $93,948,000 and remaining average contractual lives of approximately seven years. Of the stock
options outstanding at December 31, 2010; 1,264,708 have exercise prices of equal to $60.00 or less; 1,222,250
have exercise prices between $60.00 and $90.00; and 463,934 have exercise prices equal to or greater than
$90.00. The aggregate intrinsic value of exercisable stock options at December 31, 2010 amounted to
approximately $28,873,000. Intrinsic value includes only those stock options whose exercise price is less than
the market value.
Additional information with respect to stock options during 2010, 2009 and 2008 is as follows:
2010
2009
2008
Weighted
Average
Weighted
Average
Weighted
Average
Number
of
Exercise
Price
Number
of
Exercise
Price
Number
of
Exercise
Price
Options
Per Share
Options
Per Share Options Per Share
Options outstanding January 1 3,695,668 $64.96
2,397,332
$73.42 1,689,474 $60.72
Granted 180,000 87.59
1,495,000
50.86 1,025,000 83.71
Exercised (782,151) 52.81
(53,164)
40.98 (292,309) 36.97
Cancelled (142,625)
67.65
(143,500)
68.28 (24,833) 62.21
Options outstanding December 31 2,950,892 $69.43
3,695,668
$64.96 2,397,332 $73.42
Options exercisable at December 31 1,063,283 $74.27
1,217,110
$64.03 889,905 $55.49