Public Storage 2010 Annual Report Download - page 32

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we have policies and procedures designed to comply with applicable laws and regulations, failure to comply with
the various laws and regulations may result in civil and criminal liability, fines and penalties, increased costs of
compliance and restatement of our financial statements.
There can also be no assurance that, in response to current economic conditions or the current political
environment or otherwise, laws and regulations will not be implemented or changed in ways that adversely affect
our operating results and financial condition, such as recently adopted legislation that expands health care coverage
costs or facilitates union activity or federal legislative proposals to otherwise increase operating costs.
Our tenant insurance business is subject to governmental regulation which could reduce our profitability or
limit our growth.
We hold Limited Lines Self Storage Insurance Agent licenses from a number of individual state
Departments of Insurance and are subject to state governmental regulation and supervision. This state governmental
supervision could reduce our profitability or limit our growth by increasing the costs of regulatory compliance,
limiting or restricting the products or services we provide or the methods by which we provide products and
services, or subjecting our businesses to the possibility of regulatory actions or proceedings. Our continued ability
to maintain these Limited Lines Self Storage Insurance Agent licenses in the jurisdictions in which we are licensed
depends on our compliance with the rules and regulations promulgated from time to time by the regulatory
authorities in each of these jurisdictions. Furthermore, state insurance departments conduct periodic examinations,
audits and investigations of the affairs of insurance agents.
In all jurisdictions, the applicable laws and regulations are subject to amendment or interpretation by
regulatory authorities. Generally, such authorities are vested with relatively broad discretion to grant, renew and
revoke licenses and approvals and to implement regulations. Accordingly, we may be precluded or temporarily
suspended from carrying on some or all of our activities or otherwise fined or penalized in a given jurisdiction. No
assurances can be given that our businesses can continue to be conducted in any given jurisdiction as it has been
conducted in the past. For the year ended December 31, 2010, revenues from our tenant reinsurance business
represented approximately 4% of our revenues.
Terrorist attacks and the possibility of wider armed conflict may have an adverse impact on our business and
operating results and could decrease the value of our assets.
Terrorist attacks and other acts of violence or war could have a material adverse impact on our business and
operating results. There can be no assurance that there will not be further terrorist attacks against the U.S., the
European Community, or their businesses or interests. Attacks or armed conflicts that directly impact one or more
of our properties could significantly affect our ability to operate those properties and thereby impair our operating
results. Further, we may not have insurance coverage for losses caused by a terrorist attack. Such insurance may
not be available, or if it is available and we decide to obtain such terrorist coverage, the cost for the insurance may
be significant in relationship to the risk overall. In addition, the adverse effects that such violent acts and threats of
future attacks could have on the U.S. economy could similarly have a material adverse effect on our business and
results of operations. Finally, further terrorist acts could cause the U.S. to enter into a wider armed conflict, which
could further impact our business and operating results.
Developments in California may have an adverse impact on our business and financial results.
We are headquartered in, and approximately one-fifth of our properties in the U.S. are located in,
California, which like many other state and local jurisdictions is facing severe budgetary problems and deficits.
Action that may be taken in response to these problems, such as increases in property taxes, changes to sales taxes,
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impact our business and results of operations.