Public Storage 2010 Annual Report Download - page 96

PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2010
F-14
(a) Included in the foreign currency loss for the year ended December 31, 2010 is a realized gain of $0.5 million
in connection with ¼ million of principal repayments during that period. This gain represents the
difference between the spot rates on the date the amounts were initially funded by us (1.32 U.S. Dollars per
Euro) and the repayment dates (average rate of 1.35 U.S. Dollars per Euro).
(b) The foreign currency exchange gains and losses reflected on our consolidated statements of income are
comprised primarily of foreign currency exchange gains and losses on our loan receivable from Shurgard
Europe.
Discontinued Operations
The revenues and expenses of operating units (including individual real estate facilities) that can be
segregated from the other operations of the Company, and either i) have been eliminated from the ongoing
operations of the Company or ii) are expected to be eliminated from the ongoing operations of the Company
within the next year pursuant to a committed plan of disposal, are reclassified and presented for all periods as
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Included in discontinued operations are the historical operations of self-storage facilities that were
disposed of in 2009 and 2010 and our truck rental and containerized storage operations which both ceased
operations in 2009. In addition to revenues and expenses of these operating units prior to disposal, discontinued
operations is comprised primarily of gains on disposition of real estate facilities of $7,794,000 and $6,018,000
for 2010 and 2009, respectively, a $595,000 impairment charge on real estate and intangible assets incurred in
2010, a $8,205,000 impairment charge on intangible assets incurred in 2009, and $3,500,000 in truck disposal
expenses in 2009.
Net Income per Common Share
We first allocate net income to our noncontrolling interests in subsidiaries (Note 7) and preferred
shareholders to arrive at net income allocable to our common shareholders and Equity Shares, Series A. Net
income allocated to preferred shareholders or noncontrolling interests in subsidiaries includes any excess of the
cash required to redeem any preferred securities in the period over the net proceeds from the original issuance
of the securities (or, if securities are redeemed for less than the original issuance proceeds, income allocated to
the holders of the redeemed securities is reduced).
The remaining net income is allocated among our regular common shares, restricted share units, and
our Equity Shares, Series A based upon the dividends declared (or accumulated) for each security in the period,
FRPELQHGZLWKHDFKVHFXULW\¶VSDUWLFLSDWLRQULJKWs in undistributed earnings. Net income allocated to the Equity
Shares, Series A for the year ended December 31, 2010 also includes $25.7 million, representing the excess of
cash paid to redeem the securities over the original issuance proceeds. We redeemed these securities on
April 15, 2010.
Net income allocated to our regular common shares from continuing operations is computed by
eliminating the net income or loss from discontinued operations allocable to our regular common shares, from
net income allocated to our regular common shares.
Basic net income per share, basic net income (loss) from discontinued operations per share, and basic
net income from continuing operations per share are computed using the weighted average common shares
outstanding. Diluted net income per share, diluted net income (loss) from discontinued operations per share,
and diluted net income from continuing operations per share are computed using the weighted average common
shares outstanding, adjusted for the impact, if dilutive, of stock options outstanding (Note 10).
The following table reflects the components of the calculations of our basic and diluted net income per
share, basic and diluted net income (loss) from discontinued operations per share, and basic and diluted net
income from continuing operations per share which are not already otherwise set forth on the face of our
consolidated statements of income: