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PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2010
F-15
For the Year Ended December 31,
2010 2009 2008
(Amounts in thousands)
Net income allocable to common shareholders from
continuing operations and discontinued operations:
Net income allocable to common shareholders .......................... $ 399,178 $ 585,966 $ 705,803
Eliminate: Discontinued operations allocable to common
shareholders .......................................................................... (7,518) 7,572 7,649
Net income from continuing operations allocable to common
shareholders ........................................................................... $ 391,660 $ 593,538 $ 713,452
Weighted average common shares and equivalents outstanding:
Basic weighted average common shares outstanding ................ 168,877 168,358 168,250
Net effect of dilutive stock options - based on treasury stock
method using average market price ...................................... 895 410 425
Diluted weighted average common shares outstanding ............. 169,772 168,768 168,675
3. Disposition of an Interest in Shurgard Europe
On March 31, 2008, an institutional investor acquired a 51% interest in Shurgard European Holdings
LLC ³6KXUJDUG+ROGLQJV´ a newly formed Delaware limited liability company and the holding company for
Shurgard Europe. We own the remaining 49% interest and are the managing member of Shurgard Holdings.
Our net proceeds from the transaction aggregated $609,059,000, comprised of $613,201,000 paid by
the institutional investor less $4,142,000 in legal, accounting, and other expenses incurred in connection with
the transaction. As a result of the disposition, we reduced our investment in Shurgard Europe by approximately
$302,228,000 for the pro rata portion of our March 31, 2008 investment that was sold, and a total of
$344,685,000 was reflected on our consolidated statePHQW RI LQFRPH DV ³JDLQV RQ GLVSRVLWLRQ RI UHDO HVWDWH
LQYHVWPHQWVQHW´representing i) the difference between the net proceeds received of $609,059,000 and the pro
rata portion of our investment sold of $302,228,000, and ii) the realization of $37,854,000 in foreign exchange
gains, representing 51% (the pro rata portion of Shurgard Europe that was sold) in cumulative foreign exchange
gains for Shurgard Europe previously recognized in Other Comprehensive Income.
The results of operations of Shurgard Europe have been included in our consolidated statements of
income for the three months ended March 31, 2008. Commencing on April 1, 2008, our pro rata share of
operations of Shurgard Europe is reflected on our consolidated statement of income under equity in earnings of
real estate entities.