Public Storage 2012 Annual Report Download - page 107

PUBLIC STORAGE
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
F-28
2012 2011 2010
Amounts for the year (in 000’s, except number of shares):
Fair value of vested shares on vesting date ....................... $20,783 $10,224 $8,799
Cash paid upon vesting in lieu of common shares issued $7,657 $3,736 $3,121
Common shares issued upon vesting ................................ 95,925 59,232 65,129
Restricted share unit expense ........................................... $20,227 $19,736 $7,875
See also “net income per common share” in Note 2 for further discussion regarding the impact of
RSUs and stock options on our net income per common share and income allocated to common shareholders.
11. Segment Information
Our reportable segments reflect the significant components of our operations that are evaluated
separately by our chief operating decision maker and have discrete financial information available. We
organize our segments based primarily upon the nature of the underlying products and services, and whether the
operation is located in the U.S. or outside the U.S. In making resource allocation decisions, our chief operating
decision maker considers the net income from continuing operations of each reportable segment included in the
tables below, excluding the impact of depreciation and amortization, gains or losses on disposition of real estate
facilities, and real estate impairment charges. The amounts for each reportable segment included in the tables
below are in conformity with GAAP and our significant accounting policies as denoted in Note 2. Ancillary
revenues and expenses, interest income (other than from Loans Receivable from Unconsolidated Real Estate
Entities), interest expense, general and administrative expense and gains and losses on the early repayment of
debt are not allocable to any of our reportable segments. Our chief operating decision maker does not consider
the book value of assets in making resource allocation decisions.
Following is the description of and basis for presentation for each of our segments.
Domestic Self-Storage Segment
The Domestic Self-Storage Segment includes the operations of the 2,065 self-storage facilities owned
by the Company and the Subsidiaries, as well as our equity share of the Other Investments. For all periods
presented, substantially all of our real estate facilities, goodwill and other intangible assets, other assets, and
accrued and other liabilities are associated with the Domestic Self-Storage Segment.
European Self-Storage Segment
The European Self-Storage segment comprises our interest in Shurgard Europe, which has a separate
management team reporting directly to our chief operating decision maker and our joint venture partner. The
European Self-Storage segment includes our equity share of Shurgard Europe’s operations, the interest and
other income received from Shurgard Europe, and foreign currency exchange gains and losses that are
attributable to Shurgard Europe. Our balance sheet includes an investment in Shurgard Europe (Note 4) and a
loan receivable from Shurgard Europe (Note 5).
Commercial Segment
The Commercial segment comprises our investment in PSB, a self-managed REIT with a separate
management team that makes its financing, capital allocation and other significant decisions. The Commercial
segment also includes our direct interest in certain commercial facilities, substantially all of which are managed
by PSB. The Commercial segment presentation includes our equity earnings and interest income from PSB, as
well as the revenues and expenses of our commercial facilities. At December 31, 2012, the assets of the
Commercial segment are comprised principally of our investment in PSB (Note 4).