Public Storage 2012 Annual Report Download - page 28
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10
sheet, in accordance with U.S. generally accepted accounting principles. As of December 31, 2012, the Debt Ratio
was approximately 4%.
Our bank and senior unsecured debt agreements contain various customary financial covenants, including
limitations on the level of indebtedness and the prohibition of the payment of dividends upon the occurrence of
defined events of default. We believe we have met each of these covenants as of December 31, 2012.
Employees
We have approximately 5,000 employees in the U.S. at December 31, 2012 who render services on behalf
of the Company, primarily personnel engaged in property operations.
Seasonality
We experience minor seasonal fluctuations in the occupancy levels of self-storage facilities with
occupancies generally higher in the summer months than in the winter months. We believe that these fluctuations
result in part from increased moving activity during the summer months.
Insurance
We have historically carried customary property, earthquake, general liability, medical insurance provided
to our employees, and workers compensation coverage through internationally recognized insurance carriers, subject
to customary levels of deductibles. The aggregate limits on these policies of approximately $75 million for property
losses and $102 million for general liability losses are higher than estimates of maximum probable loss that could
occur from individual catastrophic events determined in recent engineering and actuarial studies; however, in case of
multiple catastrophic events, these limits could be exhausted.
Our tenant insurance program reinsures a program that provides insurance to certificate holders against
claims for property losses due to specific named perils (earthquakes are not covered by these policies) to goods
stored by tenants at our self-storage facilities for individual limits up to a maximum of $5,000. We have third-party
insurance coverage for claims paid exceeding $5.0 million resulting from any one individual event, to a limit of
$15.0 million. At December 31, 2012, there were approximately 700,000 certificate holders held by our self-storage
tenants participating in this program, representing aggregate coverage of approximately $1.5 billion. We rely on a
third-party insurance company to provide the insurance and are subject to licensing requirements and regulations in
several states.