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PUBLIC STORAGE
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
F-11
Other Assets
Other assets primarily consist of prepaid expenses, accounts receivable, land held for sale and
restricted cash. In 2011, we recorded impairment charges with respect to other assets totaling $1.9 million.
Accrued and Other Liabilities
Accrued and other liabilities consist primarily of trade payables, property tax accruals, tenant
prepayments of rents, accrued interest payable, accrued payroll, accrued tenant reinsurance losses, casualty
losses, and contingent loss accruals which are accrued when probable and estimable. We disclose the nature of
significant unaccrued losses that are reasonably possible of occurring and, if estimable, a range of exposure.
Cash Equivalents and Marketable Securities
Cash equivalents represent highly liquid financial instruments such as money market funds with daily
liquidity or short-term commercial paper or treasury securities maturing within three months of acquisition.
Cash and cash equivalents which are restricted from general corporate use are included in other assets.
Commercial paper not maturing within three months of acquisition, which we intend and have the capacity to
hold until maturity, are included in marketable securities and accounted for using the effective interest method.
Fair Value Accounting
As used herein, the term “fair value” is the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants. We prioritize the inputs used in
measuring fair value based upon a three-tier hierarchy described in Codification Section 820-10-35.
We believe that, during all periods presented, the carrying values approximate the fair values of our
cash and cash equivalents, marketable securities, other assets, and accrued and other liabilities, based upon our
evaluation of the underlying characteristics, market data, and short maturity of these financial instruments,
which involved considerable judgment. The estimated fair values are not necessarily indicative of the amounts
that could be realized in current market exchanges. The characteristics of these financial instruments, market
data, and other comparative metrics utilized in determining these fair values are “Level 2” inputs as the term is
defined in Codification Section 820-10-35-47.
We use significant judgment to estimate fair values in recording our business combinations, to evaluate
real estate, investments in unconsolidated real estate entities, goodwill, and other intangible assets for
impairment, and to determine the fair values of notes payable and receivable. In estimating fair values, we
consider significant unobservable inputs such as market prices of land, market capitalization rates and earnings
multiples for real estate facilities, projected levels of earnings, costs of construction, functional depreciation,
and market interest rates for debt securities with a similar time to maturity and credit quality, which are
“Level 3” inputs as the term is defined in Codification Section 820-10-35-52.
Currency and Credit Risk
Financial assets that are exposed to credit risk consist primarily of cash and cash equivalents, accounts
receivable, loans receivable, and restricted cash. Cash equivalents and marketable securities we invest in are
either money market funds with a rating of at least AAA by Standard and Poor’s, commercial paper that is
rated A1 by Standard and Poor’s or deposits with highly rated commercial banks.