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PUBLIC STORAGE
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
F-28
2013 2012 2011
Stock option expense for the year
(in 000's) $ 3,468 $ 3,036 $ 3,445
Aggregate exercise date intrinsic value o
f
options exercised during the year
(in 000's) $ 23,337 $ 23,948 $ 23,703
Average assumptions used in valuing
options with the Black-Scholes
method:
Expected life of options in years, based
upon historical experience 5 5 5
Risk-free interest rate 0.8% 0.8% 1.2%
Expected volatility, based upon historical
volatility 25.8% 24.5% 18.8%
Expected dividend yield 3.3% 3.1% 3.3%
Average estimated value of options
granted during the year $ 23.83 $ 20.71 $ 13.01
Restricted Share Units
RSUs generally vest ratably over a three to eight-year period from the grant date. The grantee receives
dividends for each outstanding RSU equal to the per-share dividends received by our common shareholders.
We expense any dividends previously paid upon forfeiture of the related RSU. Upon vesting, the grantee
receives common shares equal to the number of vested RSUs, less common shares withheld in exchange for tax
deposits made by the Company to satisfy the grantee’s statutory tax liabilities arising from the vesting.
The fair value of our RSUs is determined based upon the applicable closing trading price of our
common shares.
The fair value of our RSUs outstanding at December 31, 2013 was approximately $95.8 million.
Remaining compensation expense related to RSUs outstanding at December 31, 2013 totals approximately
$45.3 million (which is net of expected forfeitures) and is expected to be recognized as compensation expense
over the next two years on average. The following tables set forth relevant information with respect to
restricted shares (dollar amounts in thousands):