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PUBLIC STORAGE
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
F-9
1. Description of the Business
Public Storage (referred to herein as “the Company”, “we”, “us”, or “our”), a Maryland real estate
investment trust, was organized in 1980. Our principal business activities include the acquisition, development,
ownership and operation of self-storage facilities which offer storage spaces for lease, generally on a month-to-
month basis, for personal and business use.
At December 31, 2014, we have direct and indirect equity interests in 2,250 self-storage facilities (with
approximately 146 million net rentable square feet) located in 38 states in the United States (“U.S.”) operating
under the “Public Storage” name. We also own one self-storage facility in London, England and we have a
49% interest in Shurgard Europe, which owns 192 self-storage facilities (with approximately 10 million net
rentable square feet) located in seven Western European countries, all operating under the “Shurgard” name.
We also have direct and indirect equity interests in approximately 30 million net rentable square feet of
commercial space located in 11 states in the U.S. primarily owned and operated by PS Business Parks, Inc.
(“PSB”) under the “PS Business Parks” name. At December 31, 2014, we have an approximate 42% common
equity interest in PSB.
Disclosures of the number and square footage of properties, as well as the number and coverage of
tenant reinsurance policies are unaudited and outside the scope of our independent registered public accounting
firm’s review of our financial statements in accordance with the standards of the Public Company Accounting
Oversight Board (U.S.).
2. Summary of Significant Accounting Policies
Basis of Presentation
The financial statements are presented on an accrual basis in accordance with U.S. generally accepted
accounting principles (“GAAP”) as defined in the Financial Accounting Standards Board Accounting Standards
Codification (the “Codification”).
Consolidation and Equity Method of Accounting
We consider entities to be Variable Interest Entities (“VIEs”) when they have insufficient equity to
finance their activities without additional subordinated financial support provided by other parties, or where the
equity holders as a group do not have a controlling financial interest. We have no investments or other
involvement in any VIEs.
We consolidate all entities that we control (these entities, for the period in which the reference applies,
are referred to collectively as the “Subsidiaries”), and we eliminate intercompany transactions and balances.
We account for our investments in entities that we have significant influence over, but do not control, using the
equity method of accounting (these entities, for the periods in which the reference applies, are referred to
collectively as the “Unconsolidated Real Estate Entities”), eliminating intra-entity profits and losses and
amortizing any differences between the cost of our investment and the underlying equity in net assets against
equity in earnings as if the Unconsolidated Real Estate Entity were a consolidated subsidiary. When we obtain
control of an Unconsolidated Real Estate Entity, we commence consolidating the entity and record a gain
representing the differential between the book value and fair value of our preexisting equity interest. All
changes in consolidation status are reflected prospectively.