Public Storage 2014 Annual Report Download - page 94

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PUBLIC STORAGE
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
F-18
Changes in foreign currency exchange rates caused our investment in Shurgard Europe to decrease by
approximately $47.3 million in 2014 and to increase our investment by $45.0 thousand in 2013 and
$21.6 million in 2012.
The following table sets forth selected consolidated financial information of Shurgard Europe based
upon all of Shurgard Europe’s balances for all periods, rather than our pro rata share. Such amounts are based
upon our historical acquired book basis.
2014
2013
As of December 31,
(Amounts in thousands)
Total assets (primarily self-storage facilities)
$
1,404,246
$
1,468,155
Total debt to third parties
500,767
154,119
Total shareholder loan
-
428,139
Other liabilities
180,546
107,550
Equity
722,933
778,347
Exchange rate of Euro to U.S. Dollar
1.216
1.377
2014
2013
2012
(Amounts in thousands)
For the year ended December 31,
Self-storage and ancillary revenues
$
254,136
$
246,615
$
243,687
Self-storage and ancillary cost of operations
(100,177)
(98,222)
(96,341)
Depreciation and amortization
(61,796)
(60,029)
(60,404)
General and administrative
(14,964)
(13,651)
(13,327)
Interest expense on third party debt
(9,607)
(5,082)
(7,689)
Trademark license fee payable to Public Storage
(2,544)
(2,468)
(2,439)
Interest expense on shareholder loan
(21,761)
(37,838)
(36,710)
Lease termination (charge) benefit and other (a)
(6,573)
(2,909)
1,876
Net income
$
36,714
$
26,416
$
28,653
Average exchange rates Euro to the U.S. Dollar
1.329
1.328
1.285
(a) Amounts for the years ended December 31, 2014 and 2013, include a $1.5 million lease termination benefit and
a $2.9 million lease termination charge, respectively, associated with a closed facility. Amounts for the year
ended December 31, 2014 include $4.3 million in costs associated with the acquisition of self-storage facilities,
and a $4.4 million contingent loss.
As reflected in the table above, Shurgard Europe’s net income has been reduced by expenses it pays to
its shareholders, including a trademark license fee and interest expense on the shareholder loan. The following
table set forth the calculation of our equity in earnings in Shurgard Europe: