Summary
This Form 8-K filing by Extra Space Storage Inc. (EXR) on June 5, 2009, primarily serves to re-issue historical financial statements and related disclosures for the year ended December 31, 2008. The re-issuance is necessary due to the company's retroactive adoption and application of three new accounting pronouncements: FSP APB 14-1, FAS 160, and FSP EITF 03-6-1. These changes impact how the company accounts for convertible debt, noncontrolling interests, and share-based payments, respectively. Investors should note that this filing updates previously reported financial information and management's discussion, including revisions to amounts allocated to noncontrolling interests and subsequent earnings per share calculations.
Key Highlights
- 1Re-issuance of 2008 financial statements and MD&A due to adoption of new accounting standards.
- 2Retroactive application of FASB Statement of Position No. APB 14-1 concerning convertible debt.
- 3Retroactive application of FASB Statement No. 160 regarding noncontrolling interests.
- 4Retroactive application of FASB Staff Position EITF 03-6-1 related to participating securities in share-based payments.
- 5Updated financial information for the year ended December 31, 2008, is attached as Exhibit 99.1.
- 6Revised amounts allocated to noncontrolling interests in the operating partnership.
- 7Adjustments to earnings per share calculations reflecting the new accounting treatments.
Frequently Asked Questions
The company is re-issuing its financial statements and Management's Discussion and Analysis for the year ended December 31, 2008, to reflect the retroactive adoption and application of three new accounting pronouncements: FSP APB 14-1, FAS 160, and FSP EITF 03-6-1. This is a requirement to ensure financial reporting compliance with these updated accounting standards.
The adoption of FSP APB 14-1 affects how convertible debt instruments that may be settled in cash upon conversion are accounted for. FAS 160 impacts the reporting of noncontrolling interests in consolidated financial statements. FSP EITF 03-6-1 clarifies how to determine if instruments granted in share-based payment transactions are considered participating securities. These changes have led to revisions in amounts allocated to noncontrolling interests and updated earnings per share calculations.
No, the filing explicitly states that, except for the accounting adjustments noted, the information contained in this report has not been updated to reflect any developments since December 31, 2008. The primary purpose is to update historical financial reporting based on the adopted accounting standards.
The updated financial information, including revised selected financial data, Management's Discussion and Analysis, and financial statements for the year ended December 31, 2008, is attached to this Form 8-K filing as Exhibit 99.1.