Investment In Storage Facilities

3 Months Ended

Mar. 31, 2012

Investment In Storage Facilities [Abstract]

Investment In Storage Facilities

4. INVESTMENT IN STORAGE FACILITIES

The following summarizes our activity in storage facilities during the three months ended March 31, 2012.

(dollars in thousands)
Cost:
Beginning balance	$	1,596,103
Acquisition of storage facilities		—
Improvements and equipment additions		7,314
Net decrease in construction in progress		(2,948	)
Dispositions		(48	)
Ending balance	$	1,600,421
Accumulated Depreciation:
Beginning balance	$	305,585
Depreciation expense during the period		9,373
Dispositions		(43	)
Ending balance	$	314,915

The assets and liabilities of the acquired storage facilities, which primarily consist of tangible and intangible assets, are measured at fair value on the date of acquisition in accordance with the principles of FASB ASC Topic 820, "Fair Value Measurements and Disclosures." The Company did not acquire any storage facilities in the three months ended March 31, 2012.

The Company measures the fair value of in-place customer lease intangible assets based on the Company's experience with customer turnover. The Company amortizes in-place customer leases on a straight-line basis over 12 months (the estimated future benefit period). At March 31, 2012 and December 31, 2011, the gross carrying amount of in-place customer leases was $9.5 million and $9.5 million, respectively, and the accumulated amortization was $7.9 million and $7.0 million, respectively. The Company recorded amortization expense of $0.9 million and $0.1 million during the three months ended March 31, 2012 and 2011, respectively. The Company expects to record $1.6 million of amortization expense for the remaining nine months of 2012.