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Financial Instruments and Fair Value Measurements (Tables)
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9 Months Ended |
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Sep. 30, 2014
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| Derivative Activity |
The following table summarizes the activity in our derivative
instruments (in millions):
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2014
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Foreign Currency
Contracts |
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Interest
Rate
Swaps (2) |
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Euro Forward
Contracts |
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GBP Forward
Contracts |
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Yen Forward
Contracts |
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Euro Option
Contracts (1) |
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Notional amounts at January 1
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€ |
600 |
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$ |
800 |
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£ |
— |
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$ |
— |
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¥ |
24,136 |
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$ |
250 |
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€ |
— |
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$ |
— |
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$ |
71 |
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New contracts
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1,446 |
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1,979 |
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238 |
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400 |
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79,010 |
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769 |
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141 |
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187 |
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373 |
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Matured or expired contracts
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(1,446 |
) |
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(1,979 |
) |
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— |
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— |
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(79,010 |
) |
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(769 |
) |
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(66 |
) |
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(90 |
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— |
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Notional amounts at September 30
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€ |
600 |
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$ |
800 |
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£ |
238 |
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$ |
400 |
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¥ |
24,136 |
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$ |
250 |
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€ |
75 |
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$ |
97 |
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$ |
444 |
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Weighted Average Forward Rate at September 30
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1.33 |
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1.68 |
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96.54 |
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1.30 |
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Active contracts at September 30
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7 |
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3 |
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3 |
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5 |
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3 |
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2013
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Foreign Currency Contracts |
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Interest Rate
Swaps (3) |
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Euro Forward Contracts |
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Yen Forward Contracts |
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Notional amounts at January 1
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€ |
1,000 |
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$ |
1,304 |
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¥ |
— |
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$ |
— |
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$ |
1,315 |
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New contracts
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600 |
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800 |
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24,136 |
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250 |
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— |
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Matured or expired contracts
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(1,000 |
) |
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(1,304 |
) |
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— |
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— |
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(1,230 |
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Notional amounts at September 30
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€ |
600 |
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$ |
800 |
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¥ |
24,136 |
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$ |
250 |
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$ |
85 |
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| (1) |
During the three and nine months
ended September 30, 2014, we exercised one and two put
options, respectively, and recognized a net gain of approximately
$1.0 million and $1.1 million, respectively. We had five foreign
currency collars outstanding at September 30, 2014. |
| (2) |
During the third quarter of 2014, we
entered into two contracts with a total notional amount of
¥40.9 billion to effectively fix the interest rate on the Yen
Term Loan. See Note 6 for more information on our Yen Term
Loan. |
| (3) |
During the nine months ended
September 30, 2013, we settled 12 contracts with a notional
value of $319.9 million, and contributed 13 contracts with a
notional value of $383.9 million related to the transfer of assets
to the newly formed PELP co-investment venture. We also settled
five contracts in Japan with a notional value of $526.4 million in
connection with the contribution of properties to NPR. |
|
| Schedule of Fair Value of Derivative Instruments |
The following table presents the fair value of our derivative
instruments (in thousands):
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September 30, 2014 |
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December 31, 2013 |
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Asset |
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Liability |
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AOCI |
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Asset |
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Liability |
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AOCI |
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Net investment hedges - euro denominated
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$ |
16,441 |
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$ |
— |
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$ |
18,565 |
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$ |
137 |
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$ |
30,302 |
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$ |
(21,705 |
) |
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Net investment hedges - yen denominated
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28,184 |
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— |
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36,385 |
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20,104 |
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— |
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22,102 |
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Net investment hedges - pounds sterling denominated
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15,840 |
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— |
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15,840 |
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— |
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— |
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— |
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Foreign currency options - euro denominated (1)
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1,082 |
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— |
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— |
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— |
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— |
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— |
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Interest rate swap hedges
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— |
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4,723 |
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(820 |
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— |
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5,638 |
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(591 |
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Our share of derivatives from un consolidated co-investment
ventures (2)
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- - |
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- - |
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(21,406 |
) |
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- - |
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- - |
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(13,851 |
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Total fair value of derivatives
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$ |
61,547 |
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$ |
4,723 |
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$ |
48,564 |
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$ |
20,241 |
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$ |
35,940 |
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$ |
(14,045 |
) |
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| (1) |
As discussed above, the foreign
currency options are not designated as hedges. We recognized gains
of $1.1 million in Foreign Currency and Derivative Gains and
(Losses) and Related Amortization, Net in the Consolidated
Statements of Operations from the change in value of our
outstanding foreign currency collars for the three and nine months
ended September 30, 2014. |
| (2) |
Items indicated by ‘- -’ are not
applicable |
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| Summary of Gains (Losses) From Change in Fair Value of Derivative Instruments Included in Other Comprehensive Income (Loss) |
The following table presents the gains and losses associated with
the change in fair value for the effective portion of our
derivative and non-derivative instruments included in Other
Comprehensive Income (Loss) (in thousands):
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Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
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2014 |
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2013 |
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2014 |
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2013 |
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Derivative net investment hedges (1)
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$ |
93,502 |
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$ |
(23,801 |
) |
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$ |
70,393 |
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$ |
10,395 |
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Interest rate swap hedges
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(39 |
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(821 |
) |
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(229 |
) |
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71 |
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Our share of derivatives from unconsolidated co-investment
ventures
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(4,474 |
) |
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3,584 |
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(7,555 |
) |
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21,768 |
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Total gain (loss) on derivative instruments
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88,989 |
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(21,038 |
) |
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62,609 |
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32,234 |
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Non-derivative net investment hedges
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204,250 |
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— |
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214,570 |
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— |
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Total gain (loss) on derivative and non-derivative
instruments
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$ |
293,239 |
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$ |
(21,038 |
) |
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$ |
277,179 |
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$ |
32,234 |
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| (1) |
This includes gains of $5.9 million
and losses of $5.5 million for the three and nine months ended
September 30, 2014, respectively, and a gain of $4.3 million
for the nine months ended September 30, 2013, upon the
settlement of net investment hedges. |
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| Carrying Amounts and Estimated Fair Values of Debt |
The following table reflects the carrying amounts and estimated
fair values of our debt (in thousands):
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September 30, 2014 |
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December 31, 2013 |
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Carrying Value |
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Fair Value |
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Carrying Value |
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Fair Value |
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Credit Facilities
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$ |
741,610 |
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741,610 |
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$ |
725,483 |
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$ |
725,679 |
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Senior notes
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5,443,138 |
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5,885,585 |
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5,357,933 |
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5,698,864 |
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Exchangeable senior notes
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451,999 |
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485,077 |
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438,481 |
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514,381 |
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Secured mortgage debt
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1,141,772 |
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1,272,061 |
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1,696,597 |
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1,840,829 |
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Secured mortgage debt of consolidated entities
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26,064 |
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26,678 |
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|
239,992 |
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246,324 |
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Term loans and other debt
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1,018,369 |
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1,020,895 |
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552,730 |
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560,714 |
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Total debt
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$ |
8,822,952 |
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$ |
9,431,906 |
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$ |
9,011,216 |
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$ |
9,586,791 |
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