v2.4.1.9

Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended
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Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Activity | The following table summarizes the activity in our derivative instruments for the years ended December 31 as follows (in millions):
2014 |  |  |
|  | Foreign Currency Contracts |  |  | Interest Rate Swaps (2) |
|  | Net Investment Contracts |  |  | Euro Option Contracts (1) |  |
Notional amounts at January 1 |  | € | 600 |  |  | $ | 800 |  |  | £ | - |  |  | $ | - |  |  | ¥ | 24,136 |  |  | $ | 250 |  |  | € | - |  |  | $ | - |  |  | $ | 71 |
New contracts |  |  | 1,746 |  |  |  | 2,354 |  |  |  | 238 |  |  |  | 400 |  |  |  | 79,010 |  |  |  | 769 |  |  |  | 365 |  |  |  | 464 |  |  |  | 398 |
Matured or expired contracts |  |  | (2,046) |  |  |  | (2,754) |  |  |  | - |  |  |  | - |  |  |  | (79,010) |  |  |  | (769) |  |  |  | (81) |  |  |  | (110) |  |  |  | (71) |
Notional amounts at December 31 |  | € | 300 |  |  | $ | 400 |  |  | £ | 238 |  |  | $ | 400 |  |  | ¥ | 24,136 |  |  | $ | 250 |  |  | € | 284 |  |  | $ | 354 |  |  | $ | 398 |
Weighted Average Forward Rate at December 31 |  |  |  |  |  |  | 1.33 |  |  |  |  |  |  |  | 1.68 |  |  |  |  |  |  |  | 96.54 |  |  |  |  |  |  |  | 1.25 |  |  |  |  |
Active contracts at December 31 |  |  |  |  |  |  | 4 |  |  |  |  |  |  |  | 3 |  |  |  |  |  |  |  | 3 |  |  |  |  |  |  |  | 8 |  |  |  | 2 |
2013 |  |  |
|  | Foreign Currency Contracts |  |  | Interest Rate Swaps (3) |
|  | Net Investment Contracts |  |
Notional amounts at January 1 |  | € | 1,000 |  |  | $ | 1,304 |  |  | ¥ | - |  |  | $ | - |  |  | $ | 1,315 |
New contracts |  |  | 600 |  |  |  | 800 |  |  |  | 24,136 |  |  |  | 250 |  |  |  | - |
Matured or expired contracts |  |  | (1,000) |  |  |  | (1,304) |  |  |  | - |  |  |  | - |  |  |  | (1,244) |
Notional amounts at December 31 |  | € | 600 |  |  | $ | 800 |  |  | ¥ | 24,136 |  |  | $ | 250 |  |  | $ | 71 |
2012 |  |  |
|  | Foreign Currency Contracts |  |  | Interest Rate Swaps (4) |
|  | Net Investment Contracts |  |
Notional amounts at January 1 |  | € | - |  |  | $ | - |  |  | $ | 1,497 |
New contracts |  |  | 1,000 |  |  |  | 1,304 |  |  |  | 445 |
Acquired contracts |  |  | - |  |  |  | - |  |  |  | 71 |
Matured or expired contracts |  |  | - |  |  |  | - |  |  |  | (698) |
Notional amounts at December 31 |  | € | 1,000 |  |  | $ | 1,304 |  |  | $ | 1,315 |
(1) | During 2014, we exercised three foreign currency option contracts, and recognized a net gain of approximately $1.1 million.
(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 9 for more information on the Yen Term Loan.
(3) | During 2013, we settled 13 contracts with a notional value of $333.5 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 contributions of properties to NPR.
(4) | In 2012, we entered into four interest rate swap contracts with combined notional amounts of $445.4 million, with various expiration dates between 2017 and 2019. In addition, we acquired one interest rate swap contract with a notional amount of $71.0 million in connection with the acquisition of a controlling interest in one of our unconsolidated co-investment ventures.
Schedule of Fair Value of Derivative Instruments | The following table presents the fair value of our derivative instruments (in thousands):
|  | December 31, 2014 |  |  | December 31, 2013 |
|  | Asset |  |  | Liability |  |  | AOCI |  |  | Asset |  |  | Liability |  |  | AOCI |
Net investment hedges - euro denominated |  | $ | 22,891 |  |  | $ | - |  |  | $ | 37,295 |  |  | $ | 137 |  |  | $ | 30,302 |  |  | $ | (21,705) |
Net investment hedges - yen denominated |  |  | 46,934 |  |  |  | - |  |  |  | 56,169 |  |  |  | 20,104 |  |  |  | - |  |  |  | 22,102 |
Net investment hedges - pounds sterling denominated |  |  | 29,097 |  |  |  | - |  |  |  | 29,097 |  |  |  | - |  |  |  | - |  |  |  | - |
Foreign currency options - euro denominated (1) |  |  | 7,742 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Interest rate swap hedges (2) |  |  | - |  |  |  | 1,395 |  |  |  | (1,395) |  |  |  | - |  |  |  | 5,638 |  |  |  | (591) |
Our share of derivatives from unconsolidated co-investment ventures (3) |  |  | - |  |  |  | - |  |  |  | (19,545) |  |  |  | - |  |  |  | - |  |  |  | (13,851) |
Total fair value of derivatives |  | $ | 106,664 |  |  | $ | 1,395 |  |  | $ | 101,621 |  |  | $ | 20,241 |  |  | $ | 35,940 |  |  | $ | (14,045) |
(1) | As discussed above, the foreign currency options are not designated as hedges. We recognized gains of $7.7 million in Foreign Currency and Derivative Losses and Related Amortization, Net in the Consolidated Statements of Operations from the change in value of our outstanding foreign currency option contracts for the year ended December 31, 2014.
(2) | In connection with the contributions to NPR, we reclassified a loss related to interest rate swaps of $7.8 million during the first quarter of 2013 from AOCI in the Consolidated Balance Sheets to Losses on Early Extinguishment of Debt, Net in the Consolidated Statements of Operations.
(3) | Items indicated by ‘- - ‘ are not applicable
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):
|  | 2014 |  |  | 2013 |  |  | 2012 |
Derivative net investment hedges (1) |  | $ | 122,164 |  |  | $ | 17,847 |  |  | $ | (17,450) |
Interest rate swap hedges (2) |  |  | (804) |  |  |  | (69) |  |  |  | 6,651 |
Our share of derivatives from unconsolidated co-investment ventures |  |  | (5,694) |  |  |  | 19,659 |  |  |  | 11,335 |
Total gain (loss) on derivative instruments |  |  | 115,666 |  |  |  | 37,437 |  |  |  | 536 |
Non-derivative net investment hedges (3) |  |  | 321,196 |  |  |  | (14,910) |  |  |  | - |
Total gain on derivative and non-derivative instruments |  | $ | 436,862 |  |  | $ | 22,527 |  |  | $ | 536 |
(1) | This includes gains of $6.3 million and $4.3 million for the years ended December 31, 2014 and 2013, respectively, upon the settlement of net investment hedges.
(2) | The amounts reclassified to interest expense for the years ended December 31, 2014 and 2013 were not considered significant. The amount reclassified to interest expense for the year ended December 31, 2012, was $14.7 million. We do not expect the amounts reclassified to interest expense for the next 12 months to be significant.
(3) | As discussed in Note 9, we issued €1.8 billion ($2.4 billion) of debt in 2014. This debt was issued by the Operating Partnership, which is a U.S. dollar functional entity, and designated as a non-derivative financial instrument hedge. At December 31, 2014 and 2013, we had €2.5 billion ($3.0 billion) and €700 million ($1.0 billion) of debt, net of accrued interest, respectively, designated as non-derivative financial instrument hedges of our net investment in international subsidiaries. We had €97.6 million ($118.5 million) of debt that was not designated as a non-derivative financial instrument hedge at December 31, 2014. We recognized unrealized gains of $7.5 million in Foreign Currency and Derivative Gains (Losses) and Related Amortization, Net in the Consolidated Statements of Operations on the unhedged portion or our debt in 2014.
Carrying Amounts and Estimated Fair Values of Debt | The following table reflects the carrying amounts and estimated fair values of our debt at December 31 (in thousands):
|  | 2014 |  |  | 2013 |
|  | Carrying Value |  |  | Fair Value |  |  | Carrying Value |  |  | Fair Value |
Credit Facilities |  | $ | - |  |  | $ | - |  |  | $ | 725,483 |  |  | $ | 725,679 |
Senior notes |  |  | 6,076,920 |  |  |  | 6,593,657 |  |  |  | 5,357,933 |  |  |  | 5,698,864 |
Exchangeable senior notes |  |  | 456,766 |  |  |  | 511,931 |  |  |  | 438,481 |  |  |  | 514,381 |
Secured mortgage debt |  |  | 1,050,591 |  |  |  | 1,173,488 |  |  |  | 1,696,597 |  |  |  | 1,840,829 |
Secured mortgage debt of consolidated entities |  |  | 1,207,106 |  |  |  | 1,209,271 |  |  |  | 239,992 |  |  |  | 246,324 |
Term loans and other debt |  |  | 588,816 |  |  |  | 591,810 |  |  |  | 552,730 |  |  |  | 560,714 |
Total debt |  | $ | 9,380,199 |  |  | $ | 10,080,157 |  |  | $ | 9,011,216 |  |  | $ | 9,586,791 |

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- Definition Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41678-113959 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 25 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41620-113959 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5579245-113959 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5580258-113959 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5579240-113959 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41641-113959 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41638-113959 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624171-113959 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624163-113959 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(n)(2)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
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