|
Financial Instruments and Fair Value Measurements (Tables)
|
12 Months Ended |
|
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 |
|
|