Financial Instruments and Fair Value Measurements (Tables)
|
9 Months Ended |
Sep. 30, 2017 |
|---|
| Derivative Instruments And Hedging Activities Disclosure [Abstract] |
|
| Schedule of Fair Value and Classification of Derivative Instruments |
The following table presents the fair value and classification of our derivative instruments (in thousands):
|
|
|
September 30, 2017 |
|
|
December 31, 2016 |
|
|
|
|
Asset |
|
|
Liability |
|
|
Asset |
|
|
Liability |
|
|
Net investment hedges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
British pound sterling denominated |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
7,439 |
|
|
$ |
- |
|
|
Canadian dollar denominated |
|
|
- |
|
|
|
7,683 |
|
|
|
1,245 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forwards and options (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
British pound sterling denominated |
|
|
4,932 |
|
|
|
7,158 |
|
|
|
16,985 |
|
|
|
- |
|
|
Canadian dollar denominated |
|
|
- |
|
|
|
1,709 |
|
|
|
831 |
|
|
|
197 |
|
|
Euro denominated |
|
|
- |
|
|
|
12,144 |
|
|
|
10,933 |
|
|
|
- |
|
|
Japanese yen denominated |
|
|
6,671 |
|
|
|
1,100 |
|
|
|
9,246 |
|
|
|
1,071 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate hedges |
|
|
8,707 |
|
|
|
- |
|
|
|
435 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total fair value of derivatives |
|
$ |
20,310 |
|
|
$ |
29,794 |
|
|
$ |
47,114 |
|
|
$ |
1,268 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
As discussed below, these foreign currency options are not designated as hedges. We recognized unrealized losses of $12.3 million and $44.8 million for the three and nine months ended September 30, 2017, respectively, from the change in value of our outstanding foreign currency options within Foreign Currency and Derivative Losses, Net in the Consolidated Statements of Income. We recognized unrealized gains of $3.1 million and losses of $10.4 million for the three and nine months ended September 30, 2016, respectively, from the change in value of our outstanding foreign currency options. |
|
| Foreign Currency Contracts Activity |
The following tables summarize the activity in our foreign currency contracts for the nine months ended September 30 (in millions, except for weighted average forward rates and number of active contracts):
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign Currency Contracts |
|
|
Local Currency |
|
Net Investment Hedges |
|
|
Forwards and Options |
|
|
|
|
CAD |
|
|
GBP |
|
|
CAD |
|
|
EUR |
|
|
GBP |
|
|
JPY |
|
|
Notional amounts at January 1 |
|
$ |
133 |
|
|
£ |
31 |
|
|
$ |
50 |
|
|
€ |
174 |
|
|
£ |
48 |
|
|
¥ |
15,500 |
|
|
New contracts |
|
|
133 |
|
|
|
100 |
|
|
|
24 |
|
|
|
56 |
|
|
|
107 |
|
|
|
4,000 |
|
|
Matured, expired or settled contracts |
|
|
(133 |
) |
|
|
(131 |
) |
|
|
(22 |
) |
|
|
(72 |
) |
|
|
(48 |
) |
|
|
(5,400 |
) |
|
Notional amounts at September 30 |
|
$ |
133 |
|
|
£ |
- |
|
|
$ |
52 |
|
|
€ |
158 |
|
|
£ |
107 |
|
|
¥ |
14,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign Currency Contracts |
|
|
U.S. Dollar |
|
Net Investment Hedges |
|
|
Forwards and Options |
|
|
Notional amounts at January 1 |
|
$ |
100 |
|
|
$ |
46 |
|
|
$ |
38 |
|
|
$ |
197 |
|
|
$ |
78 |
|
|
$ |
144 |
|
|
New contracts |
|
|
99 |
|
|
|
127 |
|
|
|
19 |
|
|
|
63 |
|
|
|
137 |
|
|
|
38 |
|
|
Matured, expired or settled contracts |
|
|
(100 |
) |
|
|
(173 |
) |
|
|
(17 |
) |
|
|
(81 |
) |
|
|
(75 |
) |
|
|
(49 |
) |
|
Notional amounts at September 30 |
|
$ |
99 |
|
|
$ |
- |
|
|
$ |
40 |
|
|
$ |
179 |
|
|
$ |
140 |
|
|
$ |
133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average forward
rate at September 30 |
|
|
1.34 |
|
|
|
- |
|
|
|
1.30 |
|
|
|
1.13 |
|
|
|
1.31 |
|
|
|
106.11 |
|
|
Active contracts at September 30 |
|
|
2 |
|
|
|
- |
|
|
|
18 |
|
|
|
23 |
|
|
|
19 |
|
|
|
29 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign Currency Contracts |
|
|
Local Currency |
|
Net Investment Hedges |
|
|
Forwards and Options |
|
|
|
|
CAD |
|
|
GBP |
|
|
JPY |
|
|
EUR |
|
|
GBP |
|
|
JPY |
|
|
Other |
|
|
Notional amounts at January 1 |
|
$ |
- |
|
|
£ |
238 |
|
|
¥ |
- |
|
|
€ |
275 |
|
|
£ |
97 |
|
|
¥ |
12,840 |
|
|
|
|
|
|
New contracts |
|
|
133 |
|
|
|
60 |
|
|
|
11,189 |
|
|
|
321 |
|
|
|
- |
|
|
|
15,460 |
|
|
|
|
|
|
Matured, expired or settled contracts |
|
|
- |
|
|
|
(60 |
) |
|
|
(11,189 |
) |
|
|
(440 |
) |
|
|
(36 |
) |
|
|
(10,940 |
) |
|
|
|
|
|
Notional amounts at September 30 |
|
$ |
133 |
|
|
£ |
238 |
|
|
¥ |
- |
|
|
€ |
156 |
|
|
£ |
61 |
|
|
¥ |
17,360 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign Currency Contracts |
|
|
U.S. Dollar |
|
Net Investment Hedges |
|
|
Forwards and Options (1) |
|
|
Notional amounts at January 1 |
|
$ |
- |
|
|
$ |
386 |
|
|
$ |
- |
|
|
$ |
310 |
|
|
$ |
148 |
|
|
$ |
109 |
|
|
$ |
50 |
|
|
New contracts |
|
|
100 |
|
|
|
85 |
|
|
|
99 |
|
|
|
359 |
|
|
|
- |
|
|
|
147 |
|
|
|
15 |
|
|
Matured, expired or settled contracts |
|
|
- |
|
|
|
(100 |
) |
|
|
(99 |
) |
|
|
(492 |
) |
|
|
(55 |
) |
|
|
(95 |
) |
|
|
(21 |
) |
|
Notional amounts at September 30 |
|
$ |
100 |
|
|
$ |
371 |
|
|
$ |
- |
|
|
$ |
177 |
|
|
$ |
93 |
|
|
$ |
161 |
|
|
$ |
44 |
|
|
(1) |
During the nine months ended September 30, 2017, and 2016, we exercised 33 and 41 forward and option contracts, respectively. We realized gains of $1.6 million and $10.5 million for the three and nine months ended September 30, 2017, respectively, and losses of $3.1 million and $1.2 million for the three and nine months ended September 30, 2016, respectively, in Foreign Currency and Derivative Losses, Net. |
|
| Summary of Gains (Losses) From Change in Fair Value of Derivative Instruments Included in Other Comprehensive Income |
The following table presents the gains and (losses) associated with the change in fair value for the effective portion of our derivative and nonderivative hedging instruments included in Other Comprehensive Income (in thousands):
|
|
|
Three Months Ended
September 30, |
|
|
Nine Months Ended
September 30, |
|
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
|
Derivative net investment hedges (1) |
|
$ |
(3,623 |
) |
|
$ |
11,546 |
|
|
$ |
(13,114 |
) |
|
$ |
40,966 |
|
|
Interest rate and cash flow hedges (2) |
|
|
5,553 |
|
|
|
3,110 |
|
|
|
10,382 |
|
|
|
(10,714 |
) |
|
Our share of derivatives from unconsolidated co-investment ventures |
|
|
538 |
|
|
|
1,586 |
|
|
|
5,075 |
|
|
|
(6,408 |
) |
|
Total derivative instruments |
|
|
2,468 |
|
|
|
16,242 |
|
|
|
2,343 |
|
|
|
23,844 |
|
|
Nonderivative net investment hedges (3) (4) |
|
|
(139,885 |
) |
|
|
(19,019 |
) |
|
|
(414,077 |
) |
|
|
(88,792 |
) |
|
Total derivative and nonderivative hedging instruments |
|
$ |
(137,417 |
) |
|
$ |
(2,777 |
) |
|
$ |
(411,734 |
) |
|
$ |
(64,948 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
We received $2.5 million and $16.8 million for the nine months ended September 30, 2017, and 2016, respectively, upon the settlement of net investment hedges. We did not settle any new investment hedges during the three months ended September 30, 2017, and 2016. |
|
(2) |
The amounts reclassified to interest expense for the three and nine months ended September 30, 2017, were $1.3 million and $4.2 million, respectively. The amounts reclassified to interest expense for the three and nine months ended September 30, 2016, were $2.0 million and $4.1 million, respectively. For the next 12 months from September 30, 2017, we estimate an additional expense of $3.5 million will be reclassified to Interest Expense. |
|
(3) |
At September 30, 2017, and December 31, 2016, we had €3.0 billion ($3.6 billion) and €3.2 billion ($3.4 billion) of debt, net of accrued interest, respectively, designated as nonderivative financial instrument hedges of our net investment in international subsidiaries. We recognized unrealized losses of $3.8 million and $15.1 million in Foreign Currency and Derivative Losses, Net on the unhedged portion of our debt for the three and nine months ended September 30, 2017. We did not recognize any gains or losses for the three months ended September 30, 2016. |
|
(4) |
In June 2017, we issued £500.0 million ($645.3 million) of debt, as discussed in Note 5, and £322.8 million ($415.0 million) of the debt was designated as a nonderivative financial instrument hedge of our net investment in international subsidiaries at September 30, 2017. We recognized unrealized losses of $4.2 million in Foreign Currency and Derivative Losses, Net on the unhedged portion of our debt for the three and nine months ended September 30, 2017. |
|
| Carrying Amounts and Estimated Fair Values of Debt |
The following table reflects the carrying amounts and estimated fair values of our debt (in thousands):
|
|
|
September 30, 2017 |
|
|
December 31, 2016 |
|
|
|
|
Carrying Value |
|
|
Fair Value |
|
|
Carrying Value |
|
|
Fair Value |
|
|
Credit Facilities |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
35,023 |
|
|
$ |
35,061 |
|
|
Senior notes |
|
|
6,874,108 |
|
|
|
7,390,221 |
|
|
|
6,417,492 |
|
|
|
6,935,485 |
|
|
Term loans and unsecured other |
|
|
1,634,682 |
|
|
|
1,653,113 |
|
|
|
1,499,001 |
|
|
|
1,510,661 |
|
|
Secured mortgages |
|
|
812,371 |
|
|
|
874,491 |
|
|
|
979,585 |
|
|
|
1,055,020 |
|
|
Secured mortgages of consolidated entities |
|
|
399,904 |
|
|
|
399,515 |
|
|
|
1,677,193 |
|
|
|
1,683,489 |
|
|
Total debt |
|
$ |
9,721,065 |
|
|
$ |
10,317,340 |
|
|
$ |
10,608,294 |
|
|
$ |
11,219,716 |
|
|