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Impairment Charges and Impairment of Joint Venture Investments (Tables) | 12 Months Ended
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Dec. 31, 2012
Impairment Charges on Consolidated Assets | The Company recorded impairment charges based on the difference between the carrying value of the assets or investments and the estimated fair market value as follows (in millions):
|  | For the Year Ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Land held for development(A) |  | $ | 10.1 |  |  | $ | 54.2 |  |  | $ | 54.3 |
Undeveloped land(B),(C) |  |  | 20.1 |  |  |  | 9.0 |  |  |  | 30.5 |
Assets marketed for sale(C) |  |  | 75.2 |  |  |  | 4.7 |  |  |  | — |
Total continuing operations |  | $ | 105.4 |  |  | $ | 67.9 |  |  | $ | 84.8 |
Sold assets |  |  | 21.1 |  |  |  | 57.9 |  |  |  | 51.8 |
Assets formerly occupied by Mervyns(D) |  |  | — |  |  |  | — |  |  |  | 35.3 |
Total discontinued operations |  | $ | 21.1 |  |  | $ | 57.9 |  |  | $ | 87.1 |
Joint venture investments(E) |  |  | 26.7 |  |  |  | 2.9 |  |  |  | 0.2 |
Total impairment charges |  | $ | 153.2 |  |  | $ | 128.7 |  |  | $ | 172.1 |
(A) | Amounts reported in the year ended December 31, 2012, primarily related to land held for development in Canada that was owned through a consolidated joint venture (Note 13). This asset impairment was triggered primarily by the Company’s decision to dispose of its interest in lieu of development and the related execution of agreements for the sale of its interest in this project to its partner.
| Amounts reported in the year ended December 31, 2011, primarily related to the Yaroslavl Project and land held for development in Canada that were owned through consolidated joint ventures. The Company’s proportionate share of the loss was $50.4 million after adjusting for the allocation of loss to the non-controlling interest in certain of the projects. The asset impairments primarily were triggered by the Company’s decision to dispose of its interest in lieu of development for certain of the projects and the related execution of agreements for the sale or partial sale of its interest in these projects. The Company sold its interest in the land held for development in Canada in the fourth quarter of 2011 to its joint venture partner in the project (Note 13). The Yaroslavl Project was sold to a third party in the first quarter of 2012 (Note 13).
| Amounts reported in the year ended December 31, 2010, primarily related to land held for development in Russia that included the Yaroslavl Project, which is owned through a consolidated joint venture. The Company’s proportionate share of the loss was $41.9 million after adjusting for the allocation of loss to the non-controlling interest. The asset impairments were triggered in the second quarter of 2010 primarily due to a change in the Company’s investment plans for these projects.
(B) | Amounts reported in 2010 include a $19.3 million impairment charge associated with an abandoned development project. A subsidiary of the Company’s TRS acquired a leasehold interest in a development project in Norwood, Massachusetts, as part of a portfolio acquisition in 2003. The Company no longer expected to fund the ground rent expense in 2010, which triggered the impairment, and the ground lease was subsequently terminated in 2011.
(C) | These charges were triggered primarily due to the Company’s marketing of these assets for sale and management’s assessment of the likelihood and timing of a potential transaction.
(D) | As discussed in Notes 1 and 12, these assets were deconsolidated in 2010, and all operating results have been reclassified as discontinued operations. For the year ended December 31, 2010, the Company’s proportionate share of these impairment charges was $16.5 million after adjusting for the allocation of loss to the non-controlling interest in this previously consolidated joint venture. The 2010 impairment charges were triggered primarily due to a change in the Company’s business plans for these assets and the resulting impact on its holding period assumptions for this substantially vacant portfolio. During 2010, the Company determined it was no longer committed to the long-term management and investment in these assets.
(E) | Represents “other than temporary impairment” charges on unconsolidated joint venture investments. In 2012, the Company recorded a $26.1 million charge related to its interest in the Coventry II DDR Montgomery Farm LLC joint venture that owned a mixed-use project located in Allen, TX. The Company determined that its investment had suffered an other than temporary impairment due to deteriorating relations between the lender and the Company’s partner and the resulting impact on the asset’s value. In September 2012, the Company satisfied its remaining guaranty of the construction loan. In November 2012, the Company sold its interest in the joint venture.
Impairment Charges Measured at Fair Value on Non-Recurring Basis | The following table presents information about the Company’s impairment charges on both financial and nonfinancial assets that were measured on a fair value basis for the years ended December 31, 2012, 2011 and 2010. The table also indicates the fair value hierarchy of the valuation techniques used by the Company to determine such fair value (in millions).
|  | Fair Value Measurements |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |  |  | Total Losses |
December 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Long-lived assets held and used |  | $ | — |  |  | $ | — |  |  | $ | 180.7 |  |  | $ | 180.7 |  |  | $ | 126.5 |
Unconsolidated joint venture investments |  |  | — |  |  |  | — |  |  |  | 4.7 |  |  |  | 4.7 |  |  |  | 26.7 |
Deconsolidated joint venture investment |  |  | — |  |  |  | — |  |  |  | 56.1 |  |  |  | 56.1 |  |  |  | 9.3 |
December 31, 2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Long-lived assets held and used and held for sale |  |  | — |  |  |  | — |  |  |  | 212.0 |  |  |  | 212.0 |  |  |  | 125.8 |
Unconsolidated joint venture investments |  |  | — |  |  |  | — |  |  |  | 5.5 |  |  |  | 5.5 |  |  |  | 2.9 |
December 31, 2010 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Long-lived assets held and used |  |  | — |  |  |  | — |  |  |  | 229.2 |  |  |  | 229.2 |  |  |  | 171.9 |
Unconsolidated joint venture investments |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 0.2 |
Summary of Significant Unobservable Inputs | The following table presents quantitative information about the significant unobservable inputs used by the Company to determine the fair value of non-recurring items (in millions):
|  | Quantitative Information about Level 3 Fair Value Measurements
|  | Fair Value at 12/31/12 |  |  | Valuation Technique |  | Unobservable Input |  | Range
Impairment of consolidated assets |  | $ | 136.6 |  |  | Indicative Bid |  | Indicative Bid |  | N/A(A)
Impairment of consolidated assets |  |  | 44.1 |  |  | Income Capitalization Approach(B) |  | Market Capitalization Rate |  | 8% - 12%(B)
|  |  |  |  |  |  |  | Price Per Square Foot |  | $15 to $47 per square foot(B)
Impairment of joint venture investments |  |  | 4.7 |  |  | Income Capitalization Approach |  | Market Capitalization Rate |  | 8%(C)
Impairment of joint venture investments |  |  | — |  |  | Discounted Cash Flow |  | Discount Rate |  | 11%
|  |  |  |  |  |  |  | Terminal Capitalization Rate |  | 5.5% - 8.5%
Deconsolidated joint venture investment(D) |  |  | 56.1 |  |  | Discounted Cash Flow |  | Discount Rate |  | 8% - 15%
(A) | These fair value measurements were developed by third-party sources, subject to the Company’s corroboration for reasonableness.
(B) | Vacant space in certain assets was valued on a price per square foot.
(C) | The fair value measurements also include consideration of the fair market value of debt. These inputs are further described in the debt section of Note 8.
(D) | Related to loss reported in Change in Control and Sale of Interests (Note 2).

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- Definition Tabular disclosure for impairment of long-lived assets held and used by an entity which includes a description of the impaired long-lived asset and facts and circumstances leading to the impairment, aggregate amount of the impairment loss and where the loss is located in the income statement, method(s) for determining fair value, and the segment in which the impaired long-lived asset is reported. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2921-110230 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 144 -Paragraph 26 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section CC -Subsection 3 + Details
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- Definition Tabular disclosure of the inputs and valuation techniques used to measure fair value, and a discussion of changes in valuation techniques and related inputs, if any, used to measure similar assets in prior periods (non-recurring basis) by class of asset or liability. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 33 -Subparagraph d -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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