Financial Instruments and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2015

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Activity

The following tables summarize the activity in our derivative instruments for the nine months ended September 30 (in millions, except for weighted average forward rates and number of active contracts):  

2015
	Foreign Currency Contracts
Local Currency	Net Investment Forward Contracts									Forward and Option Contracts															Interest Rate Contracts
	EUR			GBP			JPY			EUR (1)			GBP (1) (2)			JPY (1)			CAD (1)			MXN			JPY
Notional amounts at January 1	€	300		£	238		¥	24,136		€	284		£	-		¥	-		$	-		$	-		¥	40,916
New contracts (3)		-			118			43,373			268			179			18,740			69			140			65,000
Matured or expired contracts		(300	)		(118	)		(67,509	)		(292	)		(70	)		(4,400	)		(14	)		(42	)		-
Notional amounts at September 30,	€	-		£	238		¥	-		€	260		£	109		¥	14,340		$	55		$	98		¥	105,916
	Foreign Currency Contracts
U.S. Dollar	Net Investment Forward Contracts									Forward and Option Contracts															Interest Rate Contracts
Notional amounts at January 1	$	400		$	400		$	250		$	354		$	-		$	-		$	-		$	-		$	398
New contracts (3) (4)		-			186			353			303			269			159			55			8			886
Matured or expired contracts		(400	)		(200	)		(603	)		(358	)		(104	)		(38	)		(11	)		(2	)		-
Notional amounts at September 30,	$	-		$	386		$	-		$	299		$	165		$	121		$	44		$	6		$	1,284
Weighted average forward      rate at September 30,		-			1.62			-			1.15			1.31			118.12			1.26			17.03			115.47
Active contracts at September 30,		-			3			-			20			15			18			9			11			6

2014
	Foreign Currency Contracts
Local Currency	Net Investment Forward Contracts								Forward and Option Contracts (1)			Interest Rate Swaps
	EUR			GBP		JPY			EUR			JPY
Notional amounts at January 1	€	600		£	-	¥	24,136		€	-		¥	-
New contracts		1,446			238		79,010			141			40,916
Matured or expired contracts		(1,446	)		-		(79,010	)		(66	)		-
Notional amounts at September 30,	€	600		£	238	¥	24,136		€	75		¥	40,916
	Foreign Currency Contracts
U.S. Dollar	Net Investment Forward Contracts								Forward and Option Contracts (1)			Interest Rate Swaps
Notional amounts at January 1	$	800		$	-	$	250		$	-		$	71
New contracts		1,979			400		769			187			373
Matured or expired contracts		(1,979	)		-		(769	)		(90	)		-
Notional amounts at September 30,	$	800		$	400	$	250		$	97		$	444

(1) During the nine months ended September 30, 2015 and 2014, we exercised 23 and 2 option contracts and realized gains of $9.6 million and $1.1 million, respectively, in Foreign Currency and Derivative Gains (Losses) and Related Amortization, Net in the Consolidated Statements of Operations. During the three months ended September 30, 2015 and 2014, we exercised 10 and 1 option contracts and realized gains of $3.4 million and $1.0 million, respectively, in Foreign Currency and Derivative Gains (Losses) and Related Amortization, Net.

(2) Included in our British pounds sterling denominated option contracts are four forward contracts to sell British pounds sterling and buy euros. These forwards have a notional amount of £23.0 million (€30.8 million) and were reported in this table using a weighted average exchange rate of $1.10 U.S. dollars to the euro.

(3) In the second quarter of 2015, we entered into two contracts to effectively fix the interest rate on the 2015 Yen Term Loan. These contracts were designated as interest rate swap hedges. See Note 7 for more information on the 2015 Yen Term Loan.

(4) In the third quarter of 2015, we entered into two contracts with a notional amount of $360.0 million to effectively fix the interest rate at the three month LIBOR rate of 2.3% on expected future debt issuances. These contracts were designated as interest rate forward hedges.

Schedule of Fair Value of Derivative Instruments

The following table presents the fair value of our derivative instruments (in thousands):

	September 30, 2015				December 31, 2014
	Asset		Liability		Asset		Liability
Net investment hedges – euro denominated (1)	$	-	$	-	$	22,891	$	-
Net investment hedges – pound sterling denominated		25,829		-		29,097		-
Net investment hedges – yen denominated (1)		-		-		46,934		-
Cash flow hedge foreign currency options – peso denominated		-		74		-		-
Foreign currency options – Canadian dollar denominated (2)		2,269		-		-		-
Foreign currency options – euro denominated (2)		10,304		1,282		7,742		-
Foreign currency options – pound sterling denominated (2)		1,373		1,316		-		-
Foreign currency options – yen denominated (2)		1,025		791		-		-
Interest rate hedges		-		16,878		-		1,395
Total fair value of derivatives	$	40,800	$	20,341	$	106,664	$	1,395

(1) During the second quarter of 2015, we terminated our euro and yen denominated net investment hedges. See below for additional information about the gains recognized associated with these net investment hedges.

(2) As discussed above, these foreign currency options are not designated as hedges. We recognized gains of $2.7 million and $12.2 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 options for the three and nine months ended September 30, 2015, respectively. We recognized gains of $1.1 million for the three and nine months ended September 30, 2014.

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 nonderivative hedging instruments included in Other Comprehensive Income (Loss) (in thousands):

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Derivative net investment hedges (1)	$	14,225		$	93,502		$	48,419		$	70,393
Interest rate hedges (2)		(14,680	)		(39	)		(15,439	)		(229	)
Cash flow hedges		(74	)		-			(74	)		-
Our share of derivatives from unconsolidated co-investment ventures		(906	)		(4,474	)		3,200			(7,555	)
Total gain (loss) on derivative instruments		(1,435	)		88,989			36,106			62,609
Nonderivative net investment hedges (3)		(4,674	)		204,250			218,729			214,570
Total gain (loss) on derivative and nonderivative hedging instruments	$	(6,109	)	$	293,239		$	254,835		$	277,179

(1) We received $121.5 million for the nine months ended September 30, 2015, upon the settlement of net investment hedges. We did not settle any net investment hedges during the three months ended September 30, 2015. For the three and nine months ended September 30, 2014, we received $5.9 million and paid $5.5 million, respectively, upon the settlement of net investment hedges.

(2) The amounts reclassified to interest expense for the three and nine months ended September 30, 2015, and 2014, respectively, were not considered significant. For the next 12 months from September 30, 2015, we estimate an additional expense for $7.6 million will be reclassified to Interest Expense in the Consolidated Statements of Operations.

(3) At September 30, 2015, and December 31, 2014, we had €3.2 billion ($3.6 billion) and €2.5 billion ($3.0 billion) of debt, net of accrued interest, respectively, designated as nonderivative 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 nonderivative financial instrument hedge at December 31, 2014. We recognized unrealized gains of $10.0 million in Foreign Currency and Derivative Gains (Losses) and Related Amortization, Net in the Consolidated Statements of Operations on the unhedged portion of our debt for the nine months ended September 30, 2015. We did not recognize any gains or losses for the three months ended September 30, 2015; or the three and nine months ended September 30, 2014.

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, 2015				December 31, 2014
	Carrying Value		Fair Value		Carrying Value		Fair Value
Credit Facilities	$	207,978	$	208,029	$	-	$	-
Senior notes		6,622,440		6,884,123		6,076,920		6,593,657
Exchangeable senior notes		-		-		456,766		511,931
Term loans and other debt		2,458,496		2,460,662		588,816		591,810
Secured mortgage debt		785,480		886,632		1,050,591		1,173,488
Secured mortgage debt of consolidated entities		1,859,961		1,870,774		1,207,106		1,209,271
Total debt	$	11,934,355	$	12,310,220	$	9,380,199	$	10,080,157