Financial Instruments and Fair Value Measurements (Tables)

6 Months Ended

Jun. 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):

	June 30, 2017				December 31, 2016
	Asset		Liability		Asset		Liability
Net investment hedges
British pound sterling denominated	$	-	$	-	$	7,439	$	-
Canadian dollar denominated		-		3,904		1,245		-
Forwards and options (1)
British pound sterling denominated		8,401		4,048		16,985		-
Canadian dollar denominated		31		546		831		197
Euro denominated		538		6,101		10,933		-
Yen denominated		6,919		1,512		9,246		1,071
Interest rate hedges		3,639		-		435		-
Total fair value of derivatives	$	19,528	$	16,111	$	47,114	$	1,268

(1) As discussed below, these foreign currency options are not designated as hedges. We recognized unrealized losses of $18.8 million and $32.5 million for the three and six months ended June 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 $3.3 million and losses of $13.5 million for the three and six months ended June 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 six months ended June 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			-			56			107			4,000
Matured, expired or settled contracts		(133	)		(131	)		(15	)		(50	)		(31	)		(3,500	)
Notional amounts at June 30	$	133		£	-		$	35		€	180		£	124		¥	16,000
	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			-			63			137			38
Matured, expired or settled contracts		(100	)		(173	)		(12	)		(56	)		(46	)		(31	)
Notional amounts at June 30	$	99		$	-		$	26		$	204		$	169		$	151
Weighted average forward      rate at June 30		1.34			-			1.32			1.13			1.33			106.51
Active contracts at June 30		2			-			12			26			22			32

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			171			-			11,460
Matured, expired or settled contracts		-		(60	)		(11,189	)		(75	)		(24	)		(3,120	)
Notional amounts at June 30	$	133	£	238		¥	-		€	371		£	73		¥	21,180
	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			192			-			108			15
Matured, expired or settled contracts		-		(100	)		(99	)		(85	)		(36	)		(27	)		(15	)
Notional amounts at June 30	$	100	$	371		$	-		$	417		$	112		$	190		$	50

(1) During thesix months ended June 30, 2017, and 2016, we exercised 22 and 15 option contracts, respectively. We realized gains of $3.6 million and $8.9 million for the three and six months ended June 30, 2017, respectively, and gains of $0.2 million and $1.9 million for the three and six months ended June 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 June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Derivative net investment hedges (1)	$	7,197		$	21,512		$	9,491		$	29,420
Interest rate and cash flow hedges (2)		4,559			(2,703	)		4,988			(13,824	)
Our share of derivatives from unconsolidated co-investment ventures		2,176			(3,223	)		4,378			(7,994	)
Total derivative instruments		13,932			15,586			18,857			7,602
Nonderivative net investment hedges (3) (4)		(229,666	)		91,416			(274,192	)		(69,773	)
Total derivative and nonderivative hedging instruments	$	(215,734	)	$	107,002		$	(255,335	)	$	(62,171	)

(1) We received $0.7 million and $2.5 million for the three and six months ended June 30, 2017, respectively, upon the settlement of net investment hedges. We received $15.9 million and $16.8 million for the three and six months ended June 30, 2016, respectively, upon the settlement of net investment hedges.

(2) The amounts reclassified to interest expense for the three and six months ended June 30, 2017, were $1.5 million and $2.9 million, respectively. The amounts reclassified to interest expense for the three and six months ended June 30, 2016, were $1.1 million and $2.1 million, respectively. For the next 12 months from June 30, 2017, we estimate an additional expense of $4.8 million will be reclassified to Interest Expense.

(3) At June 30, 2017, and December 31, 2016, we had €3.1 billion ($3.5 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 $7.2 million and $11.3 million in Foreign Currency and Derivative Losses, Net on the unhedged portion of our debt for the three and six months ended June 30, 2017. We did not recognize any gains or losses for the three and six months ended June 30, 2016.

(4) In June 2017, we issued £500.0 million ($645.3 million) of debt, as discussed in Note 5, and designated the debt as a nonderivative financial instrument hedge of our net investment in international subsidiaries. We had no gains or losses for the three and six months ended June 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):

	June 30, 2017				December 31, 2016
	Carrying Value		Fair Value		Carrying Value		Fair Value
Credit Facilities	$	-	$	-	$	35,023	$	35,061
Senior notes		6,727,450		7,216,569		6,417,492		6,935,485
Term loans and unsecured other		1,968,437		1,986,654		1,499,001		1,510,661
Secured mortgages		1,983,623		2,063,821		979,585		1,055,020
Secured mortgages of consolidated entities		402,412		402,348		1,677,193		1,683,489
Total debt	$	11,081,922	$	11,669,392	$	10,608,294	$	11,219,716