Debt (Tables)

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Debt Summary

The following table summarizes our debt at December 31 (dollars in thousands):

	2017					2016
	Weighted Average Interest Rate (1)			Amount Outstanding (2)		Weighted Average Interest Rate (1)			Amount Outstanding
Credit facilities		1.8	%	$	317,392		1.0	%	$	35,023
Senior notes (3)		3.0	%		6,067,277		3.3	%		6,417,492
Term loans		1.7	%		2,046,945		1.4	%		1,484,523
Unsecured other		6.1	%		13,546		6.1	%		14,478
Secured mortgages (4)		5.7	%		808,096		4.9	%		979,585
Secured mortgages of consolidated entities (5)		2.9	%		159,375		3.0	%		1,677,193
Total		2.9	%	$	9,412,631		3.2	%	$	10,608,294

(1) The interest rates presented represent the effective interest rates (including amortization of debt issuance costs and the noncash premiums or discounts) at the end of the year for the debt outstanding.

(2) Included in the outstanding balances were borrowings denominated in non-U.S. dollars, principally: euro ($3.8 billion), Japanese yen ($1.3 billion), British pound sterling ($0.7 billion) and Canadian dollars ($0.5 billion).

(3) Notes are due October 2020 to June 2029 with effective interest rates ranging from 1.5% to 4.4% at December 31, 2017.

(4) Debt is due May 2018 to December 2025 with effective interest rates ranging from 2.7% to 7.8% at December 31, 2017. The debt is secured by 144 real estate properties with an aggregate undepreciated cost of $2.2 billion at December 31, 2017.

(5) Debt is due April 2019 to December 2027 with effective interest rates ranging from 2.9% to 3.4% at December 31, 2017. The debt is secured by 18 real estate properties with an aggregate undepreciated cost of $0.3 billion at December 31, 2017.

Credit Facilities

The following table summarizes information about our Credit Facilities (dollars in millions):

	2017			2016			2015
For the years ended December 31:
Weighted average daily interest rate		1.3	%		1.4	%		1.1	%
Weighted average daily borrowings	$	111		$	128		$	261
Maximum borrowings outstanding at any month-end	$	317		$	307		$	942
At December 31:
Aggregate lender commitments	$	3,490		$	3,306		$	2,662
Less:
Borrowings outstanding		317			35			-
Outstanding letters of credit		33			36			32
Current availability	$	3,140		$	3,235		$	2,630

Schedule of Debt

The following table summarizes our outstanding term loans at December 31 (dollars and borrowing currency in thousands):

Term Loan	Borrowing Currency	Initial Borrowing Date	Lender Commitment at 2017				Amount Outstanding at 2017			Amount Outstanding at 2016			Interest Rate	Maturity Date
			Borrowing Currency		USD		USD			USD
2017 Term Loan (1) (2)	USD, EUR, JPY and GBP	June 2014	$	500,000	$	500,000	$	500,000		$	193,293		LIBOR plus 0.90%	May 2020
2015 Canadian Term Loan	CAD	December 2015	$	371,925	$	296,595		296,595			276,322		CDOR rate plus 1.50%	February 2023
2016 Yen Term Loan	JPY	August 2016	¥	120,000,000	$	1,065,965		1,065,965			1,025,057		Yen LIBOR plus 0.65%	August 2022 and 2023
March 2017 Yen Term      Loan	JPY	March 2017	¥	12,000,000	$	106,597		106,597			-		0.92% and 1.01%	March 2027 and 2028
October 2017 Yen Term      Loan	JPY	October 2017	¥	10,000,000	$	88,830		88,830			-		0.85%	October 2032
Subtotal								2,057,987			1,494,672
Debt issuance costs, net								(11,042	)		(10,149	)
Total							$	2,046,945		$	1,484,523

(1) In May 2017, we renewed and amended our existing senior term loan agreement (the “2017 Term Loan”). We may increase the borrowings up to $1.0 billion, subject to obtaining additional lender commitments. We may pay down and reborrow on this term loan. We may extend the maturity date twice, by one year each, subject to the satisfaction of certain conditions and the payment of an extension fee.

(2) We paid down $1.2 billion and $1.2 billion and reborrowed $1.5 billion and $0.8 billion in 2017 and 2016, respectively.

Long-Term Debt Maturities

Principal payments due on our debt, for each year through the period ended December 31, 2022, and thereafter were as follows at December 31, 2017 (in thousands):

	Unsecured
		Credit		Senior			Term Loans			Secured
Maturity		Facilities		Notes			and Other			Mortgage Debt			Total
2018 (1)		$	-	$	-		$	934		$	167,960		$	168,894
2019			-		-			1,013			446,324			447,337
2020 (2) (3)			264,982		719,580			501,077			12,401			1,498,040
2021 (3)			52,410		839,510			910			14,780			907,610
2022			-		839,510			444,890			10,791			1,295,191
Thereafter			-		3,715,027			1,122,709			314,298			5,152,034
Subtotal			317,392		6,113,627			2,071,533			966,554			9,469,106
Premiums (discounts), net			-		(21,333	)		-			4,660			(16,673	)
Debt issuance costs, net			-		(25,017	)		(11,042	)		(3,743	)		(39,802	)
Total		$	317,392	$	6,067,277		$	2,060,491		$	967,471		$	9,412,631

(1) We expect to repay the amounts maturing in 2018 with cash generated from operations, proceeds from dispositions of real estate properties, or as necessary, with borrowings on our Credit Facilities.

(2) Included in the 2020 maturities was the 2017 Term Loan that can be extended until 2022, as discussed above.

(3) Included in the 2020 and 2021 maturities were the Credit Facilities that can be extended until 2021 and 2022, respectively, as discussed above.

Interest Expense

The following table summarizes the components of interest expense for the years ended December 31 (in thousands):

	2017			2016			2015
Gross interest expense	$	328,228		$	383,098		$	394,012
Amortization of premium, net		(13,728	)		(30,596	)		(45,253	)
Amortization of debt issuance costs		14,479			15,459			13,412
Interest expense before capitalization	$	328,979		$	367,961		$	362,171
Capitalized amounts		(54,493	)		(64,815	)		(60,808	)
Net interest expense	$	274,486		$	303,146		$	301,363
Total cash paid for interest, net of amounts capitalized	$	278,313		$	322,442		$	345,916

Activity Related to Repurchase of Debt and Net Loss on Early Extinguishment of Debt

The following table summarizes the activity related to the repurchase of debt and net loss on early extinguishment of debt for the years ended December 31 (in millions):

	2017		2015
Senior notes:
Original principal amount	$	1,495.3	$	709.7
Cash purchase price	$	1,566.5	$	789.0
Term loans:
Original principal amount	$	-	$	600.0
Cash repayment price	$	-	$	600.0
Secured mortgage debt:
Original principal amount	$	538.3	$	571.5
Cash repayment price	$	538.3	$	595.5
Total:
Original principal amount	$	2,033.6	$	1,881.2
Cash purchase / repayment price	$	2,104.8	$	1,984.5
Losses on early extinguishment of debt	$	68.4	$	86.3