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Derivative and Hedging Activities (Tables)
 9 Months Ended
Sep. 30, 2015
Derivative Instruments, Gain (Loss) [Line Items]  
Interest rate derivatives designated as cash flow hedges
As of September 30, 2015, the Company had the following outstanding derivatives that were designated and are expected to be effective as cash flow hedges of the interest payments and/or the currency exchange rate on the associated debt.
Instrument Type

Ownership

Notional Amount

Swap Rate

Credit Spread on Loan

Total Swapped Rate on Loan

Maturity Date
Consolidated Subsidiaries:

 

 
 
 
 
 
 
 
 
 
Receive variable (LIBOR) /pay-fixed swap (1)

100
%

$
200,000

 
1.64
%
 
1.35
%
(1) 
2.99
%
(1) 
February 2019
Receive variable (LIBOR) /pay-fixed swap (1)

100
%

175,000

 
1.65
%
 
1.35
%
(1) 
3.00
%
(1) 
February 2019
Receive variable (LIBOR) /pay-fixed swap (1)

100
%

100,000

 
1.64
%
 
1.35
%
(1) 
2.99
%
(1) 
February 2019
Receive variable (LIBOR) /pay-fixed swap (2)
 
100
%
 
12,000

 
2.09
%
 
1.40
%
 
3.49
%
 
March 2024
Unconsolidated Joint Ventures:

 


 

 
 

 
 

 
 

 
 
Receive variable (LIBOR) /pay-fixed swap (3)

50
%

135,214

 
2.40
%
 
1.70
%
 
4.10
%
 
April 2018
Receive variable (LIBOR) /pay-fixed swap (3)

50
%

135,214

 
2.40
%
 
1.70
%
 
4.10
%
 
April 2018
Receive variable (LIBOR) /pay-fixed swap (4)
 
50.1
%
 
172,959

 
1.83
%
 
1.75
%
 
3.58
%
 
December 2021
Receive variable (LIBOR) USD/pay-fixed KRW cross-currency interest rate swap (5)
 
34.3
%
 
52,065 USD / 60,500,000 KRW

 
1.52
%
 
1.60
%
 
3.12
%
 
September 2020

(1)
The hedged forecasted transaction for each of these swaps is the first previously unhedged one-month LIBOR-indexed interest payments accrued and made each month on a debt principal amount equal to the swap notional amount, regardless of the specific debt agreement from which they may flow. The Company is currently using these swaps to manage interest rate risk on the $475 million TRG Term Loan. The credit spread on this loan can also vary within a range of 1.35% to 1.90%, depending on the Company's leverage ratio at the measurement date.
(2)
The notional amount on this swap is equal to the outstanding principal balance of the floating rate loan on the U.S. headquarters building.
(3)
The notional amount on each of these swaps is equal to 50% of the outstanding principal balance of the loan on Fair Oaks.
(4)
The notional amount on this swap is equal to the outstanding principal balance of the floating rate loan on International Plaza.
(5)
In August 2015, in connection with the closing of the $52.1 million U.S. dollar loan for Hanam Union Square, the Company's joint venture with Shinsegae Group entered into a cross-currency interest rate swap to fix the interest rate on the loan and swap the related principal and interest payments from U.S. dollars to Korean Won in order to reduce the impact of fluctuations in interest rates and exchange rates on the cash flows of the joint venture. The currency swap exchange rate is 1,162.0.

Effect of derivative instruments on the Consolidated Statement of Operations and Comprehensive Income
 
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)
 
Location of Gain or (Loss) Reclassified from AOCI into Income (Effective Portion)
 
Amount of Gain or (Loss) Reclassified from AOCI into Income (Effective Portion)
 
Three Months Ended September 30
 
 
 
Three Months Ended September 30
 
2015
 
2014
 
 
 
2015
 
2014
Derivatives in cash flow hedging relationships:
 
 
 
 

 
 
 
 
Interest rate contracts – consolidated subsidiaries
$
(5,108
)
 
$
3,692

 
Interest Expense
 
$
(1,825
)
 
$
(1,810
)
Interest rate contracts – UJVs
(2,434
)
 
1,266

 
Equity in Income of UJVs
 
(1,128
)
 
(789
)
Cross-currency interest rate swap – UJV
(170
)
 
 
 
Equity in Income of UJVs
 
(131
)
 
 
Total derivatives in cash flow hedging relationships
$
(7,712
)
 
$
4,958

 
 
 
$
(3,084
)
 
$
(2,599
)



 
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)
 
Location of Gain or (Loss) Reclassified from AOCI into Income (Effective Portion)
 
Amount of Gain or (Loss) Reclassified from AOCI into Income (Effective Portion)
 
Nine Months Ended September 30
 
 
 
Nine Months Ended September 30
 
2015
 
2014
 
 
 
2015
 
2014
Derivatives in cash flow hedging relationships:
 
 
 
 
 
 
 
 
 
Interest rate contract – consolidated subsidiary (1)
 
 
 
 
Nonoperating Income (Expense) (1)
 
 
 
$
(4,880
)
Interest rate contracts – consolidated subsidiaries (1)
$
(6,900
)
 
$
(4,043
)
 
Interest Expense (1)
 
$
(5,412
)
 
(6,853
)
Interest rate contracts – UJVs
(2,352
)
 
1,008

 
Equity in Income of UJVs
 
(3,376
)
 
(2,340
)
Cross-currency interest rate swap – UJV
(170
)
 
 
 
Equity in Income of UJVs
 
(131
)
 
 
Total derivatives in cash flow hedging relationships
$
(9,422
)
 
$
(3,035
)
 
 
 
$
(8,919
)
 
$
(14,073
)

(1) Includes MacArthur Center swap for the period that it was effective as a hedge until June 2014, when hedge accounting was discontinued.
Location and fair value of derivative instruments as reported in the Consolidated Balance Sheet
The Company records all derivative instruments at fair value in the Consolidated Balance Sheet. The following table presents the location and fair value of the Company’s derivative financial instruments as reported in the Consolidated Balance Sheet as of September 30, 2015 and December 31, 2014.
 
 
 
Fair Value
 
Consolidated Balance Sheet Location
 
September 30
2015
 
December 31
2014
Derivatives designated as hedging instruments:
 
 
 
 
 
Asset derivative:
 
 
 
 
 
Interest rate contract – UJV
Investment in UJVs
 


 
$
109

Total assets designated as hedging instruments
 
 
$
—

 
$
109

 
 
 
 
 
 
Liability derivatives:
 
 
 

 
 
Interest rate contracts – consolidated subsidiaries
Accounts Payable and Accrued Liabilities
 
$
(11,439
)
 
$
(4,044
)
Interest rate contracts – UJVs
Investment in UJVs
 
(7,397
)
 
(5,154
)
Cross-currency interest rate swap – UJV
Investment in UJVs
 
(53
)
 
 
Total liabilities designated as hedging instruments
 
 
$
(18,889
)
 
$
(9,198
)