Impairment Charges

9 Months Ended

Sep. 30, 2011

Impairment Charges [Abstract]

IMPAIRMENT CHARGES

12. IMPAIRMENT CHARGES

The Company recorded impairment charges during the three- and nine-month periods ended September 30, 2011 and 2010, on the following consolidated assets based on the difference of the carrying value of the assets and the estimated fair market value (in millions):

	Three-Month Periods Ended September 30,				Nine-Month Periods Ended September 30,
	2011		2010		2011		2010
Land held for development (A)	$	40.2	$	—	$	40.2	$	54.3
Undeveloped land (B)		2.0		—		5.9		5.0
Assets marketed for sale (B)		9.0		—		22.4		—
Total continuing operations	$	51.2	$	—	$	68.5	$	59.3
Sold assets or assets held for sale		2.4		7.1		11.3		48.4
Assets formerly occupied by Mervyns (C)		—		—		—		35.3
Total discontinued operations	$	2.4	$	7.1	$	11.3	$	83.7
Joint venture investments		—		—		1.6		—
Total impairment charges	$	53.6	$	7.1	$	81.4	$	143.0

(A) Amounts reported in the three and nine months ended September 30, 2011 primarily related to land held for development in Yaroslavl, Russia (“Yaroslavl Project”) and Brampton, Canada (“Brampton Project”), which are owned through consolidated joint ventures. The Company’s proportionate share of the loss was approximately $36.4 million after adjusting for the allocation of loss to the non-controlling interest in the Yaroslavl Project. The asset impairments were triggered by the Company’s current decision to dispose of its interest in lieu of development and the execution of agreements during the third quarter of 2011 for the sale of its interest in these projects. In connection with the potential sale of the Yaroslavl Project, an affiliate of the Company’s joint venture partner and the Otto Family may enter into certain leasing and management agreements with the buyer of the Yaroslavl Project and could receive fees in exchange for its services. The Company anticipates selling its interest in the Brampton Project to its joint venture partner in the project.

Amounts reported in the nine months ended September 30, 2010 primarily related to land held for development at the Yaroslavl Project and in Togliatti, Russia, also owned through a consolidated joint venture. The Company’s proportionate share of the loss was approximately $41.9 million after adjusting for the allocation of loss to the non-controlling interest. The asset impairments were triggered primarily due to a change in the Company’s investment plans for these projects.

(B) The impairment charges were triggered primarily due to the Company’s marketing of these assets for sale and management’s assessment as to the likelihood and timing of a potential transaction.

(C) The Company’s proportionate share of these impairments was $16.5 million after adjusting for the allocation of loss to the non-controlling interest in this consolidated joint venture and including those assets classified as discontinued operations for the nine-month period ended September 30, 2010. The 2010 impairment charges were triggered in the second quarter of 2010 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. As discussed in Note 13, these assets were deconsolidated in 2010 and all operating results, including the impairment charges, have been reclassified as discontinued operations.

Items Measured at Fair Value on a Non-Recurring Basis

The following table presents information about the Company’s impairment charges that were measured on a fair value basis for the nine-month period ended September 30, 2011. The table indicates the fair value hierarchy of the valuation techniques used by the Company to determine such fair value (in millions):

	Fair Value Measurement at September 30, 2011
	Level 1		Level 2		Level 3		Total		Total Losses
Long-lived assets — held and used and held for sale	$	—	$	—	$	116.7	$	116.7	$	79.8
Unconsolidated joint venture investments		—		—		—		—		1.6