Impairment Charges, Impairment of Joint Venture Investments and Reserves (Tables)

12 Months Ended

Dec. 31, 2017

Asset Impairment Charges [Abstract]

Impairment Charges and Reserves on Assets or Investments

The Company recorded impairment charges and reserves based on the difference between the carrying value of the assets or investments and the estimated fair market value as follows (in millions):  

	For the Year Ended December 31,
	2017		2016		2015
Assets marketed for sale(A)	$	325.4	$	110.9	$	179.7
Undeveloped land previously held for development(B)		15.1		—		99.3
Total continuing operations	$	340.5	$	110.9	$	279.0
Reserve of preferred equity interests(C)		61.0		—		—
Joint venture investments		—		—		1.9
Total impairment charges	$	401.5	$	110.9	$	280.9

(A) The Company recorded impairment charges triggered by changes in its strategic plan that impacted its asset hold-period assumptions and/or expected future cash flows.  During 2015, management accelerated the Company’s then in place portfolio quality improvement initiative, which it intended to accomplish in part through the disposition of less strategic assets and undeveloped land.  The disposition initiative triggered the recording of impairment charges on 25 operating shopping centers.  In 2016, the Company’s management and Board of Directors decided to increase the volume of asset sales beyond the level contemplated in 2015 primarily to accelerate progress on its deleveraging goal.  As a result, the decision to accelerate sales triggered the recording of impairment charges on 20 operating shopping centers that management identified as short-term disposition candidates.  During 2017, impairments were triggered related to changes in asset hold-period assumptions and/or expected future cash flows primarily in conjunction with the Company’s change in executive management team and strategic direction.  This change triggered the recording of impairment charges on 27 operating shopping centers in both the United States and Puerto Rico.    

(B) Amounts recorded primarily were related to land previously held for future development.  In 2017, the impairment was triggered primarily by an indicative bid.  In 2015, the impairments were triggered primarily by the decision made by the Company’s senior management to sell the land and no longer consider development alternatives.  

(C) As a result of an aggregate valuation allowance on its preferred equity interests in the BRE DDR Joint Ventures (Note 2).

Impairment Charges Measured at Fair Value on Non-Recurring Basis

The following table presents information about the Company’s impairment charges on both financial and nonfinancial assets that were measured on a fair value basis for the years ended December 31, 2017, 2016 and 2015.  The table also indicates the fair value hierarchy of the valuation techniques used by the Company to determine such fair value (in millions).  

	Fair Value Measurements
	Level 1		Level 2		Level 3		Total		Total Impairment Charges
December 31, 2017
Long-lived assets held and used	$	—	$	—	$	1,556.1	$	1,556.1	$	340.5
Preferred equity interests		—		—		272.0		272.0		61.0
December 31, 2016
Long-lived assets held and used		—		—		438.2		438.2		110.9
December 31, 2015
Long-lived assets held and used		—		—		407.1		407.1		279.0
Unconsolidated joint venture investments		—		—		—		—		1.9

Summary of Significant Unobservable Inputs

The following table presents quantitative information about the significant unobservable inputs used by the Company to determine the fair value of non-recurring items (in millions, except price per square foot and price per acre, in thousands):

	Quantitative Information About Level 3 Fair Value Measurements
	Fair Value at				Range
Description	December 31, 2017		Valuation Technique	Unobservable Inputs	2017
Impairment of consolidated assets	$	166.8	Indicative Bid(A)/ Contracted Price	Indicative Bid(A)/ Contracted Price	N/A
		882.6	Income Capitalization Approach/ Sales Comparison Approach	Market Capitalization Rate	6.25%–10%
		499.3	Discounted Cash Flow	Discount Rate	7.75%–9.5%
				Terminal Capitalization Rate(B)	7.45%–21.39%
		7.4	Sales Comparison Approach	Price per Acre	$50–$218
Reserve of preferred equity interests		272.0	Discounted Cash Flow	Discount Rate	8.4%–8.8%
				Terminal Capitalization Rate	7.8%–8.5%
				NOI Growth Rate	1%
	Quantitative Information About Level 3 Fair Value Measurements
	Fair Value at				Range
Description	December 31, 2016		Valuation Technique	Unobservable Inputs	2016
Impairment of consolidated assets	$	13.4	Indicative Bid(A)/ Contracted Price	Indicative Bid(A)/ Contracted Price	N/A
		398.2	Income Capitalization Approach(C)/ Sales Comparison Approach	Market Capitalization Rate	7%–10%
				Price per Square Foot	$15–$31
		26.6	Indicative Bid(A)	Indicative Bid(A)	N/A
			Discounted Cash Flow	Discount Rate	10%–11%
				Terminal Capitalization Rate	10%–12%

(A) Fair value measurements based upon indicative bids were developed by third-party sources (including offers and comparable sales values), subject to the Company’s corroboration for reasonableness.  The Company does not have access to certain unobservable inputs used by these third parties to determine these estimated fair values.  

(B) Weighted-average rate of 8.8%

(C) Vacant space in certain assets was valued based on a price per square foot.