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Derivative and Other Fair Value Instruments
 6 Months Ended
Jun. 30, 2011
Derivative and Other Fair Value Instruments [Abstract]  
Derivative and Other Fair Value Instruments
11.   Derivative and Other Fair Value Instruments
     The valuation of financial instruments requires the Company to make estimates and judgments that affect the fair value of the instruments. The Company, where possible, bases the fair values of its financial instruments, including its derivative instruments, on listed market prices and third party quotes. Where these are not available, the Company bases its estimates on current instruments with similar terms and maturities or on other factors relevant to the financial instruments.
     The carrying values of the Company’s mortgage notes payable and unsecured notes were approximately $4.4 billion and $5.1 billion, respectively, at June 30, 2011. The fair values of the Company’s mortgage notes payable and unsecured notes were approximately $4.4 billion and $5.4 billion, respectively, at June 30, 2011. The fair values of the Company’s financial instruments (other than mortgage notes payable, unsecured notes, derivative instruments and investment securities) including cash and cash equivalents and other financial instruments, approximate their carrying or contract values.
     In the normal course of business, the Company is exposed to the effect of interest rate changes. The Company seeks to manage these risks by following established risk management policies and procedures including the use of derivatives to hedge interest rate risk on debt instruments.
     The following table summarizes the Company’s consolidated derivative instruments at June 30, 2011 (dollar amounts are in thousands):
                 
            Forward  
    Fair Value     Starting  
    Hedges (1)     Swaps (2)  
Current Notional Balance
  $ 315,693     $ 950,000  
Lowest Possible Notional
  $ 315,693     $ 950,000  
Highest Possible Notional
  $ 317,694     $ 950,000  
Lowest Interest Rate
    2.009 %     3.478 %
Highest Interest Rate
    4.800 %     4.695 %
Earliest Maturity Date
    2012       2021  
Latest Maturity Date
    2013       2023  
 
(1)   Fair Value Hedges — Converts outstanding fixed rate debt to a floating interest rate.
 
(2)   Forward Starting Swaps — Designed to partially fix the interest rate in advance of a planned future debt issuance. These swaps have mandatory counterparty terminations from 2012 through 2014, and $750.0 million and $200.0 million are targeted to 2012 and 2013 issuances, respectively.
     The following tables provide the location of the Company’s derivative instruments within the accompanying Consolidated Balance Sheets and their fair market values as of June 30, 2011 and December 31, 2010, respectively (amounts in thousands):
                                 
    Asset Derivatives     Liability Derivatives  
    Balance Sheet             Balance Sheet        
June 30, 2011   Location     Fair Value     Location     Fair Value  
Derivatives designated as hedging instruments:
                               
Interest Rate Contracts:
                               
Fair Value Hedges
  Other assets   $ 11,794     Other liabilities   $ —  
Forward Starting Swaps
  Other assets     2,029     Other liabilities     65,519  
 
                           
Total
          $ 13,823             $ 65,519  
 
                           
                                 
    Asset Derivatives     Liability Derivatives  
    Balance Sheet             Balance Sheet        
December 31, 2010   Location     Fair Value     Location     Fair Value  
Derivatives designated as hedging instruments:
                               
Interest Rate Contracts:
                               
Fair Value Hedges
  Other assets   $ 12,521     Other liabilities   $ —  
Forward Starting Swaps
  Other assets     3,276     Other liabilities     37,756  
Development Cash Flow Hedges
  Other assets     —     Other liabilities     1,322  
 
                           
Total
          $ 15,797             $ 39,078  
 
                           
     The following tables provide a summary of the effect of fair value hedges on the Company’s accompanying Consolidated Statements of Operations for the six months ended June 30, 2011 and 2010, respectively (amounts in thousands):
                                         
    Location of Gain/(Loss)     Amount of Gain/(Loss)             Income Statement     Amount of Gain/(Loss)  
June 30, 2011   Recognized in Income     Recognized in Income             Location of Hedged     Recognized in Income  
Type of Fair Value Hedge   on Derivative     on Derivative     Hedged Item     Item Gain/(Loss)     on Hedged Item  
Derivatives designated as hedging instruments:
                                       
Interest Rate Contracts:
                                       
Interest Rate Swaps
  Interest expense   $ (727 )   Fixed rate debt   Interest expense   $ 727  
 
                                   
Total
          $ (727 )                   $ 727  
 
                                   
 
    Location of Gain/(Loss)     Amount of Gain/(Loss)             Income Statement     Amount of Gain/(Loss)  
June 30, 2011   Recognized in Income     Recognized in Income             Location of Hedged     Recognized in Income  
Type of Fair Value Hedge   on Derivative     on Derivative     Hedged Item     Item Gain/(Loss)     on Hedged Item  
Derivatives designated as hedging instruments:
                                       
Interest Rate Contracts:
                                       
Interest Rate Swaps
  Interest expense   $ 7,009     Fixed rate debt   Interest expense   $ (7,009 )
 
                                   
Total
          $ 7,009                     $ (7,009 )
 
                                   
     The following tables provide a summary of the effect of cash flow hedges on the Company’s accompanying Consolidated Statements of Operations for the six months ended June 30, 2011 and 2010, respectively (amounts in thousands):
                                         
    Effective Portion     Ineffective Portion  
            Location of     Amount of              
    Amount of     Gain/(Loss)     Gain/(Loss)     Location of     Amount of Gain/(Loss)  
    Gain/(Loss)     Reclassified from     Reclassified from     Gain/(Loss)     Reclassified from  
June 30, 2011   Recognized in OCI     Accumulated OCI     Accumulated OCI     Recognized in Income     Accumulated OCI  
Type of Cash Flow Hedge   on Derivative     into Income     into Income     on Derivative     into Income  
Derivatives designated as hedging instruments:
                                       
Interest Rate Contracts:
                                       
Forward Starting Swaps/Treasury Locks
  $ (26,441 )   Interest expense   $ (1,891 )   Interest expense   $ (2,569 )
Development Interest Rate Swaps/Caps
    1,322     Interest expense     —       N/A       —  
 
                                 
Total
  $ (25,119 )           $ (1,891 )           $ (2,569 )
 
                                 
                                         
    Effective Portion     Ineffective Portion  
            Location of     Amount of              
    Amount of     Gain/(Loss)     Gain/(Loss)     Location of     Amount of Gain/(Loss)  
    Gain/(Loss)     Reclassified from     Reclassified from     Gain/(Loss)     Reclassified from  
June 30, 2010   Recognized in OCI     Accumulated OCI     Accumulated OCI     Recognized in Income     Accumulated OCI  
Type of Cash Flow Hedge   on Derivative     into Income     into Income     on Derivative     into Income  
Derivatives designated as hedging instruments:
                                       
Interest Rate Contracts:
                                       
Forward Starting Swaps/Treasury Locks
  $ (86,530 )   Interest expense   $ (1,465 )     N/A     $ —  
Development Interest Rate Swaps/Caps
    784     Interest expense     —       N/A       —  
 
                             
Total
  $ (85,746 )           $ (1,465 )           $ —  
 
                                 
 
                                       
     As of June 30, 2011 and December 31, 2010, there were approximately $81.6 million and $58.3 million in deferred losses, net, included in accumulated other comprehensive (loss), respectively, related to derivative instruments. Based on the estimated fair values of the net derivative instruments at June 30, 2011, the Company may recognize an estimated $4.3 million of accumulated other comprehensive (loss) as additional interest expense during the twelve months ending June 30, 2012.
     In June 2011, the Company’s remaining development cash flow hedge matured.
     The following table sets forth the maturity, amortized cost, gross unrealized gains and losses, book/fair value and interest and other income of the various investment securities held as of June 30, 2011 (amounts in thousands):
                                                 
            Other Assets        
            Amortized     Unrealized     Unrealized     Book/     Interest and  
Security   Maturity     Cost     Gains     Losses     Fair Value     Other Income  
Available-for-Sale Investment Securities
  N/A     $ 675     $ 1,012     $ —     $ 1,687     $ —  
 
                                   
Total
          $ 675     $ 1,012     $ —     $ 1,687     $ —  
 
                                     
     A three-level valuation hierarchy exists for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows:
  •   Level 1 — Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
 
  •   Level 2 — Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
 
  •   Level 3 — Inputs to the valuation methodology are unobservable and significant to the fair value measurement.
     The following tables provide a summary of the fair value measurements at June 30, 2011 and December 31, 2010 for each major category of assets and liabilities measured at fair value on a recurring basis:
                                 
            Fair Value Measurements at Reporting Date Using  
            Quoted Prices in              
            Active Markets for     Significant Other     Significant  
            Identical Assets/Liabilities     Observable Inputs     Unobservable Inputs  
Description   6/30/2011     (Level 1)     (Level 2)     (Level 3)  
Assets
                               
Derivatives
  $ 13,823     $ —     $ 13,823     $ —  
Supplemental Executive Retirement Plan
    57,776       57,776       —       —  
Available-for-Sale Investment Securities
    1,687       1,687       —       —  
 
                       
Total
  $ 73,286     $ 59,463     $ 13,823     $ —  
 
                       
 
                               
Liabilities
                               
Derivatives
  $ 65,519     $ —     $ 65,519     $ —  
Supplemental Executive Retirement Plan
    57,776       57,776       —       —  
 
                       
Total
  $ 123,295     $ 57,776     $ 65,519     $ —  
 
                       
 
                               
Redeemable Noncontrolling Interests — Operating Partnership/Redeemable Limited Partners
  $ 438,141     $ —     $ 438,141     $ —  
                                 
            Fair Value Measurements at Reporting Date Using  
            Quoted Prices in              
            Active Markets for     Significant Other     Significant  
            Identical Assets/Liabilities     Observable Inputs     Unobservable Inputs  
Description   12/31/2010     (Level 1)     (Level 2)     (Level 3)  
Assets
                               
Derivatives
  $ 15,797     $ —     $ 15,797     $ —  
Supplemental Executive Retirement Plan
    58,132       58,132       —       —  
Available-for-Sale Investment Securities
    1,194       1,194       —       —  
 
                       
Total
  $ 75,123     $ 59,326     $ 15,797     $ —  
 
                       
 
                               
Liabilities
                               
Derivatives
  $ 39,078     $ —     $ 39,078     $ —  
Supplemental Executive Retirement Plan
    58,132       58,132       —       —  
 
                       
Total
  $ 97,210     $ 58,132     $ 39,078     $ —  
 
                       
 
                               
Redeemable Noncontrolling Interests — Operating Partnership/Redeemable Limited Partners
  $ 383,540     $ —     $ 383,540     $ —  
     The Company’s derivative positions are valued using models developed by the respective counterparty as well as models developed internally by the Company that use as their basis readily observable market parameters (such as forward yield curves and credit default swap data). Employee holdings other than Common Shares within the supplemental executive retirement plan (the “SERP”) are valued using quoted market prices for identical assets and are included in other assets and other liabilities on the consolidated balance sheet. The Company’s investment securities are valued using quoted market prices or readily available market interest rate data. Redeemable Noncontrolling Interests — Operating Partnership/Redeemable Limited Partners are valued using the quoted market price of Common Shares.