Financial Instruments and Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2016

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Schedule of Fair Value and Classification of Derivative Instruments

The following table presents the fair value and classification of our derivative instruments (in thousands):

	June 30, 2016				December 31, 2015
	Asset		Liability		Asset		Liability
Net investment hedges – Canadian dollar denominated	$	-	$	2,633	$	-	$	-
Net investment hedges – pound sterling denominated		49,850		-		33,471		-
Cash flow hedge foreign currency options – peso denominated		-		135		-		88
Foreign currency options – Canadian dollar denominated (1)		584		766		3,324		-
Foreign currency options – euro denominated (1)		2,761		2,198		11,711		84
Foreign currency options – pound sterling denominated (1)		14,644		-		4,241		745
Foreign currency options – yen denominated (1)		857		17,578		832		717
Interest rate hedges		-		40,746		-		12,095
Total fair value of derivatives	$	68,696	$	64,056	$	53,579	$	13,729

(1) As discussed below, these foreign currency options are not designated as hedges.

Foreign Currency Contracts Activity

The following tables summarize the activity in our foreign currency contracts for the six months ended June 30 (in millions, except for weighted average forward rates and number of active contracts):  

2016
	Foreign Currency Contracts
Local Currency	Net Investment Forward Contracts								Forward and Option Contracts
	GBP			JPY			CAD		EUR (1)			GBP (1) (2)			JPY (1)			Other (1)
Notional amounts at January 1	£	238		¥	-		$	-	€	275		£	97		¥	12,840
New contracts		60			11,189			133		171			-			11,460
Matured or expired contracts		(60	)		(11,189	)		-		(75	)		(24	)		(3,120	)
Notional amounts at June 30	£	238		¥	-		$	133	€	371		£	73		¥	21,180
	Foreign Currency Contracts
U.S. Dollar	Net Investment Forward Contracts								Forward and Option Contracts
Notional amounts at January 1	$	386		$	-		$	-	$	310		$	148		$	109		$	50
New contracts		85			99			100		192			-			108			15
Matured or expired contracts		(100	)		(99	)		-		(85	)		(36	)		(27	)		(15	)
Notional amounts at June 30	$	371		$	-		$	100	$	417		$	112		$	190		$	50
Weighted average forward      rate at June 30		1.56			-			1.33		1.13			1.53			112.00			-
Active contracts at June 30		3			-			2		25			12			33			20

2015
	Foreign Currency Contracts
Local Currency	Net Investment Forward Contracts									Forward and Option Contracts (1)
	EUR			GBP			JPY			EUR			GBP			JPY			CAD
Notional amounts at January 1	€	300		£	238		¥	24,136		€	284		£	-		¥	-		$	-
New contracts		-			118			43,373			198			126			12,740			49
Matured or expired contracts		(300	)		(118	)		(67,509	)		(254	)		(53	)		(2,800	)		(7	)
Notional amounts at June 30	€	-		£	238		¥	-		€	228		£	73		¥	9,940		$	42
	Foreign Currency Contracts
U.S. Dollar	Net Investment Forward Contracts									Forward and Option Contracts (1)
Notional amounts at January 1	$	400		$	400		$	250		$	354		$	-		$	-		$	-
New contracts		-			186			353			224			188			109			40
Matured or expired contracts		(400	)		(200	)		(603	)		(311	)		(79	)		(24	)		(6	)
Notional amounts at June 30	$	-		$	386		$	-		$	267		$	109		$	85		$	34

(1) During the six months ended June 30, 2016, and 2015, we exercised 15 and 13 option contracts, respectively. We realized gains of $0.2 million and $1.9 million for the three and six months ended June 30, 2016, respectively, and gains of $4.0 million and $6.2 million for the three and six months ended June 30, 2015, respectively, in Foreign Currency and Derivative Gains (Losses), Net.

(2) Included in our British pounds sterling denominated option contracts is one forward contract to sell British pounds sterling and buy euros. This forward has a notional amount of £6.0 million (€8.0 million) and was reported in this table using an exchange rate of $1.45 U.S. dollars to the euro.

Summary of Gains (Losses) From Change in Fair Value of Derivative Instruments Included in Other Comprehensive Income

The following table presents the gains and (losses) associated with the change in fair value for the effective portion of our derivative and nonderivative hedging instruments included in Other Comprehensive Income (in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2016			2015			2016			2015
Derivative net investment hedges (1)	$	21,512		$	(28,984	)	$	29,420		$	34,194
Interest rate hedges (2)		(2,672	)		(2,341	)		(13,790	)		(759	)
Cash flow hedges		(31	)		-			(34	)		-
Our share of derivatives from unconsolidated co-investment ventures		(3,223	)		1,879			(7,994	)		4,106
Total derivative instruments		15,586			(29,446	)		7,602			37,541
Nonderivative net investment hedges (3)		91,416			(111,537	)		(69,773	)		223,403
Total derivative and nonderivative hedging instruments	$	107,002		$	(140,983	)	$	(62,171	)	$	260,944

(1) We received $15.9 million and $16.8 million for the three and six months ended June 30, 2016, respectively, upon the settlement of net investment hedges. We received $120.1 million and $121.5 million for the three and six months ended June 30, 2015, respectively, upon the settlement of net investment hedges.

(2) The amounts reclassified to interest expense for the three and six months ended June 30, 2016, were $1.1 million and $2.1 million, respectively. The amounts reclassified to interest expense for the three and six months ended June 30, 2015, were not considered significant. For the next 12 months from June 30, 2016, we estimate an additional expense for $6.3 million will be reclassified to Interest Expense.

(3) At June 30, 2016, and December 31, 2015, we had €3.2 billion ($3.5 billion) of debt, net of accrued interest, for both periods, designated as nonderivative financial instrument hedges of our net investment in international subsidiaries. We recognized unrealized losses of $5.4 million and unrealized gains of $10.0 million in Foreign Currency and Derivative Gains (Losses), Net on the unhedged portion of our debt for the three and six months ended June 30, 2015, respectively. There were no unrealized gains or losses recognized for the three and six months ended June 30, 2016.

Carrying Amounts and Estimated Fair Values of Debt

The following table reflects the carrying amounts and estimated fair values of our debt (in thousands):

	June 30, 2016				December 31, 2015
	Carrying Value		Fair Value		Carrying Value		Fair Value
Credit Facilities	$	-	$	-	$	-	$	-
Senior notes		6,603,070		7,234,087		6,516,392		6,801,118
Term loans and other		1,844,717		1,877,264		2,115,457		2,128,270
Secured mortgages		901,071		996,779		1,172,473		1,262,778
Secured mortgages of consolidated entities		1,790,557		1,804,180		1,822,509		1,825,361
Total debt	$	11,139,415	$	11,912,310	$	11,626,831	$	12,017,527