Risk Management and Use of Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table sets forth certain information regarding our derivative instruments (in thousands):

Derivatives Designated as Hedging Instruments		Asset Derivatives Fair Value at				Liability Derivatives Fair Value at
	Balance Sheet Location	June 30, 2015		December 31, 2014		June 30, 2015			December 31, 2014
Foreign currency forward contracts	Other assets, net	$	40,650	$	24,051	$	—		$	—
Interest rate swaps	Other assets, net	141		71		—			—
Interest rate swaps	Accounts payable, accrued expenses and other liabilities	—		—		(11,780		)	(14,554		)
Derivatives Not Designated as Hedging Instruments
Foreign currency forward contracts	Other assets, net	9,525		5,120		—			—
Stock warrants	Other assets, net	1,914		1,848		—			—
Swaption	Other assets, net	540		505		—			—
Embedded credit derivatives	Other assets, net	85		499		—			—
Foreign currency forward contracts	Accounts payable, accrued expenses and other liabilities	—		—		(7,325		)	(2,904		)
Total derivatives		$	52,855	$	32,094	$	(19,105	)	$	(17,458	)

Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)

The following tables present the impact of our derivative instruments in the consolidated financial statements (in thousands):

	Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Loss (Effective Portion)
	Three Months Ended June 30,						Six Months Ended June 30,
Derivatives in Cash Flow Hedging Relationships	2015			2014			2015		2014
Foreign currency forward contracts	$	(7,601	)	$	400		$	16,604	$	(409	)
Interest rate swaps	3,518			(2,502		)	2,067		(4,421		)
Interest rate cap (a)	—			355			—		687
Foreign currency collars	—			(83		)	—		(199		)
Derivatives in Net Investment Hedging Relationships (b)
Foreign currency forward contracts	198			—			386		—
Derivatives Formerly in Net Investment Hedging Relationships (c)
Foreign currency forward contracts	—			257			—		318
Total	$	(3,885	)	$	(1,573	)	$	19,057	$	(4,024	)

		Amount of Gain (Loss) Reclassified from Other Comprehensive Loss into Income (Effective Portion)
Derivatives in Cash Flow Hedging Relationships	Location of Gain (Loss) Reclassified to Income	Three Months Ended June 30,						Six Months Ended June 30,
		2015			2014			2015			2014
Interest rate swaps	Interest expense	$	(1,847	)	$	(2,217	)	$	(4,131	)	$	(3,932	)
Foreign currency forward contracts	Other income and (expenses)	1,237			89			4,365			(100		)
Interest rate cap	Interest expense	—			(355		)	—			(687		)
Foreign currency collars	Other income and (expenses)	—			118			—			194
Total		$	(610	)	$	(2,365	)	$	234		$	(4,525	)

___________

(a) Includes gains attributable to a noncontrolling interest of $0.2 million and $0.3 million for the three and six months ended June 30, 2014, respectively.

(b) The effective portion of the change in fair value and the settlement of these contracts are reported in the foreign currency translation adjustment section of Other comprehensive income (loss) until the underlying investment is sold, at which time we reclassify the gain or loss to earnings.

(c) In September 2014, a new forward contract was executed to offset this existing forward contract, which has not yet reached its maturity. As a result of this transaction, this existing forward contract was de-designated as a hedging instrument. However, the effective portion of the change in fair value (through the date of de-designation) and the settlement of this contract are reported in the foreign currency translation adjustment section of Other comprehensive income (loss) until the underlying investment is sold, at which time we will reclassify the gain or loss to earnings.

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The following table presents the impact of our derivative instruments in the consolidated financial statements (in thousands):

		Amount of Gain (Loss) on Derivatives Recognized in Income
Derivatives Not in Cash Flow Hedging Relationships	Location of Gain (Loss) Recognized in Income	Three Months Ended June 30,						Six Months Ended June 30,
		2015			2014			2015			2014
Stock warrants	Other income and (expenses)	$	231		$	(66	)	$	66		$	(66	)
Swaption	Other income and (expenses)	127			(172		)	35			(430		)
Embedded credit derivatives	Other income and (expenses)	25			163			262			281
Foreign currency forward contracts	Other income and (expenses)	(12		)	(56		)	(16		)	(118		)
Derivatives in Cash Flow Hedging Relationships
Interest rate swaps (a)	Interest expense	88			53			172			124
Total		$	459		$	(78	)	$	519		$	(209	)

___________

(a) Relates to the ineffective portion of the hedging relationship.

Schedule of Derivative Instruments

The following table presents the foreign currency derivative contracts we had outstanding and their designations at June 30, 2015 (currency in thousands):

Foreign Currency Derivatives	Number of Instruments	Notional Amount		Fair Value at June 30, 2015(a)
Designated as Cash Flow Hedging Instruments
Foreign currency forward contracts	88	176,175	EUR	$	35,980
Foreign currency forward contracts	17	12,239	NOK	100
Not Designated as Hedging Instruments
Foreign currency forward contracts	2	90,000	EUR	2,200
Designated as Net Investment Hedging Instruments
Foreign currency forward contracts	11	1,077,804	JPY	4,505
Foreign currency forward contracts	5	7,996	NOK	65
				$	42,850

___________

(a) Fair value amounts are based on the exchange rate of the euro, the Norwegian krone, or the Japanese yen, as applicable, at June 30, 2015.

The interest rate swaps and swaption that our consolidated subsidiaries had outstanding at June 30, 2015 are summarized as follows (currency in thousands):

Interest Rate Derivatives	Number of Instruments	Notional Amount		Fair Value at June 30, 2015(a)
Designated as Cash Flow Hedging Instruments
Interest rate swaps	13	233,019	USD	$	(6,316	)
Interest rate swaps	7	190,629	EUR	(5,323		)
Not Designated as Hedging Instrument
Swaption	1	13,230	USD	540
				$	(11,099	)

____________

(a) Fair value amount is based on the exchange rate of the euro at June 30, 2015, as applicable.

The interest rate swap that one of our unconsolidated jointly-owned investments had outstanding at June 30, 2015, which was designated as a cash flow hedge, is summarized as follows (currency in thousands):

Interest Rate Derivative	Ownership Interest in Investee at June 30, 2015	Number of Instruments	Notional Amount		Fair Value at June 30, 2015(a)
Interest rate swap	85%	1	11,402	EUR	$	(468	)

____________

(a) Fair value amount is based on the exchange rate of the euro at June 30, 2015.