Derivative Instruments

6 Months Ended

Jun. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Derivative Instruments

Derivative Instruments – Interest Rate Swap Agreements

We use interest rate swaps to manage the mix of our debt between fixed and variable rate instruments. As of June 30, 2013, we have entered into eight interest rate swap agreements for notional amounts totaling $5,750.0 million. The difference to be paid or received under the terms of the interest rate swap agreements is accrued as interest rates change and recognized as an adjustment to interest expense for the related debt. Changes in the variable interest rates to be paid or received pursuant to the terms of the interest rate swap agreements will have a corresponding effect on future cash flows.

The major terms of the interest rate swap agreements as of June 30, 2013 are as follows:

Effective Date	Notional Amount (In millions)		Fixed Rate Paid		Variable Rate Received as of June 30, 2013		Next Reset Date	Maturity Date
April 25, 2011	$	250.0	1.351	%	0.193	%	July 25, 2013	January 25, 2015
April 25, 2011	250.0		1.347	%	0.193	%	July 25, 2013	January 25, 2015
April 25, 2011	250.0		1.350	%	0.193	%	July 25, 2013	January 25, 2015
January 25, 2011	1,000.0		3.068	%	0.193	%	July 25, 2013	January 25, 2015
April 25, 2011	1,000.0		3.150	%	0.193	%	July 25, 2013	January 25, 2015
January 25, 2011	1,000.0		3.750	%	0.193	%	July 25, 2013	January 25, 2015
April 25, 2011	1,000.0		3.264	%	0.193	%	July 25, 2013	January 25, 2015
January 25, 2011	1,000.0		3.814	%	0.193	%	July 25, 2013	January 25, 2015

The variable rate on our interest rate swap instruments did not materially change as a result of the July 25, 2013 reset.

Derivative Instruments – Interest Rate Cap Agreements

In February 2013, in conjunction with exercising the option to extend the maturity of the CMBS Financing to 2014, we entered into a new interest rate cap agreement. The interest rate cap agreement, which is effective from February 13, 2013 and terminates February 13, 2015, is for a notional amount of $4,664.1 million at a LIBOR cap rate of 4.5%. Any future changes in fair value of the interest rate cap will be recognized in interest expense during the period in which the changes in value occur.

Derivative Instruments – Other

During the second quarter of 2012, the Company entered into a written put option (the “Option”) for certain preferred equity interests. The potential future aggregate cash payments of $13.9 million as of June 30, 2013 related to the Option may occur from time to time. Based on the structure of this security as a written put option, the obligation for these potential cash payments is not reflected in our Consolidated Condensed Balance Sheets. Additionally, the Option is recorded in our Consolidated Condensed Balance Sheets at its fair value, which was de minimis as of June 30, 2013.

Derivative Instruments – Impact on Consolidated Condensed Financial Statements

None of our derivative instruments are offset, and the fair values of assets and liabilities are recognized in the Consolidated Condensed Balance Sheets. The following table represents the fair values of derivative instruments in the Consolidated Condensed Balance Sheets as of June 30, 2013 and December 31, 2012:

	Asset Derivatives						Liability Derivatives
	June 30, 2013			December 31, 2012			June 30, 2013				December 31, 2012
(In millions)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value			Balance Sheet Location	Fair Value
Derivatives not designated as hedging instruments
Interest rate swaps		$	—		$	—	Deferred credits and other	$	(237.1	)	Deferred credits and other	$	(306.4	)
Interest rate caps	Deferred charges and other	0.1			—			—				—
Total derivatives		$	0.1		$	—		$	(237.1	)		$	(306.4	)

The following table represents the effect of derivative instruments in the Consolidated Condensed Statements of Operations for the quarters ended June 30, 2013 and 2012:

(In millions)	Amount of (Gain) or Loss Recognized in AOCL (Effective Portion)				Location of (Gain) or Loss Reclassified From AOCL Into Net Loss (Effective Portion)	Amount of (Gain) or Loss Reclassified from AOCL into Net Loss (Effective Portion)				Location of (Gain) or Loss Recognized in Net Loss (Ineffective Portion)	Amount of (Gain) or Loss Recognized in Net Loss (Ineffective Portion)
Derivatives designated as hedging instruments	Quarter Ended June 30, 2013		Quarter Ended June 30, 2012			Quarter Ended June 30, 2013		Quarter Ended June 30, 2012			Quarter Ended June 30, 2013		Quarter Ended June 30, 2012
Interest rate contracts	$	—	$	—	Interest expense	$	—	$	7.2	Interest expense	$	—	$	—

(In millions)		Amount of (Gain) or Loss Recognized in Net Loss
Derivatives not designated as hedging instruments	Location of (Gain) or Loss Recognized in Net Loss	Quarter Ended June 30, 2013			Quarter Ended June 30, 2012
Interest rate contracts	Interest expense	$	(45.5	)	$	(17.6	)

The following table represents the effect of derivative instruments in the Consolidated Condensed Statements of Operations for the six months endedJune 30, 2013 and 2012:

(In millions)	Amount of (Gain) or Loss Recognized in AOCL (Effective Portion)				Location of (Gain) or Loss Reclassified From AOCL Into Net Loss (Effective Portion)	Amount of (Gain) or Loss Reclassified from AOCL into Net Loss (Effective Portion)				Location of (Gain) or Loss Recognized in Net Loss (Ineffective Portion)	Amount of (Gain) or Loss Recognized in Net Loss (Ineffective Portion)
Derivatives designated as hedging instruments	Six Months Ended June 30, 2013		Six Months Ended June 30, 2012			Six Months Ended June 30, 2013		Six Months Ended June 30, 2012			Six Months Ended June 30, 2013		Six Months Ended June 30, 2012
Interest rate contracts	$	—	$	—	Interest expense	$	3.9	$	14.3	Interest expense	$	—	$	—

(In millions)		Amount of (Gain) or Loss Recognized in Net Loss
Derivatives not designated as hedging instruments	Location of (Gain) or Loss Recognized in Net Loss	Six Months Ended June 30, 2013			Six Months Ended June 30, 2012
Interest rate contracts	Interest expense	$	(66.5	)	$	17.1

The difference to be paid or received under the terms of the interest rate swap agreements is recognized as interest expense and is paid monthly. This cash settlement portion of the interest rate swap agreements increased interest expense for the quarters ended June 30, 2013 and 2012 by $42.8 million and $42.2 million, respectively, and increased interest expense for the six months endedJune 30, 2013 and 2012 by $85.0 million and $84.0 million respectively.

At June 30, 2013, our variable-rate debt, excluding $5,750.0 million of variable-rate debt hedged using interest rate swap agreements, represents 18% of our total debt, while our fixed-rate debt is 82% of our total debt.