Financial Instruments and Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

Schedule of Fair Value of Derivative Financial Instruments

The following table presents the fair value of our derivative financial instruments recognized within Other Assets and Other Liabilities on the Consolidated Balance Sheets (in thousands):

	March 31, 2023				December 31, 2022
	Asset		Liability		Asset		Liability
Undesignated derivatives
Foreign currency contracts
Forwards
Brazilian real	$	-	$	741	$	35	$	494
British pound sterling		20,796		915		29,187		648
Canadian dollar		8,316		10		12,074		2
Chinese renminbi		443		434		657		364
Euro		41,794		3,051		51,317		2,801
Japanese yen		33,454		807		34,022		2,344
Swedish krona		5,568		26		6,292		-
Designated derivatives
Foreign currency contracts
Net investment hedges
British pound sterling		16,305		555		23,534		-
Canadian dollar		18,002		-		24,552		-
Chinese renminbi		-		34		-		-
Interest rate swaps
Cash flow hedges
Euro		2,842		-		44,982		-
U.S. dollar		-		-		584		29
Total fair value of derivatives	$	147,520	$	6,573	$	227,236	$	6,682

Summary of Undesignated Financial Instruments Exercised and Realized and Unrealized Gains in Foreign Currency and Derivative Gains, Net

The following table summarizes the undesignated derivative financial instruments exercised and outstanding recognized in realized and unrealized gains (losses), respectively, in Foreign Currency and Derivative Gains and Other Income, Net in the Consolidated Statements of Income (in millions, except for number of exercised contracts):

	Three Months Ended
	March 31,
	2023			2022
Exercised contracts		52			32
Realized gains on the matured, expired or settled contracts	$	14		$	15
Unrealized gains (losses) on the change in fair value of outstanding contracts	$	(14	)	$	15

Summary of Activity in Interest Rate Swaps

The following table summarizes the activity of our interest rate swaps designated as cash flow hedges for the three months ended March 31 (in millions):

	2023									2022
	EUR			USD			Total			EUR			Total
Notional amounts at January 1 ($)		447			150			597			165			165
New contracts ($)		434			550			984			1,004			1,004
Matured, expired or settled contracts ($) (1)		(709	)		(700	)		(1,409	)		(722	)		(722	)
Notional amounts at March 31 ($)		172			-			172			447			447

(1)Included in AOCI(L) are cash flow hedges of $268.6 million notional, that settled during the three months ended March 31, 2023, to hedge our exposure to the variability in future cash flows for forecasted debt transactions that have not occurred and will be hedged over 10 years.

Summary of Debt and Accrued Interest, Designated as Nonderivative Financial Instrument

The following table summarizes our debt and accrued interest, designated as a hedge of our net investment in international subsidiaries at the quarter ended (in millions):

	March 31, 2023		December 31, 2022
British pound sterling	$	1,252	$	1,237
Canadian dollar	$	373	$	370

Summary of Recognized Unrealized Gains (Losses) in Foreign Currency and Derivative Gains Net on Remeasurement of Unhedged Portion of Euro Denominated Debt and Accrued Interest

The following table summarizes the unrealized gains (losses) in Foreign Currency and Derivative Gains and Other Income, Net on the remeasurement of the unhedged portion of our euro denominated debt and accrued interest (in millions):

	Three Months Ended
	March 31,
	2023			2022
Unrealized gains (losses) on the unhedged portion	$	(4	)	$	15

Summary of Changes in Other Comprehensive Income (Loss)

The following table presents these changes in Other Comprehensive Income (Loss) (in thousands):

	Three Months Ended March 31,
	2023			2022
Derivative net investment hedges (1)	$	(8,163	)	$	4,093
Debt designated as nonderivative net investment hedges		(41,499	)		33,597
Cumulative translation adjustment		21,561			151,833
Total foreign currency translation gains (losses), net	$	(28,101	)	$	189,523
Cash flow hedges (1) (2)	$	(19,327	)	$	4,422
Our share of derivatives from unconsolidated co-investment ventures		(6,526	)		8,927
Total unrealized gains (losses) on derivative contracts, net	$	(25,853	)	$	13,349
Total change in other comprehensive income (losses)	$	(53,954	)	$	202,872

(1)The ending balance in AOCI/L for accumulated derivative gains on net investment hedges was $324.8 million and $333.0 million at March 31, 2023 and December 31, 2022, respectively. Additionally, the ending balance in AOCI/L for accumulated derivative gains on cash flow hedges was $13.4 million and $32.7 million at March 31, 2023 and December 31, 2022, respectively.

(2)We estimate an additional expense of $1.0 million will be reclassified to Interest Expense over the next 12 months from March 31, 2023, due to the amortization of previously settled derivatives designated as cash flow hedges.

Carrying Amounts and Estimated Fair Values of Debt

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

	March 31, 2023				December 31, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value
Credit facilities	$	212,553	$	212,553	$	1,538,461	$	1,538,461
Senior notes		22,399,340		19,275,513		19,786,253		16,604,241
Term loans and unsecured other		2,093,006		2,079,813		2,106,592		2,092,264
Secured mortgage		448,443		428,330		444,655		420,964
Total	$	25,153,342	$	21,996,209	$	23,875,961	$	20,655,930

Undesignated Derivatives [Member]

Foreign Currency Contracts Activity

The following table summarizes the activity of our undesignated foreign currency contracts for the three months ended March 31 (in millions, except for weighted average forward rates and number of active contracts):

	2023																		2022
	CAD			EUR			GBP			JPY			Other			Total			CAD			EUR			GBP			JPY			SEK			Other			Total
Notional amounts at January 1 ($)		283			601			349			331			81			1,645			175			749			383			250			85			20			1,662
New contracts ($)		6			9			49			27			41			132			45			350			(21	)		61			9			13			457
Matured, expired or settled contracts ($)		(54	)		(43	)		(22	)		(21	)		(7	)		(147	)		(16	)		(182	)		(19	)		(22	)		(4	)		(4	)		(247	)
Notional amounts at March 31 ($)		235			567			376			337			115			1,630			204			917			343			289			90			29			1,872
Weighted average forward rate at March 31		1.29			1.18			1.30			110.58									1.27			1.19			1.27			104.39			9.30
Active contracts at March 31		88			94			100			97									81			93			77			85			84

Designated As Hedging Instrument [Member]

Foreign Currency Contracts Activity

The following table summarizes the activity of our foreign currency contracts designated as net investment hedges for the three months ended March 31 (in millions, except for weighted average forward rates and number of active contracts):

	2023										2022
	CAD			CNH		GBP		Total			BRL			CAD			GBP			Total
Notional amounts at January 1 ($)		534			-		440		974			-			535			432			967
New contracts ($)		119			100		-		219			44			204			229			477
Matured, expired or settled contracts ($)		(124	)		-		-		(124	)		(44	)		(125	)		(100	)		(269	)
Notional amounts at March 31 ($)		529			100		440		1,069			-			614			561			1,175
Weighted average forward rate at      March 31		1.30			6.72		1.28					-			1.26			1.35
Active contracts at March 31		6			1		4					-			7			5