Financial Instruments and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 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 in the Consolidated Balance Sheets (in thousands):

	September 30, 2023				December 31, 2022
	Asset		Liability		Asset		Liability
Undesignated derivatives
Foreign currency contracts
Forwards
Brazilian real	$	-	$	569	$	35	$	494
British pound sterling		19,973		638		29,187		648
Canadian dollar		9,210		-		12,074		2
Chinese renminbi		2,318		2		657		364
Euro		34,156		1,877		51,317		2,801
Japanese yen		57,758		-		34,022		2,344
Mexican peso		-		444		-		-
Swedish krona		6,659		1		6,292		-
Options
Mexican peso		1,629		1,738		-		-
Designated derivatives
Foreign currency contracts
Net investment hedges
British pound sterling		10,254		-		23,534		-
Canadian dollar		12,915		-		24,552		-
Interest rate swaps
Cash flow hedges
Euro		3,790		-		44,982		-
U.S. dollar		-		-		584		29
Total fair value of derivatives	$	158,662	$	5,269	$	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, 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 September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Exercised contracts		42		55		163		124
Realized gains on the matured, expired or settled contracts	$	11	$	94	$	42	$	124
Unrealized gains on the change in fair value of outstanding contracts	$	29	$	48	$	9	$	151

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 nine months ended September 30 (in millions):

	2023									2022
	EUR			USD			Total			EUR			USD			Total
Notional amounts at January 1 ($)		447			150			597			165			-			165
New contracts ($)		691			1,750			2,441			1,004			250			1,254
Matured, expired or settled contracts ($)		(859	)		(1,900	)		(2,759	)		(722	)		(250	)		(972	)
Notional amounts at September 30 ($)		279			-			279			447			-			447

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):

	September 30, 2023		December 31, 2022
British pound sterling	$	1,304	$	1,237
Canadian dollar	$	370	$	370

Summary of Recognized Unrealized Gains 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 in Foreign Currency and Derivative Gains and Other Income, Net in the Consolidated Statements of Income on the remeasurement of the unhedged portion of our euro denominated debt and accrued interest (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Unrealized gains on the unhedged portion	$	10	$	36	$	7	$	85

Summary of Changes in Other Comprehensive Income

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023			2022
Derivative net investment hedges (1)	$	29,679	$	74,341	$	6,846		$	134,798
Debt designated as nonderivative net investment hedges		50,149		105,726		(30,237	)		247,195
Cumulative translation adjustment		66,453		58,995		307,620			379,109
Total foreign currency translation gains, net	$	146,281	$	239,062	$	284,229		$	761,102
Cash flow hedges (1) (2)	$	632	$	16,818	$	(15,396	)	$	45,764
Our share of derivatives from unconsolidated co-investment ventures		3,070		8,084		(4,602	)		21,466
Total unrealized gains (losses) on derivative contracts, net	$	3,702	$	24,902	$	(19,998	)	$	67,230
Total change in other comprehensive income	$	149,983	$	263,964	$	264,231		$	828,332

(1)The ending balance in AOCI/L in the Consolidated Balance Sheets for accumulated derivative gains on net investment hedges was $339.8 million and $333.0 million at September 30, 2023 and December 31, 2022 respectively. Additionally, the ending balance in AOCI/L for accumulated derivative gains on cash flow hedges was $17.3 million and $32.7 million at September 30, 2023 and December 31, 2022, respectively.

(2)We estimate additional income of $2.7 million will be reclassified to Interest Expense in the Consolidated Statements of Income over the next 12 months from September 30, 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):

	September 30, 2023				December 31, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value
Credit facilities	$	212,748	$	212,748	$	1,538,461	$	1,538,461
Senior notes		24,741,952		20,891,413		19,786,253		16,604,241
Term loans and unsecured other		2,253,857		2,239,280		2,106,592		2,092,264
Secured mortgage		369,640		340,147		444,655		420,964
Total	$	27,578,197	$	23,683,588	$	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 nine months ended September 30 (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			Other			Total
Notional amounts at January 1 ($)		283			601			349			331			81		1,645			175			749			383			250			105			1,662
New contracts ($)		6			110			124			116			34		390			124			603			251			175			81			1,234
Matured, expired or settled contracts ($)		(73	)		(218	)		(73	)		(66	)		68		(362	)		(49	)		(753	)		(274	)		(78	)		(105	)		(1,259	)
Notional amounts at September 30 ($)		216			493			400			381			183		1,673			250			599			360			347			81			1,637
Weighted average forward rate at September 30		1.29			1.17			1.28			113.85								1.28			1.20			1.32			108.59
Active contracts at September 30		77			69			92			96								96			89			89			99

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 nine months ended September 30 (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 ($)		534			-			440			974			-			535			432			967
New contracts ($)		350			100			218			668			44			599			317			960
Matured, expired or settled contracts ($)		(363	)		(100	)		(228	)		(691	)		(44	)		(535	)		(300	)		(879	)
Notional amounts at September 30 ($)		521			-			430			951			-			599			449			1,048
Weighted average forward rate at      September 30		1.32			-			1.25						-			1.29			1.31
Active contracts at September 30		6			-			4						-			7			4