XML 53 R32.htm IDEA: XBRL DOCUMENT v3.24.2
Financial Instruments and Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2024
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):

 

 

 

June 30, 2024

 

 

December 31, 2023

 

 

 

Asset

 

 

Liability

 

 

Asset

 

 

Liability

 

Undesignated derivatives

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts

 

 

 

 

 

 

 

 

 

 

 

 

     Forwards

 

 

 

 

 

 

 

 

 

 

 

 

          Brazilian real

 

$

-

 

 

$

-

 

 

$

-

 

 

$

291

 

          British pound sterling

 

 

7,146

 

 

 

6,850

 

 

 

9,608

 

 

 

9,862

 

          Canadian dollar

 

 

8,269

 

 

 

188

 

 

 

4,480

 

 

 

1,225

 

          Chinese renminbi

 

 

765

 

 

 

6

 

 

 

1,630

 

 

 

50

 

          Euro

 

 

24,992

 

 

 

2,141

 

 

 

19,252

 

 

 

8,229

 

          Japanese yen

 

 

69,946

 

 

 

-

 

 

 

45,149

 

 

 

589

 

          Swedish krona

 

 

3,751

 

 

 

932

 

 

 

3,304

 

 

 

2,279

 

     Options

 

 

 

 

 

 

 

 

 

 

 

 

          Mexican peso

 

 

246

 

 

 

-

 

 

 

1,263

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Designated derivatives

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts

 

 

 

 

 

 

 

 

 

 

 

 

     Net investment hedges

 

 

 

 

 

 

 

 

 

 

 

 

          British pound sterling

 

 

-

 

 

 

4,174

 

 

 

1,759

 

 

 

7,030

 

          Canadian dollar

 

 

672

 

 

 

-

 

 

 

756

 

 

 

5,608

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

 

 

 

 

 

 

 

 

 

 

 

     Cash flow hedges

 

 

 

 

 

 

 

 

 

 

 

 

          Euro

 

 

-

 

 

 

-

 

 

 

118

 

 

 

27,034

 

          U.S. dollar

 

 

1,395

 

 

 

204

 

 

 

-

 

 

 

31,964

 

Total fair value of derivatives

 

$

117,182

 

 

$

14,495

 

 

$

87,319

 

 

$

94,161

 

 
Summary of Undesignated Financial Instruments Exercised and Realized and Unrealized Gains (Losses) in Foreign Currency, Derivative and Other Gains and Other Income, Net

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

 

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Exercised contracts

 

 

86

 

 

 

69

 

 

 

131

 

 

 

121

 

Realized gains on the matured, expired or settled contracts

 

$

22

 

 

$

17

 

 

$

40

 

 

$

31

 

Unrealized gains (losses) on the change in fair value of outstanding contracts

 

$

6

 

 

$

(6

)

 

$

35

 

 

$

(20

)

 
Summary of Activity in Interest Rate Contracts

The following table summarizes the activity of our interest rate contracts designated as CFHs for the six months ended June 30 (in millions):

 

 

 

2024

 

 

2023

 

 

 

 

EUR

 

 

USD

 

 

GBP

 

 

Total

 

 

EUR

 

 

USD

 

 

Total

 

 

Notional amounts at January 1 ($)

 

 

700

 

 

 

550

 

 

 

-

 

 

 

1,250

 

 

 

447

 

 

 

150

 

 

 

597

 

 

New contracts ($)

 

 

-

 

 

 

300

 

 

 

246

 

 

 

546

 

 

 

584

 

 

 

1,750

 

 

 

2,334

 

 

Matured, expired or settled
     contracts ($)

 

 

(700

)

 

 

(550

)

 

 

(246

)

 

 

(1,496

)

 

 

(859

)

 

 

(1,900

)

 

 

(2,759

)

 

Notional amounts at June 30 ($)

 

 

-

 

 

 

300

 

 

 

-

 

 

 

300

 

 

 

172

 

 

 

-

 

 

 

172

 

 
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):

 

 

 

June 30, 2024

 

 

December 31, 2023

 

British pound sterling

 

$

1,760

 

 

$

1,305

 

Canadian dollar

 

$

778

 

 

$

373

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

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

 

 

 

 

 

 

 

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Unrealized gains (losses) on the unhedged portion

 

$

6

 

 

$

1

 

 

$

16

 

 

$

(3

)
Summary of Changes in AOCI/L

The following tables presents these changes in AOCI/L (in thousands):

 

Three Months Ended June 30, 2024 and 2023

 

 

 

Unrealized gains (losses) on CFHs (1)

 

 

Our share of derivatives from unconsolidated entities

 

 

Derivative NIHs

 

 

Debt designated as nonderivative NIHs (2)

 

 

CTA

 

 

Total AOCI/L

 

Balance at
     April 1, 2024

 

$

(26,648

)

 

$

13,563

 

 

$

326,688

 

 

$

268,471

 

 

$

(867,469

)

 

$

(285,395

)

Other comprehensive
     income, net

 

 

8,160

 

 

 

2,271

 

 

 

1,908

 

 

 

4,024

 

 

 

112,979

 

 

 

129,342

 

Balance at
     June 30, 2024

 

$

(18,488

)

 

$

15,834

 

 

$

328,596

 

 

$

272,495

 

 

$

(754,490

)

 

$

(156,053

)

 

 

 

Unrealized gains (losses) on CFHs

 

 

Our share of derivatives from unconsolidated entities

 

 

Derivative NIHs

 

 

Debt designated as nonderivative NIHs (2)

 

 

CTA

 

 

Total AOCI/L

 

Balance at
     April 1, 2023

 

$

11,852

 

 

$

16,057

 

 

$

324,810

 

 

$

288,483

 

 

$

(1,137,626

)

 

$

(496,424

)

Other comprehensive
     income (loss), net

 

 

3,234

 

 

 

(1,147

)

 

 

(14,670

)

 

 

(38,886

)

 

 

215,523

 

 

 

164,054

 

Balance at
     June 30, 2023

 

$

15,086

 

 

$

14,910

 

 

$

310,140

 

 

$

249,597

 

 

$

(922,103

)

 

$

(332,370

)

 

 

Six Months Ended June 30, 2024 and 2023

 

 

 

Unrealized gains (losses) on CFHs (1)

 

 

Our share of derivatives from unconsolidated entities

 

 

Derivative NIHs

 

 

Debt designated as nonderivative NIHs (2)

 

 

CTA

 

 

Total AOCI/L

 

Balance at
     January 1, 2024

 

$

(45,744

)

 

$

8,414

 

 

$

310,526

 

 

$

254,102

 

 

$

(1,041,499

)

 

$

(514,201

)

Other comprehensive
     income, net

 

 

27,256

 

 

 

7,420

 

 

 

18,070

 

 

 

18,393

 

 

 

287,009

 

 

 

358,148

 

Balance at
     June 30, 2024

 

$

(18,488

)

 

$

15,834

 

 

$

328,596

 

 

$

272,495

 

 

$

(754,490

)

 

$

(156,053

)

 

 

 

Unrealized gains (losses) on CFHs

 

 

Our share of derivatives from unconsolidated entities

 

 

Derivative NIHs

 

 

Debt designated as nonderivative NIHs (2)

 

 

CTA

 

 

Total AOCI/L

 

Balance at
     January 1, 2023

 

$

30,545

 

 

$

22,584

 

 

$

332,973

 

 

$

329,983

 

 

$

(1,159,694

)

 

$

(443,609

)

Other comprehensive
     income (loss), net

 

 

(15,459

)

 

 

(7,674

)

 

 

(22,833

)

 

 

(80,386

)

 

 

237,591

 

 

 

111,239

 

Balance at
     June 30, 2023

 

$

15,086

 

 

$

14,910

 

 

$

310,140

 

 

$

249,597

 

 

$

(922,103

)

 

$

(332,370

)

 

(1)
We estimate an additional expense of $2.8 million will be reclassified to Interest Expense in the Consolidated Statements of Income over the next 12 months from June 30, 2024, due to the amortization of settled derivatives designated as cash flow hedges.

 

(2)
Reclassification of amounts out of AOCI/L due to the remeasurement of the unhedged portion of our euro-denominated and Chinese renminbi-denominated debt and accrued interest is included herein.
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, 2024

 

 

December 31, 2023

 

 

 

Carrying Value

 

 

Fair Value

 

 

Carrying Value

 

 

Fair Value

 

Credit facilities and commercial paper

 

$

489,395

 

 

$

489,395

 

 

$

979,313

 

 

$

979,313

 

Senior notes

 

 

27,345,366

 

 

 

24,597,352

 

 

 

25,311,647

 

 

 

23,121,936

 

Term loans and unsecured other

 

 

1,784,285

 

 

 

1,768,822

 

 

 

2,330,520

 

 

 

2,322,827

 

Secured mortgage

 

 

285,574

 

 

 

265,719

 

 

 

379,021

 

 

 

357,731

 

Total

 

$

29,904,620

 

 

$

27,121,288

 

 

$

29,000,501

 

 

$

26,781,807

 
Undesignated Derivatives [Member]  
Foreign Currency Contracts Activity

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

 

 

2024

 

 

2023

 

 

CAD

 

 

EUR

 

 

GBP

 

 

JPY

 

 

Other

 

 

Total

 

 

CAD

 

 

EUR

 

 

GBP

 

 

JPY

 

Other

 

 

Total

 

Notional amounts at January 1 ($)

 

213

 

 

 

524

 

 

 

442

 

 

 

384

 

 

 

56

 

 

 

1,619

 

 

 

283

 

 

 

601

 

 

 

349

 

 

 

331

 

 

81

 

 

 

1,645

 

New contracts ($)

 

102

 

 

 

98

 

 

 

67

 

 

 

59

 

 

 

7

 

 

 

333

 

 

 

6

 

 

 

41

 

 

 

124

 

 

 

27

 

 

41

 

 

 

239

 

Matured, expired or settled contracts ($)

 

(17

)

 

 

(56

)

 

 

(91

)

 

 

(127

)

 

 

(56

)

 

 

(347

)

 

 

(63

)

 

 

(186

)

 

 

(48

)

 

 

(45

)

 

(16

)

 

 

(358

)

Notional amounts at June 30 ($)

 

298

 

 

 

566

 

 

 

418

 

 

 

316

 

 

 

7

 

 

 

1,605

 

 

 

226

 

 

 

456

 

 

 

425

 

 

 

313

 

 

106

 

 

 

1,526

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average forward rate at June 30

 

1.31

 

 

 

1.15

 

 

 

1.26

 

 

 

118.85

 

 

 

 

 

 

 

 

 

1.29

 

 

 

1.17

 

 

 

1.29

 

 

 

110.35

 

 

 

 

 

 

Active contracts at June 30

 

113

 

 

 

84

 

 

 

88

 

 

 

79

 

 

 

 

 

 

 

 

 

83

 

 

 

66

 

 

 

100

 

 

 

88

 

 

 

 

 

 
Designated As Hedging Instrument [Member]  
Foreign Currency Contracts Activity

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

 

 

 

2024

 

 

2023

 

 

 

CAD

 

 

GBP

 

 

Total

 

 

CAD

 

 

CNH

 

 

GBP

 

 

Total

 

Notional amounts at January 1 ($)

 

 

516

 

 

 

432

 

 

 

948

 

 

 

534

 

 

 

-

 

 

 

440

 

 

 

974

 

New contracts ($)

 

 

47

 

 

 

397

 

 

 

444

 

 

 

288

 

 

 

100

 

 

 

125

 

 

 

513

 

Matured, expired or settled contracts ($)

 

 

(399

)

 

 

(399

)

 

 

(798

)

 

 

(301

)

 

 

-

 

 

 

(132

)

 

 

(433

)

Notional amounts at June 30 ($)

 

 

164

 

 

 

430

 

 

 

594

 

 

 

521

 

 

 

100

 

 

 

433

 

 

 

1,054

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average forward rate at
     June 30

 

 

1.36

 

 

 

1.25

 

 

 

 

 

 

1.32

 

 

 

6.72

 

 

 

1.26

 

 

 

 

Active contracts at June 30

 

 

2

 

 

 

4

 

 

 

 

 

 

6

 

 

 

1

 

 

 

4