Financial Instruments and Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2020

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, 2020				December 31, 2019
	Asset		Liability		Asset		Liability
Undesignated derivatives
Foreign currency contracts
Forwards
Brazilian real	$	1,861	$	-	$	181	$	49
British pound sterling		11,333		33		731		3,823
Canadian dollar		7,070		-		523		1,855
Chinese renminbi		3		23		-		81
Euro		13,765		5		7,135		2,034
Japanese yen		6,133		1		3,889		97
Swedish krona		1,638		-		-		797
Designated derivatives
Foreign currency contracts
Net investment hedges
British pound sterling		10,141		1,432		807		13,189
Canadian dollar		5,590		-		-		1,926
Interest rate swaps
Cash flow hedges
Euro		106		-		-		-
Total fair value of derivatives	$	57,640	$	1,494	$	13,266	$	23,851

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

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

	Three Months Ended March 31,
	2020		2019
Exercised contracts		33		23
Realized gains on the matured, expired or settled contracts	$	4	$	1
Unrealized gains on the change in fair value of outstanding contracts	$	47	$	7

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):

	2020					2019
	EUR		USD			EUR
Notional amounts at January 1 ($)		-		-			500
New contracts ($) (1)(2)		165		750			-
Matured, expired or settled contracts ($) (2)		-		(750	)		-
Notional amounts at March 31 ($)		165		-			500

(1) During the first quarter of 2020, we entered into one interest rate swap contract with an aggregate notional amount of €150.0 million ($165.0 million) to effectively fix the interest rate on our senior notes bearing a floating rate of Euribor plus 0.3% issued in February 2020.

(2) During the first quarter of 2020, we entered into four treasury lock contracts with an aggregate notional amount of $750.0 million to effectively fix the interest rate on the forecasted issuance of senior notes, which were then issued in February 2020. Subsequent to issuance, we recorded a loss of $16.8 million associated with these derivatives that will be amortized out of Accumulated Other Comprehensive Income/Loss to Interest Expense, in accordance with our policy.

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 (in millions):

	March 31, 2020		December 31, 2019
British pound sterling	$	633	$	329
Euro	$	-	$	850

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

The following table summarizes the recognized unrealized gains in Foreign Currency and Derivative Gains, Net on the remeasurement of the unhedged portion of our debt and accrued interest for the three months ended March 31 (in millions):

	2020
Unrealized gains on the unhedged portion	$	82

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,
	2020			2019
Derivative net investment hedges	$	25,359		$	(19,452	)
Debt designated as nonderivative net investment hedges		32,750			63,657
Cumulative translation adjustment		(191,642	)		15,875
Total foreign currency translation gains (losses), net	$	(133,533	)	$	60,080
Cash flow hedges (1) (2)	$	(15,525	)	$	1,105
Our share of derivatives from unconsolidated co-investment ventures		(7,923	)		(3,738	)
Total unrealized losses on derivative contracts, net	$	(23,448	)	$	(2,633	)
Total change in other comprehensive income (loss)	$	(156,981	)	$	57,447

(1) We estimate an additional expense of $5.7 million will be reclassified to Interest Expense over the next 12 months from March 31, 2020, due to the amortization of previously settled derivatives designated as cash flow hedges.

(2) Included in the three months ended March 31, 2020 was $16.8 million in losses associated with the termination of the four treasury lock contracts.

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, 2020				December 31, 2019
	Carrying Value		Fair Value		Carrying Value		Fair Value
Credit Facilities	$	52,522	$	52,522	$	184,255	$	184,255
Senior notes		13,045,081		12,693,738		9,660,570		10,228,715
Term loans and unsecured other		1,930,955		1,953,500		1,441,882		1,463,841
Secured mortgage		648,034		682,740		619,170		651,047
Total	$	15,676,592	$	15,382,500	$	11,905,877	$	12,527,858

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):

	2020																					2019
	CAD			EUR			GBP			JPY			SEK			Other			Total			BRL			CAD			EUR			GBP			JPY			Total
Notional amounts at January 1 ($)		120			581			178			182			31			15			1,107			5			55			314			118			177			669
New contracts ($)		-			809			294			60			9			19			1,191			489			-			-			112			-			601
Matured, expired or settled contracts ($)		(11	)		(1,003	)		(267	)		(15	)		(3	)		(23	)		(1,322	)		(494	)		(9	)		(35	)		(21	)		(20	)		(579	)
Notional amounts at March 31 ($)		109			387			205			227			37			11			976			-			46			279			209			157			691
Weighted average forward rate at      March 31		1.32			1.16			1.77			103.08			9.41									-			1.28			1.21			1.22			104.86
Active contracts at March 31		35			61			64			53			32									-			20			29			22			30

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):

	2020								2019
	CAD		GBP			Total			BRL			CAD		GBP		Total
Notional amounts at January 1 ($)		97		387			484			460			100		127		687
New contracts ($)		-		324			324			489			-		262		751
Matured, expired or settled contracts ($)		-		(576	)		(576	)		(949	)		-		-		(949	)
Notional amounts at March 31 ($)		97		135			232			-			100		389		489
Weighted average forward rate at      March 31		1.32		1.35						-			1.28		1.30
Active contracts at March 31		2		1						-			2		6