XML 56 R33.htm IDEA: XBRL DOCUMENT v3.20.2
Financial Instruments and Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 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):

 

 

 

September 30, 2020

 

 

December 31, 2019

 

 

 

Asset

 

 

Liability

 

 

Asset

 

 

Liability

 

Undesignated derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Forwards

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

          Brazilian real

 

$

1,717

 

 

$

-

 

 

$

181

 

 

$

49

 

          British pound sterling

 

 

3,156

 

 

 

457

 

 

 

731

 

 

 

3,823

 

          Canadian dollar

 

 

842

 

 

 

1,121

 

 

 

523

 

 

 

1,855

 

          Chinese renminbi

 

 

-

 

 

 

317

 

 

 

-

 

 

 

81

 

          Euro

 

 

769

 

 

 

6,828

 

 

 

7,135

 

 

 

2,034

 

          Japanese yen

 

 

3,623

 

 

 

135

 

 

 

3,889

 

 

 

97

 

          Swedish krona

 

 

31

 

 

 

1,824

 

 

 

-

 

 

 

797

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Designated derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Net investment hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

          British pound sterling

 

 

5,433

 

 

 

-

 

 

 

807

 

 

 

13,189

 

          Canadian dollar

 

 

3,432

 

 

 

-

 

 

 

-

 

 

 

1,926

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Cash flow hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

          Euro

 

 

11

 

 

 

-

 

 

 

-

 

 

 

-

 

          U.S. dollar

 

 

-

 

 

 

233

 

 

 

-

 

 

 

-

 

Total fair value of derivatives

 

$

19,014

 

 

$

10,915

 

 

$

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 (losses) in Foreign Currency and Derivative Gains (Losses), Net in the Consolidated Statements of Income (in millions, except for number of exercised contracts):

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Exercised contracts

 

 

28

 

 

 

34

 

 

 

101

 

 

 

82

 

Realized gains on the matured, expired or settled contracts

 

$

1

 

 

$

11

 

 

$

11

 

 

$

18

 

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

 

$

(27

)

 

$

9

 

 

$

7

 

 

$

13

 
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):

 

 

 

2020

 

 

2019

 

 

 

EUR

 

 

USD

 

 

EUR

 

Notional amounts at January 1 ($)

 

 

-

 

 

 

-

 

 

 

500

 

New contracts ($) (1)(2)(3)(4)

 

 

165

 

 

 

1,500

 

 

 

-

 

Matured, expired or settled contracts ($) (2)(4)

 

 

-

 

 

 

(1,250

)

 

 

-

 

Notional amounts at September 30 ($)

 

 

165

 

 

 

250

 

 

 

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 euro 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 U.S. dollar 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.

 

(3)

During the second quarter of 2020, we entered into two interest rate swap contracts with an aggregate notional amount of $250.0 million to effectively fix the interest rate on the outstanding balance of our 2017 Term Loan bearing a floating rate of 1-month USD LIBOR plus 0.9%.

 

(4)

During the third quarter of 2020, we entered into two treasury lock contracts with an aggregate notional amount of $500.0 million to effectively fix the interest rate on the forecasted issuance of U.S. dollar senior notes, which were then issued in August 2020. The loss associated with the settlement of the derivatives upon issuance of the senior notes was not significant.
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):

 

 

 

September 30, 2020

 

 

December 31, 2019

 

British pound sterling

 

$

1,002

 

 

$

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 (losses) in Foreign Currency and Derivative Gains (Losses), Net on the remeasurement of the unhedged portion of our debt and accrued interest (in millions):

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Unrealized gains (losses) on the unhedged portion

 

$

(77

)

 

$

40

 

 

$

(51

)

 

$

41

 
Summary of Changes in Other Comprehensive Income (Loss)

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

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Derivative net investment hedges

 

$

(4,234

)

 

$

15,642

 

 

$

18,290

 

 

$

4,654

 

Debt designated as nonderivative net investment hedges

 

 

(46,570

)

 

 

154,948

 

 

 

2,439

 

 

 

187,572

 

Cumulative translation adjustment

 

 

5,228

 

 

 

(140,537

)

 

 

(200,891

)

 

 

(149,755

)

Total foreign currency translation gains (losses), net

 

$

(45,576

)

 

$

30,053

 

 

$

(180,162

)

 

$

42,471

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flow hedges (1)(2)

 

$

1,581

 

 

$

1,206

 

 

$

(12,857

)

 

$

3,464

 

Our share of derivatives from unconsolidated co-investment ventures

 

 

798

 

 

 

(1,822

)

 

 

(6,839

)

 

 

(10,438

)

Total unrealized gains (losses) on derivative contracts, net

 

$

2,379

 

 

$

(616

)

 

$

(19,696

)

 

$

(6,974

)

Total change in other comprehensive income (loss)

 

$

(43,197

)

 

$

29,437

 

 

$

(199,858

)

 

$

35,497

 

 

 

(1)

We estimate an additional expense of $5.1 million will be reclassified to Interest Expense over the next 12 months from September 30, 2020, due to the amortization of previously settled derivatives designated as cash flow hedges.

 

 

(2)

Included in the nine months ended September 30, 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):

 

 

 

September 30, 2020

 

 

December 31, 2019

 

 

 

Carrying Value

 

 

Fair Value

 

 

Carrying Value

 

 

Fair Value

 

Credit Facilities

 

$

39,733

 

 

$

39,733

 

 

$

184,255

 

 

$

184,255

 

Senior notes

 

 

14,108,021

 

 

 

15,053,871

 

 

 

9,660,570

 

 

 

10,228,715

 

Term loans and unsecured other

 

 

1,723,473

 

 

 

1,744,580

 

 

 

1,441,882

 

 

 

1,463,841

 

Secured mortgage

 

 

646,899

 

 

 

687,135

 

 

 

619,170

 

 

 

651,047

 

Total

 

$

16,518,126

 

 

$

17,525,319

 

 

$

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 nine months ended September 30 (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

 

 

MXN

 

 

SEK

 

 

Total

 

Notional amounts at January 1 ($)

 

120

 

 

 

581

 

 

 

178

 

 

 

182

 

 

 

31

 

 

 

15

 

 

 

1,107

 

 

 

5

 

 

 

55

 

 

 

314

 

 

 

118

 

 

 

177

 

 

 

-

 

 

 

-

 

 

 

669

 

New contracts ($)

 

29

 

 

 

845

 

 

 

294

 

 

 

82

 

 

 

10

 

 

 

32

 

 

 

1,292

 

 

 

493

 

 

 

150

 

 

 

470

 

 

 

1,045

 

 

 

54

 

 

 

9

 

 

 

26

 

 

 

2,247

 

Matured, expired or settled contracts ($)

 

(32

)

 

 

(1,099

)

 

 

(311

)

 

 

(66

)

 

 

(9

)

 

 

(31

)

 

 

(1,548

)

 

 

(496

)

 

 

(126

)

 

 

(228

)

 

 

(1,031

)

 

 

(60

)

 

 

(9

)

 

 

-

 

 

 

(1,950

)

Notional amounts at September 30 ($)

 

117

 

 

 

327

 

 

 

161

 

 

 

198

 

 

 

32

 

 

 

16

 

 

 

851

 

 

 

2

 

 

 

79

 

 

 

556

 

 

 

132

 

 

 

171

 

 

 

-

 

 

 

26

 

 

 

966

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average forward rate at

     September 30

 

1.34

 

 

 

1.17

 

 

 

1.31

 

 

 

102.80

 

 

 

9.35

 

 

 

 

 

 

 

 

 

 

 

3.82

 

 

 

1.31

 

 

 

1.15

 

 

 

1.32

 

 

 

103.80

 

 

 

-

 

 

 

9.39

 

 

 

 

 

Active contracts at September 30

 

48

 

 

 

55

 

 

 

47

 

 

 

48

 

 

 

31

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

29

 

 

 

46

 

 

 

38

 

 

 

38

 

 

 

-

 

 

 

12

 

 

 

 

 

 
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):

 

 

 

2020

 

 

2019

 

 

 

CAD

 

 

GBP

 

 

Total

 

 

BRL

 

 

CAD

 

 

EUR

 

 

GBP

 

 

Total

 

Notional amounts at January 1 ($)

 

 

97

 

 

 

387

 

 

 

484

 

 

 

460

 

 

 

100

 

 

 

-

 

 

 

127

 

 

 

687

 

New contracts ($)

 

 

298

 

 

 

324

 

 

 

622

 

 

 

489

 

 

 

97

 

 

420

 

 

 

515

 

 

 

1,521

 

Matured, expired or settled contracts ($)

 

 

(48

)

 

 

(576

)

 

 

(624

)

 

 

(949

)

 

 

(100

)

 

 

(420

)

 

 

(259

)

 

 

(1,728

)

Notional amounts at September 30 ($)

 

 

347

 

 

 

135

 

 

 

482

 

 

 

-

 

 

 

97

 

 

 

-

 

 

 

383

 

 

 

480

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average forward rate at

     September 30

 

 

1.32

 

 

 

1.35

 

 

 

 

 

 

 

-

 

 

 

1.32

 

 

 

-

 

 

 

1.28

 

 

 

 

 

Active contracts at September 30

 

 

6

 

 

 

1

 

 

 

 

 

 

 

-

 

 

 

2

 

 

 

-

 

 

 

6