Financial Instruments and Fair Value Measurements (Tables)

6 Months Ended

Jun. 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 on the Consolidated Balance Sheets (in thousands):

	June 30, 2023				December 31, 2022
	Asset		Liability		Asset		Liability
Undesignated derivatives
Foreign currency contracts
Forwards
Brazilian real	$	-	$	940	$	35	$	494
British pound sterling		15,227		2,329		29,187		648
Canadian dollar		5,092		699		12,074		2
Chinese renminbi		1,949		41		657		364
Euro		32,710		3,415		51,317		2,801
Japanese yen		49,415		196		34,022		2,344
Swedish krona		6,699		-		6,292		-
Designated derivatives
Foreign currency contracts
Net investment hedges
British pound sterling		5,501		7,206		23,534		-
Canadian dollar		2,339		2,608		24,552		-
Chinese renminbi		5,118		-		-		-
Interest rate swaps
Cash flow hedges
Euro		2,929		-		44,982		-
U.S. dollar		-		-		584		29
Total fair value of derivatives	$	126,979	$	17,434	$	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					Six Months Ended
	June 30,					June 30,
	2023			2022		2023			2022
Exercised contracts		69			37		121			69
Realized gains on the matured, expired or settled contracts	$	17		$	15	$	31		$	30
Unrealized gains (losses) on the change in fair value of outstanding contracts	$	(6	)	$	88	$	(20	)	$	103

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 six months ended June 30 (in millions):

	2023									2022
	EUR			USD			Total			EUR			Total
Notional amounts at January 1 ($)		447			150			597			165			165
New contracts ($)		584			1,750			2,334			1,004			1,004
Matured, expired or settled contracts ($)		(859	)		(1,900	)		(2,759	)		(722	)		(722	)
Notional amounts at June 30 ($)		172			-			172			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):

	June 30, 2023		December 31, 2022
British pound sterling	$	1,282	$	1,237
Canadian dollar	$	372	$	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				Six Months Ended
	June 30,				June 30,
	2023		2022		2023			2022
Unrealized gains (losses) on the unhedged portion	$	1	$	34	$	(3	)	$	49

Summary of Changes in Other Comprehensive Income

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

	Three Months Ended June 30,					Six Months Ended June 30,
	2023			2022		2023			2022
Derivative net investment hedges (1)	$	(14,670	)	$	56,364	$	(22,833	)	$	60,457
Debt designated as nonderivative net investment hedges		(38,887	)		107,872		(80,386	)		141,469
Cumulative translation adjustment		219,606			168,281		241,167			320,114
Total foreign currency translation gains, net	$	166,049		$	332,517	$	137,948		$	522,040
Cash flow hedges (1) (2)	$	3,299		$	24,524	$	(16,028	)	$	28,946
Our share of derivatives from unconsolidated co-investment ventures		(1,146	)		4,455		(7,672	)		13,382
Total unrealized gains (losses) on derivative contracts, net	$	2,153		$	28,979	$	(23,700	)	$	42,328
Total change in other comprehensive income	$	168,202		$	361,496	$	114,248		$	564,368

(1)The ending balance in AOCI/L for accumulated derivative gains on net investment hedges was $310.1 million and $333.0 million at June 30, 2023 and December 31, 2022 respectively. Additionally, the ending balance in AOCI/L for accumulated derivative gains on cash flow hedges was $16.7 million and $32.7 million at June 30, 2023 and December 31, 2022, respectively.

(2)We estimate additional income of $2.6 million will be reclassified to Interest Expense over the next 12 months from June 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):

	June 30, 2023				December 31, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value
Credit facilities	$	629,512	$	629,527	$	1,538,461	$	1,538,461
Senior notes		25,073,147		21,860,652		19,786,253		16,604,241
Term loans and unsecured other		2,058,732		2,040,084		2,106,592		2,092,264
Secured mortgage		368,082		341,664		444,655		420,964
Total	$	28,129,473	$	24,871,927	$	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 six months ended June 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			41			124			27			41			239			61			604			161		113			81			1,020
Matured, expired or settled contracts ($)		(63	)		(186	)		(48	)		(45	)		(16	)		(358	)		(34	)		(230	)		16		(50	)		(19	)		(317	)
Notional amounts at June 30 ($)		226			456			425			313			106			1,526			202			1,123			560		313			167			2,365
Weighted average forward rate at June 30		1.29			1.17			1.29			110.35									1.27			1.17			1.11		106.59
Active contracts at June 30		83			66			100			88									85			107			82		97

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 six months ended June 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 ($)		534			-		440			974			-			535			432			967
New contracts ($)		288			100		125			513			44			488			317			849
Matured, expired or settled contracts ($)		(301	)		-		(132	)		(433	)		(44	)		(419	)		(200	)		(663	)
Notional amounts at June 30 ($)		521			100		433			1,054			-			604			549			1,153
Weighted average forward rate at      June 30		1.32			6.72		1.26						-			1.28			1.32
Active contracts at June 30		6			1		4						-			7			5