In the normal course of business, our operations are exposed to market risks, including the effect of changes in foreign currency exchange rates and interest rates. We may enter into derivative financial instruments to offset these underlying market risks. See Note 2 for our derivative financial instruments policy.

The following table presents the fair value of our derivative financial instruments recognized within Other Assets and Other Liabilities in the Consolidated Balance Sheets at December 31 (in thousands):


	2023				2022
	Asset		Liability		Asset		Liability
Undesignated derivatives
Foreign currency contracts
Forwards
Brazilian real	$	-	$	291	$	35	$	494
British pound sterling		9,608		9,862		29,187		648
Canadian dollar		4,480		1,225		12,074		2
Chinese renminbi		1,630		50		657		364
Euro		19,252		8,229		51,317		2,801
Japanese yen		45,149		589		34,022		2,344
Mexican peso		-		-		-		-
Swedish krona		3,304		2,279		6,292		-
Options
Mexican peso		1,263		-		-		-

Designated derivatives
Foreign currency contracts
Net investment hedges
British pound sterling		1,759		7,030		23,534		-
Canadian dollar		756		5,608		24,552		-

Interest rate contracts
Cash flow hedges
Euro		118		27,034		44,982		-
U.S. dollar		-		31,964		584		29
Total fair value of derivatives	$	87,319	$	94,161	$	227,236	$	6,682

The following table summarizes the activity of our undesignated foreign currency contracts for the years ended December 31 (in millions, except for weighted average forward rates and number of active contracts):


	2023						2022						2021
	CAD	EUR	GBP	JPY	Other	Total	CAD	EUR	GBP	JPY	Other	Total	CAD	EUR	GBP	JPY	Other	Total
Notional amounts at January 1 ($)	283	601	349	331	81	1,645	175	749	383	250	105	1,662	163	474	207	252	66	1,162
New contracts ($)	15	173	192	140	(10)	510	172	658	264	181	92	1,367	225	437	308	76	91	1,137
Matured, expired or settled contracts ($)	(85)	(250)	(99)	(87)	(15)	(536)	(64)	(806)	(298)	(100)	(116)	(1,384)	(213)	(162)	(132)	(78)	(52)	(637)
Notional amounts at December 31 ($)	213	524	442	384	56	1,619	283	601	349	331	81	1,645	175	749	383	250	105	1,662

Weighted average forward rate at December 31	1.30	1.16	1.27	115.40			1.29	1.18	1.31	109.79			1.26	1.22	1.20	103.14
Active contracts at December 31	74	72	96	96			103	97	90	96			72	86	70	74

Changes in the fair value of derivatives that are designated as net investment hedges of our foreign operations and cash flow hedges are recorded in AOCI/L in the Consolidated Balance Sheets and reflected within the AOCI/L table below.

The following table summarizes the activity of our foreign currency contracts designated as net investment hedges for the years ended December 31 (in millions, except for weighted average forward rates and number of active contracts):


	2023												2022									2021
	CAD			CNH			GBP			Total			CAD			GBP			Total			CAD			GBP			Total
Notional amounts at January 1 ($)		534			-			440			974			535			432			967			377			135			512
New contracts ($)		467			100			343			910			964			440			1,404			535			432			967
Matured, expired or settled contracts ($)		(485	)		(100	)		(351	)		(936	)		(965	)		(432	)		(1,397	)		(377	)		(135	)		(512	)
Notional amounts at December 31 ($)		516			-			432			948			534			440			974			535			432			967

Weighted average forward rate at December 31		1.33			-			1.26						1.29			1.28						1.25			1.37
Active contracts at December 31		6			-			4						6			4						6			4

The following table summarizes the activity of our interest rate contracts designated as cash flow hedges for the years ended December 31 (in millions):


	2023									2022															2021
	EUR			USD			Total			EUR			USD			CAD			JPY			Total			EUR		USD			Total
Notional amounts at January 1 ($)		447			150			597			165			-			-			-			165			165		250			415
New contracts ($)		1,113			2,300			3,413			1,004			400			184			104			1,692			-		-			-
Matured, expired or settled contracts ($)		(860	)		(1,900	)		(2,760	)		(722	)		(250	)		(184	)		(104	)		(1,260	)		-		(250	)		(250	)
Notional amounts at December 31 ($)		700			550			1,250			447			150			-			-			597			165		-			165

The change in AOCI/L in the Consolidated Statements of Equity during the periods presented was due to the translation into U.S. dollars from the consolidation of the financial statements of our consolidated subsidiaries whose functional currency is not the U.S. dollar. The change in fair value of the effective portion of our derivative financial instruments that have been designated as net investment hedges and cash flow hedges and the translation of the hedged portion of our debt, as discussed above, are also included in AOCI/L.

The following table presents these changes in AOCI/L for the years ended December 31 (in thousands):


	Unrealized gains (losses) on cash flow hedges (1)			Our share of derivatives from unconsolidated co-investment ventures			Derivative net investment hedges			Debt designated as nonderivative net investment hedges (2)			Foreign currency translation adjustments			Total Accumulated Other Comprehensive Income (Loss)
Balance at January 1, 2021	$	(22,893	)	$	(10,970	)	$	228,169		$	204,638		$	(1,592,683	)	$	(1,193,739	)
Other comprehensive income (loss), net		8,851			8,222			9,792			(10,075	)		298,696			315,486
Balance at December 31, 2021	$	(14,042	)	$	(2,748	)	$	237,961		$	194,563		$	(1,293,987	)	$	(878,253	)
Other comprehensive income, net		44,587			25,332			95,012			135,420			134,293			434,644
Balance at December 31, 2022	$	30,545		$	22,584		$	332,973		$	329,983		$	(1,159,694	)	$	(443,609	)
Other comprehensive income (loss), net		(76,289	)		(14,170	)		(22,447	)		(75,881	)		118,195			(70,592	)
Balance at December 31, 2023	$	(45,744	)	$	8,414		$	310,526		$	254,102		$	(1,041,499	)	$	(514,201	)

(1)

We estimate an additional expense of $3.7 million will be reclassified to Interest Expense in the Consolidated Statements of Income over the next 12 months from December 31, 2023, due to the amortization of previously settled derivatives designated as cash flow hedges. The amounts reclassified for the years ended December 31, 2023, 2022 and 2021 were not material to our Consolidated Financial Statements.

(2)

Reclassification of amounts out of AOCI/L due to the remeasurement of the unhedged portion of our euro denominated debt and accrued interest is included herein.

We have estimated the fair value of our financial instruments using available market information and valuation methodologies we believe to be appropriate for these purposes. Considerable judgment and a high degree of subjectivity are involved in developing these estimates and, accordingly, they are not necessarily indicative of amounts that we would realize on disposition. See Note 2 for more information on our fair value measurements policy.

At December 31, 2023 and 2022, other than the derivatives discussed previously, we had no significant financial assets or financial liabilities that were measured at fair value on a recurring basis in the Consolidated Financial Statements. All of our derivatives held at December 31, 2023 and 2022 were classified as Level 2 of the fair value hierarchy.

Acquired properties and assets we expect to sell or contribute are significant nonfinancial assets that met the criteria to be measured at fair value on a nonrecurring basis, as detailed in our accounting policy in Note 2. At December 31, 2023 and 2022, we estimated the fair value of our properties using Level 2 or Level 3 inputs from the fair value hierarchy. See more information on our acquired properties in Notes 3 and 4 and assets held for sale or contribution in Note 6.

At December 31, 2023 and 2022, the carrying amounts of certain financial instruments, including cash and cash equivalents, accounts and notes receivable, accounts payable and accrued expenses were representative of their fair values.

The differences in the fair value of our debt from the carrying value in the table below were the result of differences in interest rates or borrowing spreads that were available to us at December 31, 2023 and 2022, as compared with those in effect when the debt was issued or assumed, including lower borrowing spreads due to our credit ratings. See Note 8 for more information on our debt activity.

The following table reflects the carrying amounts and estimated fair values of our debt at December 31 (in thousands):


	2023				2022
	Carrying Value		Fair Value		Carrying Value		Fair Value
Credit Facilities	$	979,313	$	979,313	$	1,538,461	$	1,538,461
Senior notes		25,311,647		23,121,936		19,786,253		16,604,241
Term loans and unsecured other		2,330,520		2,322,827		2,106,592		2,092,264
Secured mortgage		379,021		357,731		444,655		420,964
Total	$	29,000,501	$	26,781,807	$	23,875,961	$	20,655,930