Financial Instruments and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2018

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 Sheet (in thousands):

	September 30, 2018				December 31, 2017
	Asset		Liability		Asset		Liability
Undesignated derivatives
Foreign currency contracts
Forwards
British pound sterling	$	342	$	2,128	$	2,440	$	8,103
Canadian dollar		695		379		-		1,698
Euro		4,969		4,531		2		14,234
Japanese yen		7,086		127		6,474		931
Interest rate swaps
U.S. dollar		147		-		-		-
Designated derivatives
Foreign currency contracts
Net investment hedges
Brazilian real		9,433		-		-		-
Canadian dollar		371		-		-		7,263
Interest rate swaps
Cash flow hedges
Canadian dollar		-		-		10,223		-
Euro		-		453		-		-
Total fair value of derivatives	$	23,043	$	7,618	$	19,139	$	32,229

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 gains (losses) 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 September 30,					Nine Months Ended September 30,
	2018		2017			2018			2017
Exercised contracts		17		11			48			33
Realized gains (losses) on the matured, expired or settled contracts	$	1	$	2		$	(7	)	$	11
Unrealized gains (losses) on the change in fair value of outstanding contracts	$	6	$	(12	)	$	23		$	(45	)

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):

	2018								2017
	CAD			EUR		USD			CAD
Notional amounts at January 1	$	271		$	-	$	-		$	271
New contracts (1)		-			500		300			-
Matured, expired or settled contracts (2)		(271	)		-		(300	)		-
Notional amounts at September 30	$	-		$	500	$	-		$	271

(1) During the nine months ended September 30, 2018, we entered into two interest rate swap contracts with an aggregated notional amount of €400.0 million ($499.7 million) to effectively fix the interest rate on our senior notes bearing a floating rate of Euribor plus 0.3% issued in January 2018.

(2) During the nine months ended September 30, 2018, we repaid CAD 201.4 million ($158.9 million) on our 2015 Canadian Term Loan. At that time, we settled the interest rate swaps related to the 2015 Canadian Term Loan as we determined it was no longer probable that we would continue to have the future cash flows as originally hedged. As a result, the $12.5 million gain in Accumulated Other Comprehensive Income (Loss) “AOCI/L” at the time of settlement was reclassified to Interest Expense during the first quarter of 2018.

Summary of Debt and Accrued Interest, Designated as Nonderivative Financial Instrument

The following table summarizes our debt and accrued interest, designated as a nonderivative financial instrument to hedge our net investment in international subsidiaries (in millions):

	September 30, 2018		December 31, 2017
British pound sterling	$	330	$	436
Euro	$	2,699	$	3,620

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,
	2018			2017			2018			2017
Net investment hedges	$	9,203		$	(3,623	)	$	14,036		$	(13,114	)
Nonderivative financial instruments		21,370			(139,885	)		135,232			(414,077	)
Cumulative translation adjustment		(40,889	)		147,569			(302,627	)		474,081
Total foreign currency translation gains (losses), net	$	(10,316	)	$	4,061		$	(153,359	)	$	46,890
Cash flow hedges (1)	$	1,143		$	5,553		$	(7,179	)	$	10,382
Our share of derivatives from unconsolidated co-investment ventures		3,311			538			7,477			5,075
Total unrealized gains on derivative contracts, net	$	4,454		$	6,091		$	298		$	15,457
Total change in other comprehensive income (loss)	$	(5,862	)	$	10,152		$	(153,061	)	$	62,347

(1) We estimate an additional expense of $4.1 million will be reclassified to Interest Expense over the next 12 months from September 30, 2018, 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):

	September 30, 2018				December 31, 2017
	Carrying Value		Fair Value		Carrying Value		Fair Value
Credit Facilities	$	235,822	$	236,013	$	317,392	$	317,496
Senior notes		8,353,096		8,681,755		6,067,277		6,537,100
Term loans and unsecured other		1,778,393		1,792,786		2,060,491		2,075,002
Secured mortgages		864,818		850,037		967,471		1,026,197
Total	$	11,232,129	$	11,560,591	$	9,412,631	$	9,955,795

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):

	2018																		2017
	CAD			CNY			EUR			GBP			JPY			MXN			CAD			EUR			GBP			JPY
Notional amounts at January 1	$	56		$	-		$	233		$	132		$	153		$	-		$	38		$	197		$	78		$	144
New contracts		28			80			95			17			54			15			19			63			137			38
Matured, expired or settled contracts		(21	)		(80	)		(87	)		(50	)		(56	)		(15	)		(17	)		(81	)		(75	)		(49	)
Notional amounts at September 30	$	63		$	-		$	241		$	99		$	151		$	-		$	40		$	179		$	140		$	133
Weighted average forward rate at      September 30		1.28			-			1.20			1.31			105.65			-			1.30			1.13			1.31			106.11
Active contracts at September 30		28			-			34			18			35			-			18			23			19			29

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):

	2018								2017
	BRL		CAD			EUR			CAD			GBP
Notional amounts at January 1	$	-	$	99		$	-		$	100		$	46
New contracts		157		100			1,053			99			127
Matured, expired or settled contracts		-		(99	)		(1,053	)		(100	)		(173	)
Notional amounts at September 30	$	157	$	100		$	-		$	99		$	-
Weighted average forward rate at September 30		2.60		1.28			-			1.34			-
Active contracts at September 30		3		2			-			2			-