Financial Instruments and Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

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, 2019				December 31, 2018
	Asset		Liability		Asset		Liability
Undesignated derivatives
Foreign currency contracts
Forwards
Brazilian real	$	-	$	-	$	80	$	-
British pound sterling		717		734		2,266		324
Canadian dollar		2,080		-		3,336		53
Euro		13,605		374		7,895		1,922
Japanese yen		3,666		76		3,334		1,318
Mexican peso		-		-		159		-
Interest rate swaps
U.S. dollar		-		39		27		-
Designated derivatives
Foreign currency contracts
Net investment hedges
Brazilian real		-		-		-		3,165
British pound sterling		460		3,526		-		949
Canadian dollar		3,893		-		5,634		-
Interest rate swaps
Cash flow hedges
Euro		-		368		-		428
Total fair value of derivatives	$	24,421	$	5,117	$	22,731	$	8,159

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 March 31,
	2019		2018
Exercised contracts		23		15
Realized gains (losses) on the matured, expired or settled contracts	$	1	$	(7	)
Unrealized gains (losses) on the change in fair value of outstanding contracts	$	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 three months ended March 31 (in millions):

	2019		2018
	EUR		CAD			EUR
Notional amounts at January 1	$	500	$	271		$	-
New contracts		-		-			500
Matured, expired or settled contracts		-		(271	)		-
Notional amounts at March 31	$	500	$	-		$	500

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, 2019		December 31, 2018
British pound sterling	$	346	$	269
Euro	$	3,028	$	2,645

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 losses in Foreign Currency and Derivative Gains (Losses), Net on the remeasurement of the unhedged portion of our debt and accrued interest for the three months ended March 31 (in millions):

	2018
Unrealized losses on the unhedged portion	$	(24	)

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,
	2019			2018
Derivative net investment hedges	$	(19,452	)	$	3,093
Nonderivative net investment hedges		63,657			(109,877	)
Cumulative translation adjustment		15,875			111,554
Total foreign currency translation gains, net	$	60,080		$	4,770
Cash flow hedges (1)	$	1,105		$	(9,285	)
Our share of derivatives from unconsolidated co-investment ventures		(3,738	)		2,998
Total unrealized losses on derivative contracts, net	$	(2,633	)	$	(6,287	)
Total change in other comprehensive income (loss)	$	57,447		$	(1,517	)

(1) We estimate an additional expense of $4.2 million will be reclassified to Interest Expense over the next 12 months from March 31, 2019, 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):

	March 31, 2019				December 31, 2018
	Carrying Value		Fair Value		Carrying Value		Fair Value
Credit Facilities	$	26,180	$	26,180	$	50,500	$	50,513
Senior notes		8,314,678		8,846,176		8,304,147		8,606,864
Term loans and unsecured other		1,411,343		1,433,838		1,921,428		1,946,335
Secured mortgage		953,938		992,924		813,740		849,417
Total	$	10,706,139	$	11,299,118	$	11,089,815	$	11,453,129

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):

	2019															2018
	BRL			CAD			EUR			GBP			JPY			CAD			CNY			EUR			GBP			JPY
Notional amounts at January 1	$	5		$	55		$	314		$	118		$	177		$	56		$	-		$	233		$	132		$	153
New contracts		489			-			-			112			-			5			80			28			-			-
Matured, expired or settled contracts		(494	)		(9	)		(35	)		(21	)		(20	)		(6	)		(80	)		(25	)		(24	)		(19	)
Notional amounts at March 31	$	-		$	46		$	279		$	209		$	157		$	55		$	-		$	236		$	108		$	134
Weighted average forward rate at      March 31		-			1.28			1.21			1.22			104.86			1.28			-			1.18			1.30			106.20
Active contracts at March 31		-			20			29			22			30			24			-			29			18			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):

	2019							2018
	BRL			CAD		GBP		CAD
Notional amounts at January 1	$	460		$	100	$	127	$	99
New contracts		489			-		262		100
Matured, expired or settled contracts		(949	)		-		-		(99	)
Notional amounts at March 31	$	-		$	100	$	389	$	100
Weighted average forward rate at March 31		-			1.28		1.30		1.28
Active contracts at March 31		-			2		6		2