XML 46 R44.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Financial Instruments and Fair Value Measurements (Tables)
 12 Months Ended
Dec. 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 at December 31 (in thousands):

 

 

2019

 

 

2018

 

 

 

Asset

 

 

Liability

 

 

Asset

 

 

Liability

 

Undesignated derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Forwards

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

          Brazilian real

 

$

181

 

 

$

49

 

 

$

80

 

 

$

-

 

          British pound sterling

 

 

731

 

 

 

3,823

 

 

 

2,266

 

 

 

324

 

          Canadian dollar

 

 

523

 

 

 

1,855

 

 

 

3,336

 

 

 

53

 

          Chinese renminbi

 

 

-

 

 

 

81

 

 

 

-

 

 

 

-

 

          Euro

 

 

7,135

 

 

 

2,034

 

 

 

7,895

 

 

 

1,922

 

          Japanese yen

 

 

3,889

 

 

 

97

 

 

 

3,334

 

 

 

1,318

 

          Mexican peso

 

 

-

 

 

 

-

 

 

 

159

 

 

 

-

 

          Swedish krona

 

 

-

 

 

 

797

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  U.S. dollar

 

 

-

 

 

 

-

 

 

 

27

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Designated derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Net investment hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

          Brazilian real

 

 

-

 

 

 

-

 

 

 

-

 

 

 

3,165

 

          British pound sterling

 

 

807

 

 

 

13,189

 

 

 

-

 

 

 

949

 

          Canadian dollar

 

 

-

 

 

 

1,926

 

 

 

5,634

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Cash flow hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

          Euro

 

 

-

 

 

 

-

 

 

 

-

 

 

 

428

 

Total fair value of derivatives

 

$

13,266

 

 

$

23,851

 

 

$

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 and unrealized gains (losses) in Foreign Currency and Derivative Gains (Losses), Net in the Consolidated Statements of Income for the years ended December 31 (in millions, except for number of exercised contracts):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

2018

 

 

2017

 

Exercised contracts

 

 

115

 

 

 

89

 

 

 

44

 

Realized gains (losses) on the matured, expired or settled contracts

 

$

28

 

 

$

(3

)

 

$

13

 

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

 

$

(10

)

 

$

29

 

 

$

(51

)

 
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 years ended December 31 (in millions):

 

2019

 

 

2018

 

 

2017

 

 

EUR

 

 

CAD

 

EUR

 

USD

 

Total

 

 

CAD

 

Notional amounts at January 1

$

500

 

 

$

271

 

$

-

 

$

-

 

$

271

 

 

$

271

 

New contracts (1)

 

-

 

 

 

-

 

 

500

 

 

300

 

 

800

 

 

 

-

 

Matured, expired or settled contracts (1)(2)

 

(500

)

 

 

(271

)

 

-

 

 

(300

)

 

(571

)

 

 

-

 

Notional amounts at December 31

$

-

 

 

$

-

 

$

500

 

$

-

 

$

500

 

 

$

271

 

 

(1)

During 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. In 2019, the interest rate swap contracts matured and in January 2020 we redeemed the senior notes.

 

(2)

During 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 AOCI/L at the time of settlement was reclassified to Interest Expense during 2018.

 
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 December 31 (in millions):

 

 

 

 

2019

 

 

 

2018

 

 

 

2017

 

British pound sterling

 

$

329

 

 

$

269

 

 

$

436

 

Euro

 

$

850

 

 

$

2,645

 

 

$

3,620

 

 
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 unrealized gains (losses) in Foreign Currency and Derivative Gains (Losses), Net on the remeasurement of the unhedged portion of our debt and accrued interest for the years ended December 31 (in millions):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

2018

 

 

2017

 

Unrealized gains (losses) on the unhedged portion

 

$

(64

)

 

$

96

 

 

$

(23

)

 
Summary of Changes in Other Comprehensive Income (Loss)

The following table presents these changes in Other Comprehensive Income (Loss) for the years ended December 31 (in thousands):

 

 

 

2019

 

 

2018

 

 

2017

 

Derivative net investment hedges

 

$

(22,600

)

 

$

26,457

 

 

$

(12,762

)

Nonderivative net investment hedges

 

 

141,675

 

 

 

151,083

 

 

 

(477,755

)

Cumulative translation adjustment

 

 

(20,593

)

 

 

(368,130

)

 

 

553,972

 

Total foreign currency translation gains (losses), net

 

$

98,482

 

 

$

(190,590

)

 

$

63,455

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flow hedges (1)

 

$

4,665

 

 

$

(5,815

)

 

$

12,726

 

Our share of derivatives from unconsolidated co-investment ventures

 

 

(6,000

)

 

 

4,492

 

 

 

9,865

 

Total unrealized gains (losses) on derivative contracts, net

 

$

(1,335

)

 

$

(1,323

)

 

$

22,591

 

Total change in other comprehensive income (loss)

 

$

97,147

 

 

$

(191,913

)

 

$

86,046

 

 

(1)

We estimate an additional expense of $4.2 million will be reclassified to Interest Expense over the next 12 months from December 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 at December 31 (in thousands):

 

 

 

2019

 

 

2018

 

 

 

Carrying Value

 

 

Fair Value

 

 

Carrying Value

 

 

Fair Value

 

Credit Facilities

 

$

184,255

 

 

$

184,255

 

 

$

50,500

 

 

$

50,513

 

Senior notes

 

 

9,660,570

 

 

 

10,228,715

 

 

 

8,304,147

 

 

 

8,606,864

 

Term loans and unsecured other

 

 

1,441,882

 

 

 

1,463,841

 

 

 

1,921,428

 

 

 

1,946,335

 

Secured mortgage

 

 

619,170

 

 

 

651,047

 

 

 

813,740

 

 

 

849,417

 

Total

 

$

11,905,877

 

 

$

12,527,858

 

 

$

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 years ended December 31 (in millions, except for weighted average forward rates and number of active contracts):

 

 

2019

 

 

2018

 

 

2017

 

 

CAD

 

EUR

 

GBP

 

JPY

 

SEK

 

Other

 

Total

 

 

CAD

 

EUR

 

GBP

 

JPY

 

Other

 

Total

 

 

CAD

 

EUR

 

GBP

 

JPY

 

Total

 

Notional amounts at January 1

$

55

 

$

314

 

$

118

 

$

177

 

$

-

 

$

5

 

$

669

 

 

$

56

 

$

233

 

$

132

 

$

153

 

$

-

 

$

574

 

 

$

38

 

$

197

 

$

78

 

$

144

 

$

457

 

New contracts

 

201

 

 

619

 

 

1,111

 

 

85

 

 

31

 

 

524

 

 

2,571

 

 

 

28

 

 

252

 

 

55

 

 

102

 

 

423

 

 

860

 

 

 

41

 

 

143

 

 

151

 

 

75

 

 

410

 

Matured, expired or settled

     contracts

 

(136

)

 

(352

)

 

(1,051

)

 

(80

)

 

-

 

 

(514

)

 

(2,133

)

 

 

(29

)

 

(171

)

 

(69

)

 

(78

)

 

(418

)

 

(765

)

 

 

(23

)

 

(107

)

 

(97

)

 

(66

)

 

(293

)

Notional amounts at

     December 31

$

120

 

$

581

 

$

178

 

$

182

 

$

31

 

$

15

 

$

1,107

 

 

$

55

 

$

314

 

$

118

 

$

177

 

$

5

 

$

669

 

 

$

56

 

$

233

 

$

132

 

$

153

 

$

574

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average forward

     rate at December 31

 

1.32

 

 

1.13

 

 

1.32

 

 

103.39

 

 

9.42

 

 

 

 

 

 

 

 

 

1.28

 

 

1.21

 

 

1.32

 

 

105.17

 

 

 

 

 

 

 

 

 

1.29

 

 

1.17

 

 

1.29

 

 

106.25

 

 

 

 

Active contracts at

     December 31

 

40

 

 

53

 

 

50

 

 

44

 

 

20

 

 

 

 

 

 

 

 

 

24

 

 

35

 

 

24

 

 

34

 

 

 

 

 

 

 

 

 

24

 

 

29

 

 

20

 

 

34

 

 

 

 
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 years ended December 31 (in millions, except for weighted average forward rates and number of active contracts):

 

 

2019

 

 

2018

 

 

2017

 

 

BRL

 

CAD

 

EUR

 

GBP

 

Total

 

 

BRL

 

CAD

 

EUR

 

GBP

 

Total

 

 

CAD

 

GBP

 

Total

 

Notional amounts at January 1

$

460

 

$

100

 

$

-

 

$

127

 

$

687

 

 

$

-

 

$

99

 

$

-

 

$

-

 

$

99

 

 

$

100

 

$

46

 

$

146

 

New contracts

 

489

 

 

97

 

 

420

 

 

649

 

 

1,655

 

 

 

1,568

 

 

100

 

 

1,053

 

 

127

 

 

2,848

 

 

 

99

 

 

127

 

 

226

 

Matured, expired or settled contracts

 

(949

)

 

(100

)

 

(420

)

 

(389

)

 

(1,858

)

 

 

(1,108

)

 

(99

)

 

(1,053

)

 

-

 

 

(2,260

)

 

 

(100

)

 

(173

)

 

(273

)

Notional amounts at December 31

$

-

 

$

97

 

$

-

 

$

387

 

$

484

 

 

$

460

 

$

100

 

$

-

 

$

127

 

$

687

 

 

$

99

 

$

-

 

$

99

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average forward rate

     at December 31

 

-

 

 

1.32

 

 

-

 

 

1.29

 

 

 

 

 

 

3.91

 

 

1.28

 

 

-

 

 

1.28

 

 

 

 

 

 

1.34

 

 

-

 

 

 

 

Active contracts at December 31

 

-

 

 

2

 

 

-

 

 

5

 

 

 

 

 

 

1

 

 

2

 

 

-

 

 

2

 

 

 

 

 

 

2

 

 

-