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Financial Instruments and Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2020

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):

	2020				2019
	Asset		Liability		Asset		Liability
Undesignated derivatives
Foreign currency contracts
Forwards
Brazilian real	$	620	$	66	$	181	$	49
British pound sterling		174		7,589		731		3,823
Canadian dollar		80		5,827		523		1,855
Chinese renminbi		-		717		-		81
Euro		73		6,247		7,135		2,034
Japanese yen		720		1,604		3,889		97
Swedish krona		-		2,355		-		797

Designated derivatives
Foreign currency contracts
Net investment hedges
British pound sterling		-		2,081		807		13,189
Canadian dollar		-		9,847		-		1,926

Interest rate swaps
Cash flow hedges
Euro		-		9		-		-
U.S. dollar		-		140		-		-
Total fair value of derivatives	$	1,667	$	36,482	$	13,266	$	23,851

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):


	2020			2019			2018
Exercised contracts		173			115			89
Realized gains (losses) on the matured, expired or settled contracts	$	(6	)	$	28		$	(3	)
Unrealized gains (losses) on the change in fair value of outstanding contracts	$	(13	)	$	(10	)	$	29

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):

	2020								2019						2018
	EUR		USD			Total			EUR			Total			CAD			EUR		USD			Total
Notional amounts at January 1 ($)		-		-			-			500			500			271			-		-			271
New contracts ($) ^{(1)(2)(3)(4)(5)}		165		1,500			1,665			-			-			-			500		300			800
Matured, expired or settled contracts ($) ^(2)(4)(5)(6)		-		(1,250	)		(1,250	)		(500	)		(500	)		(271	)		-		(300	)		(571	)
Notional amounts at December 31 ($)		165		250			415			-			-			-			500		-			500

(1)	During 2020, we entered into one interest rate swap contract with an aggregate notional amount of €150.0 million ($165.0 million) to effectively fix the interest rate on our euro senior notes bearing a floating rate of Euribor plus 0.3% issued in February 2020.

(2)

During 2020, we entered into four treasury lock contracts with an aggregate notional amount of $750.0 million to effectively fix the interest rate on the forecasted issuance of U.S. dollar senior notes, which were then issued in February 2020. Subsequent to issuance, we recorded a loss of $16.8 million associated with these derivatives that will be amortized out of AOCI/L to Interest Expense, in accordance with our policy.

(3)	During 2020, we entered into two interest rate swap contracts with an aggregate notional amount of $250.0 million to effectively fix the interest rate on the outstanding balance of our 2017 Term Loan bearing a floating rate of 1-month USD LIBOR plus 0.9%.

(4)

During 2020, we entered into two treasury lock contracts with an aggregate notional amount of $500.0 million to effectively fix the interest rate on the forecasted issuance of U.S. dollar senior notes, which were then issued in August 2020. The loss associated with the settlement of the derivatives upon issuance of the senior notes was not significant.

(5)

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.

(6)

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):

		2020		2019		2018
British pound sterling	$	842	$	329	$	269
Euro	$	-	$	850	$	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 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):


	2020			2019			2018
Unrealized gains (losses) on the unhedged portion	$	(139	)	$	(64	)	$	96

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):

	2020			2019			2018
Derivative net investment hedges	$	(4,301	)	$	(22,600	)	$	26,457
Debt designated as nonderivative net investment hedges		(62,263	)		141,675			151,083
Cumulative translation adjustment		(128,109	)		(20,593	)		(368,130	)
Total foreign currency translation gains (losses), net	$	(194,673	)	$	98,482		$	(190,590	)

Cash flow hedges⁽¹⁾⁽²⁾	$	(11,269	)	$	4,665		$	(5,815	)
Our share of derivatives from unconsolidated co-investment ventures		(2,848	)		(6,000	)		4,492
Total unrealized losses on derivative contracts, net	$	(14,117	)	$	(1,335	)	$	(1,323	)
Total change in other comprehensive income (loss)	$	(208,790	)	$	97,147		$	(191,913	)

(1)	We estimate an additional expense of $4.8 million will be reclassified to Interest Expense over the next 12 months from December 31, 2020, due to the amortization of previously settled derivatives designated as cash flow hedges.

(2)	Included in the year ended December 31, 2020 was $16.8 million in losses associated with the termination of the four treasury lock contracts.

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):

	2020				2019
	Carrying Value		Fair Value		Carrying Value		Fair Value
Credit Facilities	$	171,794	$	171,794	$	184,255	$	184,255
Senior notes		14,275,870		15,452,381		9,660,570		10,228,715
Term loans and unsecured other		1,764,311		1,785,706		1,441,882		1,463,841
Secured mortgage		637,101		673,549		619,170		651,047
Total	$	16,849,076	$	18,083,430	$	11,905,877	$	12,527,858

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):

	2020																					2019																				2018
	CAD			EUR			GBP			JPY			SEK			Other			Total			CAD			EUR			GBP			JPY			SEK		Other			Total			CAD			EUR			GBP			JPY			Other			Total
Notional amounts at January 1 ($)		120			581			178			182			31			15			1,107			55			314			118			177			-		5			669			56			233			132			153			-			574
New contracts ($)		88			1,314			364			154			37			48			2,005			201			619			1,111			85			31		524			2,571			28			252			55			102			423			860
Matured, expired or settled contracts ($)		(45	)		(1,421	)		(335	)		(84	)		(30	)		(35	)		(1,950	)		(136	)		(352	)		(1,051	)		(80	)		-		(514	)		(2,133	)		(29	)		(171	)		(69	)		(78	)		(418	)		(765	)
Notional amounts at December 31 ($)		163			474			207			252			38			28			1,162			120			581			178			182			31		15			1,107			55			314			118			177			5			669

Weighted average forward rate at December 31		1.32			1.23			1.32			102.66			8.64									1.32			1.13			1.32			103.39			9.42								1.28			1.21			1.32			105.17
Active contracts at December 31		58			64			53			59			42									40			53			50			44			20								24			35			24			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):

	2020									2019															2018
	CAD			GBP			Total			BRL			CAD			EUR			GBP			Total			BRL			CAD			EUR			GBP		Total
Notional amounts at January 1 ($)		97			387			484			460			100			-			127			687			-			99			-			-		99
New contracts ($)		377			459			836			489			97			420			649			1,655			1,568			100			1,053			127		2,848
Matured, expired or settled contracts ($)		(97	)		(711	)		(808	)		(949	)		(100	)		(420	)		(389	)		(1,858	)		(1,108	)		(99	)		(1,053	)		-		(2,260	)
Notional amounts at December 31 ($)		377			135			512			-			97			-			387			484			460			100			-			127		687

Weighted average forward rate at December 31		1.31			1.35						-			1.32			-			1.29						3.91			1.28			-			1.28
Active contracts at December 31		6			1						-			2			-			5						1			2			-			2