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Financial Instruments and Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2021

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):

	June 30, 2021				December 31, 2020
	Asset		Liability		Asset		Liability
Undesignated derivatives
Foreign currency contracts
Forwards
Brazilian real	$	25	$	990	$	620	$	66
British pound sterling		1,075		6,314		174		7,589
Canadian dollar		1,241		6,800		80		5,827
Chinese renminbi		-		659		-		717
Euro		14,211		200		73		6,247
Japanese yen		17,436		-		720		1,604
Swedish krona		692		955		-		2,355

Designated derivatives
Foreign currency contracts
Net investment hedges
British pound sterling		2,349		3,574		-		2,081
Canadian dollar		1,607		18,780		-		9,847

Interest rate swaps
Cash flow hedges
Euro		-		11		-		9
U.S. dollar		-		-		-		140
Total fair value of derivatives	$	38,636	$	38,283	$	1,667	$	36,482

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 (in millions, except for number of exercised contracts):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2021			2020			2021			2020
Exercised contracts		49			40			74			73
Realized gains (losses) on the matured, expired or settled contracts	$	(8	)	$	6		$	(9	)	$	10
Unrealized gains (losses) on the change in fair value of outstanding contracts	$	2		$	(13	)	$	40		$	34

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 six months ended June 30 (in millions):

	2021								2020
	EUR ⁽¹⁾		USD ⁽¹⁾			Total			EUR		USD			Total
Notional amounts at January 1 ($)		165		250			415			-		-			-
New contracts ($)		-		-			-			165		1,000			1,165
Matured, expired or settled contracts ($)		-		(250	)		(250	)		-		(750	)		(750	)
Notional amounts at June 30 ($)		165		-			165			165		250			415

(1)

During the year ended December 31, 2020, we entered into interest rate swap contracts to effectively fix the interest rate on our euro senior notes issued in February 2020 and the U.S. dollar outstanding balance on our 2017 Term Loan. In April 2021, the 2017 Term Loan was terminated and the interest rate swap contracts associated with the outstanding balance were settled.

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 as of the quarter ended (in millions):

		June 30, 2021				December 31, 2020
British pound sterling		$	368			$	842

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, primarily euro denominated debt, for the three and six months ended June 30 (in millions):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2021			2020			2021		2020
Unrealized gains (losses) on the unhedged portion	$	(3	)	$	(56	)	$	43	$	26

Summary of Changes in Other Comprehensive Income (Loss)

The following table presents these changes in Other Comprehensive Income (Loss) (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Derivative net investment hedges	$	(9,193	)	$	(2,835	)	$	(14,459	)	$	22,524
Debt designated as nonderivative net investment hedges		(12,431	)		16,259			(18,833	)		49,009
Cumulative translation adjustment		3,038			(14,477	)		186,465			(206,119	)
Total foreign currency translation gains (losses), net	$	(18,586	)	$	(1,053	)	$	153,173		$	(134,586	)

Cash flow hedges^{(1) (2)}	$	6,003		$	1,087		$	7,374		$	(14,438	)
Our share of derivatives from unconsolidated co-investment ventures		(1,193	)		286			2,257			(7,637	)
Total unrealized gains (losses) on derivative contracts, net	$	4,810		$	1,373		$	9,631		$	(22,075	)
Total change in other comprehensive income (loss)	$	(13,776	)	$	320		$	162,804		$	(156,661	)

(1)

We estimate an additional expense of $3.3 million will be reclassified to Interest Expense over the next 12 months from June 30, 2021, due to the amortization of previously settled derivatives designated as cash flow hedges.

(2)

Included in the six months ended June 30, 2020 was $16.8 million in losses associated with the termination of four U.S. dollar treasury lock contracts with an aggregate notional amount of $750.0 million that fixed the interest rate on the forecasted issuance of U.S. dollar senior notes issued in February 2020.

Carrying Amounts and Estimated Fair Values of Debt

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

	June 30, 2021				December 31, 2020
	Carrying Value		Fair Value		Carrying Value		Fair Value
Credit Facilities	$	-	$	-	$	171,794	$	171,794
Senior notes		15,120,544		15,543,979		14,275,870		15,452,381
Term loans and unsecured other		1,425,513		1,443,346		1,764,311		1,785,706
Secured mortgage		439,248		467,426		637,101		673,549
Total	$	16,985,305	$	17,454,751	$	16,849,076	$	18,083,430

Undesignated Derivatives [Member]

Foreign Currency Contracts Activity

The following table summarizes the activity of our undesignated foreign currency contracts for the six months ended June 30 (in millions, except for weighted average forward rates and number of active contracts):

	2021																					2020
	CAD			EUR			GBP			JPY			SEK			Other			Total			CAD			EUR			GBP			JPY			SEK			Other			Total
Notional amounts at January 1 ($)		163			474			207			252			38			28			1,162			120			581			178			182			31			15			1,107
New contracts ($)		173			228			110			62			12			9			594			16			809			294			60			9			19			1,207
Matured, expired or settled contracts ($)		(61	)		(78	)		(69	)		(38	)		(7	)		(9	)		(262	)		(22	)		(1,071	)		(285	)		(50	)		(6	)		(27	)		(1,461	)
Notional amounts at June 30 ($)		275			624			248			276			43			28			1,494			114			319			187			192			34			7			853

Weighted average forward rate at June 30		1.27			1.23			1.36			102.99			8.54									1.33			1.16			1.31			102.86			9.40
Active contracts at June 30		67			81			63			72			63									42			48			54			45			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 six months ended June 30 (in millions, except for weighted average forward rates and number of active contracts):

	2021								2020
	CAD			GBP		Total			CAD		GBP			Total
Notional amounts at January 1 ($)		377			135		512			97		387			484
New contracts ($)		419			300		719			-		324			324
Matured, expired or settled contracts ($)		(125	)		-		(125	)		-		(576	)		(576	)
Notional amounts at June 30 ($)		671			435		1,106			97		135			232

Weighted average forward rate at June 30		1.27			1.38					1.32		1.35
Active contracts at June 30		8			4					2		1