Financial Instruments and Fair Value Measurements (Tables)
|
12 Months Ended |
Dec. 31, 2017 |
|---|
| Derivative Instruments And Hedging Activities Disclosure [Abstract] |
|
| Schedule of Fair Value and Classification of Derivative Financial Instruments |
The following table presents the fair value and classification of our derivative financial instruments at December 31 (in thousands):
|
|
|
2017 |
|
|
2016 |
|
|
|
|
Asset |
|
|
Liability |
|
|
Asset |
|
|
Liability |
|
|
Foreign currency contracts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment hedges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
British pound sterling |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
7,439 |
|
|
$ |
- |
|
|
Canadian dollar |
|
|
- |
|
|
|
7,263 |
|
|
|
1,245 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forwards and options (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
British pound sterling |
|
|
2,440 |
|
|
|
8,103 |
|
|
|
16,985 |
|
|
|
- |
|
|
Euro |
|
|
2 |
|
|
|
14,234 |
|
|
|
10,933 |
|
|
|
- |
|
|
Japanese yen |
|
|
6,474 |
|
|
|
931 |
|
|
|
9,246 |
|
|
|
1,071 |
|
|
Canadian dollar |
|
|
- |
|
|
|
1,698 |
|
|
|
831 |
|
|
|
197 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow hedges |
|
|
10,223 |
|
|
|
- |
|
|
|
435 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total fair value of derivatives |
|
$ |
19,139 |
|
|
$ |
32,229 |
|
|
$ |
47,114 |
|
|
$ |
1,268 |
|
|
(1) |
As discussed in Note 2, these foreign currency contracts are not designated as hedges. |
|
| Foreign Currency Contracts Activity |
The following tables summarize the activity in our foreign currency contracts for the years ended December 31 (in millions, except for weighted average forward rates and number of active contracts):
|
2017 |
Foreign Currency Contracts |
|
|
|
Net Investment Hedges |
|
|
Forwards and Options |
|
|
Local Currency |
CAD |
|
|
GBP |
|
|
CAD |
|
|
EUR |
|
|
GBP |
|
|
JPY |
|
|
Notional amounts at January 1 |
$ |
133 |
|
|
£ |
31 |
|
|
$ |
50 |
|
|
€ |
174 |
|
|
£ |
48 |
|
|
¥ |
15,500 |
|
|
New contracts |
|
133 |
|
|
|
100 |
|
|
|
52 |
|
|
|
120 |
|
|
|
117 |
|
|
|
8,000 |
|
|
Matured, expired or settled contracts |
|
(133 |
) |
|
|
(131 |
) |
|
|
(30 |
) |
|
|
(95 |
) |
|
|
(63 |
) |
|
|
(7,300 |
) |
|
Notional amounts at December 31 |
$ |
133 |
|
|
£ |
- |
|
|
$ |
72 |
|
|
€ |
199 |
|
|
£ |
102 |
|
|
¥ |
16,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign Currency Contracts |
|
|
U.S. Dollar |
Net Investment Hedges |
|
|
Forwards and Options (1) |
|
|
Notional amounts at January 1 |
$ |
100 |
|
|
$ |
46 |
|
|
$ |
38 |
|
|
$ |
197 |
|
|
$ |
78 |
|
|
$ |
144 |
|
|
New contracts |
|
99 |
|
|
|
127 |
|
|
|
41 |
|
|
|
143 |
|
|
|
151 |
|
|
|
75 |
|
|
Matured, expired or settled contracts |
|
(100 |
) |
|
|
(173 |
) |
|
|
(23 |
) |
|
|
(107 |
) |
|
|
(97 |
) |
|
|
(66 |
) |
|
Notional amounts at December 31 |
$ |
99 |
|
|
$ |
- |
|
|
$ |
56 |
|
|
$ |
233 |
|
|
$ |
132 |
|
|
$ |
153 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average forward
rate at December 31 |
|
1.34 |
|
|
|
- |
|
|
|
1.29 |
|
|
|
1.17 |
|
|
|
1.29 |
|
|
|
106.25 |
|
|
Active contracts at December 31 |
|
2 |
|
|
|
- |
|
|
|
24 |
|
|
|
29 |
|
|
|
20 |
|
|
|
34 |
|
|
2016 |
Foreign Currency Contracts |
|
|
|
Net Investment Hedges |
|
|
Forwards and Options |
|
|
Local Currency |
CAD |
|
|
GBP |
|
|
JPY |
|
|
EUR |
|
|
GBP |
|
|
JPY |
|
|
Other |
|
|
Notional amounts at January 1 |
$ |
- |
|
|
£ |
238 |
|
|
¥ |
- |
|
|
€ |
275 |
|
|
£ |
97 |
|
|
¥ |
12,840 |
|
|
|
|
|
|
New contracts |
|
133 |
|
|
|
90 |
|
|
|
11,189 |
|
|
|
369 |
|
|
|
- |
|
|
|
15,460 |
|
|
|
|
|
|
Matured, expired or settled contracts |
|
- |
|
|
|
(297 |
) |
|
|
(11,189 |
) |
|
|
(470 |
) |
|
|
(49 |
) |
|
|
(12,800 |
) |
|
|
|
|
|
Notional amounts at December 31 |
$ |
133 |
|
|
£ |
31 |
|
|
¥ |
- |
|
|
€ |
174 |
|
|
£ |
48 |
|
|
¥ |
15,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign Currency Contracts |
|
|
U.S. Dollar |
Net Investment Hedges |
|
|
Forwards and Options (1) |
|
|
Notional amounts at January 1 |
$ |
- |
|
|
$ |
386 |
|
|
$ |
- |
|
|
$ |
310 |
|
|
$ |
148 |
|
|
$ |
109 |
|
|
$ |
50 |
|
|
New contracts |
|
100 |
|
|
|
131 |
|
|
|
99 |
|
|
|
413 |
|
|
|
- |
|
|
|
146 |
|
|
|
15 |
|
|
Matured, expired or settled contracts |
|
- |
|
|
|
(471 |
) |
|
|
(99 |
) |
|
|
(526 |
) |
|
|
(70 |
) |
|
|
(111 |
) |
|
|
(27 |
) |
|
Notional amounts at December 31 |
$ |
100 |
|
|
$ |
46 |
|
|
$ |
- |
|
|
$ |
197 |
|
|
$ |
78 |
|
|
$ |
144 |
|
|
$ |
38 |
|
|
2015 |
|
Foreign Currency Contracts |
|
|
|
|
Net Investment Hedges |
|
|
Forwards and Options |
|
|
Local Currency |
|
CAD |
|
|
EUR |
|
|
GBP |
|
|
JPY |
|
|
EUR |
|
|
GBP |
|
|
JPY |
|
|
Other |
|
|
Notional amounts at January 1 |
|
$ |
- |
|
|
€ |
300 |
|
|
£ |
238 |
|
|
¥ |
24,136 |
|
|
€ |
284 |
|
|
£ |
- |
|
|
¥ |
- |
|
|
|
|
|
|
New contracts |
|
|
394 |
|
|
|
- |
|
|
|
118 |
|
|
|
43,373 |
|
|
|
333 |
|
|
|
199 |
|
|
|
18,740 |
|
|
|
|
|
|
Matured, expired or settled contracts |
|
|
(394 |
) |
|
|
(300 |
) |
|
|
(118 |
) |
|
|
(67,509 |
) |
|
|
(342 |
) |
|
|
(102 |
) |
|
|
(5,900 |
) |
|
|
|
|
|
Notional amounts at December 31 |
|
$ |
- |
|
|
€ |
- |
|
|
£ |
238 |
|
|
¥ |
- |
|
|
€ |
275 |
|
|
£ |
97 |
|
|
¥ |
12,840 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign Currency Contracts |
|
|
U.S. Dollar |
|
Net Investment Hedges |
|
|
Forwards and Options (1) |
|
|
Notional amounts at January 1 |
|
$ |
- |
|
|
$ |
400 |
|
|
$ |
400 |
|
|
$ |
250 |
|
|
$ |
354 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
New contracts |
|
|
298 |
|
|
|
- |
|
|
|
186 |
|
|
|
353 |
|
|
|
375 |
|
|
|
300 |
|
|
|
159 |
|
|
|
71 |
|
|
Matured, expired or settled contracts |
|
|
(298 |
) |
|
|
(400 |
) |
|
|
(200 |
) |
|
|
(603 |
) |
|
|
(419 |
) |
|
|
(152 |
) |
|
|
(50 |
) |
|
|
(21 |
) |
|
Notional amounts at December 31 |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
386 |
|
|
$ |
- |
|
|
$ |
310 |
|
|
$ |
148 |
|
|
$ |
109 |
|
|
$ |
50 |
|
|
(1) |
During 2017, 2016 and 2015, we exercised 44, 49 and 32 option contracts and realized gains of $12.6 million, $3.0 million and $14.6 million, respectively, in Foreign Currency and Derivative Gains (Losses), Net. |
|
| Summary of Activity in Interest Rate Swaps |
The following table summarizes the activity in our interest rate swaps designated as cash flow hedges for the years ended December 31 (in millions):
|
|
|
2016 |
|
|
2015 |
|
|
Notional amounts at January 1 |
|
$ |
1,196 |
|
|
$ |
398 |
|
|
New contracts |
|
|
- |
|
|
|
1,158 |
|
|
Matured, expired or settled contracts |
|
|
(925 |
) |
|
|
(360 |
) |
|
Notional amounts at December 31 |
|
$ |
271 |
|
|
$ |
1,196 |
|
|
| Summary of Gains (Losses) From Change in Fair Value of Derivative Instruments Included in Other Comprehensive Income |
The following table presents the gains and (losses) associated with the change in fair value for the effective portion of our derivative and nonderivative hedging instruments included in Other Comprehensive Income for the years ended December 31 (in thousands):
|
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|
Derivative net investment hedges (1) |
|
$ |
(12,762 |
) |
|
$ |
55,460 |
|
|
$ |
63,934 |
|
|
Interest rate and cash flow hedges (2) |
|
|
12,726 |
|
|
|
(551 |
) |
|
|
(21,714 |
) |
|
Our share of derivatives from unconsolidated co-investment ventures |
|
|
9,865 |
|
|
|
(798 |
) |
|
|
4,257 |
|
|
Total derivative hedging instruments |
|
|
9,829 |
|
|
|
54,111 |
|
|
|
46,477 |
|
|
Nonderivative net investment hedges (3) (4) |
|
|
(477,755 |
) |
|
|
112,591 |
|
|
|
321,148 |
|
|
Total derivative and nonderivative hedging instruments – gains (losses) |
|
$ |
(467,926 |
) |
|
$ |
166,702 |
|
|
$ |
367,625 |
|
|
(1) |
We received $2.5 million, $79.8 million and $128.2 million for the years ended December 31, 2017, 2016 and 2015, respectively, on the settlement of net investment hedges. |
|
(2) |
The amount reclassified to interest expense was $5.4 million for 2017 and $5.5 million for 2016. The amount for 2015 was not considered significant. For the next 12 months from December 31, 2017, we estimate an additional expense of $3.1 million will be reclassified to Interest Expense. |
|
(3) |
At December 31, 2017, 2016 and 2015, we had €3.1 billion ($3.6 billion), €3.2 billion ($3.4 billion) and €3.2 billion ($3.5 billion) of debt, net of accrued interest, respectively, designated as nonderivative financial instrument hedges of our net investment in international subsidiaries. We recognized unrealized losses of $17.9 million and unrealized gains of $10.0 million in Foreign Currency and Derivative Gains (Losses), Net on the undesignated portion of our debt for the years ended December 31, 2017 and 2015, respectively. There were no unrealized gains or losses recognized for the year ended December 31, 2016. |
|
(4) |
In June 2017, we issued £500.0 million ($645.3 million) of debt, as discussed in Note 9, and £323.7 million ($436.0 million) of the debt was designated as a nonderivative financial instrument hedge of our net investment in international subsidiaries at December 31, 2017. We recognized unrealized losses of $5.4 million in Foreign Currency and Derivative Gains (Losses), Net on the undesignated portion of our debt for the year ended December 31, 2017. |
|
| 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):
|
|
|
2017 |
|
|
2016 |
|
|
|
|
Carrying Value |
|
|
Fair Value |
|
|
Carrying Value |
|
|
Fair Value |
|
|
Credit Facilities |
|
$ |
317,392 |
|
|
$ |
317,496 |
|
|
$ |
35,023 |
|
|
$ |
35,061 |
|
|
Senior notes |
|
|
6,067,277 |
|
|
|
6,537,100 |
|
|
|
6,417,492 |
|
|
|
6,935,485 |
|
|
Term loans and unsecured other |
|
|
2,060,491 |
|
|
|
2,075,002 |
|
|
|
1,499,001 |
|
|
|
1,510,661 |
|
|
Secured mortgages |
|
|
808,096 |
|
|
|
867,067 |
|
|
|
979,585 |
|
|
|
1,055,020 |
|
|
Secured mortgages of consolidated entities |
|
|
159,375 |
|
|
|
159,130 |
|
|
|
1,677,193 |
|
|
|
1,683,489 |
|
|
Total debt |
|
$ |
9,412,631 |
|
|
$ |
9,955,795 |
|
|
$ |
10,608,294 |
|
|
$ |
11,219,716 |
|
|