Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2017 | |
Document And Entity Information [Abstract] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q3 |
Trading Symbol | TGP |
Entity Registrant Name | Teekay LNG Partners L.P. |
Entity Central Index Key | 1,308,106 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Voyage revenues (note 9a) | $ 104,285 | $ 100,658 | $ 306,369 | $ 295,670 |
Voyage expenses | (1,466) | (355) | (3,899) | (1,354) |
Vessel operating expenses (note 9a) | (26,724) | (22,055) | (76,113) | (66,320) |
Depreciation and amortization | (24,980) | (24,041) | (77,894) | (70,521) |
General and administrative expenses (notes 9a, 9e and 13) | (2,793) | (3,573) | (11,592) | (14,865) |
Write-down and loss on sales of vessels (note 14) | (38,000) | 0 | (50,600) | (27,439) |
Income (loss) from vessel operations | 10,322 | 50,634 | 86,271 | 115,171 |
Equity income | 1,417 | 13,514 | 6,797 | 52,579 |
Interest expense (notes 7 and 10) | (20,091) | (15,644) | (57,604) | (42,910) |
Interest income | 602 | 653 | 2,035 | 1,800 |
Realized and unrealized (loss) gain on non-designated derivative instruments (note 10) | (2,178) | 5,004 | (8,375) | (50,406) |
Foreign currency exchange (loss) gain (notes 7 and 10) | (5,104) | 504 | (24,497) | (10,139) |
Other income | 356 | 397 | 1,137 | 1,223 |
Net (loss) income before income tax expense | (14,676) | 55,062 | 5,764 | 67,318 |
Income tax expense (note 8) | (750) | (209) | (1,143) | (722) |
Net (loss) income | (15,426) | 54,853 | 4,621 | 66,596 |
Non-controlling interest in net (loss) income | 3,470 | 4,746 | 10,533 | 10,556 |
Preferred unitholders' interest in net (loss) income | 2,813 | 0 | 8,438 | 0 |
General Partner’s interest in net (loss) income | (434) | 1,002 | (287) | 1,121 |
Limited partners’ interest in net (loss) income | $ (21,275) | $ 49,105 | $ (14,063) | $ 54,919 |
Limited partners’ interest in net (loss) income per common unit: (note 12) | ||||
• Basic (usd per unit) | $ (0.27) | $ 0.62 | $ (0.18) | $ 0.69 |
• Diluted (usd per unit) | $ (0.27) | $ 0.62 | $ (0.18) | $ 0.69 |
Weighted-average number of common units outstanding: | ||||
• Basic (units) | 79,626,819 | 79,571,820 | 79,614,731 | 79,567,188 |
• Diluted (units) | 79,626,819 | 79,697,417 | 79,773,745 | 79,659,822 |
Cash distributions declared per common unit (usd per unit) | $ 0.14 | $ 0.14 | $ 0.42 | $ 0.42 |
Unaudited Consolidated Stateme3
Unaudited Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Net (loss) income | $ (15,426) | $ 54,853 | $ 4,621 | $ 66,596 |
Other comprehensive income (loss) before reclassifications | ||||
Unrealized loss on qualifying cash flow hedging instruments, net of tax (note 10) | (264) | 2,517 | (1,278) | (15,689) |
To equity income: | ||||
Realized loss on qualifying cash flow hedging instruments | 793 | 868 | 2,085 | 2,591 |
Other comprehensive income (loss) | 529 | 3,385 | 807 | (13,098) |
Comprehensive (loss) income | (14,897) | 58,238 | 5,428 | 53,498 |
Non-controlling interest in comprehensive (loss) income | 3,436 | 4,999 | 10,168 | 7,954 |
Preferred unitholders' interest in comprehensive (loss) income (note 12) | 2,813 | 0 | 8,438 | 0 |
General and limited partners' interest in comprehensive (loss) income | $ (21,146) | $ 53,239 | $ (13,178) | $ 45,544 |
Unaudited Consolidated Balance
Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current | ||
Cash and cash equivalents | $ 161,008 | $ 126,146 |
Restricted cash – current (notes 7 and 10) | 21,386 | 10,145 |
Accounts receivable, including non-trade of $18,813 (2016 – $19,325) | 22,079 | 25,224 |
Prepaid expenses | 4,345 | 3,724 |
Vessels held for sale (notes 14b and 14c) | 17,000 | 20,580 |
Current portion of derivative assets (note 10) | 1,759 | 531 |
Current portion of net investments in direct financing leases (notes 3b and 5) | 9,683 | 150,342 |
Advances to affiliates (notes 9b and 10) | 9,245 | 9,739 |
Total current assets | 246,505 | 346,431 |
Restricted cash – long-term (notes 7, 10 and 11c) | 71,626 | 106,882 |
Vessels and equipment | ||
At cost, less accumulated depreciation of $664,461 (2016 – $668,969) | 1,316,234 | 1,374,128 |
Vessels under capital leases, at cost, less accumulated depreciation of $18,331 (2016 – $69,072) (note 5) | 643,973 | 484,253 |
Advances on newbuilding contracts (note 9d) | 492,800 | 357,602 |
Total vessels and equipment | 2,453,007 | 2,215,983 |
Investments in and advances to equity-accounted joint ventures (notes 6 and 9a) | 1,114,709 | 1,037,726 |
Net investments in direct financing leases (notes 3b and 5) | 624,122 | 492,666 |
Other assets | 1,440 | 5,529 |
Derivative assets (note 10) | 9,324 | 4,692 |
Intangible assets – net | 63,293 | 69,934 |
Goodwill – liquefied gas segment | 35,631 | 35,631 |
Total assets | 4,619,657 | 4,315,474 |
Current | ||
Accounts payable | 2,240 | 5,562 |
Accrued liabilities (note 10) | 38,056 | 35,881 |
Unearned revenue | 20,283 | 16,998 |
Current portion of long-term debt (note 7) | 516,232 | 188,511 |
Current obligations under capital lease (note 5) | 108,592 | 40,353 |
Current portion of in-process contracts | 9,050 | 15,833 |
Current portion of derivative liabilities (note 10) | 69,964 | 56,800 |
Advances from affiliates (note 9b) | 9,864 | 15,492 |
Total current liabilities | 774,281 | 375,430 |
Long-term debt (note 7) | 1,380,175 | 1,602,715 |
Long-term obligations under capital lease (note 5) | 595,674 | 352,486 |
Long-term unearned revenue | 9,358 | 10,332 |
Other long-term liabilities (note 5) | 58,432 | 60,573 |
In-process contracts | 2,418 | 8,233 |
Derivative liabilities (note 10) | 59,312 | 128,293 |
Total liabilities | 2,879,650 | 2,538,062 |
Commitments and contingencies (notes 5, 7, 10, and 11) | ||
Equity | ||
Limited Partners - preferred units (5.0 million units issued and outstanding at September 30, 2017 and December 31, 2016) | 1,516,634 | 1,563,852 |
Limited Partners - preferred units (5.0 million units issued and outstanding at September 30, 2017 and December 31, 2016) | 123,520 | 123,426 |
General Partner | 49,690 | 50,653 |
Accumulated other comprehensive income | 1,747 | 575 |
Partners' equity | 1,691,591 | 1,738,506 |
Non-controlling interest | 48,416 | 38,906 |
Total equity | 1,740,007 | 1,777,412 |
Total liabilities and total equity | $ 4,619,657 | $ 4,315,474 |
Unaudited Consolidated Balance5
Unaudited Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands, shares in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Non-trade accounts receivable | $ 18,813 | $ 19,325 |
Accumulated depreciation on vessel and equipment | 664,461 | 668,969 |
Accumulated depreciation on vessels under capital leases | $ 18,331 | $ 69,072 |
Limited Partners - common units issued (in shares) | 79.6 | 79.6 |
Limited Partners - common units outstanding (in shares) | 79.6 | 79.6 |
Limited Partners - preferred units issued (in shares) | 5 | 5 |
Limited Partners - preferred units outstanding (in shares) | 5 | 5 |
Unaudited Consolidated Stateme6
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
OPERATING ACTIVITIES | ||
Net income | $ 4,621 | $ 66,596 |
Non-cash items: | ||
Unrealized (gain) loss on non-designated derivative instruments (note 10) | (5,522) | 31,276 |
Depreciation and amortization | 77,894 | 70,521 |
Write-down and loss on sales of vessels | 50,600 | 27,439 |
Unrealized foreign currency exchange gain and other | (7,845) | (4,476) |
Equity income, net of dividends received of $28,781 (2016 – $32,851) | 21,984 | (19,728) |
Ineffective portion on qualifying cash flow hedging instruments included in interest expense | 755 | 1,044 |
Change in operating assets and liabilities | 1,804 | (15,177) |
Expenditures for dry docking | (17,067) | (6,574) |
Net operating cash flow | 127,224 | 150,921 |
FINANCING ACTIVITIES | ||
Proceeds from issuance of long-term debt | 249,682 | 259,922 |
Financing issuance costs | (1,765) | (562) |
Scheduled repayments of long-term debt | (136,582) | (141,505) |
Prepayments of long-term debt | (67,040) | (195,789) |
Scheduled repayments of capital lease obligations | (27,411) | (17,477) |
Decrease in restricted cash | 22,196 | 13,086 |
Cash distributions paid | (42,462) | (34,099) |
Dividends paid to non-controlling interest | (658) | (1,167) |
Other | (605) | 0 |
Net financing cash flow | (4,645) | (117,591) |
INVESTING ACTIVITIES | ||
Capital contributions to equity-accounted joint ventures | (143,513) | (32,994) |
Return of capital from equity-accounted joint ventures | 40,320 | 0 |
Receipts from direct financing leases | 9,203 | 18,262 |
Proceeds from sale of vessels (notes 14a and 14b) | 20,580 | 94,311 |
Proceeds from sale-leaseback of vessels | 335,830 | 355,306 |
Expenditures for vessels and equipment | (350,137) | (302,301) |
Net investing cash flow | (87,717) | 132,584 |
Increase in cash and cash equivalents | 34,862 | 165,914 |
Cash and cash equivalents, beginning of the period | 126,146 | 102,481 |
Cash and cash equivalents, end of the period | $ 161,008 | $ 268,395 |
Unaudited Consolidated Stateme7
Unaudited Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Cash Flows [Abstract] | ||
Dividends received | $ 28,781 | $ 32,851 |
Unaudited Consolidated Stateme8
Unaudited Consolidated Statement of Changes in Total Equity - 9 months ended Sep. 30, 2017 - USD ($) shares in Thousands, $ in Thousands | Total | General Partner | Common UnitsLimited Partners | Preferred UnitsLimited Partners | Accumulated Other Comprehensive Income | Non- controlling Interest |
Beginning balance, units at Dec. 31, 2016 | 79,572 | 5,000 | ||||
Beginning balance at Dec. 31, 2016 | $ 1,777,412 | $ 50,653 | $ 1,563,852 | $ 123,426 | $ 575 | $ 38,906 |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||
Net (loss) income | 4,621 | (287) | (14,063) | 8,438 | 10,533 | |
Other comprehensive income | 807 | 1,172 | (365) | |||
Cash distributions | (42,462) | (682) | $ (33,436) | $ (8,344) | ||
Dividends paid to non-controlling interest | (658) | (658) | ||||
Equity based compensation, net of withholding tax, units | 55 | |||||
Equity based compensation, net of withholding tax of $0.6 million (note 13) | 287 | 6 | $ 281 | |||
Ending balance, units at Sep. 30, 2017 | 79,627 | 5,000 | ||||
Ending balance at Sep. 30, 2017 | $ 1,740,007 | $ 49,690 | $ 1,516,634 | $ 123,520 | $ 1,747 | $ 48,416 |
Unaudited Consolidated Stateme9
Unaudited Consolidated Statement of Changes in Total Equity (Parenthetical) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Statement of Partners' Capital [Abstract] | |
Equity based compensation, tax | $ 0.6 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited interim consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (or GAAP ). These financial statements include the accounts of Teekay LNG Partners L.P., which is a limited partnership formed under the laws of the Republic of The Marshall Islands, and its wholly-owned and controlled subsidiaries (collectively, the Partnership ). The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Certain information and footnote disclosures required by GAAP for complete annual financial statements have been omitted and, therefore, these interim financial statements should be read in conjunction with the Partnership’s audited consolidated financial statements for the year ended December 31, 2016 , which are included in the Partnership’s Annual Report on Form 20-F for the year ended December 31, 2016 filed with the U.S. Securities and Exchange Commission (or SEC ) on April 26, 2017. In the opinion of management of Teekay GP L.L.C., the general partner of the Partnership (or the General Partner ), these interim unaudited consolidated financial statements reflect all adjustments consisting solely of a normal recurring nature, necessary to present fairly, in all material respects, the Partnership’s consolidated financial position, results of operations, changes in total equity and cash flows for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of those for a full fiscal year. Significant intercompany balances and transactions have been eliminated upon consolidation. |
Accounting Pronouncements
Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Pronouncements | Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (or FASB ) issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers , (or ASU 2014-09 ). ASU 2014-09 will require an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update creates a five-step model that requires entities to exercise judgment when considering the terms of the contract(s) which include (i) identifying the contract(s) with the customer, (ii) identifying the separate performance obligations in the contract, (iii) determining the transaction price, (iv) allocating the transaction price to the separate performance obligations, and (v) recognizing revenue as each performance obligation is satisfied. ASU 2014-09 is effective for the Partnership on January 1, 2018 and will be applied as a cumulative-effect adjustment as of this date. The Partnership’s only significant source of revenue that will be accounted for pursuant to ASU 2014-09 is its non-lease portion of time-charter contracts. Based on the Partnership’s preliminary assessment of ASU 2014-09, when applied to the standard terms of the Partnership’s time-charter contracts, no significant impact on the accounting for the non-lease portion of time-charter contracts is expected. The Partnership is in the final stages of completing its assessment of ASU 2014-09 and is focused on developing process changes, determining the transitional impact, and completing other items required for the adoption of ASU 2014-09. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (or ASU 2016-02 ). ASU 2016-02 establishes a right-of-use model that requires a lessee to record a right of use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The Partnership expects to adopt ASU 2016-02 on January 1, 2018. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Partnership’s lessee-related leasing activities primarily consist of on balance sheet finance leases. The accounting for such transactions is not significantly impacted by ASU 2016-02. The Partnership also has extensive lessor-related leasing activities, which consist of bareboat charter contracts and the lease portion of time-charter contracts. However, ASU 2016-02 does not make extensive changes to lessor accounting. Based on the Partnership’s preliminary assessment of ASU 2016-02 no significant impact on the accounting for its lessor-related leasing activities is expected. The Partnership is in the final stages of completing its assessment of ASU 2016-02 and is focused on developing process changes, determining the transitional impact, and completing other items required for the adoption of ASU 2016-02. In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments . This update replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This update is effective for the Partnership on January 1, 2020, with a modified-retrospective approach. The Partnership is currently evaluating the effect of adopting this new guidance. In August 2016, the FASB issued Accounting Standards Update 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments , which, among other things, provides guidance on two acceptable approaches of classifying distributions received from equity-method investees in the statements of cash flows. This update is effective for the Partnership on January 1, 2018, with a retrospective approach. The Partnership is currently evaluating the effect of adopting this new guidance. On November 2016, the FASB issued Accounting Standards Update 2016-18, Statement of Cash Flows: Restricted Cash (or ASU 2016-18) . ASU 2016-18 requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. ASU 2016-18 is effective for the Partnership on January 1, 2018. Adoption of ASU 2016-18 will result in the Partnership’s statements of cash flows to be modified to include changes in restricted cash in addition to changes in cash and cash equivalents. In August 2017, the FASB issued Accounting Standards Update 2017-12, Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities (or ASU 2017-12). ASU 2017-12 eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires, for qualifying hedges, the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The guidance also modifies the accounting for components excluded from the assessment of hedge effectiveness, eases documentation and assessment requirements and modifies certain disclosure requirements. ASU 2017-12 will be effective January 1, 2019. The Partnership is currently evaluating the effect of adopting this new guidance. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | Financial Instruments a) Fair Value Measurements For a description of how the Partnership estimates fair value and for a description of the fair value hierarchy levels, see Note 3 to the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year ended December 31, 2016 . The following table includes the estimated fair value and carrying value of those assets and liabilities that are measured at fair value on a recurring and non-recurring basis, as well as the estimated fair value of the Partnership’s financial instruments that are not accounted for at fair value on a recurring basis. September 30, 2017 December 31, 2016 Fair Value Hierarchy Level Carrying Amount Asset (Liability) $ Fair Value Asset (Liability) $ Carrying Amount Asset (Liability) $ Fair Value Asset (Liability) $ Recurring: Cash and cash equivalents and restricted cash Level 1 254,020 254,020 243,173 243,173 Derivative instruments (note 10) Interest rate swap agreements – assets Level 2 636 636 1,080 1,080 Interest rate swap agreements – liabilities Level 2 (81,475 ) (81,475 ) (87,681 ) (87,681 ) Interest rate swaption agreements – assets Level 2 15 15 3,283 3,283 Interest rate swaption agreements – liabilities Level 2 (535 ) (535 ) (4,230 ) (4,230 ) Cross-currency swap agreements – assets Level 2 8,688 8,688 — — Cross-currency swap agreements – liabilities Level 2 (49,956 ) (49,956 ) (99,786 ) (99,786 ) Other derivative Level 3 2,390 2,390 2,134 2,134 Non-recurring: Vessels held for sale (notes 14b and 14e) Level 2 17,000 17,000 20,580 20,580 Vessels and equipment (note 14d) Level 2 17,000 17,000 — — Vessels under capital leases (note 14e) Level 3 52,914 52,914 — — Other: Advances to equity-accounted joint ventures (note 6) (i) 131,439 (i) 272,514 (i) Long-term receivable included in accounts receivable and other assets (ii) Level 3 5,028 5,004 10,985 10,944 Long-term debt – public (note 7) Level 1 (387,831 ) (395,473 ) (368,612 ) (366,418 ) Long-term debt – non-public (note 7) Level 2 (1,508,576 ) (1,472,367 ) (1,422,614 ) (1,381,287 ) (i) The advances to equity-accounted joint ventures together with the Partnership’s equity investments in the joint ventures form the net aggregate carrying value of the Partnership’s interests in the joint ventures in these consolidated financial statements. The fair values of the individual components of such aggregate interests are not determinable. (ii) As described in Note 3 to the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year-ended December 31, 2016 , the estimated fair value of the non-interest bearing receivable from Royal Dutch Shell Plc (or Shell ) is based on the remaining future fixed payments as well as an estimated discount rate. The estimated fair value of this receivable as of September 30, 2017 was $5.0 million ( December 31, 2016 – $10.9 million ) using a discount rate of 8.0% . As there is no market rate for the equivalent of an unsecured non-interest bearing receivable from Shell, the discount rate is based on unsecured debt instruments of similar maturity held by the Partnership, adjusted for a liquidity premium. A higher or lower discount rate would result in a lower or higher fair value asset. Changes in fair value during the nine months ended September 30, 2017 and 2016 for the Partnership’s other derivative instrument, the Toledo Spirit time-charter derivative, which is described below and is measured at fair value on a recurring basis using significant unobservable inputs (Level 3), are as follows: Nine Months Ended September 30, 2017 2016 $ $ Fair value at beginning of period 2,134 (6,296 ) Realized and unrealized gains included in earnings 1,410 4,550 Settlement payments (1,154 ) 2,556 Fair value at end of period 2,390 810 The Partnership’s Suezmax tanker, the Toledo Spirit , operates pursuant to a time-charter contract that increases or decreases the otherwise fixed-hire rate established in the charter depending on the spot charter rates that the Partnership would have earned had it traded the vessel in the spot tanker market. The time-charter contract ends in August 2025, although the charterer has the right to terminate the time-charter contract in July 2018. In order to reduce the variability of its revenue under the Toledo Spirit time-charter, the Partnership entered into an agreement with Teekay Corporation under which Teekay Corporation pays the Partnership any amounts payable to the charterer of the Toledo Spirit as a result of spot rates being below the fixed rate, and the Partnership pays Teekay Corporation any amounts payable to the Partnership by the charterer of the Toledo Spirit as a result of spot rates being in excess of the fixed rate. The estimated fair value of this other derivative is based in part upon the Partnership’s projection of future spot market tanker rates, which has been derived from current spot market tanker rates and long-term historical average rates, as well as an estimated discount rate. The estimated fair value of this other derivative as of September 30, 2017 is based upon an average daily tanker rate of $18,000 ( September 30, 2016 – $22,875 ) over the remaining duration of the charter contract and a discount rate of 8.4% ( September 30, 2016 – 8.0% ). In developing and evaluating this estimate, the Partnership considers the current tanker market fundamentals as well as the short and long-term outlook. A higher or lower average daily tanker rate would result in a higher or lower fair value liability or a lower or higher fair value asset. A higher or lower discount rate would result in a lower or higher fair value asset or liability. b) Financing Receivables The following table contains a summary of the Partnership’s loan receivables and other financing receivables by type of borrower and the method by which the Partnership monitors the credit quality of its financing receivables on a quarterly basis. September 30, 2017 December 31, 2016 Class of Financing Receivable Credit Indicator Grade $ $ Direct financing leases Payment activity Performing 633,805 643,008 Other receivables: Long-term receivable and accrued revenue included in accounts receivable and other assets Payment activity Performing 5,028 12,171 Advances to equity-accounted joint ventures (note 6) Other internal metrics Performing 131,439 272,514 770,272 927,693 |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The following table includes results for the Partnership’s segments for the periods presented in these financial statements. Three Months Ended September 30, 2017 2016 Liquefied Gas Segment $ Conventional Tanker Segment $ Total $ Liquefied Gas Segment $ Conventional Tanker Segment $ Total $ Voyage revenues 92,700 11,585 104,285 87,260 13,398 100,658 Voyage expenses (716 ) (750 ) (1,466 ) (175 ) (180 ) (355 ) Vessel operating expenses (22,172 ) (4,552 ) (26,724 ) (16,751 ) (5,304 ) (22,055 ) Depreciation and amortization (22,580 ) (2,400 ) (24,980 ) (19,317 ) (4,724 ) (24,041 ) General and administrative expenses (i) (2,330 ) (463 ) (2,793 ) (3,008 ) (565 ) (3,573 ) Write-down and loss on sales of vessels — (38,000 ) (38,000 ) — — — Income (loss) from vessel operations 44,902 (34,580 ) 10,322 48,009 2,625 50,634 Equity income 1,417 — 1,417 13,514 — 13,514 Nine Months Ended September 30, 2017 2016 Liquefied Gas Segment $ Conventional Tanker Segment $ Total $ Liquefied Gas Segment $ Conventional Tanker Segment $ Total $ Voyage revenues 271,078 35,291 306,369 250,342 45,328 295,670 Voyage expenses (1,664 ) (2,235 ) (3,899 ) (418 ) (936 ) (1,354 ) Vessel operating expenses (62,211 ) (13,902 ) (76,113 ) (48,717 ) (17,603 ) (66,320 ) Depreciation and amortization (69,639 ) (8,255 ) (77,894 ) (58,476 ) (12,045 ) (70,521 ) General and administrative expenses (i) (9,283 ) (2,309 ) (11,592 ) (12,049 ) (2,816 ) (14,865 ) Write-down and loss on sales of vessels — (50,600 ) (50,600 ) — (27,439 ) (27,439 ) Income (loss) from vessel operations 128,281 (42,010 ) 86,271 130,682 (15,511 ) 115,171 Equity income 6,797 — 6,797 52,579 — 52,579 (i) Includes direct general and administrative expenses and indirect general and administrative expenses (allocated to each segment based on estimated use of corporate resources). A reconciliation of total segment assets to total assets presented in the consolidated balance sheets is as follows: September 30, 2017 December 31, 2016 $ $ Total assets of the liquefied gas segment 4,307,812 3,957,088 Total assets of the conventional tanker segment 115,168 193,553 Unallocated: Cash and cash equivalents 161,008 126,146 Accounts receivable and prepaid expenses 26,424 28,948 Advances to affiliates 9,245 9,739 Consolidated total assets 4,619,657 4,315,474 |
Vessel Charters
Vessel Charters | 9 Months Ended |
Sep. 30, 2017 | |
Leases [Abstract] | |
Vessel Charters | Vessel Charters The minimum estimated charter hire and rental payments for the remainder of the year and the next four fiscal years, as at September 30, 2017 , for the Partnership’s vessels chartered-in and vessels chartered-out are as follows: Remainder of 2017 2018 2019 2020 2021 Vessel Charters (i) $ $ $ $ $ Charters-in – capital leases (ii) 44,728 138,934 119,499 118,938 110,246 Charters-out – operating leases (iii)(iv) 84,812 293,880 309,100 275,252 235,799 Charters-out – direct financing leases (iv) 15,091 45,872 39,065 39,172 39,065 99,903 339,752 348,165 314,424 274,864 (i) The Partnership owns 69% of Teekay BLT Corporation (or Teekay Tangguh Joint Venture ), which is a party to operating leases whereby the Teekay Tangguh Joint Venture is leasing the Tangguh Hiri and Tangguh Sago liquefied natural gas (or LNG ) carriers (or the Tangguh LNG Carriers ) to a third party, which is in turn leasing the vessels back to the joint venture. The table above does not include the Partnership’s minimum charter hire payments to be paid and received under these leases, which are described in more detail in Note 5 to the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year ended December 31, 2016 . Under the terms of the leasing arrangement for the Tangguh LNG Carriers, whereby the Teekay Tangguh Joint Venture is the lessee, the lessor claims tax depreciation on its lease of these vessels. As is typical in these types of leasing arrangements, tax and change of law risks are assumed by the lessee. Lease payments under the lease arrangements are based on certain tax and financial assumptions at the commencement of the leases. If an assumption proves to be incorrect, the lessor is entitled to increase the lease payments to maintain its agreed after-tax margin. The carrying amount of tax indemnification guarantees of the Partnership relating to the leasing arrangement through the Teekay Tangguh Joint Venture as at September 30, 2017 was $7.2 million ( December 31, 2016 – $7.5 million ) and is included as part of other long-term liabilities in the Partnership’s consolidated balance sheets. The tax indemnification is for the duration of the lease contracts with the third party plus the years it would take for the lease payments to be statute barred, which will end in 2033 for the vessels. Although there is no maximum potential amount of future payments, the Teekay Tangguh Joint Venture may terminate the lease arrangement on a voluntary basis at any time. If the lease arrangement terminates, the Teekay Tangguh Joint Venture will be required to pay termination sums to the lessor sufficient to repay the lessor’s investment in the vessels and to compensate it for the tax effect of the terminations, including recapture of any tax depreciation. (ii) As at September 30, 2017 , the Partnership was a party, as lessee, to capital leases on two Suezmax tankers, the Teide Spirit and Toledo Spirit . Under these capital leases, the owner has the option to require the Partnership to purchase the two vessels. The charterer, who is also the owner, also has the option to cancel the charter contracts and the cancellation options are first exercisable in November 2017 and August 2018 , respectively. The amounts in the table above assume the owner will not exercise its options to require the Partnership to purchase either of the vessels from the owner, but rather assume the owner will cancel the charter contracts when the cancellation right is first exercisable (in November 2017 and August 2018 , respectively) and sell the vessels to a third party, upon which the remaining lease obligations will be extinguished. Therefore, the table above does not include any amounts after the expected cancellation date of the leases. In August 2017, the charterer of the Teide Spirit gave formal notification to the Partnership of its intention to terminate its charter contract subject to certain conditions being met and third party approvals being received. In October 2017, the charterer notified us that it has marketed the Teide Spirit for sale and, upon sale of the vessel, it will concurrently terminate its existing charter contract with the Partnership. The Partnership is also a party to capital leases on three LNG carriers, the Creole Spirit, Oak Spirit and Torben Spirit. Upon delivery of the Creole Spirit in February 2016, the Oak Spirit in July 2016 and the Torben Spirit in March 2017, the Partnership sold these vessels to a third party and leased them back under 10 -year bareboat charter contracts ending in 2026 and 2027. The bareboat charter contracts are accounted for as capital leases. The obligations of the Partnership under the bareboat charter contracts are guaranteed by the Partnership. In addition, the guarantee agreements require the Partnership to maintain minimum levels of tangible net worth and aggregate liquidity, and not to exceed a maximum amount of leverage. As at September 30, 2017 , the Partnership had sale-leaseback agreements in place for five of its eight LNG carrier newbuildings scheduled to deliver during the remainder of 2017 and 2018, and at such dates, the buyers will take delivery and charter each respective vessel back to the Partnership. As at September 30, 2017 , the Partnership had received $211.2 million from the buyers, which has been recorded as current and long-term obligations under capital lease in the Partnership's consolidated balance sheets, and the Partnership has secured a further $699 million in capital lease financing to be received in the remainder of 2017 to 2018. (iii) Minimum scheduled future rentals on operating lease contracts do not include rentals generated from new contracts entered into after September 30, 2017 , rentals from unexercised option periods of contracts that existed on September 30, 2017 , rentals from vessels in the Partnership's equity-accounted investments, variable or contingent rentals, or rentals from contracts which commenced after September 30, 2017. Therefore, the minimum scheduled future rentals on operating lease contracts should not be construed to reflect total charter hire revenues that may be recognized for any of the years. (iv) As described in Note 5 to the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year ended December 31, 2016 , the Tangguh LNG Carriers’ time-charter contracts and two bareboat charter contracts for two LNG carriers chartered to Awilco LNG ASA (or Awilco ) are accounted for as direct financing leases. In June 2017, the Partnership amended the charters with Awilco to defer a portion of charter hire and extend the bareboat charter contracts and related purchase obligations on both vessels to December 2019. The amendments have the effect of deferring between $10,600 per day and $20,600 per day per vessel from July 1, 2017 until December 2019, with such deferred amounts added to the purchase obligation amounts. As a result of the contract amendments, the charter contracts with Awilco will be reclassified to operating leases from direct finance leases upon the expiry of the original terms of the contracts with Awilco in November 2017 and August 2018. |
Advances to Equity-Accounted Jo
Advances to Equity-Accounted Joint Ventures | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Advances to Equity-Accounted Joint Ventures | Advances to Equity-Accounted Joint Ventures a) During the nine months ended September 30, 2017 , the Partnership's 50 / 50 joint venture (or the Yamal LNG Joint Venture ) with China LNG Shipping (Holdings) Limited (or China LNG ) converted the $195.0 million advances of each joint venture partner, including accrued interest, into contributed capital of the joint venture. As at December 31, 2016 , the Partnership had advanced $146.7 million to the Yamal LNG Joint Venture and the interest accrued on these advances was $9.4 million . Both the contributed capital and advances are included in investments and advances to equity-accounted joint ventures in the Partnership’s consolidated balance sheets. b) As of September 30, 2017 , the Partnership had advanced $52.3 million to Exmar LPG BVBA (December 31, 2016 – $52.3 million ), the Partnership's 50 / 50 joint venture with Exmar NV (or Exmar ). These advances bear interest at LIBOR plus 0.50% and have no fixed repayment terms. As at September 30, 2017 , the interest receivable on the advances was $ nil ( December 31, 2016 – $1.1 million ). Both the advances and the interest receivable on these advances are included in investments and advances to equity-accounted joint ventures in the Partnership’s consolidated balance sheets. c) As of September 30, 2017 , the Partnership had advanced $79.1 million to Bahrain LNG W.L.L. ( December 31, 2016 – $62.9 million ), the Partnership's 30% owned joint venture with National Oil and Gas Authority (or Nogaholding) ( 30% ), Gulf Investment Corporation ( 24% ) and Samsung C&T ( 16% ) (or the Bahrain LNG Joint Venture ). As of September 30, 2017 , the interest accrued on these advances was $0.1 million ( December 31, 2016 – $0.1 million ). Both the advances and the accrued interest on these advances are included in investments and advances to equity-accounted joint ventures in the Partnership’s consolidated balance sheets. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt September 30, 2017 December 31, 2016 $ $ U.S. Dollar-denominated Revolving Credit Facilities due in 2018 339,809 208,222 U.S. Dollar-denominated Term Loans due from 2018 to 2026 933,166 1,005,199 Norwegian Kroner-denominated Bonds due from 2018 to 2021 389,320 371,329 Euro-denominated Term Loans due from 2018 to 2023 233,764 219,733 Other U.S. Dollar-denominated loan 10,000 — Total principal 1,906,059 1,804,483 Unamortized discount and debt issuance costs (9,652 ) (13,257 ) Total debt 1,896,407 1,791,226 Less current portion (516,232 ) (188,511 ) Long-term debt 1,380,175 1,602,715 As at September 30, 2017 , the Partnership had three revolving credit facilities available of which two credit facilities are current and one is long-term. The three credit facilities, as at such date, provided for borrowings of up to $429.8 million ( December 31, 2016 – $451.9 million ), of which $90.0 million ( December 31, 2016 – $243.7 million ) was undrawn. Interest payments are based on LIBOR plus margins, which margins ranged from 0.55% to 1.25% . In November 2017, the Partnership refinanced its $170 million revolving credit facility maturing in 2017 with a new $190 million revolving credit facility maturing in November 2018 (see Note 16f). The amount available under the three revolving credit facilities reduces by $6.1 million (remainder of 2017 ) and $423.7 million ( 2018 ). The revolving credit facilities may be used by the Partnership to fund general partnership purposes and to fund cash distributions. The Partnership is required to repay all borrowings used to fund cash distributions within 12 months of their being drawn, from a source other than further borrowings. One of the revolving credit facilities is unsecured, while the other two revolving credit facilities are collateralized by first-priority mortgages granted on four of the Partnership’s vessels, together with other related security, and include a guarantee from the Partnership or its subsidiaries of all outstanding amounts. The Partnership is in the process of seeking to extend the other two revolving credit facilities (see Note 11b). As at September 30, 2017 , the Partnership had six U.S. Dollar-denominated term loans outstanding which totaled $933.2 million in aggregate principal amount ( December 31, 2016 – $1.0 billion ). Interest payments on the term loans are based on LIBOR plus a margin, which margins ranged from 0.30% to 2.80% . The six term loans require quarterly interest and principal payments and have balloon or bullet repayments due at maturity. The term loans are collateralized by first-priority mortgages on 14 of the Partnership’s vessels to which the loans relate, together with certain other related security. In addition, at September 30, 2017 , all of the outstanding term loans were guaranteed by either the Partnership or Teekay Nakilat Corporation, of which the Partnership is a 70% owner (or the Teekay Nakilat Joint Venture ). The Partnership has Norwegian Kroner (or NOK ) 3.1 billion of senior unsecured bonds in the Norwegian bond market that mature through 2021. As at September 30, 2017 , the total amount of the bonds, which are listed on the Oslo Stock Exchange, was $ 389.3 million ( December 31, 2016 – $371.3 million ). The interest payments on the bonds are based on NIBOR plus a margin, which margins ranged from 3.70% to 6.00% . The Partnership entered into cross-currency rate swaps, to swap all interest and principal payments of the bonds into U.S. Dollars, with the interest payments fixed at rates ranging from 5.92% to 7.70% and the transfer of principal fixed at $430.5 million upon maturity in exchange for NOK 3.1 billion (see Note 10). The Partnership has two Euro-denominated term loans outstanding, which as at September 30, 2017 , totaled 197.9 million Euros ($ 233.8 million ) ( December 31, 2016 – 208.9 million Euros ( $219.7 million )). Interest payments are based on EURIBOR plus margins, which margins ranged from 0.60% to 2.25% as at September 30, 2017 , and the loans require monthly interest and principal payments. The term loans have varying maturities through 2023. The term loans are collateralized by first-priority mortgages on two vessels to which the loans relate, together with certain other related security and are guaranteed by the Partnership and one of its subsidiaries. The weighted-average interest rates for the Partnership’s long-term debt outstanding at September 30, 2017 and December 31, 2016 were 3.15% and 3.03% , respectively. These rates do not reflect the effect of related interest rate swaps that the Partnership has used to economically hedge certain of its floating-rate debt (see Note 10). At September 30, 2017 , the margins on the Partnership’s outstanding revolving credit facilities and term loans ranged from 0.30% to 2.80% . All Euro-denominated term loans and NOK-denominated bonds are revalued at the end of each period using the then-prevailing U.S. Dollar exchange rate. Due primarily to the revaluation of the Partnership’s NOK-denominated bonds, the Partnership’s Euro-denominated term loans and restricted cash, and the change in the valuation of the Partnership’s cross-currency swaps, the Partnership incurred foreign exchange (losses) gains of ($5.1) million and $0.5 million for the three months ended September 30, 2017 and 2016 , respectively, and ($24.5) million and ($10.1) million for nine months ended September 30, 2017 and 2016 , respectively. The aggregate annual long-term debt principal repayments required subsequent to September 30, 2017 , including the impact of the revolving credit facility refinancing completed in November 2017, are $46.1 million (remainder of 2017 ), $717.1 million ( 2018 ), $88.9 million ( 2019 ), $346.4 million ( 2020 ), $345.6 million ( 2021 ) and $362.0 million ( thereafter ). Certain loan agreements require that (a) the Partnership maintain minimum levels of tangible net worth and aggregate liquidity, (b) the Partnership maintain certain ratios of vessel values related to the relevant outstanding loan principal balance, (c) the Partnership not exceed a maximum amount of leverage, and (d) certain of the Partnership’s subsidiaries maintain restricted cash deposits. As at September 30, 2017 , the Partnership had two facilities with an aggregate outstanding loan balance of $95.1 million that require it to maintain minimum vessel-value-to-outstanding-loan-principal-balance ratios ranging from 110% to 135% , which as at September 30, 2017 ranged from 121% to 232% . The vessel values were determined using second-hand market comparables or using a depreciated replacement cost approach. Since vessel values can be volatile, the Partnership’s estimates of market value may not be indicative of either the current or future prices that could be obtained if the Partnership sold any of the vessels. The Partnership’s ship-owning subsidiaries may not, among other things, pay dividends or distributions if the Partnership's subsidiaries are in default under their term loans or revolving credit facilities. As at September 30, 2017 , the Partnership was in compliance with all covenants relating to the Partnership’s credit facilities and term loans. The Partnership maintains restricted cash deposits relating to certain term loans, collateral for cross-currency swaps (see Note 10), project tenders, leasing arrangements (see Note 11c) and amounts received from charterers to be used only for dry-docking expenditures and emergency repairs, which cash totaled $93.0 million and $117.0 million as at September 30, 2017 and December 31, 2016 , respectively. |
Income Tax
Income Tax | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Income Tax The components of the provision for income taxes were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 $ $ $ $ Current (750 ) (209 ) (1,224 ) (722 ) Deferred — — 81 — Income tax expense (750 ) (209 ) (1,143 ) (722 ) |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions a) Two of the Partnership’s LNG carriers, the Arctic Spirit and Polar Spirit , are employed on long-term charter contracts with subsidiaries of Teekay Corporation. In addition, the Partnership and certain of its operating subsidiaries have entered into service agreements with certain subsidiaries of Teekay Corporation pursuant to which the Teekay Corporation subsidiaries provide the Partnership and its subsidiaries with administrative, commercial, crew training, advisory, business development, technical and strategic consulting services. The Partnership also has an agreement with a subsidiary of Teekay Corporation whereby Teekay Corporation’s subsidiary will, on behalf of the Partnership, provide shipbuilding supervision and crew training services for the four LNG carrier newbuildings in the Partnership’s joint venture with China LNG, CETS Investment Management (HK) Co. Ltd. and BW LNG Investments Pte. Ltd. (or the Pan Union Joint Venture ), up to their delivery dates. All costs incurred by these Teekay Corporation subsidiaries related to these services are charged to the Partnership and recorded as part of vessel operating expenses. Finally, the Partnership reimburses the General Partner for expenses incurred by the General Partner that are necessary for the conduct of the Partnership’s business. Such related party transactions were as follows for the periods indicated: Three Months Ended Nine Months Ended September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 $ $ $ $ Revenues (i) 9,296 9,429 26,851 28,075 Vessel operating expenses (5,133 ) (5,107 ) (14,713 ) (15,023 ) General and administrative expenses (ii) (901 ) (3,437 ) (5,363 ) (8,666 ) General and administrative expenses (iii) (152 ) (116 ) (659 ) (442 ) (i) Commencing in 2008, the Arctic Spirit and Polar Spirit were time-chartered to Teekay Corporation at a fixed-rate for a period of 10 years (plus options exercisable by Teekay Corporation to extend up to an additional 15 years). (ii) Includes commercial, strategic, advisory, business development and administrative management fees charged by Teekay Corporation and reimbursements to Teekay Corporation and the Partnership's General Partner for costs incurred on the Partnership’s behalf. (iii) Includes the Partnership's proportionate costs associated with the Bahrain LNG Joint Venture, including pre-operation, engineering and financing-related expenses, of which $0.4 million and $0.9 million were reimbursed by the Bahrain LNG Joint Venture for the three and nine months ended September 30, 2017 , respectively ($ nil for the three and nine months ended September 30, 2016 ). The net costs are recorded as part of investments in and advances to equity-accounted joint ventures in the Partnership's consolidated balance sheets. b) As at September 30, 2017 and December 31, 2016 , non-interest bearing advances to affiliates totaled $9.2 million and $9.7 million , respectively, and non-interest bearing advances from affiliates totaled $9.9 million and $15.5 million , respectively. These advances are unsecured and have no fixed repayment terms. Affiliates are entities that are under common control with the Partnership. c) The Partnership’s Suezmax tanker, the Toledo Spirit , operates pursuant to a time-charter contract that increases or decreases the otherwise fixed-hire rate established in the charter depending on the spot charter rates that the Partnership would have earned had it traded the vessel in the spot tanker market. The time-charter contract ends in August 2025, although the charterer has the right to terminate the time-charter in July 2018. The Partnership has entered into an agreement with Teekay Corporation under which Teekay Corporation pays the Partnership any amounts payable to the charterer as a result of spot rates being below the fixed rate, and the Partnership pays Teekay Corporation any amounts payable to the Partnership as a result of spot rates being in excess of the fixed rate. The amounts receivable or payable to Teekay Corporation are settled annually (see Notes 3 and 10). d) The Partnership entered into services agreements with certain subsidiaries of Teekay Corporation pursuant to which the Teekay Corporation subsidiaries provide the Partnership with shipbuilding and site supervision services relating to the LNG carrier newbuildings the Partnership has ordered. These costs are capitalized and included as part of advances on newbuilding contracts in the Partnership’s consolidated balance sheets. For the three and nine months ended September 30, 2017 , the Partnership incurred shipbuilding and site supervision costs of $4.0 million and $13.4 million , respectively ( $2.1 million and $7.0 million for the three and nine months ended September 30, 2016 , respectively). e) The Partnership entered into an operation and maintenance (or O&M ) contract with the Bahrain LNG Joint Venture and an O&M subcontract with Teekay Marine Solutions (Bermuda) Ltd. (or TMS ), an entity wholly-owned by Teekay Tankers Ltd. (or TNK ), which is controlled by Teekay Corporation, relating to the LNG regasification terminal in Bahrain. The Partnership, as the contractor, and TMS, as the subcontractor, agreed to provide pre-mobilization services up to August 2018, and mobilization services and other general operational and maintenance services of the facility thereafter. The subcontractor fees from TMS of $0.1 million and $0.3 million for the three and nine months ended September 30, 2017 , respectively (three and nine months ended September 30, 2016 – $ nil ), and cost recoveries from the Bahrain LNG Joint Venture of a nominal amount and $0.2 million for the three and nine months ended September 30, 2017 , respectively (three and nine months ended September 30, 2016 – $ nil ), are included in general and administrative expenses on the Partnership’s consolidated statements of (loss) income. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Partnership uses derivative instruments in accordance with its overall risk management policy. Foreign Exchange Risk From 2013 through 2017, concurrently with the issuance of NOK senior unsecured bonds (see Note 7) during that time, the Partnership entered into cross-currency swaps, and pursuant to these swaps, the Partnership receives the principal amount in NOK on maturity dates of the swaps in exchange for payments of a fixed U.S. Dollar amount. In addition, the cross-currency swaps exchange a receipt of floating interest in NOK based on NIBOR plus a margin for a payment of U.S. Dollar fixed interest. The purpose of the cross-currency swaps is to economically hedge the foreign currency exposure on the payment of interest and principal of the Partnership’s NOK-denominated bonds due in 2018 , 2020 and 2021 , and to economically hedge the interest rate exposure. The following table reflects information relating to the cross-currency swaps as at September 30, 2017 . Floating Rate Receivable Principal Amount NOK (in thousands) Principal Amount $ Reference Rate Margin Fixed Rate Payable Fair Value / Carrying Amount of Asset (Liability) $ Weighted- Average Remaining Term (Years) 900,000 150,000 NIBOR 4.35 % 6.43 % (39,088 ) 0.9 1,000,000 134,000 NIBOR 3.70 % 5.92 % (9,862 ) 2.6 1,200,000 146,500 NIBOR 6.00 % 7.70 % 7,682 4.1 (41,268 ) Interest Rate Risk The Partnership enters into interest rate swaps which exchange a receipt of floating interest for a payment of fixed interest to reduce the Partnership’s exposure to interest rate variability on certain of its outstanding floating-rate debt. As at September 30, 2017 , the Partnership was committed to the following interest rate swap agreements: Interest Rate Index Principal Amount $ Fair Value / Carrying Amount of (Liability) $ Weighted- Average Remaining Term (years) Fixed Interest Rate (i) LIBOR-Based Debt: U.S. Dollar-denominated interest rate swaps LIBOR 90,000 (3,257 ) 0.9 4.9 U.S. Dollar-denominated interest rate swaps (ii) LIBOR 143,750 (23,754 ) 11.3 5.2 U.S. Dollar-denominated interest rate swaps (ii) LIBOR 42,845 (898 ) 3.8 2.8 U.S. Dollar-denominated interest rate swaps (iii) LIBOR 331,933 (20,538 ) 1.8 3.4 U.S. Dollar-denominated interest rate swaps (iv) LIBOR 101,833 (171 ) 1.3 1.7 U.S. Dollar-denominated interest rate swaps (v) LIBOR 197,629 (1,408 ) 9.2 2.3 EURIBOR-Based Debt: Euro-denominated interest rate swaps (vi) EURIBOR 233,763 (30,813 ) 3.2 3.1 (80,839 ) (i) Excludes the margins the Partnership pays on its floating-rate term loans, which, at September 30, 2017 , ranged from 0.30% to 2.80% . (ii) Principal amount reducing semi-annually. (iii) These interest rate swaps are being used to economically hedge expected interest payments on future debt that is planned to be outstanding from 2017 to 2024 . These interest rate swaps are subject to mandatory early termination in 2018 and 2020 whereby the swaps will be settled based on their fair value at that time. (iv) Principal amount reducing quarterly. (v) Principal amount reducing quarterly commencing December 2017. (vi) Principal amount reducing monthly to 70.1 million Euros ( $82.8 million ) by the maturity dates of the swap agreements. As part of its economic hedging program, the Partnership has one interest rate swaption agreement. Pursuant to the swaption agreement, the Partnership has a one-time option (or Call Option ) to enter into an interest rate swap with a third party, and the third party has a one-time option (or Put Option ) to require the Partnership to enter into an interest swap. If the Partnership or the third party exercises its option, there will be a cash settlement for the fair value of the interest rate swap, in lieu of taking delivery of the actual interest rate swap. At September 30, 2017 , the terms of the interest rate swap underlying the interest rate swaption was as follows: Interest Rate Index Principal Amount $ Option Exercise Date Carrying Amount of Assets (Liability) $ Remaining Term (Years) Fixed Interest Rate (%) Interest rate swaption - Call Option LIBOR 160,000 (i) January 31, 2018 15 8.0 3.1 Interest rate swaption - Put Option LIBOR 160,000 (i) January 31, 2018 (535) 8.0 2.0 (i) Amortizing every three months from $160.0 million in January 2018 to $82.5 million in January 2026. As at September 30, 2017 , the Partnership had multiple interest rate swaps, interest rate swaptions, and cross-currency swaps with the same counterparty that are subject to the same master agreements. Each of these master agreements provides for the net settlement of all swaps subject to that master agreement through a single payment in the event of default or termination of any one swap. The fair value of these derivative instruments is presented on a gross basis in the Partnership’s consolidated balance sheets. As at September 30, 2017 , these interest rate swaps, interest rate swaptions, and cross-currency swaps had an aggregate fair value asset of $7.7 million and an aggregate fair value liability of $80.7 million . As at September 30, 2017 , the Partnership had $14.2 million ( December 31, 2016 – $37.8 million ) on deposit as security for swap liabilities under certain master agreements. The deposit is presented in restricted cash – current and – long-term on the Partnership’s consolidated balance sheets. Credit Risk The Partnership is exposed to credit loss in the event of non-performance by the counterparties to the interest rate swap agreements. In order to minimize counterparty risk, the Partnership only enters into derivative transactions with counterparties that are rated A- or better by Standard & Poor’s or A3 or better by Moody’s at the time of the transactions. In addition, to the extent practical, interest rate swaps are entered into with different counterparties to reduce concentration risk. Other Derivative In order to reduce the variability of its revenue, the Partnership has entered into an agreement with Teekay Corporation under which Teekay Corporation pays the Partnership any amounts payable to the charterer of the Toledo Spirit as a result of spot rates being below the fixed rate, and the Partnership pays Teekay Corporation any amounts payable to the Partnership by the charterer of the Toledo Spirit as a result of spot rates being in excess of the fixed rate. The fair value of the derivative asset at September 30, 2017 was $2.4 million ( December 31, 2016 – asset of $2.1 million ). The following table presents the classification and fair value amounts of derivative instruments, segregated by type of contract, on the Partnership’s consolidated balance sheets. Advances to affiliates Current portion of derivative assets $ Derivative assets $ Accrued liabilities $ Current portion of derivative liabilities $ Derivative liabilities $ As at September 30, 2017 Interest rate swap agreements — — 636 (1,990 ) (27,817 ) (51,668 ) Interest rate swaption agreements — 15 — — (535 ) — Cross-currency swap agreements — — 8,688 (700 ) (41,612 ) (7,644 ) Toledo Spirit time-charter derivative 646 1,744 — — — — 646 1,759 9,324 (2,690 ) (69,964 ) (59,312 ) As at December 31, 2016 Interest rate swap agreements — — 1,080 (5,514 ) (22,432 ) (59,735 ) Interest rate swaption agreements — 31 3,252 — (1,525 ) (2,705 ) Cross-currency swap agreements — — — (1,090 ) (32,843 ) (65,853 ) Toledo Spirit time-charter derivative 1,274 500 360 — — — 1,274 531 4,692 (6,604 ) (56,800 ) (128,293 ) Realized and unrealized gains (losses) relating to non-designated interest rate swap agreements, interest rate swaption agreements, and the Toledo Spirit time-charter derivative are recognized in earnings and reported in realized and unrealized (loss) gain on non-designated derivative instruments in the Partnership’s consolidated statements of (loss) income. The effect of the gain (loss) on these derivatives on the Partnership’s consolidated statements of (loss) income is as follows: Three Months Ended September 30, 2017 2016 Realized Unrealized Total Realized Unrealized Total $ $ $ $ $ $ Interest rate swap agreements (4,528 ) 1,775 (2,753 ) (6,494 ) 8,436 1,942 Interest rate swaption agreements — 285 285 — 1,992 1,992 Toledo Spirit time-charter derivative 646 (356 ) 290 (10 ) 1,080 1,070 (3,882 ) 1,704 (2,178 ) (6,504 ) 11,508 5,004 Nine Months Ended September 30, 2017 2016 Realized gains (losses) Unrealized gains (losses) Total Realized gains (losses) Unrealized gains (losses) Total $ $ $ $ $ $ Interest rate swap agreements (13,813 ) 4,211 (9,602 ) (19,750 ) (18,441 ) (38,191 ) Interest rate swaption agreements — 427 427 — (16,765 ) (16,765 ) Interest rate swaption agreements termination (610 ) — (610 ) — — — Toledo Spirit time-charter derivative 526 884 1,410 620 3,930 4,550 (13,897 ) 5,522 (8,375 ) (19,130 ) (31,276 ) (50,406 ) Realized and unrealized gains (losses) relating to cross-currency swap agreements are recognized in earnings and reported in foreign currency exchange (loss) gain in the Partnership’s consolidated statements of (loss) income. The effect of the gain (loss) on these derivatives on the Partnership's consolidated statements of (loss) income is as follows: Three Months Ended September 30, 2017 2016 Realized gains (losses) Unrealized gains (losses) Total Realized gains (losses) Unrealized gains (losses) Total $ $ $ $ $ $ Cross-currency swap agreements (1,598 ) 20,523 18,925 (2,283 ) 20,217 17,934 (1,599 ) 20,523 18,925 (2,283 ) 20,217 17,934 Nine Months Ended September 30, 2017 2016 Realized gains (losses) Unrealized gains (losses) Total Realized gains (losses) Unrealized gains (losses) Total $ $ $ $ $ $ Cross-currency swap agreements (7,219 ) 58,128 50,909 (6,903 ) 34,958 28,055 Cross-currency swap agreements termination (25,733 ) — (25,733 ) — — — (32,952 ) 58,128 25,176 (6,903 ) 34,958 28,055 For the periods indicated, the following table presents the effective and ineffective portions of gains or losses on interest rate swap agreements designated and qualifying as cash flow hedges. The following table excludes any interest rate swap agreements designated and qualifying as cash flow hedges in the Partnership’s equity-accounted joint ventures. Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Effective Portion Recognized in AOCI (i) $ Effective Portion Reclassified from AOCI (ii) $ Ineffective Portion (iii) $ Effective Portion Recognized in AOCI (i) $ Effective Portion Reclassified from AOCI (ii) $ Ineffective Portion (iii) $ (116 ) — (8 ) Interest expense 842 — (130 ) Interest expense (116 ) — (8 ) 842 — (130 ) Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Effective Portion Recognized in AOCI (i) $ Effective Portion Reclassified from AOCI (ii) $ Ineffective Portion (iii) $ Effective Portion Recognized in AOCI (i) $ Effective Portion Reclassified from AOCI (ii) $ Ineffective Portion (iii) $ (1,218 ) — (755 ) Interest expense (8,673 ) — (1,044 ) Interest expense (1,218 ) — (755 ) (8,673 ) — (1,044 ) (i) Effective portion of designated and qualifying cash flow hedges recognized in other comprehensive (loss) income. (ii) Effective portion of designated and qualifying cash flow hedges recorded in accumulated other comprehensive loss (or AOCI ) during the term of the hedging relationship and reclassified to earnings. (iii) Ineffective portion of designated and qualifying cash flow hedges. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies a) The Partnership’s share of commitments to fund newbuilding and other construction contract costs as at September 30, 2017 are as follows: Total Remainder of 2017 2018 2019 2020 Consolidated LNG carrier newbuildings (i) 1,165,701 376,960 536,671 252,070 — Equity-accounted joint ventures (ii) 1,183,589 110,937 556,064 318,683 197,905 2,349,290 487,897 1,092,735 570,753 197,905 (i) As at September 30, 2017 , the Partnership had eight LNG carrier newbuildings on order which are scheduled for delivery between the remainder of 2017 and 2019. These commitment amounts are described in more detail in Note 13a of the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year-ended December 31, 2016 . The Partnership has secured $1.0 billion of financing related to the remaining commitments for seven of the eight LNG carrier newbuildings included in the table above (see Note 5(ii) and Note 16e). (ii) The commitment amounts relating to the Partnership’s share of costs for newbuilding and other construction contracts in the Partnership’s equity-accounted joint ventures are based on the Partnership’s ownership percentage in each respective joint venture as of September 30, 2017 . These commitments are described in more detail in Note 13a of the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year-ended December 31, 2016 . Based on the Partnership's ownership percentage in each respective joint venture, the Partnership's equity-accounted joint ventures have secured $336 million of financing related to the remaining commitments included in the table above. b) Management is required to assess if the Partnership will have sufficient liquidity to continue as a going concern for the one-year period following the issuance of its financial statements. The Partnership anticipates making payments related to commitments to fund its wholly-owned vessels under construction of $377.0 million during the remainder of 2017 and $536.7 million during 2018 as well as other payments relating to its equity-accounted joint ventures (see Note 11a(ii)). Over the one-year period following the issuance of its financial statements, the Partnership will need to obtain additional sources of financing, in addition to amounts generated from operations, to meet its minimum liquidity requirements under its financial covenants. These anticipated sources of financing include refinancing loan facilities maturing in the fourth quarter of 2017 and mid-2018 as well as obtaining new debt financing for the unfinanced portion of the Partnership's vessels under construction (see Note 16f). The Partnership is actively pursuing the alternatives described above, which it considers probable of completion based on the Partnership’s history of being able to refinance similar loan facilities and to obtain new financing for its vessels under construction, as well as the progress it has made on the financing process to date. The Partnership is in various stages of completion with respect to its anticipated new financing facilities (see Note 16e). Based on the Partnership’s liquidity at the date these consolidated financial statements were issued, the liquidity the Partnership expects to generate from operations over the following year, and by incorporating the Partnership’s plans to raise additional liquidity that it considers probable of completion, the Partnership estimates that it will have sufficient liquidity to continue as a going concern for at least the one-year period following the issuance of these consolidated financial statements. c) The Partnership owns a 70% interest in the Teekay Nakilat Joint Venture, which was the lessee under three separate 30 -year capital lease arrangements with a third party for three LNG carriers (or the RasGas II LNG Carriers ). Under the terms of the leasing arrangements for the RasGas II LNG Carriers, the lessor claimed tax depreciation on the capital expenditures it incurred to acquire these vessels. As is typical in these leasing arrangements, tax and change of law risks were assumed by the lessee, in this case the Teekay Nakilat Joint Venture. Lease payments under the lease arrangements were based on certain tax and financial assumptions at the commencement of the leases and subsequently adjusted to maintain the lessor’s agreed after-tax margin. On December 22, 2014, the Teekay Nakilat Joint Venture terminated the leasing arrangements of the RasGas II LNG Carriers. However, the Teekay Nakilat Joint Venture remains obligated to the lessor to maintain the lessor’s agreed after-tax margin from the commencement of the lease to the lease termination date and placed $6.8 million on deposit with the lessor as security against any future claims, which deposit is recorded as part of restricted cash - long-term in the Partnership’s consolidated balance sheets. The UK taxing authority (or HMRC ) has been challenging the use of similar lease structures in the UK courts. One of those challenges was eventually decided in favor of HMRC (Lloyds Bank Equipment Leasing No. 1 or LEL1 ), with the lessor and lessee choosing not to appeal the decision further. The LEL1 tax case concluded that capital allowances were not available to the lessor. On the basis of this conclusion, HMRC is now asking lessees on other leases, including the Teekay Nakilat Joint Venture, to accept that capital allowances are not available to their lessor. The Teekay Nakilat Joint Venture does not accept this contention and has informed HMRC of this position. It is not known at this time whether the Teekay Nakilat Joint Venture would eventually prevail in court. If the former lessor of the RasGas II LNG Carriers were to lose on a similar claim from HMRC, the Partnership’s 70% share of Teekay Nakilat Joint Venture's potential exposure is estimated to be approximately $42 million . Such estimate is primarily based on information received from the lessor. |
Total Capital and Net (Loss) In
Total Capital and Net (Loss) Income Per Unit | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Total Capital and Net (Loss) Income Per Unit | Total Capital and Net (Loss) Income Per Unit At September 30, 2017 , approximately 68.3% of the Partnership’s common units outstanding were held by the public. The remaining common units, as well as the 2% general partner interest, were held by a subsidiary of Teekay Corporation. All of the Partnership's 5.0 million outstanding 9.00% Series A Cumulative Redeemable Perpetual Preferred Units (or the Series A Preferred Units ) are held by the public. In October 2017, the Partnership issued 6.8 million Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Units (or Series B Preferred Units ) (see Note 16c). Net (Loss) Income Per Common Unit Limited partners' interest in net (loss) income per common unit is determined by dividing (a) net (loss) income, after deducting the amount of net income attributable to the non-controlling interest, the General Partner’s interest and the distributions on the Series A Preferred Units by (b) the weighted-average number of common units outstanding during the period. The computation of limited partners’ interest in net income per common unit - diluted assumes the exercise of all dilutive restricted units using the treasury stock method. The computation of limited partners’ interest in net loss per common unit - diluted does not assume such exercises as the effect would be anti-dilutive. The distributions payable on the Series A Preferred Units for the three and nine months ended September 30, 2017 were $2.8 million and $8.3 million , respectively (three and nine months ended September 30, 2016 – $ nil ). The General Partner’s and common unitholders’ interests in net (loss) income are calculated as if all net (loss) income was distributed according to the terms of the Partnership’s partnership agreement, regardless of whether those earnings would or could be distributed. The partnership agreement does not provide for the distribution of net income; rather, it provides for the distribution of available cash, which is a contractually defined term that generally means all cash on hand at the end of each quarter after establishment of cash reserves determined by the Partnership’s board of directors to provide for the proper conduct of the Partnership’s business, including reserves for maintenance and replacement capital expenditure and anticipated credit needs. In addition, the General Partner is entitled to incentive distributions if the amount the Partnership distributes to common unitholders with respect to any quarter exceeds specified target levels. Unlike available cash, net (loss) income is affected by non-cash items, such as depreciation and amortization, unrealized gains or losses on non-designated derivative instruments and foreign currency translation gains or losses. During the three and nine months ended September 30, 2017 and 2016 , cash distributions were below $0.4625 per common unit and, consequently, the assumed distribution of net (loss) income was based on the limited partners' and General Partner’s ownership percentage for purposes of the net (loss) income per common unit calculation. For more information on the increasing percentages used to calculate the General Partner’s interest in net (loss) income, please refer to the Partnership’s Annual Report on Form 20-F for the year ended December 31, 2016 . Pursuant to the partnership agreement, allocations to partners are made on a quarterly basis. |
Unit-Based Compensation
Unit-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Unit-Based Compensation | Unit-Based Compensation In March 2017, a total of 17,345 common units, with an aggregate value of $0.3 million , were granted to the non-management directors of the General Partner as part of their annual compensation for 2017 . The Partnership grants restricted unit awards as incentive-based compensation under the Teekay LNG Partners L.P. 2005 Long-Term Incentive Plan to certain of the Partnership’s employees and to certain employees of Teekay Corporation’s subsidiaries that provide services to the Partnership. The Partnership measures the cost of such awards using the grant date fair value of the award and recognizes that cost, net of estimated forfeitures, over the requisite service period. The requisite service period consists of the period from the grant date of the award to the earlier of the date of vesting or the date the recipient becomes eligible for retirement. For unit-based compensation awards subject to graded vesting, the Partnership calculates the value for the award as if it was one single award with one expected life and amortizes the calculated expense for the entire award on a straight-line basis over the requisite service period. The compensation costs of the Partnership’s unit-based compensation awards are reflected in general and administrative expenses in the Partnership’s consolidated statements of (loss) income. During March 2017 and 2016, the Partnership granted 60,809 and 132,582 restricted units, respectively, with grant date fair values of $1.0 million and $1.5 million , respectively, to certain of the Partnership’s employees and to certain employees of Teekay Corporation’s subsidiaries who provide services to the Partnership, based on the Partnership’s closing unit price on the grant date. Each restricted unit is equal in value to one of the Partnership’s common units plus reinvested distributions from the grant date to the vesting date. The restricted units vest equally over three years from the grant date. Any portion of a restricted unit award that is not vested on the date of a recipient’s termination of service is canceled, unless their termination arises as a result of the recipient’s retirement, in which case, the restricted unit award will continue to vest in accordance with the vesting schedule. Upon vesting, the value of the restricted unit awards is paid to each recipient in the form of units, net of withholding tax. During the three and nine months ended September 30, 2017 , a total of nil and 54,999 restricted units (three and nine months ended September 30, 2016 , nil and 20,808 restricted units), respectively, with fair values of $ nil and $0.8 million , respectively (three and nine months ended September 30, 2016 , $ nil and $0.8 million ), vested. During the three and nine months ended September 30, 2017 , the Partnership recognized expenses of $0.1 million and $0.9 million , respectively (three and nine months ended September 30, 2016 , $0.1 million and $1.2 million , respectively), relating to the restricted units. |
Write-Down and Sale of Vessels
Write-Down and Sale of Vessels | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Write-Down and Sale of Vessels | Write-down and Sales of Vessels a) During February and March 2016, Centrofin Management Inc. (or Centrofin ), the charterer for both the Bermuda Spirit and Hamilton Spirit Suezmax tankers, exercised its option under the charter contracts to purchase both vessels. As a result of Centrofin’s acquisition of the vessels, the Partnership recorded an aggregate $27.4 million loss on the sale of the vessels and associated charter contracts in the first quarter of 2016. The Bermuda Spirit was sold on April 15, 2016 and the Hamilton Spirit was sold on May 17, 2016. The Partnership used the total proceeds of $94.3 million from the sales primarily to repay existing term loans associated with these vessels. b) On November 30, 2016, the Partnership reached an agreement to sell the Asian Spirit Suezmax tanker for net proceeds of $20.6 million . As at December 31, 2016 , the vessel was classified as held for sale in the Partnership’s consolidated balance sheet. The vessel delivered to the new owner on March 21, 2017. The Partnership used the net proceeds from the sale primarily to repay existing term loans associated with the vessel. c) In late-June 2017, the charterer for the European Spirit Suezmax tanker gave formal notice to the Partnership that it would not exercise its one -year extension option under the charter contract and the charterer redelivered the vessel to the Partnership in late-August 2017. Upon receiving this notification, the Partnership commenced marketing the vessel for sale and expects to sell the vessel between late-2017 to early-2018. As a result, the Partnership wrote-down the vessel to its estimated resale value and recorded a $12.6 million write-down of the vessel for the nine months ended September 30, 2017 and classified the vessel as held for sale in the Partnership's consolidated balance sheet at September 30, 2017 . d) In August 2017, the charterer for the African Spirit Suezmax tanker gave formal notice to the Partnership that it will not exercise its one -year extension option under the charter contract and will redeliver the vessel to the Partnership in November 2017. As a result, the Partnership wrote-down the vessel to its estimated resale value and recorded a $12.5 million write-down of the vessel for the three and nine months ended September 30, 2017 . e) Under the Partnership's charter contracts for the Teide Spirit and Toledo Spirit Suezmax tankers, the charterer, who is also the owner of the vessels, has the option to cancel the charter contracts 13 years following commencement of the respective charter contracts. In August 2017, the charterer of the Teide Spirit gave formal notification to the Partnership of its intention to terminate its charter contract subject to certain conditions being met and third-party approvals being received. In October 2017, the charterer notified the Partnership that it is marketing the Teide Spirit for sale and, upon sale of the vessel, it will concurrently terminate its existing charter contract with the Partnership. The charterer’s cancellation option for the Toledo Spirit is first exercisable in August 2018. Given the Partnership's prior experience with this charterer, the Partnership expects it will also cancel the charter contract and sell the Toledo Spirit to a third party in 2018. The Partnership wrote-down the vessels to their estimated fair values based on their expected future discounted cash flows and recorded a $25.5 million write-down on a combined basis of the Teide Spirit and Toledo Spirit for the three and nine months ended September 30, 2017 . |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information During the nine months ended September 30, 2017 , the Partnership acquired a 100% ownership interest in Skaugen Gulf Petchem Carriers B.S.C.(c) (or the Skaugen LPG Joint Venture ), which owned the LPG carrier Norgas Sonoma , from I.M. Skaugen SE (or Skaugen ) ( 35% ), The Oil & Gas Holding Company B.S.C.(c) ( 35% ) and Suffun Bahrain W.L.L. ( 30% ) for $13.2 million . The Partnership applied $4.6 million of the outstanding hire owed by Skaugen to the Partnership as a portion of the purchase price to acquire the Skaugen LPG Joint Venture, which was treated as a non-cash transaction in the Partnership’s consolidated statements of cash flows. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events a) On October 13, 2017, the Pan Union Joint Venture took delivery of its first LNG carrier newbuilding, the Pan Asia, which the Partnership has a 30% ownership interest. The vessel concurrently commenced its 20 -year charter contract with Shell. b) On October 19, 2017, the Partnership took delivery of an LNG carrier newbuilding, the Macoma, which concurrently commenced its six -year charter contract with Shell. c) On October 23, 2017, the Partnership issued 6.8 million units (including 0.8 million units issued upon partial exercise of the underwriter's over-allotment option) of its Series B Preferred Units at $25.00 per unit in a public offering for net proceeds of approximately $164 million . Distributions are payable on the Series B Preferred Units from the issuance date to October 14, 2027, at a rate of 8.5% per annum of the stated liquidation preference of $25.00 and from and after October 15, 2027, at a floating rate equal to three-month LIBOR plus a margin of 6.241% . At any time after October 15, 2027, the Partnership may redeem the Series B Preferred Units, in whole or in part, at a redemption price of $25.00 per unit plus all accumulated and unpaid distributions thereon to the date of redemption. The Partnership expects to use the net proceeds from the public offering for general partnership purposes, which may include debt repayments or funding installment payments on future newbuilding deliveries. The Series B Preferred Units are listed on the New York Stock Exchange. d) On November 1, 2017, the Partnership took delivery of an LNG carrier newbuilding, the Murex, which concurrently commenced its seven -year charter contract with Shell. e) On November 6, 2017, the Partnership completed a $327 million long-term debt facility to finance (a) floating storage unit (or FSU ) to be chartered on a 20 -year charter contract to the Bahrain regasification project scheduled to commence in the third quarter of 2018 and (b) one LNG carrier newbuilding to be chartered on a 13 -year charter contract with BP Plc starting in early-2019. f) On November 10, 2017, the Partnership refinanced its $170 million revolving credit facility, which was scheduled to mature in 2017, with a new $190 million revolving credit facility maturing in November 2018. g) On November 16, 2017, the Partnership cancelled the bareboat charter contracts on all six LPG carriers on charter to Skaugen. The Partnership expects to transfer the commercial management of these vessels, in addition to the Norgas Sonoma , into a newly formed pool, the Teekay Multigas Pool L.L.C., which is owned and operated by the Partnership. |
Accounting Pronouncements (Poli
Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Pronouncements | In May 2014, the Financial Accounting Standards Board (or FASB ) issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers , (or ASU 2014-09 ). ASU 2014-09 will require an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update creates a five-step model that requires entities to exercise judgment when considering the terms of the contract(s) which include (i) identifying the contract(s) with the customer, (ii) identifying the separate performance obligations in the contract, (iii) determining the transaction price, (iv) allocating the transaction price to the separate performance obligations, and (v) recognizing revenue as each performance obligation is satisfied. ASU 2014-09 is effective for the Partnership on January 1, 2018 and will be applied as a cumulative-effect adjustment as of this date. The Partnership’s only significant source of revenue that will be accounted for pursuant to ASU 2014-09 is its non-lease portion of time-charter contracts. Based on the Partnership’s preliminary assessment of ASU 2014-09, when applied to the standard terms of the Partnership’s time-charter contracts, no significant impact on the accounting for the non-lease portion of time-charter contracts is expected. The Partnership is in the final stages of completing its assessment of ASU 2014-09 and is focused on developing process changes, determining the transitional impact, and completing other items required for the adoption of ASU 2014-09. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (or ASU 2016-02 ). ASU 2016-02 establishes a right-of-use model that requires a lessee to record a right of use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The Partnership expects to adopt ASU 2016-02 on January 1, 2018. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Partnership’s lessee-related leasing activities primarily consist of on balance sheet finance leases. The accounting for such transactions is not significantly impacted by ASU 2016-02. The Partnership also has extensive lessor-related leasing activities, which consist of bareboat charter contracts and the lease portion of time-charter contracts. However, ASU 2016-02 does not make extensive changes to lessor accounting. Based on the Partnership’s preliminary assessment of ASU 2016-02 no significant impact on the accounting for its lessor-related leasing activities is expected. The Partnership is in the final stages of completing its assessment of ASU 2016-02 and is focused on developing process changes, determining the transitional impact, and completing other items required for the adoption of ASU 2016-02. In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments . This update replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This update is effective for the Partnership on January 1, 2020, with a modified-retrospective approach. The Partnership is currently evaluating the effect of adopting this new guidance. In August 2016, the FASB issued Accounting Standards Update 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments , which, among other things, provides guidance on two acceptable approaches of classifying distributions received from equity-method investees in the statements of cash flows. This update is effective for the Partnership on January 1, 2018, with a retrospective approach. The Partnership is currently evaluating the effect of adopting this new guidance. On November 2016, the FASB issued Accounting Standards Update 2016-18, Statement of Cash Flows: Restricted Cash (or ASU 2016-18) . ASU 2016-18 requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. ASU 2016-18 is effective for the Partnership on January 1, 2018. Adoption of ASU 2016-18 will result in the Partnership’s statements of cash flows to be modified to include changes in restricted cash in addition to changes in cash and cash equivalents. In August 2017, the FASB issued Accounting Standards Update 2017-12, Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities (or ASU 2017-12). ASU 2017-12 eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires, for qualifying hedges, the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The guidance also modifies the accounting for components excluded from the assessment of hedge effectiveness, eases documentation and assessment requirements and modifies certain disclosure requirements. ASU 2017-12 will be effective January 1, 2019. The Partnership is currently evaluating the effect of adopting this new guidance. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments, All Other Investments [Abstract] | |
Schedule of Estimated Fair Value of Partnership's Financial Instruments on Recurring Basis | The following table includes the estimated fair value and carrying value of those assets and liabilities that are measured at fair value on a recurring and non-recurring basis, as well as the estimated fair value of the Partnership’s financial instruments that are not accounted for at fair value on a recurring basis. September 30, 2017 December 31, 2016 Fair Value Hierarchy Level Carrying Amount Asset (Liability) $ Fair Value Asset (Liability) $ Carrying Amount Asset (Liability) $ Fair Value Asset (Liability) $ Recurring: Cash and cash equivalents and restricted cash Level 1 254,020 254,020 243,173 243,173 Derivative instruments (note 10) Interest rate swap agreements – assets Level 2 636 636 1,080 1,080 Interest rate swap agreements – liabilities Level 2 (81,475 ) (81,475 ) (87,681 ) (87,681 ) Interest rate swaption agreements – assets Level 2 15 15 3,283 3,283 Interest rate swaption agreements – liabilities Level 2 (535 ) (535 ) (4,230 ) (4,230 ) Cross-currency swap agreements – assets Level 2 8,688 8,688 — — Cross-currency swap agreements – liabilities Level 2 (49,956 ) (49,956 ) (99,786 ) (99,786 ) Other derivative Level 3 2,390 2,390 2,134 2,134 Non-recurring: Vessels held for sale (notes 14b and 14e) Level 2 17,000 17,000 20,580 20,580 Vessels and equipment (note 14d) Level 2 17,000 17,000 — — Vessels under capital leases (note 14e) Level 3 52,914 52,914 — — Other: Advances to equity-accounted joint ventures (note 6) (i) 131,439 (i) 272,514 (i) Long-term receivable included in accounts receivable and other assets (ii) Level 3 5,028 5,004 10,985 10,944 Long-term debt – public (note 7) Level 1 (387,831 ) (395,473 ) (368,612 ) (366,418 ) Long-term debt – non-public (note 7) Level 2 (1,508,576 ) (1,472,367 ) (1,422,614 ) (1,381,287 ) (i) The advances to equity-accounted joint ventures together with the Partnership’s equity investments in the joint ventures form the net aggregate carrying value of the Partnership’s interests in the joint ventures in these consolidated financial statements. The fair values of the individual components of such aggregate interests are not determinable. (ii) As described in Note 3 to the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year-ended December 31, 2016 , the estimated fair value of the non-interest bearing receivable from Royal Dutch Shell Plc (or Shell ) is based on the remaining future fixed payments as well as an estimated discount rate. The estimated fair value of this receivable as of September 30, 2017 was $5.0 million ( December 31, 2016 – $10.9 million ) using a discount rate of 8.0% . As there is no market rate for the equivalent of an unsecured non-interest bearing receivable from Shell, the discount rate is based on unsecured debt instruments of similar maturity held by the Partnership, adjusted for a liquidity premium. A higher or lower discount rate would result in a lower or higher fair value asset. |
Changes in Fair Value of Assets Measured on Recurring Basis Using Significant Unobservable Inputs (Level 3) | Changes in fair value during the nine months ended September 30, 2017 and 2016 for the Partnership’s other derivative instrument, the Toledo Spirit time-charter derivative, which is described below and is measured at fair value on a recurring basis using significant unobservable inputs (Level 3), are as follows: Nine Months Ended September 30, 2017 2016 $ $ Fair value at beginning of period 2,134 (6,296 ) Realized and unrealized gains included in earnings 1,410 4,550 Settlement payments (1,154 ) 2,556 Fair value at end of period 2,390 810 |
Summary of Partnership's Loan Receivables and Other Financing Receivables | The following table contains a summary of the Partnership’s loan receivables and other financing receivables by type of borrower and the method by which the Partnership monitors the credit quality of its financing receivables on a quarterly basis. September 30, 2017 December 31, 2016 Class of Financing Receivable Credit Indicator Grade $ $ Direct financing leases Payment activity Performing 633,805 643,008 Other receivables: Long-term receivable and accrued revenue included in accounts receivable and other assets Payment activity Performing 5,028 12,171 Advances to equity-accounted joint ventures (note 6) Other internal metrics Performing 131,439 272,514 770,272 927,693 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting Information | The following table includes results for the Partnership’s segments for the periods presented in these financial statements. Three Months Ended September 30, 2017 2016 Liquefied Gas Segment $ Conventional Tanker Segment $ Total $ Liquefied Gas Segment $ Conventional Tanker Segment $ Total $ Voyage revenues 92,700 11,585 104,285 87,260 13,398 100,658 Voyage expenses (716 ) (750 ) (1,466 ) (175 ) (180 ) (355 ) Vessel operating expenses (22,172 ) (4,552 ) (26,724 ) (16,751 ) (5,304 ) (22,055 ) Depreciation and amortization (22,580 ) (2,400 ) (24,980 ) (19,317 ) (4,724 ) (24,041 ) General and administrative expenses (i) (2,330 ) (463 ) (2,793 ) (3,008 ) (565 ) (3,573 ) Write-down and loss on sales of vessels — (38,000 ) (38,000 ) — — — Income (loss) from vessel operations 44,902 (34,580 ) 10,322 48,009 2,625 50,634 Equity income 1,417 — 1,417 13,514 — 13,514 Nine Months Ended September 30, 2017 2016 Liquefied Gas Segment $ Conventional Tanker Segment $ Total $ Liquefied Gas Segment $ Conventional Tanker Segment $ Total $ Voyage revenues 271,078 35,291 306,369 250,342 45,328 295,670 Voyage expenses (1,664 ) (2,235 ) (3,899 ) (418 ) (936 ) (1,354 ) Vessel operating expenses (62,211 ) (13,902 ) (76,113 ) (48,717 ) (17,603 ) (66,320 ) Depreciation and amortization (69,639 ) (8,255 ) (77,894 ) (58,476 ) (12,045 ) (70,521 ) General and administrative expenses (i) (9,283 ) (2,309 ) (11,592 ) (12,049 ) (2,816 ) (14,865 ) Write-down and loss on sales of vessels — (50,600 ) (50,600 ) — (27,439 ) (27,439 ) Income (loss) from vessel operations 128,281 (42,010 ) 86,271 130,682 (15,511 ) 115,171 Equity income 6,797 — 6,797 52,579 — 52,579 (i) Includes direct general and administrative expenses and indirect general and administrative expenses (allocated to each segment based on estimated use of corporate resources). |
Reconciliation of Total Segment Assets | A reconciliation of total segment assets to total assets presented in the consolidated balance sheets is as follows: September 30, 2017 December 31, 2016 $ $ Total assets of the liquefied gas segment 4,307,812 3,957,088 Total assets of the conventional tanker segment 115,168 193,553 Unallocated: Cash and cash equivalents 161,008 126,146 Accounts receivable and prepaid expenses 26,424 28,948 Advances to affiliates 9,245 9,739 Consolidated total assets 4,619,657 4,315,474 |
Vessel Charters (Tables)
Vessel Charters (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Leases [Abstract] | |
Minimum Estimated Charter Hire Payments | The minimum estimated charter hire and rental payments for the remainder of the year and the next four fiscal years, as at September 30, 2017 , for the Partnership’s vessels chartered-in and vessels chartered-out are as follows: Remainder of 2017 2018 2019 2020 2021 Vessel Charters (i) $ $ $ $ $ Charters-in – capital leases (ii) 44,728 138,934 119,499 118,938 110,246 Charters-out – operating leases (iii)(iv) 84,812 293,880 309,100 275,252 235,799 Charters-out – direct financing leases (iv) 15,091 45,872 39,065 39,172 39,065 99,903 339,752 348,165 314,424 274,864 (i) The Partnership owns 69% of Teekay BLT Corporation (or Teekay Tangguh Joint Venture ), which is a party to operating leases whereby the Teekay Tangguh Joint Venture is leasing the Tangguh Hiri and Tangguh Sago liquefied natural gas (or LNG ) carriers (or the Tangguh LNG Carriers ) to a third party, which is in turn leasing the vessels back to the joint venture. The table above does not include the Partnership’s minimum charter hire payments to be paid and received under these leases, which are described in more detail in Note 5 to the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year ended December 31, 2016 . Under the terms of the leasing arrangement for the Tangguh LNG Carriers, whereby the Teekay Tangguh Joint Venture is the lessee, the lessor claims tax depreciation on its lease of these vessels. As is typical in these types of leasing arrangements, tax and change of law risks are assumed by the lessee. Lease payments under the lease arrangements are based on certain tax and financial assumptions at the commencement of the leases. If an assumption proves to be incorrect, the lessor is entitled to increase the lease payments to maintain its agreed after-tax margin. The carrying amount of tax indemnification guarantees of the Partnership relating to the leasing arrangement through the Teekay Tangguh Joint Venture as at September 30, 2017 was $7.2 million ( December 31, 2016 – $7.5 million ) and is included as part of other long-term liabilities in the Partnership’s consolidated balance sheets. The tax indemnification is for the duration of the lease contracts with the third party plus the years it would take for the lease payments to be statute barred, which will end in 2033 for the vessels. Although there is no maximum potential amount of future payments, the Teekay Tangguh Joint Venture may terminate the lease arrangement on a voluntary basis at any time. If the lease arrangement terminates, the Teekay Tangguh Joint Venture will be required to pay termination sums to the lessor sufficient to repay the lessor’s investment in the vessels and to compensate it for the tax effect of the terminations, including recapture of any tax depreciation. (ii) As at September 30, 2017 , the Partnership was a party, as lessee, to capital leases on two Suezmax tankers, the Teide Spirit and Toledo Spirit . Under these capital leases, the owner has the option to require the Partnership to purchase the two vessels. The charterer, who is also the owner, also has the option to cancel the charter contracts and the cancellation options are first exercisable in November 2017 and August 2018 , respectively. The amounts in the table above assume the owner will not exercise its options to require the Partnership to purchase either of the vessels from the owner, but rather assume the owner will cancel the charter contracts when the cancellation right is first exercisable (in November 2017 and August 2018 , respectively) and sell the vessels to a third party, upon which the remaining lease obligations will be extinguished. Therefore, the table above does not include any amounts after the expected cancellation date of the leases. In August 2017, the charterer of the Teide Spirit gave formal notification to the Partnership of its intention to terminate its charter contract subject to certain conditions being met and third party approvals being received. In October 2017, the charterer notified us that it has marketed the Teide Spirit for sale and, upon sale of the vessel, it will concurrently terminate its existing charter contract with the Partnership. The Partnership is also a party to capital leases on three LNG carriers, the Creole Spirit, Oak Spirit and Torben Spirit. Upon delivery of the Creole Spirit in February 2016, the Oak Spirit in July 2016 and the Torben Spirit in March 2017, the Partnership sold these vessels to a third party and leased them back under 10 -year bareboat charter contracts ending in 2026 and 2027. The bareboat charter contracts are accounted for as capital leases. The obligations of the Partnership under the bareboat charter contracts are guaranteed by the Partnership. In addition, the guarantee agreements require the Partnership to maintain minimum levels of tangible net worth and aggregate liquidity, and not to exceed a maximum amount of leverage. As at September 30, 2017 , the Partnership had sale-leaseback agreements in place for five of its eight LNG carrier newbuildings scheduled to deliver during the remainder of 2017 and 2018, and at such dates, the buyers will take delivery and charter each respective vessel back to the Partnership. As at September 30, 2017 , the Partnership had received $211.2 million from the buyers, which has been recorded as current and long-term obligations under capital lease in the Partnership's consolidated balance sheets, and the Partnership has secured a further $699 million in capital lease financing to be received in the remainder of 2017 to 2018. (iii) Minimum scheduled future rentals on operating lease contracts do not include rentals generated from new contracts entered into after September 30, 2017 , rentals from unexercised option periods of contracts that existed on September 30, 2017 , rentals from vessels in the Partnership's equity-accounted investments, variable or contingent rentals, or rentals from contracts which commenced after September 30, 2017. Therefore, the minimum scheduled future rentals on operating lease contracts should not be construed to reflect total charter hire revenues that may be recognized for any of the years. (iv) As described in Note 5 to the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year ended December 31, 2016 , the Tangguh LNG Carriers’ time-charter contracts and two bareboat charter contracts for two LNG carriers chartered to Awilco LNG ASA (or Awilco ) are accounted for as direct financing leases. In June 2017, the Partnership amended the charters with Awilco to defer a portion of charter hire and extend the bareboat charter contracts and related purchase obligations on both vessels to December 2019. The amendments have the effect of deferring between $10,600 per day and $20,600 per day per vessel from July 1, 2017 until December 2019, with such deferred amounts added to the purchase obligation amounts. As a result of the contract amendments, the charter contracts with Awilco will be reclassified to operating leases from direct finance leases upon the expiry of the original terms of the contracts with Awilco in November 2017 and August 2018. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt | September 30, 2017 December 31, 2016 $ $ U.S. Dollar-denominated Revolving Credit Facilities due in 2018 339,809 208,222 U.S. Dollar-denominated Term Loans due from 2018 to 2026 933,166 1,005,199 Norwegian Kroner-denominated Bonds due from 2018 to 2021 389,320 371,329 Euro-denominated Term Loans due from 2018 to 2023 233,764 219,733 Other U.S. Dollar-denominated loan 10,000 — Total principal 1,906,059 1,804,483 Unamortized discount and debt issuance costs (9,652 ) (13,257 ) Total debt 1,896,407 1,791,226 Less current portion (516,232 ) (188,511 ) Long-term debt 1,380,175 1,602,715 |
Income Tax (Tables)
Income Tax (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of Provision for Income Taxes | The components of the provision for income taxes were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 $ $ $ $ Current (750 ) (209 ) (1,224 ) (722 ) Deferred — — 81 — Income tax expense (750 ) (209 ) (1,143 ) (722 ) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Such related party transactions were as follows for the periods indicated: Three Months Ended Nine Months Ended September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 $ $ $ $ Revenues (i) 9,296 9,429 26,851 28,075 Vessel operating expenses (5,133 ) (5,107 ) (14,713 ) (15,023 ) General and administrative expenses (ii) (901 ) (3,437 ) (5,363 ) (8,666 ) General and administrative expenses (iii) (152 ) (116 ) (659 ) (442 ) (i) Commencing in 2008, the Arctic Spirit and Polar Spirit were time-chartered to Teekay Corporation at a fixed-rate for a period of 10 years (plus options exercisable by Teekay Corporation to extend up to an additional 15 years). (ii) Includes commercial, strategic, advisory, business development and administrative management fees charged by Teekay Corporation and reimbursements to Teekay Corporation and the Partnership's General Partner for costs incurred on the Partnership’s behalf. (iii) Includes the Partnership's proportionate costs associated with the Bahrain LNG Joint Venture, including pre-operation, engineering and financing-related expenses, of which $0.4 million and $0.9 million were reimbursed by the Bahrain LNG Joint Venture for the three and nine months ended September 30, 2017 , respectively ($ nil for the three and nine months ended September 30, 2016 ). The net costs are recorded as part of investments in and advances to equity-accounted joint ventures in the Partnership's consolidated balance sheets. |
Derivative Instruments and He33
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Cross Currency Swap Agreements | The following table reflects information relating to the cross-currency swaps as at September 30, 2017 . Floating Rate Receivable Principal Amount NOK (in thousands) Principal Amount $ Reference Rate Margin Fixed Rate Payable Fair Value / Carrying Amount of Asset (Liability) $ Weighted- Average Remaining Term (Years) 900,000 150,000 NIBOR 4.35 % 6.43 % (39,088 ) 0.9 1,000,000 134,000 NIBOR 3.70 % 5.92 % (9,862 ) 2.6 1,200,000 146,500 NIBOR 6.00 % 7.70 % 7,682 4.1 (41,268 ) |
Interest Rate Swap Agreements | As at September 30, 2017 , the Partnership was committed to the following interest rate swap agreements: Interest Rate Index Principal Amount $ Fair Value / Carrying Amount of (Liability) $ Weighted- Average Remaining Term (years) Fixed Interest Rate (i) LIBOR-Based Debt: U.S. Dollar-denominated interest rate swaps LIBOR 90,000 (3,257 ) 0.9 4.9 U.S. Dollar-denominated interest rate swaps (ii) LIBOR 143,750 (23,754 ) 11.3 5.2 U.S. Dollar-denominated interest rate swaps (ii) LIBOR 42,845 (898 ) 3.8 2.8 U.S. Dollar-denominated interest rate swaps (iii) LIBOR 331,933 (20,538 ) 1.8 3.4 U.S. Dollar-denominated interest rate swaps (iv) LIBOR 101,833 (171 ) 1.3 1.7 U.S. Dollar-denominated interest rate swaps (v) LIBOR 197,629 (1,408 ) 9.2 2.3 EURIBOR-Based Debt: Euro-denominated interest rate swaps (vi) EURIBOR 233,763 (30,813 ) 3.2 3.1 (80,839 ) (i) Excludes the margins the Partnership pays on its floating-rate term loans, which, at September 30, 2017 , ranged from 0.30% to 2.80% . (ii) Principal amount reducing semi-annually. (iii) These interest rate swaps are being used to economically hedge expected interest payments on future debt that is planned to be outstanding from 2017 to 2024 . These interest rate swaps are subject to mandatory early termination in 2018 and 2020 whereby the swaps will be settled based on their fair value at that time. (iv) Principal amount reducing quarterly. (v) Principal amount reducing quarterly commencing December 2017. (vi) Principal amount reducing monthly to 70.1 million Euros ( $82.8 million ) by the maturity dates of the swap agreements. At September 30, 2017 , the terms of the interest rate swap underlying the interest rate swaption was as follows: Interest Rate Index Principal Amount $ Option Exercise Date Carrying Amount of Assets (Liability) $ Remaining Term (Years) Fixed Interest Rate (%) Interest rate swaption - Call Option LIBOR 160,000 (i) January 31, 2018 15 8.0 3.1 Interest rate swaption - Put Option LIBOR 160,000 (i) January 31, 2018 (535) 8.0 2.0 (i) Amortizing every three months from $160.0 million in January 2018 to $82.5 million in January 2026 |
Location and Fair Value Amounts of Derivative Instruments | The following table presents the classification and fair value amounts of derivative instruments, segregated by type of contract, on the Partnership’s consolidated balance sheets. Advances to affiliates Current portion of derivative assets $ Derivative assets $ Accrued liabilities $ Current portion of derivative liabilities $ Derivative liabilities $ As at September 30, 2017 Interest rate swap agreements — — 636 (1,990 ) (27,817 ) (51,668 ) Interest rate swaption agreements — 15 — — (535 ) — Cross-currency swap agreements — — 8,688 (700 ) (41,612 ) (7,644 ) Toledo Spirit time-charter derivative 646 1,744 — — — — 646 1,759 9,324 (2,690 ) (69,964 ) (59,312 ) As at December 31, 2016 Interest rate swap agreements — — 1,080 (5,514 ) (22,432 ) (59,735 ) Interest rate swaption agreements — 31 3,252 — (1,525 ) (2,705 ) Cross-currency swap agreements — — — (1,090 ) (32,843 ) (65,853 ) Toledo Spirit time-charter derivative 1,274 500 360 — — — 1,274 531 4,692 (6,604 ) (56,800 ) (128,293 ) |
Gain (Loss) for Derivative Instruments Not Designated or Qualifying as Hedging Instruments | The effect of the gain (loss) on these derivatives on the Partnership's consolidated statements of (loss) income is as follows: Three Months Ended September 30, 2017 2016 Realized gains (losses) Unrealized gains (losses) Total Realized gains (losses) Unrealized gains (losses) Total $ $ $ $ $ $ Cross-currency swap agreements (1,598 ) 20,523 18,925 (2,283 ) 20,217 17,934 (1,599 ) 20,523 18,925 (2,283 ) 20,217 17,934 Nine Months Ended September 30, 2017 2016 Realized gains (losses) Unrealized gains (losses) Total Realized gains (losses) Unrealized gains (losses) Total $ $ $ $ $ $ Cross-currency swap agreements (7,219 ) 58,128 50,909 (6,903 ) 34,958 28,055 Cross-currency swap agreements termination (25,733 ) — (25,733 ) — — — (32,952 ) 58,128 25,176 (6,903 ) 34,958 28,055 The effect of the gain (loss) on these derivatives on the Partnership’s consolidated statements of (loss) income is as follows: Three Months Ended September 30, 2017 2016 Realized Unrealized Total Realized Unrealized Total $ $ $ $ $ $ Interest rate swap agreements (4,528 ) 1,775 (2,753 ) (6,494 ) 8,436 1,942 Interest rate swaption agreements — 285 285 — 1,992 1,992 Toledo Spirit time-charter derivative 646 (356 ) 290 (10 ) 1,080 1,070 (3,882 ) 1,704 (2,178 ) (6,504 ) 11,508 5,004 Nine Months Ended September 30, 2017 2016 Realized gains (losses) Unrealized gains (losses) Total Realized gains (losses) Unrealized gains (losses) Total $ $ $ $ $ $ Interest rate swap agreements (13,813 ) 4,211 (9,602 ) (19,750 ) (18,441 ) (38,191 ) Interest rate swaption agreements — 427 427 — (16,765 ) (16,765 ) Interest rate swaption agreements termination (610 ) — (610 ) — — — Toledo Spirit time-charter derivative 526 884 1,410 620 3,930 4,550 (13,897 ) 5,522 (8,375 ) (19,130 ) (31,276 ) (50,406 ) |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The following table excludes any interest rate swap agreements designated and qualifying as cash flow hedges in the Partnership’s equity-accounted joint ventures. Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Effective Portion Recognized in AOCI (i) $ Effective Portion Reclassified from AOCI (ii) $ Ineffective Portion (iii) $ Effective Portion Recognized in AOCI (i) $ Effective Portion Reclassified from AOCI (ii) $ Ineffective Portion (iii) $ (116 ) — (8 ) Interest expense 842 — (130 ) Interest expense (116 ) — (8 ) 842 — (130 ) Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Effective Portion Recognized in AOCI (i) $ Effective Portion Reclassified from AOCI (ii) $ Ineffective Portion (iii) $ Effective Portion Recognized in AOCI (i) $ Effective Portion Reclassified from AOCI (ii) $ Ineffective Portion (iii) $ (1,218 ) — (755 ) Interest expense (8,673 ) — (1,044 ) Interest expense (1,218 ) — (755 ) (8,673 ) — (1,044 ) (i) Effective portion of designated and qualifying cash flow hedges recognized in other comprehensive (loss) income. (ii) Effective portion of designated and qualifying cash flow hedges recorded in accumulated other comprehensive loss (or AOCI ) during the term of the hedging relationship and reclassified to earnings. (iii) Ineffective portion of designated and qualifying cash flow hedges. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Unrecorded Unconditional Purchase Obligations Disclosure | The Partnership’s share of commitments to fund newbuilding and other construction contract costs as at September 30, 2017 are as follows: Total Remainder of 2017 2018 2019 2020 Consolidated LNG carrier newbuildings (i) 1,165,701 376,960 536,671 252,070 — Equity-accounted joint ventures (ii) 1,183,589 110,937 556,064 318,683 197,905 2,349,290 487,897 1,092,735 570,753 197,905 (i) As at September 30, 2017 , the Partnership had eight LNG carrier newbuildings on order which are scheduled for delivery between the remainder of 2017 and 2019. These commitment amounts are described in more detail in Note 13a of the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year-ended December 31, 2016 . The Partnership has secured $1.0 billion of financing related to the remaining commitments for seven of the eight LNG carrier newbuildings included in the table above (see Note 5(ii) and Note 16e). (ii) The commitment amounts relating to the Partnership’s share of costs for newbuilding and other construction contracts in the Partnership’s equity-accounted joint ventures are based on the Partnership’s ownership percentage in each respective joint venture as of September 30, 2017 . These commitments are described in more detail in Note 13a of the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year-ended December 31, 2016 . Based on the Partnership's ownership percentage in each respective joint venture, the Partnership's equity-accounted joint ventures have secured $336 million of financing related to the remaining commitments included in the table above. |
Financial Instruments - Schedul
Financial Instruments - Schedule of Estimated Fair Value of Partnership's Financial Instruments on Recurring Basis (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Vessels held for sale | $ 17,000 | $ 20,580 | |
Long-term debt | $ (1,896,407) | (1,791,226) | |
Shipbuilding supervision and crew training services | Shell | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Discount rate over remaining duration of contract | 8.00% | 8.00% | |
Carrying Amount Asset (Liability) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Advances to equity-accounted joint ventures (note 6) | $ 131,439 | 272,514 | |
Carrying Amount Asset (Liability) | Level 1 | Public | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | (387,831) | (368,612) | |
Carrying Amount Asset (Liability) | Level 1 | Recurring | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents and restricted cash | 254,020 | 243,173 | |
Carrying Amount Asset (Liability) | Level 2 | Non-public | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | (1,508,576) | (1,422,614) | |
Carrying Amount Asset (Liability) | Level 2 | Recurring | Interest rate swap agreements | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate swap agreements – assets | 636 | 1,080 | |
Interest rate swap agreements – liabilities | (81,475) | (87,681) | |
Carrying Amount Asset (Liability) | Level 2 | Recurring | Interest rate swaption agreements | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate swaption agreements – assets | 15 | 3,283 | |
Interest rate swaption agreements – liabilities | (535) | (4,230) | |
Carrying Amount Asset (Liability) | Level 2 | Recurring | Cross-currency swap agreements | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cross-currency swap agreements – assets | 8,688 | 0 | |
Cross-currency swap agreements – liabilities | (49,956) | (99,786) | |
Carrying Amount Asset (Liability) | Level 2 | Nonrecurring | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Vessels held for sale | 17,000 | 20,580 | |
Vessels and equipment | 17,000 | 0 | |
Carrying Amount Asset (Liability) | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term receivable included in accounts receivable and other assets | 5,028 | 10,985 | |
Carrying Amount Asset (Liability) | Level 3 | Recurring | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Other derivative | 2,390 | 2,134 | |
Carrying Amount Asset (Liability) | Level 3 | Nonrecurring | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Vessels under capital leases | 52,914 | 0 | |
Fair Value Asset (Liability) | Level 1 | Public | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | (395,473) | (366,418) | |
Fair Value Asset (Liability) | Level 1 | Recurring | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents and restricted cash | 254,020 | 243,173 | |
Fair Value Asset (Liability) | Level 2 | Non-public | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | (1,472,367) | (1,381,287) | |
Fair Value Asset (Liability) | Level 2 | Recurring | Interest rate swap agreements | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate swap agreements – assets | 636 | 1,080 | |
Interest rate swap agreements – liabilities | (81,475) | (87,681) | |
Fair Value Asset (Liability) | Level 2 | Recurring | Interest rate swaption agreements | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate swaption agreements – assets | 15 | 3,283 | |
Interest rate swaption agreements – liabilities | (535) | (4,230) | |
Fair Value Asset (Liability) | Level 2 | Recurring | Cross-currency swap agreements | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cross-currency swap agreements – assets | 8,688 | 0 | |
Cross-currency swap agreements – liabilities | (49,956) | (99,786) | |
Fair Value Asset (Liability) | Level 2 | Nonrecurring | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Vessels held for sale | 17,000 | 20,580 | |
Vessels and equipment | 17,000 | 0 | |
Fair Value Asset (Liability) | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term receivable included in accounts receivable and other assets | 5,004 | 10,944 | |
Fair Value Asset (Liability) | Level 3 | Shipbuilding supervision and crew training services | Shell | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term receivable included in accounts receivable and other assets | 5,000 | 10,900 | |
Fair Value Asset (Liability) | Level 3 | Recurring | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Other derivative | 2,390 | 2,134 | |
Fair Value Asset (Liability) | Level 3 | Nonrecurring | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Vessels under capital leases | $ 52,914 | $ 0 |
Financial Instruments - Changes
Financial Instruments - Changes in Fair Value of Asset Measured on Recurring Basis Using Significant Unobservable Inputs (Level 3) (Details) - Toledo Spirit time-charter derivative - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value, Assets Measured on Recurring Basis | ||
Fair value at beginning of period | $ 2,134 | $ (6,296) |
Realized and unrealized gains included in earnings | 1,410 | 4,550 |
Settlement payments | (1,154) | 2,556 |
Fair value at end of period | $ 2,390 | $ 810 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) - Toledo Spirit time-charter derivative | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Average daily tanker rate over remaining duration of charter contract | 18,000 | 22,875 |
Discount rate over remaining duration of contract | 8.40% | 8.00% |
Financial Instruments - Summary
Financial Instruments - Summary of Partnership's Loan Receivables and Other Financing Receivables (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Other receivables: | ||
Total loans receivables and other financing receivables | $ 770,272 | $ 927,693 |
Payment activity | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Direct financing leases | 633,805 | 643,008 |
Other receivables: | ||
Long-term receivable and accrued revenue included in accounts receivable and other assets | 5,028 | 12,171 |
Other internal metrics | Performing | ||
Other receivables: | ||
Advances to equity-accounted joint ventures (note 6) | $ 131,439 | $ 272,514 |
Segment Reporting - Segment Rep
Segment Reporting - Segment Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Voyage revenues | $ 104,285 | $ 100,658 | $ 306,369 | $ 295,670 |
Voyage expenses | (1,466) | (355) | (3,899) | (1,354) |
Vessel operating expenses | (26,724) | (22,055) | (76,113) | (66,320) |
Depreciation and amortization | (24,980) | (24,041) | (77,894) | (70,521) |
General and administrative expenses | (2,793) | (3,573) | (11,592) | (14,865) |
Write-down and loss on sales of vessels | (38,000) | 0 | (50,600) | (27,439) |
Income (loss) from vessel operations | 10,322 | 50,634 | 86,271 | 115,171 |
Equity income | 1,417 | 13,514 | 6,797 | 52,579 |
Liquefied Gas Segment | ||||
Segment Reporting Information [Line Items] | ||||
Voyage revenues | 92,700 | 87,260 | 271,078 | 250,342 |
Voyage expenses | (716) | (175) | (1,664) | (418) |
Vessel operating expenses | (22,172) | (16,751) | (62,211) | (48,717) |
Depreciation and amortization | (22,580) | (19,317) | (69,639) | (58,476) |
General and administrative expenses | (2,330) | (3,008) | (9,283) | (12,049) |
Write-down and loss on sales of vessels | 0 | 0 | 0 | 0 |
Income (loss) from vessel operations | 44,902 | 48,009 | 128,281 | 130,682 |
Equity income | 1,417 | 13,514 | 6,797 | 52,579 |
Conventional Tanker Segment | ||||
Segment Reporting Information [Line Items] | ||||
Voyage revenues | 11,585 | 13,398 | 35,291 | 45,328 |
Voyage expenses | (750) | (180) | (2,235) | (936) |
Vessel operating expenses | (4,552) | (5,304) | (13,902) | (17,603) |
Depreciation and amortization | (2,400) | (4,724) | (8,255) | (12,045) |
General and administrative expenses | (463) | (565) | (2,309) | (2,816) |
Write-down and loss on sales of vessels | (38,000) | 0 | (50,600) | (27,439) |
Income (loss) from vessel operations | (34,580) | 2,625 | (42,010) | (15,511) |
Equity income | $ 0 | $ 0 | $ 0 | $ 0 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Total Segment Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Unallocated: | ||||
Cash and cash equivalents | $ 161,008 | $ 126,146 | $ 268,395 | $ 102,481 |
Advances to affiliates | 9,245 | 9,739 | ||
Total assets | 4,619,657 | 4,315,474 | ||
Operating Segments | Liquefied Gas Segment | ||||
Unallocated: | ||||
Total assets | 4,307,812 | 3,957,088 | ||
Operating Segments | Conventional Tanker Segment | ||||
Unallocated: | ||||
Total assets | 115,168 | 193,553 | ||
Unallocated | ||||
Unallocated: | ||||
Cash and cash equivalents | 161,008 | 126,146 | ||
Accounts receivable and prepaid expenses | 26,424 | 28,948 | ||
Advances to affiliates | $ 9,245 | $ 9,739 |
Vessel Charters - Minimum Estim
Vessel Charters - Minimum Estimated Charter Hire Payments (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Charters-in – capital leases | |
Remainder of 2017 | $ 44,728 |
2,018 | 138,934 |
2,019 | 119,499 |
2,020 | 118,938 |
2,021 | 110,246 |
Charters-out – operating leases | |
Remainder of 2017 | 84,812 |
2,018 | 293,880 |
2,019 | 309,100 |
2,020 | 275,252 |
2,021 | 235,799 |
Charters-out – direct financing leases | |
Remainder of 2017 | 15,091 |
2,018 | 45,872 |
2,019 | 39,065 |
2,020 | 39,172 |
2,021 | 39,065 |
Charters-out – leases | |
Remainder of 2017 | 99,903 |
2,018 | 339,752 |
2,019 | 348,165 |
2,020 | 314,424 |
2,021 | $ 274,864 |
Vessel Charters - Additional In
Vessel Charters - Additional Information (Details) | 1 Months Ended | 9 Months Ended | |||
Feb. 29, 2016 | Sep. 30, 2017USD ($)vessel | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)vessel | Dec. 31, 2016USD ($)vessel | |
Capital Leases and Operating and Direct Finance Leases [Line Items] | |||||
Sale leaseback arrangement period, lessee | 10 years | ||||
LNG | |||||
Capital Leases and Operating and Direct Finance Leases [Line Items] | |||||
Number of capital leased assets | vessel | 3 | ||||
Capital lease obligation | $ | $ 211,200,000 | ||||
Newbuildings | |||||
Capital Leases and Operating and Direct Finance Leases [Line Items] | |||||
Number of vessels with secured financing | vessel | 7 | ||||
Number of vessels | vessel | 8 | ||||
Newbuildings | Forecast | |||||
Capital Leases and Operating and Direct Finance Leases [Line Items] | |||||
Number of vessels with secured financing | vessel | 5 | ||||
Suezmax Tankers | |||||
Capital Leases and Operating and Direct Finance Leases [Line Items] | |||||
Number of capital leased assets | vessel | 2 | ||||
LNG Carriers | LNG | Forecast | |||||
Capital Leases and Operating and Direct Finance Leases [Line Items] | |||||
Sale leaseback amount | $ | $ 699,000,000 | ||||
LNG Carriers | Newbuildings | |||||
Capital Leases and Operating and Direct Finance Leases [Line Items] | |||||
Sale leaseback amount | $ | $ 1,000,000,000 | ||||
Teekay Tangguh Joint Venture | |||||
Capital Leases and Operating and Direct Finance Leases [Line Items] | |||||
Guarantee obligation | $ | $ 7,200,000 | $ 7,500,000 | |||
Awilco | |||||
Capital Leases and Operating and Direct Finance Leases [Line Items] | |||||
Number of vessels | vessel | 2 | ||||
Awilco | Forecast | Minimum | |||||
Capital Leases and Operating and Direct Finance Leases [Line Items] | |||||
Deferred lease per day per vessel | $ | $ 10,600 | ||||
Awilco | Forecast | Maximum | |||||
Capital Leases and Operating and Direct Finance Leases [Line Items] | |||||
Deferred lease per day per vessel | $ | $ 20,600 | ||||
Teekay Tangguh Joint Venture | |||||
Capital Leases and Operating and Direct Finance Leases [Line Items] | |||||
Partnership owns percentage in joint venture | 69.00% |
Advances to Equity-Accounted 43
Advances to Equity-Accounted Joint Ventures (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Yamal LNG Joint Venture | ||
Investments in and Advances to Affiliates [Line Items] | ||
Percentage of ownership in joint venture | 50.00% | |
Advances to equity accounted joint venture partner | $ 195,000,000 | $ 146,700,000 |
Interest receivable on advances to equity accounted joint ventures | 9,400,000 | |
Yamal LNG Joint Venture | China LNG | ||
Investments in and Advances to Affiliates [Line Items] | ||
Percentage of ownership in joint venture | 50.00% | |
Exmar LPG BVBA | ||
Investments in and Advances to Affiliates [Line Items] | ||
Percentage of ownership in joint venture | 50.00% | |
Advances to equity accounted joint venture partner | $ 52,300,000 | 52,300,000 |
Interest receivable on advances to equity accounted joint ventures | $ 0 | 1,100,000 |
Exmar LPG BVBA | LIBOR | ||
Investments in and Advances to Affiliates [Line Items] | ||
Variable interest rate on debt | 0.50% | |
Exmar LPG BVBA | Exmar | ||
Investments in and Advances to Affiliates [Line Items] | ||
Percentage of ownership in joint venture | 50.00% | |
Bahrain LNG Joint Venture | ||
Investments in and Advances to Affiliates [Line Items] | ||
Percentage of ownership in joint venture | 30.00% | |
Advances to equity accounted joint venture partner | $ 79,100,000 | 62,900,000 |
Interest receivable on advances to equity accounted joint ventures | $ 100,000 | $ 100,000 |
Bahrain LNG Joint Venture | Nogaholding | ||
Investments in and Advances to Affiliates [Line Items] | ||
Percentage of ownership in joint venture by noncontrolling owners | 30.00% | |
Bahrain LNG Joint Venture | Gulf Investment Corporation | ||
Investments in and Advances to Affiliates [Line Items] | ||
Percentage of ownership in joint venture by noncontrolling owners | 24.00% | |
Bahrain LNG Joint Venture | Samsung C&T | ||
Investments in and Advances to Affiliates [Line Items] | ||
Percentage of ownership in joint venture by noncontrolling owners | 16.00% |
Long-Term Debt - Components of
Long-Term Debt - Components of Long-Term Debt (Details) $ in Thousands, € in Millions | Sep. 30, 2017USD ($) | Sep. 30, 2017EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) |
Debt Instrument [Line Items] | ||||
Total principal | $ 1,906,059 | $ 1,804,483 | ||
Unamortized discount and debt issuance costs | (9,652) | (13,257) | ||
Total debt | 1,896,407 | 1,791,226 | ||
Less current portion | (516,232) | (188,511) | ||
Long-term debt | 1,380,175 | 1,602,715 | ||
U.S. Dollar-denominated Revolving Credit Facilities due in 2018 | ||||
Debt Instrument [Line Items] | ||||
Total principal | 339,809 | 208,222 | ||
U.S. Dollar-denominated Term Loans due from 2018 to 2026 | ||||
Debt Instrument [Line Items] | ||||
Total principal | 933,166 | 1,005,199 | ||
Norwegian Kroner-denominated Bonds due from 2018 to 2021 | ||||
Debt Instrument [Line Items] | ||||
Total principal | 389,320 | 371,329 | ||
Euro-denominated Term Loans due from 2018 to 2023 | ||||
Debt Instrument [Line Items] | ||||
Total principal | 233,764 | € 197.9 | 219,733 | € 208.9 |
Other U.S. Dollar-denominated loan | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 10,000 | $ 0 |
Long-Term Debt - Revolvers - Ad
Long-Term Debt - Revolvers - Additional Information (Details) | 9 Months Ended | ||||
Sep. 30, 2017USD ($)credit_facilityvessel | Nov. 24, 2017USD ($) | Nov. 10, 2017USD ($) | Jun. 30, 2017credit_facility | Dec. 31, 2016USD ($) | |
Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Reduction in the total amount available under revolvers, remainder of 2017 | $ 6,100,000 | ||||
Reduction in the total amount available under revolvers, 2018 | $ 423,700,000 | ||||
Months required to repay all borrowings | 12 months | ||||
Unsecured Debt | |||||
Debt Instrument [Line Items] | |||||
Number of credit facilities | credit_facility | 1 | ||||
First-priority Mortgages | |||||
Debt Instrument [Line Items] | |||||
Number of credit facilities | credit_facility | 2 | ||||
Number of vessels | vessel | 4 | ||||
Revolving Credit Facilities | |||||
Debt Instrument [Line Items] | |||||
Number of credit facilities | credit_facility | 3 | ||||
Revolving Credit Facilities | Revolving Credit Facility Maturing 2017 | |||||
Debt Instrument [Line Items] | |||||
Borrowings provided under revolving credit facilities | $ 170,000,000 | ||||
Revolving Credit Facilities | Revolving Credit Facility Maturing 2017 | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Borrowings provided under revolving credit facilities | $ 170,000,000 | ||||
Revolving Credit Facilities | Revolving Credit Facility Maturing 2018 | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Borrowings provided under revolving credit facilities | $ 190,000,000 | $ 190,000,000 | |||
Revolving Credit Facilities | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Number of credit facilities | credit_facility | 2 | ||||
Revolving Credit Facilities | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Number of credit facilities | credit_facility | 1 | ||||
Borrowings provided under revolving credit facilities | $ 429,800,000 | $ 451,900,000 | |||
Undrawn amount of revolving credit facilities | $ 90,000,000 | $ 243,700,000 | |||
Revolving Credit Facilities | Line of Credit | LIBOR | Minimum | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate on debt | 0.55% | ||||
Revolving Credit Facilities | Line of Credit | LIBOR | Maximum | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate on debt | 1.25% |
Long-Term Debt - USD Term Loans
Long-Term Debt - USD Term Loans - Additional Information (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017USD ($)term_loanvessel | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||
Number of term loans | term_loan | 6 | |
Aggregate principal amount | $ 1,906,059 | $ 1,804,483 |
Teekay Nakilat Corporation | ||
Debt Instrument [Line Items] | ||
Percentage of ownership interest | 70.00% | |
Long-term Debt | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 933,166 | $ 1,005,199 |
Number of vessels | vessel | 14 | |
Long-term Debt | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Variable interest rate on debt | 0.30% | |
Long-term Debt | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Variable interest rate on debt | 2.80% |
Long-Term Debt - NOK Bonds - Ad
Long-Term Debt - NOK Bonds - Additional Information (Details) $ in Thousands, NOK in Billions | 9 Months Ended | ||
Sep. 30, 2017USD ($) | Sep. 30, 2017NOK | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | |||
Carrying amount of debt | $ 1,906,059 | $ 1,804,483 | |
Bonds | |||
Debt Instrument [Line Items] | |||
Senior unsecured bonds issued | NOK | NOK 3.1 | ||
Carrying amount of debt | 389,320 | $ 371,329 | |
Bonds | Foreign Exchange Contract | |||
Debt Instrument [Line Items] | |||
Transfer of principal amount | $ 430,500 | ||
Bonds | Minimum | Foreign Exchange Contract | |||
Debt Instrument [Line Items] | |||
Fixed interest rate | 5.92% | 5.92% | |
Bonds | Maximum | Foreign Exchange Contract | |||
Debt Instrument [Line Items] | |||
Fixed interest rate | 7.70% | 7.70% | |
Bonds | NIBOR | Minimum | |||
Debt Instrument [Line Items] | |||
Variable interest rate on debt | 3.70% | ||
Bonds | NIBOR | Maximum | |||
Debt Instrument [Line Items] | |||
Variable interest rate on debt | 6.00% |
Long-Term Debt - Euro-denominat
Long-Term Debt - Euro-denominated Term Loans- Additional Information (Details) $ in Thousands, € in Millions | 9 Months Ended | |||
Sep. 30, 2017USD ($)subsidiaryterm_loancredit_facilityvessel | Sep. 30, 2017EUR (€)term_loancredit_facilityvessel | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | |
Debt Instrument [Line Items] | ||||
Number of loan facilities | term_loan | 6 | 6 | ||
Carrying amount of debt | $ | $ 1,906,059 | $ 1,804,483 | ||
Euro-denominated Term Loans | ||||
Debt Instrument [Line Items] | ||||
Number of loan facilities | credit_facility | 2 | 2 | ||
Carrying amount of debt | $ 233,764 | € 197.9 | $ 219,733 | € 208.9 |
Number of vessels | vessel | 2 | 2 | ||
Number of subsidiaries that guaranteed the term loans | subsidiary | 1 | |||
Euro-denominated Term Loans | EURIBOR | Minimum | ||||
Debt Instrument [Line Items] | ||||
Variable interest rate on debt | 0.60% | |||
Euro-denominated Term Loans | EURIBOR | Maximum | ||||
Debt Instrument [Line Items] | ||||
Variable interest rate on debt | 2.25% |
Long-Term Debt - Other - Additi
Long-Term Debt - Other - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($)term_loancredit_facility | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)term_loancredit_facility | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | |||||
Weighted-average interest rate for the Partnership's long-term debt outstanding | 3.15% | 3.15% | 3.03% | ||
Foreign exchange gains (losses) | $ (5,104) | $ 504 | $ (24,497) | $ (10,139) | |
Aggregate annual long-term debt principal repayments, remainder of 2017 | 46,100 | 46,100 | |||
Aggregate annual long-term debt principal repayments, 2018 | 717,100 | 717,100 | |||
Aggregate annual long-term debt principal repayments, 2019 | 88,900 | 88,900 | |||
Aggregate annual long-term debt principal repayments, 2020 | 346,400 | 346,400 | |||
Aggregate annual long-term debt principal repayments, 2021 | 345,600 | 345,600 | |||
Aggregate annual long-term debt principal repayments, thereafter | $ 362,000 | $ 362,000 | |||
Number of loan facilities | term_loan | 6 | 6 | |||
Long-term debt | $ 1,896,407 | $ 1,896,407 | $ 1,791,226 | ||
Restricted cash on deposits relating to certain term loans, collateral cross currency swaps, leasing arrangements, dry-docking expenditures and emergency repairs | $ 93,000 | $ 93,000 | $ 117,000 | ||
Minimum | Vessel | |||||
Debt Instrument [Line Items] | |||||
Percentage of vessel value to outstanding loan Principal balance | 121.00% | 121.00% | |||
Maximum | Vessel | |||||
Debt Instrument [Line Items] | |||||
Percentage of vessel value to outstanding loan Principal balance | 232.00% | 232.00% | |||
Long-term Debt | LIBOR | Minimum | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate on debt | 0.30% | ||||
Long-term Debt | LIBOR | Maximum | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate on debt | 2.80% | ||||
Require Minimum Vessel Value To Outstanding Loan Principal Balance Ratios | |||||
Debt Instrument [Line Items] | |||||
Number of loan facilities | credit_facility | 2 | 2 | |||
Long-term debt | $ 95,100 | $ 95,100 | |||
Require Minimum Vessel Value To Outstanding Loan Principal Balance Ratios | Minimum | |||||
Debt Instrument [Line Items] | |||||
Percentage of vessel value to outstanding loan Principal balance | 110.00% | 110.00% | |||
Require Minimum Vessel Value To Outstanding Loan Principal Balance Ratios | Maximum | |||||
Debt Instrument [Line Items] | |||||
Percentage of vessel value to outstanding loan Principal balance | 135.00% | 135.00% |
Income Tax (Details)
Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Current | $ (750) | $ (209) | $ (1,224) | $ (722) |
Deferred | 0 | 0 | 81 | 0 |
Income tax expense | $ (750) | $ (209) | $ (1,143) | $ (722) |
Related Party Transactions - Ar
Related Party Transactions - Arctic Spirit and Polar Spirit - Additional Information (Details) | Sep. 30, 2017vessel |
Newbuildings | |
Related Party Transaction [Line Items] | |
Number of vessels | 8 |
Newbuildings | Pan Union Joint Venture | Shipbuilding supervision and crew training services | |
Related Party Transaction [Line Items] | |
Number of vessels | 4 |
Subsidiary of Common Parent | Charters-out | LNG | |
Related Party Transaction [Line Items] | |
Number of vessels | 2 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Related Party Transaction [Line Items] | ||||
Revenues | $ 104,285,000 | $ 100,658,000 | $ 306,369,000 | $ 295,670,000 |
Vessel operating expenses | (26,724,000) | (22,055,000) | (76,113,000) | (66,320,000) |
General and administrative expenses | (2,793,000) | (3,573,000) | (11,592,000) | (14,865,000) |
Deferred and Capitalized Expenses | Bahrain LNG Joint Venture | ||||
Related Party Transaction [Line Items] | ||||
General and administrative expenses | 0 | 0 | ||
Deferred and Capitalized Expenses Reimbursed | Bahrain LNG Joint Venture | ||||
Related Party Transaction [Line Items] | ||||
General and administrative expenses | (400,000) | (900,000) | ||
Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
Revenues | 9,296,000 | 9,429,000 | 26,851,000 | 28,075,000 |
Vessel operating expenses | (5,133,000) | (5,107,000) | (14,713,000) | (15,023,000) |
General and administrative expenses | (901,000) | (3,437,000) | (5,363,000) | (8,666,000) |
Affiliated Entity | Deferred and Capitalized Expenses | ||||
Related Party Transaction [Line Items] | ||||
General and administrative expenses | $ (152,000) | $ (116,000) | $ (659,000) | $ (442,000) |
Teekay Corporation | Arctic Spirit and Polar Spirit | ||||
Related Party Transaction [Line Items] | ||||
Operating lease arrangement period, lessor | 10 years | |||
Teekay Corporation | Arctic Spirit and Polar Spirit | Maximum | ||||
Related Party Transaction [Line Items] | ||||
Additional time period for fixed-rate time-charters contract | 15 years |
Related Party Transactions - No
Related Party Transactions - Non-interest Bearing Advances - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Related Party Transactions [Abstract] | ||
Advances to affiliates | $ 9,245 | $ 9,739 |
Advances from affiliates | $ 9,864 | $ 15,492 |
Related Party Transactions - Sh
Related Party Transactions - Shipbuilding and Site Supervision Services - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
LNG | ||||
Related Party Transaction [Line Items] | ||||
Shipbuilding and site supervision costs | $ 4 | $ 2.1 | $ 13.4 | $ 7 |
Related Party Transactions - Ba
Related Party Transactions - Bahrain LNG and Teekay Marine Solutions - Additional Information (Details) - Affiliated Entity - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Subcontract | TMS | ||||
Related Party Transaction [Line Items] | ||||
Expenses from transactions with related party | $ 100,000 | $ 0 | $ 300,000 | $ 0 |
Operation and Maintenance Contract | Bahrain LNG Joint Venture | ||||
Related Party Transaction [Line Items] | ||||
Expenses from transactions with related party | $ 0 | $ 0 | ||
Recoveries from transactions with related party | $ 200,000 | $ 200,000 |
Derivative Instruments and He56
Derivative Instruments and Hedging Activities - Summary of Cross Currency Swap Agreements (Details) - Cross-currency swap agreements $ in Thousands | 9 Months Ended | |
Sep. 30, 2017USD ($) | Sep. 30, 2017NOK | |
Derivative [Line Items] | ||
Fair Value / Carrying Amount of Asset (Liability) | $ (41,268) | |
NIBOR | 4.35% Margin | ||
Derivative [Line Items] | ||
Principal Amount | $ 150,000 | NOK 900,000,000 |
Margin | 4.35% | 4.35% |
Fixed Rate Payable | 6.43% | 6.43% |
Fair Value / Carrying Amount of Asset (Liability) | $ (39,088) | |
Weighted- Average Remaining Term (Years) | 10 months 24 days | |
NIBOR | 3.70% Margin | ||
Derivative [Line Items] | ||
Principal Amount | $ 134,000 | NOK 1,000,000,000 |
Margin | 3.70% | 3.70% |
Fixed Rate Payable | 5.92% | 5.92% |
Fair Value / Carrying Amount of Asset (Liability) | $ (9,862) | |
Weighted- Average Remaining Term (Years) | 2 years 7 months 6 days | |
NIBOR | 6.00% Margin | ||
Derivative [Line Items] | ||
Principal Amount | $ 146,500 | NOK 1,200,000,000 |
Margin | 6.00% | 6.00% |
Fixed Rate Payable | 7.70% | 7.70% |
Fair Value / Carrying Amount of Asset (Liability) | $ 7,682 | |
Weighted- Average Remaining Term (Years) | 4 years 1 month 18 days |
Derivative Instruments and He57
Derivative Instruments and Hedging Activities - Interest Rate Swap Agreements (Details) $ in Thousands, € in Millions | 9 Months Ended | |
Sep. 30, 2017USD ($) | Sep. 30, 2017EUR (€) | |
Interest rate swap agreements | ||
Derivative [Line Items] | ||
Fair Value / Carrying Amount of (Liability) | $ (80,839) | |
Interest rate swap agreements | Minimum | ||
Derivative [Line Items] | ||
Variable interest rate on debt | 0.30% | |
Interest rate swap agreements | Maximum | ||
Derivative [Line Items] | ||
Variable interest rate on debt | 2.80% | |
U.S. Dollar-denominated interest rate swaps 1 | LIBOR | ||
Derivative [Line Items] | ||
Principal Amount | $ 90,000 | |
Fair Value / Carrying Amount of (Liability) | $ (3,257) | |
Weighted- Average Remaining Term (Years) | 10 months 24 days | |
Fixed Interest Rate | 4.90% | 4.90% |
U.S. Dollar-denominated interest rate swaps 2 | LIBOR | ||
Derivative [Line Items] | ||
Principal Amount | $ 143,750 | |
Fair Value / Carrying Amount of (Liability) | $ (23,754) | |
Weighted- Average Remaining Term (Years) | 11 years 3 months 18 days | |
Fixed Interest Rate | 5.20% | 5.20% |
U.S. Dollar-denominated interest rate swaps 3 | LIBOR | ||
Derivative [Line Items] | ||
Principal Amount | $ 42,845 | |
Fair Value / Carrying Amount of (Liability) | $ (898) | |
Weighted- Average Remaining Term (Years) | 3 years 9 months 18 days | |
Fixed Interest Rate | 2.80% | 2.80% |
U.S. Dollar-denominated interest rate swaps 4 | LIBOR | ||
Derivative [Line Items] | ||
Principal Amount | $ 331,933 | |
Fair Value / Carrying Amount of (Liability) | $ (20,538) | |
Weighted- Average Remaining Term (Years) | 1 year 9 months 18 days | |
Fixed Interest Rate | 3.40% | 3.40% |
U.S. Dollar-denominated interest rate swaps 5 | LIBOR | ||
Derivative [Line Items] | ||
Principal Amount | $ 101,833 | |
Fair Value / Carrying Amount of (Liability) | $ (171) | |
Weighted- Average Remaining Term (Years) | 1 year 3 months 18 days | |
Fixed Interest Rate | 1.70% | 1.70% |
U.S. Dollar-denominated interest rate swaps 6 | LIBOR | ||
Derivative [Line Items] | ||
Principal Amount | $ 197,629 | |
Fair Value / Carrying Amount of (Liability) | $ (1,408) | |
Weighted- Average Remaining Term (Years) | 9 years 2 months 12 days | |
Fixed Interest Rate | 2.30% | 2.30% |
Euro-denominated interest rate swaps | ||
Derivative [Line Items] | ||
Reduced principal amount denominated interest rate swaps | $ 82,800 | € 70.1 |
Euro-denominated interest rate swaps | EURIBOR | ||
Derivative [Line Items] | ||
Principal Amount | 233,763 | |
Fair Value / Carrying Amount of (Liability) | $ (30,813) | |
Weighted- Average Remaining Term (Years) | 3 years 2 months 12 days | |
Fixed Interest Rate | 3.10% | 3.10% |
Derivative Instruments and He58
Derivative Instruments and Hedging Activities - Additional Information (Details) $ in Millions | Sep. 30, 2017USD ($)agreement | Dec. 31, 2016USD ($) |
Derivative [Line Items] | ||
Restricted cash - current and - long-term | $ 93 | $ 117 |
Interest rate swaption agreements | ||
Derivative [Line Items] | ||
Number of interest rate derivatives held | agreement | 1 | |
Interest rate swaps and cross currency swaps agreement | ||
Derivative [Line Items] | ||
Fair value of derivative asset | $ 7.7 | |
Fair value of derivative liability | 80.7 | |
Restricted cash - current and - long-term | 14.2 | 37.8 |
Toledo Spirit time-charter derivative | ||
Derivative [Line Items] | ||
Derivative fair value, net | $ 2.4 | $ 2.1 |
Derivative Instruments and He59
Derivative Instruments and Hedging Activities - Terms of Interest Rate Swaps Underlying Swaption (Details) - Interest Rate Swaption - USD ($) | 9 Months Ended | ||
Sep. 30, 2017 | Jan. 31, 2026 | Jan. 31, 2018 | |
Forecast | |||
Derivative [Line Items] | |||
Principal Amount | $ 82,500,000 | $ 160,000,000 | |
Call Option | LIBOR | |||
Derivative [Line Items] | |||
Principal Amount | $ 160,000,000 | ||
Carrying Amount of Assets (Liability) | $ 15,000 | ||
Remaining Term (Years) | 8 years | ||
Fixed Interest Rate | 3.10% | ||
Put Option | LIBOR | |||
Derivative [Line Items] | |||
Principal Amount | $ 160,000,000 | ||
Carrying Amount of Assets (Liability) | $ (535,000) | ||
Remaining Term (Years) | 8 years | ||
Fixed Interest Rate | 2.00% |
Derivative Instruments and He60
Derivative Instruments and Hedging Activities - Location and Fair Value Amounts of Derivative Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Advances to affiliates | $ 9,245 | $ 9,739 |
Current portion of derivative assets | 1,759 | 531 |
Derivative assets | 9,324 | 4,692 |
Accrued liabilities | (38,056) | (35,881) |
Current portion of derivative liabilities | (69,964) | (56,800) |
Derivative liabilities | (59,312) | (128,293) |
Interest rate swap agreements | ||
Derivatives, Fair Value [Line Items] | ||
Advances to affiliates | 0 | 0 |
Current portion of derivative assets | 0 | 0 |
Derivative assets | 636 | 1,080 |
Accrued liabilities | (1,990) | (5,514) |
Current portion of derivative liabilities | (27,817) | (22,432) |
Derivative liabilities | (51,668) | (59,735) |
Interest rate swaption agreements | ||
Derivatives, Fair Value [Line Items] | ||
Advances to affiliates | 0 | 0 |
Current portion of derivative assets | 15 | 31 |
Derivative assets | 0 | 3,252 |
Accrued liabilities | 0 | 0 |
Current portion of derivative liabilities | (535) | (1,525) |
Derivative liabilities | 0 | (2,705) |
Cross-currency swap agreements | ||
Derivatives, Fair Value [Line Items] | ||
Advances to affiliates | 0 | 0 |
Current portion of derivative assets | 0 | 0 |
Derivative assets | 8,688 | 0 |
Accrued liabilities | (700) | (1,090) |
Current portion of derivative liabilities | (41,612) | (32,843) |
Derivative liabilities | (7,644) | (65,853) |
Toledo Spirit time-charter derivative | ||
Derivatives, Fair Value [Line Items] | ||
Advances to affiliates | 646 | 1,274 |
Current portion of derivative assets | 1,744 | 500 |
Derivative assets | 0 | 360 |
Accrued liabilities | 0 | 0 |
Current portion of derivative liabilities | 0 | 0 |
Derivative liabilities | 0 | 0 |
Derivative | ||
Derivatives, Fair Value [Line Items] | ||
Advances to affiliates | 646 | 1,274 |
Current portion of derivative assets | 1,759 | 531 |
Derivative assets | 9,324 | 4,692 |
Accrued liabilities | (2,690) | (6,604) |
Current portion of derivative liabilities | (69,964) | (56,800) |
Derivative liabilities | $ (59,312) | $ (128,293) |
Derivative Instruments and He61
Derivative Instruments and Hedging Activities - Gain (Loss) for Derivative Instruments Not Designated or Qualifying as Hedging Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Realized gains (losses) | $ (3,882) | $ (6,504) | $ (13,897) | $ (19,130) |
Unrealized gains (losses) | 1,704 | 11,508 | 5,522 | (31,276) |
Realized and unrealized loss on non-designated derivative instruments (note 10) | (2,178) | 5,004 | (8,375) | (50,406) |
Unrealized gains (losses) | 7,845 | 4,476 | ||
Interest rate swap agreements | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Realized gains (losses) | (4,528) | (6,494) | (13,813) | (19,750) |
Unrealized gains (losses) | 1,775 | 8,436 | 4,211 | (18,441) |
Realized and unrealized loss on non-designated derivative instruments (note 10) | (2,753) | 1,942 | (9,602) | (38,191) |
Interest rate swaption agreements | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Realized gains (losses) | 0 | 0 | 0 | 0 |
Unrealized gains (losses) | 285 | 1,992 | 427 | (16,765) |
Realized and unrealized loss on non-designated derivative instruments (note 10) | 285 | 1,992 | 427 | (16,765) |
Interest rate swaption agreements termination | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Realized gains (losses) | (610) | 0 | ||
Unrealized gains (losses) | 0 | 0 | ||
Realized and unrealized loss on non-designated derivative instruments (note 10) | (610) | 0 | ||
Toledo Spirit time-charter derivative | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Realized gains (losses) | 646 | (10) | 526 | 620 |
Unrealized gains (losses) | (356) | 1,080 | 884 | 3,930 |
Realized and unrealized loss on non-designated derivative instruments (note 10) | 290 | 1,070 | 1,410 | 4,550 |
Cross-currency swap agreements | Foreign Currency Gain (Loss) | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Realized and unrealized loss on non-designated derivative instruments (note 10) | 18,925 | 17,934 | 50,909 | 28,055 |
Realized gains (losses) | (1,598) | (2,283) | (7,219) | (6,903) |
Unrealized gains (losses) | 20,523 | 20,217 | 58,128 | 34,958 |
Cross-currency swap agreements termination | Foreign Currency Gain (Loss) | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Realized and unrealized loss on non-designated derivative instruments (note 10) | (25,733) | 0 | ||
Realized gains (losses) | (25,733) | 0 | ||
Unrealized gains (losses) | 0 | 0 | ||
Cross-currency swap agreements | Foreign Currency Gain (Loss) | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Realized and unrealized loss on non-designated derivative instruments (note 10) | 18,925 | 17,934 | 25,176 | 28,055 |
Realized gains (losses) | (1,599) | (2,283) | (32,952) | (6,903) |
Unrealized gains (losses) | $ 20,523 | $ 20,217 | $ 58,128 | $ 34,958 |
Derivative Instruments and He62
Derivative Instruments and Hedging Activities - Effective Portion of Gains (Losses) on Interest Rate Swap Agreements (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative [Line Items] | ||||
Effective Portion Recognized in AOCI | $ (116) | $ 842 | $ (1,218) | $ (8,673) |
Effective Portion Reclassified from AOCI | 0 | 0 | 0 | 0 |
Ineffective Portion | (8) | (130) | (755) | (1,044) |
Interest expense | ||||
Derivative [Line Items] | ||||
Effective Portion Recognized in AOCI | (116) | 842 | (1,218) | (8,673) |
Effective Portion Reclassified from AOCI | 0 | 0 | 0 | 0 |
Ineffective Portion | $ (8) | $ (130) | $ (755) | $ (1,044) |
Commitments and Contingencies -
Commitments and Contingencies - Commitments to Fund Newbuilding and Other Construction Contract Costs (Details) $ in Thousands | Sep. 30, 2017USD ($)vessel |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Total | $ 2,349,290 |
Remainder of 2017 | 487,897 |
2,018 | 1,092,735 |
2,019 | 570,753 |
2,020 | $ 197,905 |
Newbuildings | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Number of vessels | vessel | 8 |
Number of vessels with secured financing | vessel | 7 |
Newbuildings | LNG Carriers | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Sale leaseback amount | $ 1,000,000 |
Consolidated LNG carrier newbuildings | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Total | 1,165,701 |
Remainder of 2017 | 376,960 |
2,018 | 536,671 |
2,019 | 252,070 |
2,020 | 0 |
Consolidated LNG carrier newbuildings | Newbuildings | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Remainder of 2017 | 377,000 |
2,018 | 536,700 |
Equity-accounted joint ventures | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Total | 1,183,589 |
Remainder of 2017 | 110,937 |
2,018 | 556,064 |
2,019 | 318,683 |
2,020 | 197,905 |
Debt facility used to finance a portion of estimated fully built-up cost | $ 336,000 |
Commitments and Contingencies64
Commitments and Contingencies - Additional Information (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($)agreementvessel | |
Loss Contingencies [Line Items] | |
Estimated payments during the remainder of 2017 | $ 487,897 |
Estimated payments during 2018 | $ 1,092,735 |
Teekay Nakilat Corporation | |
Loss Contingencies [Line Items] | |
Number of capital leased assets | agreement | 3 |
Capital lease term | 30 years |
Number of vessels | vessel | 3 |
Security deposit against future claims | $ 6,800 |
Teekay Nakilat Joint Venture | |
Loss Contingencies [Line Items] | |
Percentage of ownership interest | 70.00% |
Teekay Nakilat Joint Venture | HMRC | |
Loss Contingencies [Line Items] | |
Present value of the lease rental increase claim | $ 42,000 |
Consolidated LNG carrier newbuildings | |
Loss Contingencies [Line Items] | |
Estimated payments during the remainder of 2017 | 376,960 |
Estimated payments during 2018 | $ 536,671 |
Newbuildings | |
Loss Contingencies [Line Items] | |
Number of vessels | vessel | 8 |
Newbuildings | Consolidated LNG carrier newbuildings | |
Loss Contingencies [Line Items] | |
Estimated payments during the remainder of 2017 | $ 377,000 |
Estimated payments during 2018 | $ 536,700 |
Total Capital and Net (Loss) 65
Total Capital and Net (Loss) Income Per Unit (Details) - USD ($) | Oct. 23, 2017 | Oct. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 |
Capital Unit [Line Items] | |||||||
General partner interest percentage | 2.00% | ||||||
Outstanding preferred units | 5,000,000 | 5,000,000 | 5,000,000 | ||||
Distributions payable | $ 42,462,000 | ||||||
Common Units | |||||||
Capital Unit [Line Items] | |||||||
Cash distribution per unit (USD per share) (below) | $ 0.4625 | $ 0.4625 | $ 0.4625 | $ 0.4625 | |||
Series A Preferred Units | |||||||
Capital Unit [Line Items] | |||||||
Outstanding preferred units | 5,000,000 | 5,000,000 | |||||
Dividend rate, percentage | 9.00% | ||||||
Series B Preferred Units | Subsequent Event | |||||||
Capital Unit [Line Items] | |||||||
Dividend rate, percentage | 8.50% | ||||||
Series B Preferred Units | Teekay Corporation | Subsequent Event | |||||||
Capital Unit [Line Items] | |||||||
Number of units issued (in units) | 6,800,000 | ||||||
Public | |||||||
Capital Unit [Line Items] | |||||||
General partner's proportionate contribution (as a percent) | 68.30% | ||||||
Limited Partners | Preferred Units | |||||||
Capital Unit [Line Items] | |||||||
Distributions payable | $ 2,800,000 | $ 0 | $ 8,344,000 | $ 0 | |||
Limited Partners | Common Units | |||||||
Capital Unit [Line Items] | |||||||
Distributions payable | $ 33,436,000 |
Unit-Based Compensation (Detail
Unit-Based Compensation (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Restricted Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Aggregate value of units issued | $ 1,000,000 | $ 1,500,000 | ||||
Restricted unit-based compensation granted to Partnership's employee (in units) | 60,809 | 132,582 | ||||
Restricted units, vesting period | 3 years | |||||
Number of restricted units vested | 0 | 0 | 54,999 | 20,808 | ||
Restricted units, vested in period, fair value | $ 0 | $ 0 | $ 800,000 | $ 800,000 | ||
Restricted units expense | $ 100,000 | $ 100,000 | $ 900,000 | $ 1,200,000 | ||
Non-management Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of common units granted | 17,345 | |||||
Aggregate value of units issued | $ 300,000 |
Write-Down and Sale of Vessels
Write-Down and Sale of Vessels (Details) - USD ($) $ in Thousands | Nov. 30, 2016 | Aug. 31, 2017 | Jun. 30, 2017 | May 17, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 |
Property, Plant and Equipment [Line Items] | |||||||||
Write-down of vessels | $ 38,000 | $ 0 | $ 50,600 | $ 27,439 | |||||
Proceeds from sale of vessels | 20,580 | $ 94,311 | |||||||
Centrofin | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Write-down of vessels | $ 27,400 | ||||||||
Proceeds from sale of vessels | $ 94,300 | ||||||||
Asian Spirit | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Proceeds from sale of vessels | $ 20,600 | ||||||||
European Spirit | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Write-down of vessels | 12,600 | ||||||||
African Spirit | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Write-down of vessels | 12,500 | ||||||||
Extension option period | 1 year | 1 year | |||||||
African Spirit | Teekay Lng | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Write-down of vessels | 12,500 | ||||||||
Teide Spirit and Toledo Spirit | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Write-down of vessels | $ 25,500 | $ 25,500 | |||||||
Cancellation option period | 13 years |
Supplemental Cash Flow Inform68
Supplemental Cash Flow Information (Details) - Skaugen Gulf Petchem Carriers B.S.C. $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Investment [Line Items] | |
Ownership interest acquired (as a percent) | 100.00% |
Purchase price of ownership interest acquired | $ 13.2 |
Skaugen | |
Investment [Line Items] | |
Ownership interest acquired (as a percent) | 35.00% |
Noncash portion of the consideration paid | $ 4.6 |
The Oil & Gas Holding Company B.S.C. | |
Investment [Line Items] | |
Ownership interest acquired (as a percent) | 35.00% |
Suffun Bahrain W.L.L. | |
Investment [Line Items] | |
Ownership interest acquired (as a percent) | 30.00% |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, shares in Millions | Nov. 06, 2017USD ($)vessel | Nov. 01, 2017 | Oct. 23, 2017USD ($)$ / sharesshares | Oct. 19, 2017 | Oct. 13, 2017 | Nov. 24, 2017USD ($) | Nov. 16, 2017vessel | Nov. 10, 2017USD ($) | Sep. 30, 2017USD ($)vessel | Dec. 31, 2016USD ($) |
Revolving Credit Facilities | Line of Credit | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Borrowings provided under revolving credit facilities | $ 429,800,000 | $ 451,900,000 | ||||||||
Revolving Credit Facilities | Revolving Credit Facility Maturing 2017 | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Borrowings provided under revolving credit facilities | $ 170,000,000 | |||||||||
Newbuildings | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Number of vessels | vessel | 8 | |||||||||
Bahrain LNG Joint Venture | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Percentage of ownership in joint venture | 30.00% | |||||||||
Subsequent Event | Line of Credit | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Long-term debt facility | $ 327,000,000 | |||||||||
Subsequent Event | Revolving Credit Facilities | Revolving Credit Facility Maturing 2017 | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Borrowings provided under revolving credit facilities | $ 170,000,000 | |||||||||
Subsequent Event | Revolving Credit Facilities | Revolving Credit Facility Maturing 2018 | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Borrowings provided under revolving credit facilities | $ 190,000,000 | $ 190,000,000 | ||||||||
Subsequent Event | Newbuildings | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Number of vessels | vessel | 1 | |||||||||
Subsequent Event | Series B Preferred Units | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Number of units issued | shares | 6.8 | |||||||||
Price per unit (in USD per unit) | $ / shares | $ 25 | |||||||||
Proceeds from issuance of equity | $ 164,000,000 | |||||||||
Dividend rate, percentage | 8.50% | |||||||||
Liquidation preference (USD per unit) | $ / shares | $ 25 | |||||||||
Redemption price (USD per unit) | $ / shares | $ 25 | |||||||||
Subsequent Event | Series B Preferred Units | LIBOR | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Basis spread on variable rate | 6.241% | |||||||||
Subsequent Event | Series B Preferred Units | Underwriter's Over-Allotment Option | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Number of units issued | shares | 0.8 | |||||||||
Subsequent Event | Pan Asia | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Charter contract period | 20 years | |||||||||
Subsequent Event | Macoma | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Charter contract period | 6 years | |||||||||
Subsequent Event | Murex | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Charter contract period | 7 years | |||||||||
Subsequent Event | Pan Union Joint Venture | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Percentage of ownership in joint venture | 30.00% | |||||||||
Subsequent Event | Bahrain LNG Joint Venture | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Charter contract period | 20 years | |||||||||
Subsequent Event | Bp Plc | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Charter contract period | 13 years | |||||||||
Skaugen [Member] | Subsequent Event | LPG | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Number of vessels | vessel | 6 |