Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document And Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
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 Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 79,626,819 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Voyage revenues (note 11) | $ 432,676 | $ 396,444 | $ 397,991 |
Voyage expenses | (8,202) | (1,656) | (1,146) |
Vessel operating expenses (note 11) | (103,139) | (88,590) | (94,101) |
Depreciation and amortization | (105,545) | (95,542) | (92,253) |
General and administrative expenses (notes 11 and 16) | (16,541) | (18,499) | (25,118) |
Restructuring charges (note 17) | 0 | 0 | (4,001) |
Write-down and loss on sales of vessels (note 18) | (50,600) | (38,976) | 0 |
Income from vessel operations | 148,649 | 153,181 | 181,372 |
Equity income (notes 6 and 13e) | 9,789 | 62,307 | 84,171 |
Interest expense | (80,937) | (58,844) | (43,259) |
Interest income | 2,915 | 2,583 | 2,501 |
Realized and unrealized loss on non-designated derivative instruments (note 12) | (5,309) | (7,161) | (20,022) |
Foreign currency exchange (loss) gain (notes 9 and 12) | (26,933) | 5,335 | 13,943 |
Other income | 1,561 | 1,537 | 1,526 |
Net income before income tax expense | 49,735 | 158,938 | 220,232 |
Income tax expense (note 10) | (824) | (973) | (2,722) |
Net income | 48,911 | 157,965 | 217,510 |
Non-controlling interest in net income | 14,946 | 17,514 | 16,627 |
Preferred unitholders' interest in net income | 13,979 | 2,719 | 0 |
General Partner's interest in net income | 400 | 2,755 | 26,276 |
Limited partners’ interest in net income | $ 19,586 | $ 134,977 | $ 174,607 |
Limited partners’ interest in net income per common unit (note 15): | |||
Basic (USD per unit) | $ 0.25 | $ 1.70 | $ 2.21 |
Diluted (USD per unit) | $ 0.25 | $ 1.69 | $ 2.21 |
Weighted-average number of common units outstanding (note 15): | |||
Basic (in units) | 79,617,778 | 79,568,352 | 78,896,767 |
Diluted (in units) | 79,791,041 | 79,671,858 | 78,961,102 |
Cash distributions declared per common unit (USD per unit) | $ 0.56 | $ 0.56 | $ 2.80 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net income | $ 48,911 | $ 157,965 | $ 217,510 |
Other comprehensive income: | |||
Unrealized gain (loss) on qualifying cash flow hedging instruments, net of tax (note 12) | 1,140 | (486) | (1,723) |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | |||
Other comprehensive income (loss) | 4,032 | 2,803 | (648) |
Comprehensive income | 52,943 | 160,768 | 216,862 |
Non-controlling interest in comprehensive income | 15,074 | 17,691 | 16,627 |
Preferred unitholders' interest in comprehensive income | 13,979 | 2,719 | 0 |
General and limited partners' interest in comprehensive income | 23,890 | 140,358 | 200,235 |
To equity income | |||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | |||
Realized loss on qualifying cash flow hedging instruments | 2,465 | $ 3,289 | 1,075 |
To interest expense | |||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | |||
Realized loss on qualifying cash flow hedging instruments | $ 427 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current | ||
Cash and cash equivalents | $ 244,241 | $ 126,146 |
Restricted cash – current (note 9) | 22,326 | 10,145 |
Accounts receivable, including non-trade of $13,203 (2016 – $19,325) (note 6a iii) | 24,054 | 25,224 |
Prepaid expenses | 6,539 | 3,724 |
Vessels held for sale (note 18) | 33,671 | 20,580 |
Current portion of derivative assets (note 12) | 1,078 | 531 |
Current portion of net investments in direct financing leases (note 5) | 9,884 | 150,342 |
Advances to affiliates (notes 11e and 12) | 7,300 | 9,739 |
Total current assets | 349,093 | 346,431 |
Restricted cash – long-term (note 9) | 72,868 | 106,882 |
Vessels and equipment | ||
At cost, less accumulated depreciation of $681,991 (2016 – $668,969) | 1,416,381 | 1,374,128 |
Vessels related to capital leases, at cost, less accumulated depreciation of $25,883 (2016 – $69,072) (note 5) | 1,044,838 | 484,253 |
Advances on newbuilding contracts (notes 11d and 13a) | 444,493 | 357,602 |
Total vessels and equipment | 2,905,712 | 2,215,983 |
Investment in and advances to equity-accounted joint ventures (note 6) | 1,094,596 | 1,037,726 |
Net investments in direct financing leases (note 5) | 486,106 | 492,666 |
Other assets (note 6a iii) | 8,043 | 5,529 |
Derivative assets (note 12) | 6,172 | 4,692 |
Intangible assets – net (note 7) | 61,078 | 69,934 |
Goodwill – liquefied gas segment (note 7) | 35,631 | 35,631 |
Total assets | 5,019,299 | 4,315,474 |
Current | ||
Accounts payable | 3,509 | 5,562 |
Accrued liabilities (notes 8 and 12) | 45,757 | 35,881 |
Unearned revenue (note 5) | 25,873 | 16,998 |
Current portion of long-term debt (note 9) | 552,404 | 188,511 |
Current obligations related to capital leases (note 5) | 106,946 | 40,353 |
Current portion of in-process contracts (note 6a iii) | 7,946 | 15,833 |
Current portion of derivative liabilities (note 12) | 79,139 | 56,800 |
Advances from affiliates (notes 11e) | 12,140 | 15,492 |
Total current liabilities | 833,714 | 375,430 |
Long-term debt (note 9) | 1,245,588 | 1,602,715 |
Long-term obligations related to capital leases (note 5) | 904,603 | 352,486 |
Long-term unearned revenue | 0 | 10,332 |
Other long-term liabilities (notes 5 and 6a) | 57,594 | 60,573 |
In-process contracts (note 6a iii) | 580 | 8,233 |
Derivative liabilities (note 12) | 45,797 | 128,293 |
Total liabilities | 3,087,876 | 2,538,062 |
Commitments and contingencies (notes 5, 6, 9, 12 and 13) | ||
Equity | ||
Limited Partners - common units (79.6 million units issued and outstanding at December 31,2017 and 2016) (note 15) | 1,539,248 | 1,563,852 |
Limited Partners - preferred units (11.8 million and 5.0 million units issued and outstanding at December 31, 2017 and 2016, respectively) (note 15) | 285,159 | 123,426 |
General Partner | 50,152 | 50,653 |
Accumulated other comprehensive income | 4,479 | 575 |
Partners' equity | 1,879,038 | 1,738,506 |
Non-controlling interest | 52,385 | 38,906 |
Total equity | 1,931,423 | 1,777,412 |
Total liabilities and total equity | $ 5,019,299 | $ 4,315,474 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands, shares in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Non-trade accounts receivable | $ 13,203 | $ 19,325 |
Accumulated depreciation on vessel and equipment | 681,991 | 668,969 |
Accumulated depreciation on vessels under capital leases | $ 25,883 | $ 69,072 |
Limited Partners - common units issued | 79.6 | 79.6 |
Limited Partners - common units outstanding | 79.6 | 79.6 |
Limited Partners - preferred units issued | 11.8 | 5 |
Limited Partners - preferred units outstanding | 11.8 | 5 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
OPERATING ACTIVITIES | |||
Net income | $ 48,911 | $ 157,965 | $ 217,510 |
Non-cash items: | |||
Unrealized gain on non-designated derivative instruments (note 12) | (13,448) | (19,433) | (12,375) |
Depreciation and amortization | 105,545 | 95,542 | 92,253 |
Write-down and loss on sales of vessels | 50,600 | 38,976 | 0 |
Unrealized foreign currency exchange gain and other (notes 9 and 12) | (10,257) | (42,009) | (26,090) |
Equity income, net of dividends received of $42,692 (2016 – $31,113 and 2015 – $97,146) | 32,903 | (31,194) | 12,975 |
Change in operating assets and liabilities (note 14a) | 1,853 | (20,669) | (34,187) |
Expenditures for dry docking | (21,642) | (12,686) | (10,357) |
Net operating cash flow | 194,465 | 166,492 | 239,729 |
FINANCING ACTIVITIES | |||
Proceeds from issuance of long-term debt | 362,527 | 573,514 | 391,574 |
Scheduled repayments of long-term debt | (168,504) | (316,450) | (126,557) |
Prepayments of long-term debt | (236,474) | (463,422) | (90,000) |
Financing issuance costs | (8,361) | (3,462) | (2,856) |
Proceeds from financing related to sales and leaseback of vessels (notes 1 and 5) | 656,935 | 355,306 | 0 |
Scheduled repayments of obligations related to capital leases | (42,000) | (21,594) | (4,423) |
Proceeds from equity offerings, net of offering costs (note 15) | 164,411 | 120,707 | 35,374 |
Decrease (increase) in restricted cash | 20,385 | 4,651 | (30,321) |
Cash distributions paid | (56,650) | (45,467) | (255,519) |
Dividends paid to non-controlling interest | (1,595) | (3,402) | (1,629) |
Other | (605) | 0 | 0 |
Net financing cash flow | 690,069 | 200,381 | (84,357) |
INVESTING ACTIVITIES | |||
Capital contributions to equity-accounted joint ventures | (183,874) | (120,879) | (25,852) |
Return of capital from equity-accounted joint ventures | 92,320 | 5,500 | 23,744 |
Receipts from direct financing leases | 13,143 | 23,650 | 15,837 |
Proceeds of sales of vessels (note 18a) | 20,580 | 94,311 | 0 |
Expenditures for vessels and equipment | (708,608) | (345,790) | (191,969) |
Increase in restricted cash | 0 | 0 | (34,290) |
Net investing cash flow | (766,439) | (343,208) | (212,530) |
Increase (decrease) in cash and cash equivalents | 118,095 | 23,665 | (57,158) |
Cash and cash equivalents, beginning of the year | 126,146 | 102,481 | 159,639 |
Cash and cash equivalents, end of the year | $ 244,241 | $ 126,146 | $ 102,481 |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Cash Flows [Abstract] | |||
Dividends received | $ 42,692 | $ 31,113 | $ 97,146 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Total Equity - USD ($) shares in Thousands, $ in Thousands | Total | General Partner | Common UnitsLimited Partners | Preferred UnitsLimited Partners | Accumulated Other Comprehensive Income (Loss) | Non- controlling Interest |
Beginning balance, units at Dec. 31, 2014 | 78,353 | |||||
Beginning balance at Dec. 31, 2014 | $ 1,547,371 | $ 56,508 | $ 1,482,647 | $ (1,403) | $ 9,619 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 217,510 | 26,276 | 174,607 | 16,627 | ||
Other comprehensive income (loss) | (648) | (648) | ||||
Cash distributions | (255,519) | (34,747) | $ (220,772) | |||
Dividends paid to non-controlling interest | (1,629) | (1,629) | ||||
Equity based compensation, net of withholding tax, units | 25 | |||||
Equity based compensation, net of withholding tax | 1,220 | 24 | $ 1,196 | |||
Proceeds from equity offerings (note 15), units | 1,173 | |||||
Proceeds from equity offerings (note 15) | 35,374 | 725 | $ 34,649 | |||
Ending balance, units at Dec. 31, 2015 | 79,551 | 0 | ||||
Ending balance at Dec. 31, 2015 | 1,543,679 | 48,786 | $ 1,472,327 | $ 0 | (2,051) | 24,617 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 157,965 | 2,755 | 134,977 | $ 2,719 | 17,514 | |
Other comprehensive income (loss) | 2,803 | 2,626 | 177 | |||
Cash distributions | (45,467) | (910) | $ (44,557) | |||
Dividends paid to non-controlling interest | (3,402) | (3,402) | ||||
Equity based compensation, net of withholding tax, units | 21 | |||||
Equity based compensation, net of withholding tax | 1,127 | 22 | $ 1,105 | |||
Proceeds from equity offerings (note 15), units | 5,000 | |||||
Proceeds from equity offerings (note 15) | 120,707 | $ 120,707 | ||||
Ending balance, units at Dec. 31, 2016 | 79,572 | 5,000 | ||||
Ending balance at Dec. 31, 2016 | 1,777,412 | 50,653 | $ 1,563,852 | $ 123,426 | 575 | 38,906 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 48,911 | 400 | 19,586 | 13,979 | 14,946 | |
Other comprehensive income (loss) | 4,032 | 3,904 | 128 | |||
Cash distributions | (62,150) | (909) | $ (44,584) | $ (16,657) | ||
Dividends paid to non-controlling interest | (1,595) | (1,595) | ||||
Equity based compensation, net of withholding tax, units | 55 | |||||
Equity based compensation, net of withholding tax | 402 | 8 | $ 394 | |||
Proceeds from equity offerings (note 15), units | 6,800 | |||||
Proceeds from equity offerings (note 15) | 164,411 | $ 164,411 | ||||
Ending balance, units at Dec. 31, 2017 | 79,627 | 11,800 | ||||
Ending balance at Dec. 31, 2017 | $ 1,931,423 | $ 50,152 | $ 1,539,248 | $ 285,159 | $ 4,479 | $ 52,385 |
Consolidated Statements of Cha9
Consolidated Statements of Changes in Total Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Partners' Capital [Abstract] | |||
Equity based compensation, withholding tax | $ 0.6 | $ 0.2 | $ 0.4 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The 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. (or the Partnership ), which is a limited partnership organized under the laws of the Republic of The Marshall Islands, its wholly-owned or controlled subsidiaries and any variable interest entities (or VIEs ) of which it is the primary beneficiary. 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 may differ from those estimates. Significant intercompany balances and transactions have been eliminated upon consolidation. In addition, because the Partnership has determined that the entities that have financed certain of the Partnership's LNG carriers or LNG carrier newbuildings through sale leaseback transactions are VIEs that should be consolidated, the presentation of the sale leaseback transactions in the consolidated statements of cash flows has been adjusted to reflect these transactions as financing activities instead of investing activities in the current and comparative period. This has resulted in a decrease in net investing cash flow of $355 million and an increase in net financing cash flow of $355 million for the year ended December 31, 2016 . Foreign currency The consolidated financial statements are stated in U.S. Dollars and the functional currency of the Partnership and its subsidiaries is the U.S. Dollar. Transactions involving other currencies during the year are converted into U.S. Dollars using the exchange rates in effect at the time of the transactions. At the balance sheet date, monetary assets and liabilities that are denominated in currencies other than the U.S. Dollar are translated to reflect the year-end exchange rates. Resulting gains or losses are reflected separately in the accompanying consolidated statements of income. Operating revenues and expenses The lease element of time-charters and bareboat charters accounted for as operating leases are recognized by the Partnership on a straight-line basis daily over the term of the charter as the applicable vessel operates under the charter. The lease element of the Partnership’s time-charters that are accounted for as direct financing leases is reflected on the balance sheets as net investments in direct financing leases. The lease element is recognized over the lease term using the effective interest rate method and is included in voyage revenues. The Partnership recognizes revenues from the non-lease element of time-charter contracts as services are performed. For time-charter contracts where the charterer is responsible for the operation of the vessel, the Partnership offsets any vessel operating expenses it incurs against reimbursements from the charterer. The Partnership does not recognize revenues during days that the vessel is off-hire or if collectability of receipts of charter payments from charterers is not reasonably assured. Voyage expenses are all expenses unique to a particular voyage, including bunker fuel expenses, port fees, cargo loading and unloading expenses, canal tolls, agency fees and commissions. Vessel operating expenses include crewing, ship management services, repairs and maintenance, insurance, stores, lube oils and communication expenses. Voyage expenses and vessel operating expenses are recognized when incurred. Cash and cash equivalents The Partnership classifies all highly-liquid investments with a maturity date of three months or less when purchased as cash and cash equivalents. Restricted Cash The Partnership maintains restricted cash deposits relating to certain term loans, collateral for derivatives, project tenders, leasing arrangements, amounts received from charterers to be used only for dry-docking expenditures and emergency repairs and other obligations. Accounts receivable and allowance for doubtful accounts Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Partnership’s best estimate of the amount of probable credit losses in existing accounts receivable. The Partnership determines the allowance based on historical write-off experience and customer economic data. The Partnership reviews the allowance for doubtful accounts regularly and past due balances are reviewed for collectability. Account balances are charged against the allowance when the Partnership believes that the receivable will not be recovered. The Partnership’s advances to equity-accounted joint ventures are recorded at cost. The Partnership analyzes its loans for collectability during each reporting period. A loan provision is recorded, based on current information and events, if it is probable that the Partnership will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors the Partnership considers in determining that a loan provision is required include, among other things, an assessment of the financial condition of the debtor, payment history of the debtor, general economic conditions, the credit rating of the debtor (when available), any information provided by the debtor regarding its ability to repay the loan, and the fair value of the underlying collateral. When a loan provision is recorded, the Partnership measures the amount of the provision based on the present value of expected future cash flows discounted at the loan’s effective interest rate and recognizes the resulting provision in the statements of income. The carrying value of the loans is adjusted each subsequent period to reflect any changes in the present value of the expected future cash flows, which may result in increases or decreases to the loan provision. Vessels and equipment All pre-delivery costs incurred during the construction of newbuildings, including interest and supervision and technical costs, are capitalized. The acquisition cost and all costs incurred to restore used vessels purchased by the Partnership to the standards required to properly service the Partnership’s customers are capitalized. Interest costs capitalized to vessels and equipment for the years ended December 31, 2017 , 2016 and 2015 aggregated $13.9 million , $9.9 million and $8.2 million , respectively. Vessel capital modifications include the addition of new equipment or certain modifications to the vessel which are aimed at improving or increasing the operational efficiency and functionality of the asset. This type of expenditure is amortized over the estimated useful life of the modification. Expenditures covering recurring routine repairs and maintenance are expensed as incurred. Depreciation is calculated on a straight-line basis over a vessel’s estimated useful life, less an estimated residual value. Depreciation is calculated using an estimated useful life of 25 years for conventional tankers, 30 years for liquefied petroleum gas (or LPG ) carriers and 35 years for liquefied natural gas (or LNG ) carriers, from the date the vessel is delivered from the shipyard, or a shorter period if regulations prevent the Partnership from operating the vessels for 25 years , 30 years , or 35 years , respectively. Depreciation of vessels and equipment for the years ended December 31, 2017 , 2016 and 2015 aggregated $96.7 million , $86.6 million and $83.4 million , respectively. Depreciation and amortization includes depreciation on all owned vessels and amortization of vessels accounted for as capital leases. Generally, the Partnership dry docks each of its vessels every five years. In addition, a shipping society classification intermediate survey is performed on the Partnership’s LNG and LPG carriers between the second and third year of the five -year dry-docking cycle. The Partnership capitalizes certain costs incurred during dry docking and for the survey and amortizes those costs on a straight-line basis from the completion of a dry docking or intermediate survey over the estimated useful life of the dry dock. The Partnership includes in capitalized dry docking those costs incurred as part of the dry docking to meet regulatory requirements, or expenditures that either add economic life to the vessel, increase the vessel’s earning capacity or improve the vessel’s operating efficiency. The Partnership expenses costs related to routine repairs and maintenance performed during dry docking that do not improve operating efficiency or extend the useful lives of the assets. The following table summarizes the change in the Partnership’s capitalized dry docking costs, from January 1, 2015 to December 31, 2017 : Year Ended December 31, 2017 2016 2015 Balance at January 1, 33,538 33,916 33,635 Cost incurred for dry docking 22,283 13,944 10,357 Write-downs and sales of vessels (2,782 ) (2,886 ) — Dry-dock amortization (13,895 ) (11,436 ) (10,076 ) Balance at December 31, 39,144 33,538 33,916 Vessels and equipment that are “held for use” are assessed for impairment when events or circumstances indicate the carrying amount of the asset may not be recoverable. If the asset’s net carrying value exceeds the net undiscounted cash flows expected to be generated over its remaining useful life, the carrying amount of the asset is reduced to its estimated fair value. The estimated fair value for the Partnership’s impaired vessels is determined using discounted cash flows or appraised values. In cases where an active second hand sale and purchase market does not exist, the Partnership uses a discounted cash flow approach to estimate the fair value of an impaired vessel. In cases where an active second hand sale and purchase market exists, an appraised value is generally the amount the Partnership would expect to receive if it were to sell the vessel. Such appraisal is normally completed by the Partnership. Vessels and equipment that are "held for sale" are measured at the lower of their carrying amount or fair value less costs to sell and are not depreciated while classified as held for sale. Interest and other expenses attributable to vessels and equipment classified as held for sale, or to their related liabilities, continue to be recognized as incurred. Gains on vessels sold and leased back under capital leases with lessor entities that are not considered VIEs are deferred and amortized over the remaining term of the capital lease. Losses on vessels sold and leased back under capital leases are recognized immediately when the fair value of the vessel at the time of a sale-leaseback transaction is less than its book value. In such case, the Partnership would recognize a loss in the amount by which book value exceeds fair value. Investments in and advances to equity-accounted joint ventures The Partnership’s investments in certain joint ventures are accounted for using the equity method of accounting. Under the equity method of accounting, investments are stated at initial cost and are adjusted for subsequent additional investments and the Partnership’s proportionate share of earnings or losses and distributions. In addition, the Partnership’s advances to equity-accounted joint ventures are recorded at cost. The Partnership evaluates its investment in and advances to equity-accounted joint ventures for impairment when events or circumstances indicate that the carrying value of such investments may have experienced an other-than-temporary decline in value below its carrying value. If the estimated fair value is less than the carrying value, the carrying value is written down to its estimated fair value and the resulting impairment is recorded in the Partnership’s consolidated statements of income. Debt issuance costs Debt issuance costs related to a recognized debt liability, including fees, commissions and legal expenses, are presented as a direct reduction from the carrying amount of that debt liability and amortized on an effective interest rate method over the term of the relevant loan. Debt issuance costs related to loan facilities without a recognized debt liability or where the debt issuance costs exceed the carrying value of the related debt liability are deferred and presented as other non-current assets in the Partnership's consolidated balance sheets. Amortization of debt issuance costs is included in interest expense. Fees paid to amend a non-revolving credit facility shall be associated with the extinguishment of the old debt instrument and included in determining the debt extinguishment gain or loss to be recognized. Any unamortized debt issuance costs would be written off. If the amendment is considered not to be a substantial amendment, then the fees would be associated with the replacement or modified debt instrument and, along with any existing unamortized premium or discount, would be amortized as an adjustment of interest expense over the remaining term of the replacement or modified debt instrument using the effective interest method. Other related costs incurred with third parties directly related to the modification, other than the loan amendment fee, are expensed as incurred. Fees paid to amend revolving credit facilities are deferred and amortized over the term of the modified credit facility. If the borrowing capacity under the credit facility is increased as a result of the amendment, unamortized loan costs of the original facility would be deferred and amortized over the term of the modified credit facility. If the borrowing capacity is decreased as a result of the amendment, a proportionate amount, based on the reduction in borrowing capacity, of the unamortized debt issuance costs of the original facility would be written off and the remaining amount would be deferred and amortized over the term of the modified credit facility. Goodwill and intangible assets Goodwill is not amortized, but is reviewed for impairment at the reporting unit level on an annual basis or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. When goodwill is reviewed for impairment, the Partnership may elect to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. Alternatively, the Partnership may bypass this step and use a fair value approach to identify potential goodwill impairment and, when necessary, measure the amount of impairment. The Partnership uses a discounted cash flow model to determine the fair value of reporting units, unless there is a readily determinable fair market value. Intangible assets are assessed for impairment when and if impairment indicators exist. An impairment loss is recognized if the carrying amount of an intangible asset is not recoverable and its carrying amount exceeds its fair value. The Partnership’s finite life intangible assets consist of acquired time-charter contracts that are amortized on a straight-line basis over the remaining term of the time-charters. Finite life intangible assets are assessed for impairment when events or circumstances indicate that the carrying value may not be recoverable. Derivative instruments All derivative instruments are initially recorded at fair value as either assets or liabilities in the accompanying consolidated balance sheet and subsequently remeasured to fair value, regardless of the purpose or intent for holding the derivative. The method of recognizing the resulting gain or loss is dependent on whether the derivative contract is designed to hedge a specific risk and whether the contract qualifies for hedge accounting. When a derivative is designated as a cash flow hedge, the Partnership formally documents the relationship between the derivative and the hedged item. This documentation includes the strategy and risk management objective for undertaking the hedge and the method that will be used to assess the effectiveness of the hedge. Any hedge ineffectiveness is recognized immediately in earnings, as are any gains and losses on the derivative that are excluded from the assessment of hedge effectiveness. The Partnership does not apply hedge accounting if it is determined that the hedge was not effective or will no longer be effective, the derivative was sold or exercised, or the hedged item was sold, repaid or no longer possible of occurring. For derivative financial instruments designated and qualifying as cash flow hedges, changes in the fair value of the effective portion of the derivative financial instruments are initially recorded as a component of accumulated other comprehensive income in total equity. In the periods when the hedged items affect earnings, the associated fair value changes on the hedging derivatives are transferred from total equity to the corresponding earnings line item in the consolidated statements of income. The ineffective portion of the change in fair value of the derivative financial instruments is immediately recognized in earnings in the consolidated statements of income. If a cash flow hedge is terminated and the originally hedged item is still considered possible of occurring, the gains and losses initially recognized in total equity remain there until the hedged item impacts earnings, at which point they are transferred to the corresponding earnings line item (e.g. interest expense) in the consolidated statements of income. If the hedged items are no longer possible of occurring, amounts recognized in total equity are immediately transferred to the earnings item in the consolidated statements of income. For derivative financial instruments that are not designated or that do not qualify as hedges under Financial Accounting Standards Board (or FASB ) Accounting Standards Codification (or ASC ) 815, Derivatives and Hedging , the changes in the fair value of the derivative financial instruments are recognized in earnings. Gains and losses from the Partnership’s non-designated interest rate swaps, interest rate swaptions, and the Partnership’s agreement with Teekay Corporation for the Suezmax tanker the Toledo Spirit (see Note 11c) are recorded in realized and unrealized loss on non-designated derivative instruments in the Partnership’s consolidated statements of income. Gains and losses from the Partnership’s cross-currency swaps are recorded in foreign currency exchange (loss) gain in the Partnership’s consolidated statements of income. Unit-based compensation 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 and its subsidiaries. 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 of 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 cost of the Partnership’s unit-based compensation awards is reflected in general and administrative expenses in the Partnership’s consolidated statements of income. Income taxes The Partnership accounts for income taxes using the liability method. All but two of the Partnership’s Spanish-flagged vessels are subject to the Spanish Tonnage Tax Regime (or TTR ). Under this regime, the applicable tax is based on the weight (measured as net tonnage) of the vessel and the number of days during the taxable period that the vessel is at the Partnership’s disposal, excluding time required for repairs. The income the Partnership receives with respect to the remaining two Spanish-flagged vessels is taxed in Spain at a rate of 25% . However, these two vessels are registered in the Canary Islands Special Ship Registry. Consequently, the Partnership is allowed a credit, equal to 90% of the tax payable on income from the commercial operation of these vessels, against the tax otherwise payable. This effectively results in an income tax rate of approximately 2.5% on income from the operation of these two Spanish-flagged vessels. The Partnership recognizes the benefits of uncertain tax positions when it is more-likely-than-not that a tax position taken or expected to be taken in a tax return will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. If a tax position meets the more-likely-than-not recognition threshold, it is measured to determine the amount of benefit to recognize in the financial statements. The Partnership recognizes interest and penalties related to uncertain tax positions in income tax expense in the Partnership’s consolidated statements of income. Guarantees Guarantees issued by the Partnership, excluding those that are guaranteeing its own performance, are recognized at fair value at the time the guarantees are issued and are presented in the Partnership’s consolidated balance sheets as other long-term liabilities. The liability recognized on issuance is amortized to other income on the Partnership’s consolidated statements of income over the term of the guarantee. If it becomes probable that the Partnership will have to perform under a guarantee, the Partnership will recognize an additional liability if the amount of the loss can be reasonably estimated. |
Accounting Pronouncements
Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Pronouncements | Accounting Pronouncements In May 2014, the 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 at 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 January 1, 2018, and shall be applied, at the Partnership’s option, retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Partnership will adopt ASU 2014-09 as a cumulative-effect adjustment as of this date. The Partnership has elected to apply ASC 2014-09 only to those contracts that are not completed as of January 1, 2018. The Partnership has not identified any material impact on its consolidated financial statements based on the work performed to date. 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. For lessees, leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 requires lessors to classify leases as a sales-type, direct financing, or operating lease. A lease is a sales-type lease if any one of five criteria are met, each of which indicate that the lease, in effect, transfers control of the underlying asset to the lessee. If none of those five criteria are met, but two additional criteria are both met, indicating that the lessor has transferred substantially all of the risks and benefits of the underlying asset to the lessee and a third party, the lease is a direct financing lease. All leases that are not sales-type leases or direct financing leases are operating leases. ASU 2016-02 is effective January 1, 2019, with early adoption permitted. The Partnership currently intends to adopt ASU 2016-02 effective January 1, 2018 using a transition approach whereby a cumulative effect adjustment is made as of the effective date of January 1, 2018, with no retrospective effect. To determine the cumulative effect adjustment, the Partnership has no t reassessed whether any expired or existing contracts are, or contain leases, has not reassessed lease classification, and has not reassessed initial direct costs for any existing leases. The quarter in which the Partnership adopts ASU 2016-02 and the estimated impact from adoption contained below is based upon the expectation that FASB will issue an additional ASU prior to the filing of our consolidated financial statements for the first quarter of 2018. The Partnership is currently considering the potential impact of a delay in the finalization of this additional ASU on its adoption date . The Partnership has identified the following differences b ased on the work performed to date: • The adoption of ASU 2016-02 will result in a change in the accounting method for the lease portion of the daily charter hire for the chartered-in vessels of the Partnership’s equity-accounted joint ventures accounted for as operating leases with firm periods of greater than one year. Under ASU 2016-02, the equity accounted joint ventures will recognize a right-of-use asset and a lease liability on the balance sheet for these charters based on the present value of future minimum lease payments, whereas currently no right-of-use asset or lease liability is recognized. This will have the result of increasing the equity-accounted joint venture’s assets and liabilities. The pattern of expense recognition of chartered-in vessels is expected to remain substantially unchanged, unless the right of use asset becomes impaired. • The adoption of ASU 2016-02 will result in the Partnership completing its lease classification assessment when a lease commences instead of when the lease is entered into. The Partnership has entered into charters in prior periods for certain of its vessels currently under construction and which are expected to deliver over the period from 2018 to 2020. Historically, for charters that were negotiated concurrently with the construction of the related vessels, the fair value of the constructed asset was presumed to be its newbuilding cost and no gain or loss was recognized on commencement of the charter if such charters were classified as direct finance leases. On the adoption of ASU 2016-02, the fair value of the vessel is determined based on information available at the lease commencement date and any difference in the fair value of the ship upon commencement of the charter and its carrying value is recognized as a gain or loss upon commencement of the charter. • The adoption of ASU 2016-02 will result in the recognition of revenue from the reimbursement of scheduled dry-dock expenditures, where such charter contract is accounted for as an operating lease, occurring upon completion of the scheduled dry-dock, instead of ratably over the period between the previous scheduled dry-dock and the next scheduled dry-dock. The Partnership is in the process of determining which vessels this applies to and the cumulative impact to opening equity as at January 1, 2018. • The Partnership expects that certain pre-operational costs it currently expenses as incurred will be deferred and amortized over the contract term of a customer contract that the costs relate to. The Partnership is in the process of determining which pre-operational costs this applies to and the cumulative impact to opening equity as at January 1, 2018. • In addition, direct financing lease payments received will be presented as an operating cash inflow instead of an investing cash inflow in the statement of cash flows. In March 2016, the FASB issued Accounting Standards Update 2016-09, Improvements to Employee Share-Based Payment Accounting (or ASU 2016-09 ). ASU 2016-09 simplifies aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statements of cash flows. ASU 2016-09 became effective for the Partnership January 1, 2017. The impact of adopting this new accounting guidance is a change in the Partnership's presentation of cash payments for tax withholdings on share settled equity awards from an operating cash outflow to a financing cash outflow on the Partnership's statements of cash flows. In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (or ASU 2016-13 ). ASU 2016-13 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 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 (or ASU 2016-15 ), which, among other things, provides guidance on two acceptable approaches of classifying distributions received from equity-method investees in the statements of cash flows. ASU 2016-15 is effective for the Partnership January 1, 2018, with a retrospective approach. The Partnership is currently evaluating the effect of adopting this new guidance. In 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 being 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 for the Partnership January 1, 2019. The Partnership is currently evaluating the effect of adopting this new guidance. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments a) Fair Value Measurements The following methods and assumptions were used to estimate the fair value of each class of financial instrument: Cash and cash equivalents and restricted cash – The fair value of the Partnership’s cash and cash equivalents and restricted cash approximates its carrying amounts reported in the consolidated balance sheets. Interest rate swap/swaption and cross-currency swap agreements – The fair value of these derivative instruments of the Partnership is the estimated amount that the Partnership would receive or pay to terminate the agreements at the reporting date, taking into account current interest rates, foreign exchange rates and the current credit worthiness of both the Partnership and the derivative counterparties. The estimated amount is the present value of future cash flows. The Partnership transacts all of these derivative instruments through investment-grade rated financial institutions at the time of the transaction and requires no collateral from these institutions; however, collateral is required by these institutions on some of the Partnership's cross-currency swap agreements and as at December 31, 2017, the Partnership had $22.3 million held as collateral (December 31, 2016 – $37.8 million ), which has been recorded as restricted cash – current on the Partnership's balance sheets. Given the current volatility in the credit markets, it is reasonably possible that the amount recorded as a derivative asset or liability could vary by a material amount in the near term. Other derivative – The Partnership’s other derivative agreement is between Teekay Corporation and the Partnership and relates to hire payments under the time-charter contract for the Suezmax tanker Toledo Spirit (see Note 11c). The fair value of this derivative agreement is the estimated amount that the Partnership would receive or pay to terminate the agreement at the reporting date, based on the present value of the Partnership’s projection of future spot market tanker rates, which have been derived from current spot market tanker rates and long-term historical average rates. As projections of future spot rates are specific to the Partnership, these are considered Level 3 inputs for the purposes of estimating the fair value. Long-term receivable included in accounts receivable and other assets – The fair values of the Partnership’s long-term loan receivable are estimated using discounted cash flow analysis based on rates currently available for debt with similar terms and remaining maturities and the current credit worthiness of the counterparty. Long-term debt – The fair values of the Partnership’s fixed-rate and variable-rate long-term debt are either based on quoted market prices or estimated using discounted cash flow analyses based on rates currently available for debt with similar terms and remaining maturities and the current credit worthiness of the Partnership. Long-term obligations related to capital leases – The fair values of the Partnership's long-term obligations related to capital leases are estimated using discounted cash flow analyses, based on rates currently available for debt with similar terms and remaining maturities. The Partnership categorizes the fair value estimates by a fair value hierarchy based on the inputs used to measure fair value. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value as follows: Level 1. Observable inputs such as quoted prices in active markets; Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. 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 a fair value on a recurring basis. December 31, 2017 December 31, 2016 Fair Value Carrying Fair Carrying Fair Recurring: Cash and cash equivalents and restricted cash Level 1 339,435 339,435 243,173 243,173 Derivative instruments (note 12) Interest rate swap agreements – assets Level 2 878 878 1,080 1,080 Interest rate swap agreements – liabilities Level 2 (73,984 ) (73,984 ) (87,681 ) (87,681 ) Interest rate swaption agreements – assets Level 2 Nominal Nominal 3,283 3,283 Interest rate swaption agreements – liabilities Level 2 (2 ) (2 ) (4,230 ) (4,230 ) Cross-currency swap agreements – assets Level 2 3,758 3,758 — — Cross-currency swap agreements – liabilities Level 2 (54,217 ) (54,217 ) (99,786 ) (99,786 ) Other derivative Level 3 1,648 1,648 2,134 2,134 Non-recurring: Vessels held for sale (note 18) Level 2 16,671 16,671 20,580 20,580 Other: Advances to equity-accounted joint ventures (note 6) (i) 131,685 (i) 272,514 (i) Long-term receivable included in accounts receivable and other assets (ii) Level 3 3,476 3,459 10,985 10,944 Long-term debt – public (note 9) Level 1 (376,581 ) (384,820 ) (368,612 ) (366,418 ) Long-term debt – non-public (note 9) Level 2 (1,421,411 ) (1,391,524 ) (1,422,614 ) (1,381,287 ) Obligations related to capital leases (note 5) Level 2 (1,011,549 ) (1,001,588 ) (392,839 ) (400,072 ) (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 at December 31, 2017 , the estimated fair value of the non-interest bearing receivable is based on the remaining future fixed payments of $3.5 million , to be received from Royal Dutch Shell Plc (or Shell ) (formerly BG International Limited) as part of the ship construction support agreement, and using an estimated 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, 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 years ended December 31, 2017 and 2016 for the Partnership’s other derivative asset, 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: Year Ended December 31, 2017 2016 Fair value at beginning of year 2,134 (6,296 ) Realized and unrealized gains included in earnings 788 3,316 Settlements (1,274 ) 5,114 Fair value at end of year 1,648 2,134 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 December 31, 2017 is based upon an average daily tanker rate of $17,500 ( December 31, 2016 – $22,875 ) over the remaining duration of the charter contract, and assumes the charterer of this vessel will cancel its charter contract in 2018 (see Note 5), and a discount rate of 8.7% ( December 31, 2016 – 8.4% ). 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. Class of Financing Receivable Credit Quality Indicator Grade December 31 December 31 Direct financing leases Payment activity Performing 495,990 643,008 Other receivables: Long-term receivable and accrued revenue included in accounts receivable and other assets Payment activity Performing 5,476 12,171 Advances to equity-accounted joint ventures Other internal metrics Performing 131,685 272,514 633,151 927,693 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Partnership has two reportable segments, its liquefied gas segment and its conventional tanker segment. The Partnership’s liquefied gas segment consists of LNG carriers, LPG carriers and multigas carriers, which can carry both LNG and LPG, which generally operate under long-term, fixed-rate charters to international energy companies and to Teekay Corporation (see Note 11a). As at December 31, 2017 , the Partnership’s liquefied gas segment consisted of 50 LNG carriers and LNG carrier newbuildings (including 26 LNG carriers and LNG carrier newbuildings included in joint ventures that are accounted for under the equity method), and 30 LPG/Multigas carriers and LPG carrier newbuildings (including 23 LPG carriers and LPG carrier newbuildings included in a joint venture that is accounted for under the equity method). As at December 31, 2017 , the Partnership’s conventional tanker segment consisted of four Suezmax-class crude oil tankers and one Handymax product tanker. Segment results are evaluated based on income from vessel operations. The accounting policies applied to the reportable segments are the same as those used in the preparation of the Partnership’s consolidated financial statements. The following table presents voyage revenues and percentage of consolidated voyage revenues for the Partnership’s customers who accounted for 10% or more of the Partnership's consolidated voyage revenues during any of the periods presented. (U.S. Dollars in millions) Year Ended Year Ended Year Ended Ras Laffan Liquefied Natural Gas Company Ltd. (i) $70.3 or 16% $70.3 or 18% $70.1 or 18% Cheniere Marketing International LLP (i) $60.2 or 14% Less than 10% - Royal Dutch Shell Plc. (i) (ii) $53.8 or 12% $48.2 or 12% $48.5 or 12% The Tangguh Production Sharing Contractors (i) $49.7 or 11% $44.4 or 11% $44.9 or 11% (i) Liquefied gas segment. (ii) Includes its subsidiaries Shell Spain LNG S.A.U. and Shell Tankers (Singapore) Private Ltd. The following tables include results for these segments for the years presented in these financial statements. Year Ended December 31, 2017 Liquefied Gas Conventional Total Voyage revenues 385,683 46,993 432,676 Voyage expenses (3,020 ) (5,182 ) (8,202 ) Vessel operating expenses (84,928 ) (18,211 ) (103,139 ) Depreciation and amortization (95,025 ) (10,520 ) (105,545 ) General and administrative expenses (i) (14,034 ) (2,507 ) (16,541 ) Write-down and loss on sales of vessels — (50,600 ) (50,600 ) Income (loss) from vessel operations 188,676 (40,027 ) 148,649 Equity income 9,789 — 9,789 Investment in and advances to equity-accounted joint ventures 1,094,596 — 1,094,596 Total assets at December 31, 2017 4,624,321 112,844 4,737,165 Expenditures for vessels and equipment (714,529 ) — (714,529 ) Expenditures for dry docking (20,153 ) (2,130 ) (22,283 ) Year Ended December 31, 2016 Liquefied Gas Conventional Total Voyage revenues 336,530 59,914 396,444 Voyage expenses (449 ) (1,207 ) (1,656 ) Vessel operating expenses (66,087 ) (22,503 ) (88,590 ) Depreciation and amortization (80,084 ) (15,458 ) (95,542 ) General and administrative expenses (i) (15,310 ) (3,189 ) (18,499 ) Write-down and loss on sales of vessels — (38,976 ) (38,976 ) Income (loss) from vessel operations 174,600 (21,419 ) 153,181 Equity income 62,307 — 62,307 Investment in and advances to equity-accounted joint ventures 1,037,726 — 1,037,726 Total assets at December 31, 2016 3,957,088 193,553 4,150,641 Expenditures for vessels and equipment (344,924 ) (63 ) (344,987 ) Expenditures for dry docking (13,944 ) — (13,944 ) Year Ended December 31, 2015 Liquefied Gas Conventional Total Voyage revenues 305,056 92,935 397,991 Voyage recoveries (expenses) 203 (1,349 ) (1,146 ) Vessel operating expenses (63,344 ) (30,757 ) (94,101 ) Depreciation and amortization (71,323 ) (20,930 ) (92,253 ) General and administrative expenses (i) (19,392 ) (5,726 ) (25,118 ) Restructuring charges — (4,001 ) (4,001 ) Income from vessel operations 151,200 30,172 181,372 Equity income 84,171 — 84,171 Expenditures for vessels and equipment (191,642 ) (327 ) (191,969 ) Expenditures for dry docking (8,659 ) (1,698 ) (10,357 ) (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 presented in the consolidated balance sheets is as follows: December 31 December 31 Total assets of the liquefied gas segment 4,624,321 3,957,088 Total assets of the conventional tanker segment 112,844 193,553 Unallocated: Cash and cash equivalents 244,241 126,146 Accounts receivable and prepaid expenses 30,593 28,948 Advances to affiliates 7,300 9,739 Consolidated total assets 5,019,299 4,315,474 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Leases | Leases Capital Lease Obligations December 31 December 31 LNG Carriers 961,711 338,257 Suezmax Tankers 49,838 54,582 Total obligations related to capital leases 1,011,549 392,839 Less current portion (106,946 ) (40,353 ) Long-term obligations related to capital leases 904,603 352,486 LNG Carriers. As at December 31, 2017 , the Partnership was a party to capital leases on five LNG carriers, the Creole Spirit, the Oak Spirit, the Torben Spirit, the Macoma, and the Murex . Upon delivery of the Creole Spirit in February 2016, the Oak Spirit in July 2016, the Torben Spirit in March 2017, the Macoma in October 2017, and the Murex in November 2017, the Partnership sold these vessels to third parties (or Lessors ) and leased them back under 10 -year bareboat charter contracts ending in 2026 and 2027. Four of the bareboat charter contracts are fixed-rate capital leases and one is a variable-rate capital lease, and all with a fixed-price purchase obligation at the end of the lease terms. At inception of these leases, the weighted-average interest rate implicit in these leases was 5.2% . In addition, as at December 31, 2017 , the Partnership had sale-leaseback agreements in place for three LNG carrier newbuildings scheduled to deliver during 2018, and at such dates, the buyers will take delivery and charter each respective vessel back to the Partnership. As at December 31, 2017 , the Partnership had received $193 million from the buyers, which has been recorded as current and long-term obligations related to capital leases in the Partnership's consolidated balance sheets, and the Partnership has secured a further $375 million in capital lease financing to be received in 2018 upon delivery of the vessels. The Partnership understands that these vessels and lease operations are the only assets and operations of the Lessors. The Partnership operates the vessels during the lease term and as a result, is considered to be, under GAAP, the Lessor's primary beneficiary; therefore, the Partnership consolidates the Lessors for financial reporting purposes as VIEs. The liabilities of the Lessors are loans and are non-recourse to the Partnership. The amounts funded to the Lessors in order to purchase the vessels materially match the funding to be paid by the Partnership's subsidiaries under the sale-leaseback transaction. As a result, the amounts due by the Partnership's subsidiaries to the Lessors have been included in obligations related to capital leases as representing the Lessors' loans. The Partnership guarantees the obligations of the bareboat charter contracts. 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 December 31, 2017, the Partnership was in compliance with all covenants in respect of the obligations related to its capital leases. As at December 31, 2017 , the remaining commitments related to the eight capital leases for the Partnership's LNG carriers and LNG carrier newbuildings, including the related purchase obligations, approximated $1.4 billion , including imputed interest of $429.9 million , repayable from 2018 through 2027, as indicated below: Year Commitment 2018 $ 111,678 2019 $ 119,564 2020 $ 118,901 2021 $ 117,904 2022 $ 117,109 Thereafter $ 806,458 Suezmax Tankers. As at December 31, 2017 , the Partnership was a party to capital leases on two Suezmax tankers, the Teide Spirit and the Toledo Spirit . Under these capital leases, the owner has the option to require the Partnership to purchase the two vessels. The charterer, Compania Espanole de Petroles, S.A. (or CEPSA ), who is also the owner, also has the option to cancel the charter contracts and the cancellation options are first exercisable in February 2018 and July 2018, respectively. The Partnership assumes CEPSA will not exercise its options to require the Partnership to purchase either of the two remaining vessels from CEPSA, but rather it assumes CEPSA will cancel the charter contracts when the cancellation right is first exercisable (in February 2018 and July 2018, respectively) and sell the vessels to third parties, upon which the remaining lease obligations will be extinguished. In December 2017, CEPSA agreed to sell the Teide Spirit to a third party (see Note 19e). At the inception of these leases, the weighted-average interest rate implicit in these leases was 5.5% . These capital leases are variable-rate capital leases. However, any change in the lease payments resulting from changes in interest rates is offset by a corresponding change in the charter hire payments received by the Partnership. As at December 31, 2017 , the remaining commitments related to the two capital leases for Suezmax tankers, including the related purchase obligations, approximated $51.0 million , including imputed interest of $1.1 million , repayable in 2018. The Partnership’s capital leases relating to its Suezmax tankers do not contain financial or restrictive covenants other than those relating to operation and maintenance of the vessels. Operating Lease Obligations Teekay Tangguh Joint Venture As at December 31, 2017 , the Teekay BLT Corporation (or the Teekay Tangguh Joint Venture ) was a party to operating leases (or Head Leases ) whereby it is leasing its two LNG carriers (or the Tangguh LNG Carriers ) to a third-party company. The Teekay Tangguh Joint Venture is then leasing back the LNG carriers from the same third-party company (or the Subleases ). Under the terms of these leases, the third-party company claims tax depreciation on the capital expenditures it incurred to lease the vessels. As is typical in these leasing arrangements, tax and change of law risks are assumed by the Teekay Tangguh Joint Venture. Lease payments under the Subleases are based on certain tax and financial assumptions at the commencement of the leases. If an assumption proves to be incorrect, the lease payments are increased or decreased under the Sublease to maintain the agreed after-tax margin. The Teekay Tangguh Joint Venture’s carrying amounts of this estimated tax indemnification guarantee as at December 31, 2017 and 2016 were $7.1 million and $7.5 million , respectively, and are included as part of other long-term liabilities in the consolidated balance sheets of the Partnership. The tax indemnification is for the duration of the lease contract with the third party plus the years it would take for the lease payments to be statute barred, and ends in 2033. Although there is no maximum potential amount of future payments, the Teekay Tangguh Joint Venture may terminate the lease arrangements on a voluntary basis at any time. If the lease arrangements terminate, the Teekay Tangguh Joint Venture will be required to make termination payments to the third-party company sufficient to repay the third-party company’s investment in the vessels and to compensate it for the tax effect of the terminations, including recapture of any tax depreciation. The Head Leases and the Subleases have 20 -year terms and are classified as operating leases. The Head Leases and the Subleases for the two Tangguh LNG Carriers commenced in November 2008 and March 2009. As at December 31, 2017 , the total estimated future minimum rental payments to be received and paid by the Teekay Tangguh Joint Venture related to the lease contracts are as follows: Year Head Lease Receipts (i) Sublease Payments (i) (ii) 2018 $ 21,242 $ 23,875 2019 $ 21,242 $ 23,875 2020 $ 21,242 $ 23,875 2021 $ 21,242 $ 23,875 2022 $ 21,242 $ 23,875 Thereafter $ 132,853 $ 149,360 Total $ 239,063 $ 268,735 (i) The Head Leases are fixed-rate operating leases while the Subleases have a variable-rate component. As at December 31, 2017 , the Partnership had received $271.3 million of aggregate Head Lease receipts and had paid $212.1 million of aggregate Sublease payments. The portion of the Head Lease receipts that have not been recognized into earnings is deferred and amortized on a straight-line basis over the lease terms and, as at December 31, 2017 , $3.7 million ( December 31, 2016 – $3.7 million ) and $33.0 million ( December 31, 2016 – $36.7 million ) of Head Lease receipts had been deferred and included in unearned revenue and other long-term liabilities, respectively, in the Partnership’s consolidated balance sheets. (ii) The amount of payments related to the Subleases are updated annually to reflect any changes in the lease payments due to changes in tax law. Net Investments in Direct Financing Leases The Tangguh LNG Carriers commenced their time-charters with their charterers in 2009. Both time-charter contracts are accounted for as direct financing leases with 20 -year terms. In 2013, the Partnership acquired two 155,900 -cubic meter LNG carriers (or Awilco LNG Carriers ) from Norway-based Awilco LNG ASA (or Awilco ) and chartered them back to Awilco on five - and four -year fixed-rate bareboat charter contracts ( plus a one - year extension option ), respectively, with Awilco holding fixed-price purchase obligations at the end of the charter. The bareboat charters with Awilco were accounted for as direct financing leases. In June 2017, the Partnership agreed to amend the charter contracts 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, one of the charter contracts with Awilco has been reclassified as an operating lease upon the expiry of its original contract terms in November 2017. The second charter contract with Awilco will be reclassified as an operating lease upon the expiry of its original contract terms in August 2018, and at that time, approximately $131 million will be recorded as part of vessels and equipment. The following table lists the components of the net investments in direct financing leases: December 31 December 31 Total minimum lease payments to be received 568,710 764,970 Estimated unguaranteed residual value of leased properties 194,965 194,965 Initial direct costs 361 393 Less unearned revenue (268,046 ) (317,320 ) Total net investments in direct financing leases 495,990 643,008 Less current portion (9,884 ) (150,342 ) Net investments in direct financing leases 486,106 492,666 As at December 31, 2017 , estimated minimum lease payments to be received by the Partnership related to the Tangguh LNG Carrier leases in each of the next five succeeding fiscal years are approximately $39.1 million per year from 2018 through 2022. Both leases are scheduled to end in 2029. In addition, the estimated minimum lease payments to be received by the Partnership in 2018 related to the Awilco LNG Carrier lease, up to its original contract terms in August 2018, were approximately $6.8 million . Operating Leases As at December 31, 2017 , the minimum scheduled future rentals to be received by the Partnership in each of the next five years for the lease and non-lease elements related to charters that were accounted for as operating leases are approximately $329.7 million ( 2018 ), $309.2 million ( 2019 ), $278.9 million ( 2020 ), $239.4 million ( 2021 ), and $216.4 million ( 2022 ). Minimum scheduled future rentals on operating lease contracts do not include rentals generated from new contracts entered into after December 31, 2017 , rentals from vessels in the Partnership’s equity-accounted investments, rentals from unexercised option periods of contracts that existed on December 31, 2017 , variable or contingent rentals, or rentals from contracts which commenced after December 31, 2017 . Therefore, the minimum scheduled future rentals on operating leases should not be construed to reflect total charter hire revenues for any of these five years. |
Equity-Accounted Investments
Equity-Accounted Investments | 12 Months Ended |
Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity-Accounted Investments | Equity-Accounted Investments a) A summary of the Partnership's investments in and advances to equity-accounted investees are as follows: As at December 31, 2017 As at December 31, Name Ownership Percentage # of Delivered Vessels Newbuildings on order 2017 2016 Bahrain LNG Joint Venture (i) 30% - 1 77,706 63,933 Yamal LNG Joint Venture (ii) 50% - 6 193,774 152,702 Pan Union Joint Venture (iii) 20%-30% 1 3 43,538 33,860 Exmar LPG Joint Venture (iv) 50% 20 3 160,626 167,763 Teekay LNG-Marubeni Joint Venture (v) 52% 6 - 341,712 299,601 Excalibur and Excelsior Joint Ventures (vi) 49%-50% 2 - 79,915 79,577 Angola Joint Venture (vii) 33% 4 - 74,775 65,644 RasGas 3 Joint Venture (viii) 40% 4 - 122,550 174,646 37 13 1,094,596 1,037,726 (i) Bahrain LNG Joint Venture On December 2, 2015, the Partnership ( 30% ) entered into a joint venture agreement with National Oil & Gas Authority (or Nogaholding ) ( 30% ), Gulf Investment Corporation (or GIC ) ( 24% ) and Samsung C&T (or Samsung ) ( 16% ) to form a joint venture, Bahrain LNG W.L.L. (or the Bahrain LNG Joint Venture ), for the development of an LNG receiving and regasification terminal in Bahrain. The project will include an offshore LNG receiving jetty and breakwater, an adjacent regasification platform, subsea gas pipelines from the platform to shore, an onshore gas receiving facility, and an onshore nitrogen production facility with a total LNG terminal capacity of 800 million standard cubic feet per day and will be owned and operated under a 20 -year agreement commencing in early-2019. In addition, the Partnership will supply a floating storage unit (or FSU ) in connection with this project, which will be modified from one of the Partnership’s four MEGI LNG carrier newbuildings ordered from Daewoo Shipbuilding & Marine Engineering Co. (or DSME ) (see Note 13a), through a 20 -year time-charter contract with the Bahrain LNG Joint Venture. As at December 31, 2017 , the Partnership had advanced $79.1 million ( December 31, 2016 – $62.9 million ) to the Bahrain LNG Joint Venture. These advances bear interest at LIBOR plus 1.25% and as at December 31, 2017 , the interest accrued on these advances was $0.1 million ( December 31, 2016 – $0.1 million ). These amounts are included in the table above. (ii) Yamal LNG Joint Venture The Partnership has a 50 / 50 joint venture agreement with China LNG Shipping (Holdings) Limited (or the Yamal LNG Joint Venture ) and the joint venture has ordered six internationally-flagged icebreaker LNG carriers for a project located on the Yamal Peninsula in Northern Russia (or the Yamal LNG Project ). During the year ended, December 31, 2017 , the Yamal LNG Joint Venture converted the $195 million advances from 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 the advances are included in the table above. In December 2017, the Yamal LNG Joint Venture secured a $1.6 billion long-term debt facility to finance all six of its ARC7 LNG carrier newbuildings. As part of the completed financing, the Yamal LNG Joint Venture returned a total of $104 million of capital back to the joint venture partners in December 2017, of which the Partnership’s share was $52 million . The Partnership has guaranteed its 50% share of an $816 million secured loan facility in the Yamal LNG Joint Venture and, as a result, has recorded a guarantee liability. The carrying value of the guarantee liability as at December 31, 2017 was $0.6 million ( December 31, 2016 – $ nil ) and is included as part of other long-term liabilities in the Partnership’s consolidated balance sheets. (iii) Pan Union Joint Venture In June 2014, the Partnership acquired from Shell its ownership interests in four LNG carrier newbuildings. As compensation for Shell’s ownership interests in these four LNG carrier newbuildings, the Partnership assumed Shell’s obligation to provide the shipbuilding supervision and crew training services for the four LNG carrier newbuildings up to their delivery date pursuant to a ship construction support agreement. The Partnership initially estimated it would incur approximately $36.9 million of costs to provide these services, of which Shell has agreed to pay a fixed amount of $20.3 million . The Partnership estimated that the fair value of the service obligation was $33.3 million and the fair value of the amount due from Shell was $16.5 million . As at December 31, 2017 , the carrying value of the service obligation of $8.2 million ( December 31, 2016 – $22.6 million ) is included in both the current portion of in-process contracts and in-process contracts and the carrying value of the receivable from Shell of $3.5 million ( December 31, 2016 – $10.9 million ) is included in accounts receivable and other assets in the Partnership’s consolidated balance sheets. As at December 31, 2017 , the Partnership has a 30% ownership interest in one LNG carrier, the Pan Asia , and one LNG carrier newbuilding and a 20% ownership interest in the remaining two LNG carrier newbuildings (or collectively, the Pan Union Joint Venture ). The Pan Asia was delivered on October 13, 2017 and concurrently commenced its 20 -year charter contract with Shell. On initial acquisition, the basis difference between the Partnership's investment and the carrying value of the Pan Union Joint Venture's net assets was substantially attributed to ship construction support agreements and the time-charter contracts. At December 31, 2017 , the unamortized amount of the basis difference was $11.4 million ( December 31, 2016 - $16.8 million ). (iv) Exmar LPG Joint Venture The Partnership has a 50 / 50 joint venture agreement with Exmar NV (or Exmar) (or the Exmar LPG Joint Venture ). The Partnership has guaranteed its 50% share of a secured loan facility and four capital leases in the Exmar LPG Joint Venture and, as a result, has recorded a guarantee liability. The carrying value of the guarantee liability as at December 31, 2017 was $1.6 million ( December 31, 2016 – $1.3 million ) and is included as part of other long-term liabilities in the Partnership’s consolidated balance sheets. As at December 31, 2017 , the Partnership had advanced $52.3 million ( December 31, 2016 – $52.3 million ) to the Exmar LPG Joint Venture, which bears interest at LIBOR plus 0.50% and has no fixed repayment terms. As at December 31, 2017 , the interest accrued on these advances was $0.2 million ( December 31, 2016 – $1.1 million ). These amounts are included in the table above. On initial acquisition, the basis difference between the Partnership's investment and the carrying value of the Exmar LPG Joint Venture's net assets was substantially attributed to the value of the vessels and charter agreements of the Exmar LPG Joint Venture and goodwill in accordance with the finalized purchase price allocation. At December 31, 2017 , the unamortized amount of the basis difference was $25.5 million ( December 31, 2016 – $30.2 million ). (v) Teekay LNG-Marubeni Joint Venture The Partnership has a joint venture agreement with Marubeni Corporation (or the Teekay LNG-Marubeni Joint Ventur e). Since control of the Teekay LNG-Marubeni Joint Venture is shared jointly between Marubeni and the Partnership, the Partnership accounts for its investment in the Teekay LNG-Marubeni Joint Venture using the equity method. In March 2017, the Teekay LNG-Marubeni Joint Venture completed the refinancing of its previous $396 million debt facility by entering into a new $335 million U.S. Dollar-denominated term loan maturing in September 2019. As part of the completed refinancing, the Partnership invested $57 million of additional equity, based on its proportionate ownership interest, into the Teekay LNG-Marubeni Joint Venture. The Partnership has guaranteed its 52% share of the secured loan facilities of the Teekay LNG-Marubeni Joint Venture and, as a result, has recorded a guarantee liability. The carrying value of the guarantee liability as at December 31, 2017 was $0.5 million ( December 31, 2016 – $0.1 million ) and is included as part of other long-term liabilities in the Partnership’s consolidated balance sheets. (vi) Excalibur and Excelsior Joint Ventures The Partnership joint ventures with Exmar (or the Excalibur Joint Venture and the Excelsior Joint Ventures ) (see Note 19d). The Partnership has guaranteed its ownership share of the secured loan facilities of the Excalibur and Excelsior Joint Ventures and, as a result, has recorded a guarantee liability. The carrying value of the guarantee liability as of December 31, 2017 was $0.2 million ( December 31, 2016 – $0.2 million ) and is included as part of other long-term liabilities in the Partnership’s consolidated balance sheets. On initial acquisition, the basis difference between the Partnership's investment and the carrying value of the Excalibur and Excelsior Joint Venture's net assets was substantially attributed to an increase to the carrying value of the vessels of the Excalibur and Excelsior Joint Ventures in accordance with the finalized purchase price allocation. At December 31, 2017 , the unamortized amount of the basis difference was $35.6 million ( December 31, 2016 – $37.2 million ). (vii) Angola Joint Venture The Partnership has a 33% ownership interest in a joint venture (or the Angola Joint Venture ) that owns four 160,400 -cubic meter LNG carriers (or the Angola LNG Carriers ). The other partners of the Angola Joint Venture are NYK Energy Transport (or NYK ) ( 33% ) and Mitsui & Co. Ltd. ( 34% ). The Partnership has guaranteed its 33% share of the secured loan facilities and interest rate swaps of the Angola Joint Venture and, as a result, has recorded a guarantee liability. The carrying value of the guarantee liability as at December 31, 2017 was $0.7 million ( December 31, 2016 – $1.0 million ) and is included as part of other long-term liabilities in the Partnership’s consolidated balance sheets. (viii) RasGas 3 Joint Venture The Partnership has a 40% ownership interest in Teekay Nakilat (III) Corporation (or the RasGas 3 Joint Venture ), and the remaining 60% is held by Qatar Gas Transport Company Ltd. (Nakilat). b) The RasGas 3 Joint Venture, the Excelsior Joint Venture, the Angola Joint Venture, the Yamal LNG Joint Venture, and the Bahrain LNG Joint Venture are considered variable interest entities; however, the Partnership is not the primary beneficiary and therefore, consolidation of these entities with the Partnership is not required. The Partnership’s exposure to loss as a result of its investment in the RasGas 3 Joint Venture, the Excelsior Joint Venture, the Angola LNG Joint Venture, the Yamal LNG Joint Venture, and the Bahrain LNG Joint Venture is the amount it has invested in and advanced to these joint ventures, which are $122.5 million , $51.7 million , $74.8 million , $193.8 million and $77.7 million , resp ectively, as at December 31, 2017 . In addition, the Partnership guarantees its portion of the Excelsior Joint Venture’s debt of $42.5 million ( December 31, 2016 – $45.0 million ) a nd the Angola Joint Ventures’ debt and swaps of $239.6 million ( December 31, 2016 – $256.1 million ) and provides a guarantee against a charter termination. Subsequent to December 31, 2017, the Excelsior Joint Venture's debt was repaid upon the Partnership and Exmar, the 50 / 50 joint venture partners of the Excelsior Joint Venture, selling their ownership interests in this joint venture to a third party (see Note 19d). c) The follo wing table presents aggregated summarized financial information reflecting a 100% ownership interest in the Partnership’s equity method investments and excluding the impact from purchase price adjustments arising from the acquisition of Exmar LPG BVBA, the Excalibur and Excelsior Joint Ventures and the Pan Union Joint Venture. The results include the Excalibur and Excelsior Joint Ventures, the RasGas 3 Joint Venture, the Angola Joint Venture, the Exmar LPG Joint Venture, the Teekay LNG-Marubeni Joint Venture, the Pan Union Joint Venture, the Yamal LNG Joint Venture, and the Bahrain LNG Joint Venture. As at December 31, 2017 2016 Cash and restricted cash – current 281,468 388,007 Other assets – current 97,832 111,847 Vessels and equipment, including vessels related to capital leases and advances on newbuilding contracts 3,284,441 2,837,870 Net investments in direct financing leases – non-current 1,961,299 1,776,954 Other assets – non-current 68,728 37,132 Current portion of long-term debt and obligations related to capital leases 168,715 209,814 Other liabilities – current 119,627 102,385 Long-term debt and obligations related to capital leases 3,386,800 3,233,425 Other liabilities – non-current 145,870 157,025 Years ended December 31, 2017 2016 2015 Voyage revenues 477,495 549,646 596,093 Income from vessel operations 178,763 268,049 302,731 Realized and unrealized loss on non-designated derivative instruments (2,067 ) (12,277 ) (25,108 ) Net income 54,418 167,052 203,280 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill As at December 31, 2017 and 2016 , intangible assets consisted of acquired time-charter contracts with a weighted-average amortization period of 20.7 years from the date of acquisition. The carrying amount of intangible assets for the Partnership’s liquefied gas segment is as follows: December 31 December 31 Gross carrying amount 179,813 179,813 Accumulated amortization (118,735 ) (109,879 ) Net carrying amount 61,078 69,934 Amortization expense associated with intangible assets was $8.9 million per year for each of the years ended December 31, 2017 , 2016 and 2015 . Amortization expense associated with intangible assets is expected to be approximately $8.9 million per year in each of the next five years. The carrying amount of goodwill as at each of December 31, 2017 and 2016 for the Partnership’s liquefied gas segment was $35.6 million . In 2017 and 2016 , the Partnership conducted its annual goodwill impairment review of its liquefied gas segment and concluded that no impairment had occurred. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities December 31 December 31 Interest including interest rate swaps 21,164 19,957 Voyage and vessel expenses 8,184 9,311 Payroll and benefits 3,900 3,355 Other general expenses 5,674 3,069 Income and other tax payable 1,335 189 Distributions payable on preferred units 5,500 — Total 45,757 35,881 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt December 31, 2017 December 31, 2016 $ $ U.S. Dollar-denominated Revolving Credit Facilities due from 2018 to 2022 254,275 208,222 U.S. Dollar-denominated Term Loans due from 2018 to 2031 935,286 1,005,199 Norwegian Kroner-denominated Bonds due from 2018 to 2021 377,856 371,329 Euro-denominated Term Loans due from 2018 to 2023 232,957 219,733 Other U.S. Dollar-denominated Loans 10,000 — Total principal 1,810,374 1,804,483 Unamortized discount and debt issuance costs (12,382 ) (13,257 ) Total debt 1,797,992 1,791,226 Less current portion (552,404 ) (188,511 ) Long-term debt 1,245,588 1,602,715 As at December 31, 2017 , the Partnership had three revolving credit facilities available all of which are current. The three credit facilities, as at such date, provided for borrowings of up to $443.7 million ( December 31, 2016 – $451.9 million ) , of which $189.4 million ( December 31, 2016 – $243.7 million ) was undrawn. Interest payments are based on LIBOR plus margins, which ranged from 0.55% to 1.25% . In February 2018, the Partnership refinanced a $197 million revolving credit facility maturing in 2018 with a new $197 million revolving credit facility maturing in 2022 (see Note 19f). The amounts available under the three revolving credit facilities reduces by $268.1 million in 2018, $22.4 million in 2019, $23.4 million in 2020, $24.4 million in 2021 and $105.4 million in 2022. 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. 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 refinancing the other two revolving credit facilities. As at December 31, 2017 , the Partnership had seven U.S. Dollar-denominated term loans outstanding which totaled $935.3 million ( December 31, 2016 – $1.0 billion ) in aggregate principal amount. Interest payments on the term loans are based on LIBOR plus a margin, which ranged from 0.30% to 3.25% . The seven 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 16 of the Partnership’s vessels to which the loans relate, together with certain other related security. In addition, at December 31, 2017 , all of the outstanding term loans were guaranteed by either the Partnership or subsidiaries of Teekay Nakilat Corporation (or the Teekay Nakilat Joint Venture ), of which the Partnership is a 70% owner. The Partnership has Norwegian Kroner (or NOK ) 3.1 billion of senior unsecured bonds issued in the Norwegian bond market that mature through 2021. As at December 31, 2017 , the total amount of the bonds, which are listed on the Oslo Stock Exchange, was $377.9 million ( December 31, 2016 – $371.3 million ) . The interest payments on the bonds are based on NIBOR plus a margin, which ranges 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 7.72% and the transfer of principal fixed at $430.5 million upon maturity in exchange for NOK 3.1 billion (see Note 12). The Partnership has two Euro-denominated term loans outstanding, which as at December 31, 2017 , totaled 194.1 million Euros ( $233.0 million ) ( December 31, 2016 – 208.9 million Euros ( $219.7 million )) . Interest payments are based on EURIBOR plus margins, which ranged from 0.60% to 2.25% as at December 31, 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 effective interest rate for the Partnership’s long-term debt outstanding at December 31, 2017 and December 31, 2016 were 3.34% 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 12). At December 31, 2017 , the margins on the Partnership’s outstanding revolving credit facilities and term loans ranged from 0.30% to 3.25% . 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, the repayment of the Partnership's NOK-denominated bonds and the termination of the associated cross-currency swaps, and the change in the valuation of the Partnership’s cross-currency swaps, the Partnership incurred foreign exchange (losses) gains of $(26.9) million , $5.3 million , and $13.9 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The aggregate annual long-term debt principal repayments required subsequent to December 31, 2017 , after giving effect to the revolving credit facility refinancing completed in February 2018, are $555.4 million ( 2018 ), $83.9 million ( 2019 ), $359.5 million ( 2020 ), $346.7 million ( 2021 ), $144.8 million ( 2022 ) and $320.1 million ( thereafter ). Certain loan agreements require that (a) the Partnership maintains 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 December 31, 2017 , the Partnership had two facilities with an aggregate outstanding loan balance of $90.6 million that require it to maintain minimum vessel-value-to-outstanding-loan-principal-balance ratios ranging from 110% to 135% , which as at December 31, 2017 ranged from 126% to 243% . 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 December 31, 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, project tenders, leasing arrangements (see Note 13c) and amounts received from charterers to be used only for dry-docking expenditures and emergency repairs, which cash totaled $95.2 million and $117.0 million as at December 31, 2017 and 2016 , respectively. |
Income Tax
Income Tax | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Income Tax The components of the provision for income taxes were as follows: Year Ended Year Ended Year Ended Current (note 13d) (3,557 ) (962 ) (2,646 ) Deferred 2,733 (11 ) (76 ) Income tax expense (824 ) (973 ) (2,722 ) The Partnership operates in countries that have differing tax laws and rates. Consequently, a consolidated weighted average tax rate will vary from year to year according to the source of earnings or losses by country and the change in applicable tax rates. Reconciliations of the tax charge related to the relevant year at the applicable statutory income tax rates and the actual tax charge related to the relevant year are as follows: Year Ended Year Ended Year Ended Net income before income tax expenses 49,735 158,938 220,232 Net income not subject to taxes (94,106 ) (138,542 ) (173,298 ) Net (loss) income subject t o taxes (44,371 ) 20,396 46,934 At applicable statutory tax rates Amount computed using the standard rate of corporate tax 13,874 (3,338 ) (12,007 ) Adjustments to valuation allowance and uncertain tax positions 324 11,802 5,362 Permanent and currency differences (12,507 ) (9,125 ) 4,204 Change in tax rates (2,515 ) (312 ) (281 ) Tax expense related to the year (824 ) (973 ) (2,722 ) The significant components of the Partnership’s deferred tax assets (liabilities) were as follows: Year Ended Year Ended Derivative instruments 3,823 4,523 Taxation loss carryforwards and disallowed finance costs 35,326 34,927 Vessels and equipment 3,936 3,554 Capitalized interest (1,927 ) (2,027 ) 41,158 40,977 Valuation allowance (38,594 ) (41,064 ) Net deferred tax assets (liabilities) included in other assets or accrued liabilities 2,564 (87 ) The Partnership had tax losses in the United Kingdom (or UK ) of $7.9 million as at December 31, 2017 ( December 31, 2016 – $12.7 million ) that are available indefinitely for offset against future taxable income in the UK. The Partnership had tax losses and disallowed finance costs in Spain of 110.3 million Euros or approximately $132.5 million ( December 31, 2016 – 110.3 million Euros or approximately $116.1 million ) and 25.2 million Euros or approximately $30.2 million ( December 31, 2016 – 34.6 million Euros or approximately $36.4 million ), respectively, at December 31, 2017 that are available indefinitely for offset against future taxable income in Spain. The Partnership also had tax losses in Luxembourg of 91.5 million Euros or approximately $109.9 million as at December 31, 2017 ( December 31, 2016 – 93.3 million Euros or approximately $98.1 million ) that are available indefinitely for offset against taxable future income in Luxembourg. The Partnership recognizes interest and penalties related to uncertain tax positions in income tax expense. The tax years 2008 through 2017 currently remain open to examination by the major tax jurisdictions to which the Partnership is subject. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 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 charter contracts with subsidiaries of Teekay Corporation. In addition, the Partnership and certain of its operating subsidiaries have entered into services agreements with certain subsidiaries of Teekay Corporation pursuant to which the Teekay Corporation subsidiaries provide various services to the Partnership and its subsidiaries with administrative, commercial, crew training, advisory, business development, technical and strategic consulting services. In addition, as part of the Partnership’s acquisition of its ownership interest in the Pan Union Joint Venture (see Notes 6a iii and 13a iv), the Partnership entered into 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 Pan Union Joint Venture up to their delivery date. All costs incurred by Teekay Corporation’s subsidiary will be 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: Year Ended December 31 December 31 December 31 Voyage revenues (i) 36,358 37,336 35,887 Vessel operating expenses (25,164 ) (20,438 ) (19,914 ) General and administrative expenses (ii) (7,834 ) (11,890 ) (14,485 ) General and administrative expenses deferred and capitalized (iii) (859 ) (571 ) — (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 ). The original contract period for the Polar Spirit expired in March 2018 and for the Arctic Spirit will expire in April 2018. (ii) Includes commercial, strategic, advisory, business development and administrative management fees charged by Teekay Corporation and reimbursements to Teekay Corporation and our 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 $1.1 million was reimbursed by the Bahrain LNG Joint Venture during 2017 ( December 31, 2016 – $0.4 million ). 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) In connection with the Partnership’s initial public offering in May 2005, the Partnership entered into an omnibus agreement with Teekay Corporation, the General Partner and other related parties governing, among other things, when the Partnership and Teekay Corporation may compete with each other and certain rights of first offer on LNG carriers and Suezmax tankers. In December 2006, the omnibus agreement was amended in connection with the initial public offering of Teekay Offshore Partners L.P. (or Teekay Offshore ). As amended, the agreement governs, among other things, when the Partnership, Teekay Corporation and Teekay Offshore may compete with each other and certain rights of first offer on LNG carriers, oil tankers, shuttle tankers, floating storage and offtake units and floating production, storage and offloading units. 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 at the end of each year (see Notes 3 and 12). 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 Partnership's LNG carrier newbuildings under construction (see Notes 13a i and ii). These costs are capitalized and included as part of advances on newbuilding contracts in the Partnership’s consolidated balance sheets. During the years ended 2017 , 2016 and 2015 , the Partnership incurred shipbuilding and site supervision costs with Teekay Corporation subsidiaries of $13.2 million , $8.5 million and $4.3 million , respectively. As at December 31, 2017 and 2016 , shipbuilding and site supervision costs provided by Teekay Corporation subsidiaries included in advances on newbuilding contracts in the Partnership's consolidated balance sheets totaled $11.9 million and $10.1 million , respectively. e) As at December 31, 2017 and 2016 , non-interest bearing advances to affiliates totaled $7.3 million and $9.7 million , respectively, and non-interest bearing advances from affiliates totaled $12.1 million and $15.5 million , respectively. These advances are unsecured and have no fixed repayment terms. Affiliates are entities that are under the same common control. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 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 The Partnership entered into cross-currency swaps concurrently with the issuance of its NOK-denominated senior unsecured bonds (see Note 9), 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 December 31, 2017 . Floating Rate Receivable Principal Principal Reference Margin Fixed Rate Fair Value/ Weighted- 900,000 150,000 NIBOR 4.35 % 6.43 % (41,664 ) 0.7 1,000,000 134,000 NIBOR 3.70 % 5.92 % (12,553 ) 2.4 1,200,000 146,500 NIBOR 6.00 % 7.72 % 3,758 3.8 (50,459 ) 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 December 31, 2017 , the Partnership was committed to the following interest rate swap agreements: Interest Principal Fair Value/ Weighted- Fixed Interest Rate (i) LIBOR-Based Debt: U.S. Dollar-denominated interest rate swaps LIBOR 60,000 (2,314 ) 1.1 4.9 % U.S. Dollar-denominated interest rate swaps (ii) LIBOR 143,750 (22,837 ) 11.0 5.2 % U.S. Dollar-denominated interest rate swaps (ii) LIBOR 42,845 (720 ) 3.6 2.8 % U.S. Dollar-denominated interest rate swaps (iii) LIBOR 160,000 (9,360 ) 0.3 3.5 % U.S. Dollar-denominated interest rate swaps (iv) LIBOR 171,933 (9,023 ) 2.8 3.3 % U.S. Dollar-denominated interest rate swaps (iv) LIBOR 99,667 123 1.0 1.7 % U.S. Dollar-denominated interest rate swaps (iv) LIBOR 195,008 260 9.0 2.3 % EURIBOR-Based Debt: Euro-denominated interest rate swaps (v) EURIBOR 232,957 (29,235 ) 3.0 3.1 % (73,106 ) (i) Excludes the margins the Partnership pays on its floating-rate term loans, which, at December 31, 2017 , ranged from 0.30% to 3.25% . (ii) Principal amount reduces 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 2018 to 2024. These interest rate swaps are subject to mandatory early termination in 2018, whereby the swaps will be settled based on their fair value at that time. (iv) Principal amount reduces quarterly. (v) Principal amount reduces monthly to 70.1 million Euros ( $84.2 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 December 31, 2017 , the terms of the interest rate swaps underlying the interest rate swaption were as follows: Interest Principal Option Fair Value/ Remaining Interest Interest rate swaption - Call Option LIBOR 160,000 (i) January 31, 2018 Nominal 8.0 3.1 % Interest rate swaption - Put Option LIBOR 160,000 (i) January 31, 2018 (2 ) 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 December 31, 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 agreement. Each of these master agreements provide 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 are presented on a gross basis in the Partnership’s consolidated balance sheets. As at December 31, 2017 , these interest rate swaps, interest rate swaptions, and cross-currency swaps had an aggregate fair value asset of $4.5 million and an aggregate fair value liability of $81.5 million . As at December 31, 2017 , the Partnership had $22.3 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 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 Derivatives 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 December 31, 2017 was $1.6 million ( December 31, 2016 – an asset of $2.1 million ). The following table presents the location and fair value amounts of derivative instruments, segregated by type of contract, on the Partnership’s consolidated balance sheets. Derivative Current Derivative As at December 31, 2017 Interest rate swap agreements — 108 1,130 (4,101 ) (34,614 ) (35,629 ) Interest rate swaption agreements — — — — (2 ) — Cross-currency swap agreements — — 5,042 (810 ) (44,523 ) (10,168 ) Toledo Spirit time-charter derivative 678 970 — — — — 678 1,078 6,172 (4,910 ) (79,139 ) (45,797 ) 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 on non-designated derivative instruments in the Partnership’s consolidated statements of income. The effect of the gain (loss) on these derivatives on the Partnership’s consolidated statements of income is as follows: Year Ended December 31, 2017 2016 2015 Realized Unrealized Total Realized Unrealized Total Realized Unrealized Total Interest rate swap agreements (18,825 ) 12,393 (6,432 ) (25,940 ) 15,627 (10,313 ) (28,968 ) 14,768 (14,200 ) Interest rate swaption agreements — 945 945 — (164 ) (164 ) — (783 ) (783 ) Interest rate swaption agreements termination (610 ) — (610 ) — — — — — — Toledo Spirit time-charter derivative 678 110 788 (654 ) 3,970 3,316 (3,429 ) (1,610 ) (5,039 ) (18,757 ) 13,448 (5,309 ) (26,594 ) 19,433 (7,161 ) (32,397 ) 12,375 (20,022 ) Unrealized and realized 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 income. The effect of the gain (loss) on these derivatives on the Partnership's consolidated statements of income is as follows: Year Ended December 31, 2017 2016 2015 Realized Unrealized Total Realized Unrealized Total Realized Unrealized Total Cross-currency swap agreements (9,344 ) 49,047 39,703 (9,063 ) 28,905 19,842 (7,640 ) (57,759 ) (65,399 ) Cross-currency swap agreements termination (25,733 ) — (25,733 ) (17,711 ) — (17,711 ) — — — (35,077 ) 49,047 13,970 (26,774 ) 28,905 2,131 (7,640 ) (57,759 ) (65,399 ) For the years ended December 31, 2017 and 2016 (no activity for the year ended 2015 ), the following table presents the effective and ineffective portion of 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. Year Ended December 31, 2017 Year Ended December 31, 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) $ 429 (427 ) (740 ) Interest expense 590 — — Interest expense 429 (427 ) (740 ) 590 — — (i) Effective portion of designated and qualifying cash flow hedges recognized in other comprehensive income (loss). (ii) Effective portion of designated and qualifying cash flow hedges recorded in accumulated other comprehensive income (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 | 12 Months Ended |
Dec. 31, 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 December 31, 2017 are as follows: Total 2018 2019 2020 DSME (i) 486,988 486,988 — — Hyundai Samho Heavy Industries Co. (ii) 317,530 65,460 252,070 — Yamal LNG Joint Venture (iii) 781,300 350,100 232,000 199,200 Pan Union Joint Venture (iv) 116,629 87,102 29,527 — Bahrain LNG Joint Venture (v) 133,936 80,733 53,203 — Exmar LPG Joint Venture (vi) 54,570 54,570 — — 1,890,953 1,124,953 566,800 199,200 (i) As at December 31, 2017 , the Partnership had four LNG carrier newbuildings on order with DSME which are scheduled for delivery in 2018. As at December 31, 2017 , costs incurred under these newbuilding contracts totaled $340.2 million . As at December 31, 2017 , the Partnership has secured financing for all of the four DSME LNG carrier newbuildings included in the table above (see Note 5). (ii) As at December 31, 2017 , the Partnership had two LNG carrier newbuildings on order with Hyundai Samho Heavy Industries Co. (or HHI ) scheduled for delivery in 2019. As at December 31, 2017 , costs incurred under these newbuilding contracts totaled $104.3 million . The Partnership has secured $139 million of financing as at December 31, 2017 for one of the two HHI LNG carrier newbuildings. (iii) The Partnership, through the Yamal LNG Joint Venture, has a 50% ownership interest in six 172,000 -cubic meter ARC7 LNG carrier newbuildings that have an estimated total fully built-up cost of approximately $2.1 billion . As at December 31, 2017 , the Partnership’s proportionate costs incurred under these newbuilding contracts totaled $240.1 million . The Yamal LNG Joint Venture has secured debt financing of $816 million for the six LNG carrier newbuildings, of which $751 million was undrawn at December 31, 2017, related to the Partnership's proportionate share of the commitments included in the table above. (iv) Through the Pan Union Joint Venture, the Partnership has ownership interests ranging from 20% to 30% in three LNG carrier newbuildings scheduled for delivery in 2018 and 2019. The Pan Union Joint Venture has secured financing of $87 million related to the Partnership's proportionate share of the commitments included in the table above and the Partnership is scheduled to receive $3.5 million of reimbursement directly from Shell (see Note 6a iii). (v) The Partnership has a 30% ownership interest in the Bahrain LNG Joint Venture for the development of an LNG receiving and regasification terminal in Bahrain. The project will include an FSU, which will be modified from one of the Partnership’s existing MEGI LNG carrier newbuildings, an offshore gas receiving facility, and an onshore nitrogen production facility. The terminal will have a capacity of 800 million standard cubic feet per day and will be owned and operated under a 20 -year agreement commencing early-2019. The receiving and regasification terminal is expected to have a fully-built up cost of approximately $960.0 million . The Bahrain LNG Joint Venture has secured debt financing of $134 million related to the Partnership's proportionate share of the commitments included in the table above. (vi) The Partnership has a 50% ownership interest in the Exmar LPG Joint Venture which has three LPG carrier newbuildings scheduled for delivery in 2018 and has secured $56 million of financing for two of the three LPG carrier newbuildings related to the Partnership's proportionate share of the 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 $552.4 million during 2018 and $252.1 million during 2019, as well as other payments relating to its joint ventures (see Note 13a). Over the one -year period following the issuance of these consolidated financial statements, the Partnership will need to obtain additional sources of financing, in addition to amounts generated from operations, to fund scheduled debt repayments and construction commitments and to meet its minimum liquidity requirements under its financial covenants. These anticipated sources of financing include refinancing loan facilities maturing in 2018 (see Note 19f) as well as obtaining new debt financing for the unfinanced portion of the Partnership's vessels under construction. 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 debt 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. Based on the Partnership’s liquidity at the date these consolidated financial statements were issued, the liquidity it 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% ownership 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 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 as at December 31, 2017 , the Teekay Nakilat Joint Venture’s carrying amount of this estimated tax indemnification guarantee was $ 12.7 million (December 31, 2016 – $ 13.3 million ) which is included as part of other long-term liabilities in the consolidated balance sheets of the Partnership. Additionally, as at December 31, 2017, the Teekay Nakilat Joint Venture had $7.0 million ( December 31, 2016 – $6.8 million ) on deposit with the lessor as security against any future claims and 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 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 $44 million . Such estimate is primarily based on information received from the lessor. d) The Partnership owns a 69% ownership interest in the Teekay Tangguh Joint Venture which is currently in discussions with HMRC related to its tax returns filed for the 2010 fiscal year. HMRC has challenged the deductibility of certain related party transactions and the Teekay Tangguh Joint Venture has submitted a settlement proposal of $1.6 million (of which the Partnership’s 69% share is $1.1 million ) to HMRC in December 2017 which is included in income tax expense in the Partnership’s consolidated statements of income for the year ended December 31, 2017 . e) In May 2016, the Teekay LNG-Marubeni Joint Venture reached a settlement agreement with a charterer relating to a disputed charter contract termination for one of its LNG carriers that occurred in 2015. The charterer paid $39.0 million to the Teekay LNG-Marubeni Joint Venture in June 2016 for lost revenues, of which the Partnership’s share of $20.3 million was recorded in equity income for the year ended December 31, 2016 . |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information a) The changes in operating assets and liabilities for years ended December 31, 2017 , 2016 and 2015 are as follows: Year Ended Year Ended Year Ended Accounts receivable 1,620 5,494 (5,140 ) Prepaid expenses (2,815 ) 745 (494 ) Accounts payable (2,053 ) 2,791 2,127 Accrued liabilities 2,449 (1,572 ) (1,581 ) Unearned revenue and long-term unearned revenue (1,456 ) (3,218 ) (562 ) Restricted cash 4,249 (10,808 ) (2,785 ) Advances to and from affiliates (913 ) (9,699 ) (23,714 ) Other operating assets and liabilities 772 (4,402 ) (2,038 ) Total 1,853 (20,669 ) (34,187 ) b) Cash interest paid (including realized losses on interest rate swaps) on long-term debt, advances from affiliates and obligations related to capital leases, net of amounts capitalized, during the years ended December 31, 2017 , 2016 and 2015 totaled $122.7 million , $100.9 million , and $94.5 million , respectively. c) During the years ended December 31, 2017 , 2016 and 2015 , cash paid for corporate income taxes was $2.9 million , $4.9 million and $7.8 million , respectively. d) During the year ended December 31, 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. |
Total Capital and Net Income Pe
Total Capital and Net Income Per Common Unit | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Total Capital and Net Income Per Common Unit | Total Capital and Net Income Per Common Unit As at December 31, 2017 , a total of 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 subsidiaries of Teekay Corporation. All of the Partnership's outstanding Series A Cumulative Redeemable Perpetual Preferred Units (or the Series A Preferred Units ) and Series B Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (or Series B Preferred Units) are held by the public. Limited Partners’ Rights Significant rights of the Partnership’s limited partners include the following: • Right of common unitholders to receive distribution of Available Cash (as defined in the partnership agreement and which takes into account cash reserves for, among other things, future capital expenditures and future credit needs of the Partnership) within approximately 45 days after the end of each quarter. • No limited partner shall have any management power over the Partnership’s business and affairs; the General Partner is responsible for the conduct, directions and management of the Partnership’s activities. • The General Partner may be removed if such removal is approved by common unitholders holding at least 66-2/3% of the outstanding units voting as a single class, including units held by our General Partner and its affiliates. Incentive Distribution Rights 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 shown below: Quarterly Distribution Target Amount (per unit) Unitholders General Partner Minimum quarterly distribution of $0.4125 98 % 2 % Up to $0.4625 98 % 2 % Above $0.4625 up to $0.5375 85 % 15 % Above $0.5375 up to $0.6500 75 % 25 % Above $0.6500 50 % 50 % During 2017 and 2016 , the quarterly cash distributions were below $0.4625 per common unit and, consequently, the assumed distribution of net income was based on the limited partners' and General Partner’s ownership percentage for the purposes of the net income per common unit calculation. During 2015 , quarterly cash distributions exceeded $0.4625 per common unit and, consequently, the assumed distribution of net income for 2015 resulted in the use of the increasing percentages to calculate the General Partner’s interest in net income for the purposes of the net income per common unit calculation. In the event of a liquidation, all property and cash in excess of that required to discharge all liabilities and liquidation amounts on the Series A Preferred Units and Series B Preferred Units will be distributed to the common unitholders and the General Partner in proportion to their capital account balances, as adjusted to reflect any gain or loss upon the sale or other disposition of the Partnership’s assets in liquidation in accordance with the partnership agreement. Net Income Per Common Unit Limited partners' interest in net income per common unit is determined by dividing net income, after deducting the amount of net income attributable to the non-controlling interests, the General Partner’s interest and the distributions on the Series A and Series B Preferred Units by the weighted-average number of common units outstanding during the period. The distributions payable on the Series A Preferred Units (which were issued on October 5, 2016) for the year ended December 31, 2017 were $11.3 million ( December 31, 2016 – $2.7 million , December 31, 2015 – $ nil ). The distributions payable on the Series B Preferred Units (which were issued on October 23, 2017) for the year ended December 31, 2017 were $2.7 million ( December 31, 2016 and December 31, 2015 – $ nil ). Year Ended December 31, 2017 2016 2015 $ $ $ Limited partners' interest in net income for basic net income per common unit 19,586 134,977 174,607 Weighted average number of common units 79,617,778 79,568,352 78,896,767 Dilutive effect of unit based compensation 173,263 103,506 64,335 Common units and common unit equivalents 79,791,041 79,671,858 78,961,102 Limited partner's interest in net income per common unit: basic 0.25 1.70 2.21 diluted 0.25 1.69 2.21 The General Partner’s and common unitholders’ interests in net income are calculated as if all net 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 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 (losses). Pursuant to the Partnership agreement, allocations to partners are made on a quarterly basis. Equity Offerings The following table summarizes the issuances of common and preferred units over the three years ended December 31, 2017 : Date Units Type of Units Offering Gross Proceeds (i) $ Net Proceeds $ Teekay Corporation’s Ownership After the Offering (ii) Use of Proceeds Continuous offering program during 2015 (iii) 1,173,428 Common (iv) 36,274 35,374 33.02 % General partnership purposes including funding newbuilding installments October 2016 Public Offering 2016 (v) 5,000,000 Preferred $ 25.00 125,000 120,707 33.02 % General partnership purposes, including debt repayments and funding newbuilding installments October 2017 Public Offering (vi) 6,800,000 Preferred $ 25.00 170,000 164,411 33.02 % General partnership purposes, including debt repayments and funding newbuilding installments (i) Including the General Partner’s 2% proportionate capital contribution. (ii) Including Teekay Corporation’s indirect 2% general partner interest relating to common unit offerings. (iii) Includes 160,000 common units sold under the Partnership's continuous offering program (or COP ) in December 2014 for which net proceeds of $6.8 million (including the General Partner’s 2% proportionate capital contribution) were received in January 2015. (iv) Commencing in May 2013, the Partnership implemented a COP under which the Partnership could issue new common units, representing limited partner interests, from time to time at market prices up to a maximum aggregate amount of $100 million . The COP expired in 2016. (v) On October 5, 2016, the Partnership issued Series A Preferred Units having a distribution rate of 9.0% per annum of the stated liquidation preference of $25.00 per unit. At any time on or after October 5, 2021, the Partnership may redeem the Series A Preferred Units, in whole or in part, at a redemption price of $25.00 per unit plus all accumulated and unpaid distributions to the date of redemption, whether or not declared. (vi) On October 23, 2017, the Partnership issued Series B Preferred Units having a distribution rate of 8.5% per annum of the stated liquidation preference of $25.00 per unit up to October 15, 2027, at which point the rate moves to a floating rate equal to three-month LIBOR plus a margin of 6.241% . At any time on or 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, whether or not declared. |
Unit-Based Compensation
Unit-Based Compensation | 12 Months Ended |
Dec. 31, 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 . These common units were fully vested upon grant. During 2016 and 2015 , the Partnership awarded 32,723 and 10,447 common units, respectively, as compensation to non-management directors. The awards were fully vested in March 2016 and March 2015 , respectively. The compensation to the non-management directors is included in general and administrative expenses on the Partnership’s consolidated statements of income. 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 cost of the Partnership’s unit-based compensation awards is reflected in general and administrative expenses in the Partnership’s consolidated statements of income. During March 2017 , 2016 and 2015 , the Partnership granted 60,809 , 132,582 and 32,054 restricted units, respectively, with grant date fair values of $1.0 million $1.5 million and $1.1 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 common 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, and in this 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 common units, net of withholding tax. During the years ended December 31, 2017 , 2016 and 2015 , the Partnership recorded an expense of $1.0 million , $1.3 million , and $1.2 million , respectively, related to the restricted units. |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges During 2015, pursuant to a request by the charterer of the Alexander Spirit , the Partnership changed the crew on the vessel which resulted in a restructuring charge of $4.0 million relating to seafarer severance payments. The full amount of the restructuring charge was recovered from the charterer and the recovery was included in voyage revenues in the Partnership’s consolidated statements of income. The seafarer severance payments were fully paid in 2016 . |
Write-Down and Loss on Sale of
Write-Down and Loss on Sale of Vessels | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Write-Down and Loss on Sale of Vessels | Write-Down and Loss on 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 a $27.4 million loss on the sale of the vessels and associated charter contracts in the year ended December 31, 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) In November, 2016, the Partnership reached an agreement to sell the Asian Spirit Suezmax tanker for net proceeds of $20.6 million and as a result, recorded an $11.5 million impairment on the write-down of the vessel in the year ended December 31, 2016. 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. As at December 31, 2016, the vessel was classified as held for sale in the Partnership’s consolidated balance sheets. c) In 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 August 2017. Upon receiving this notification, the Partnership commenced marketing the vessel for sale and expects to sell the vessel in 2018. As a result, the Partnership wrote-down the vessel to its estimated resale value, based on second-hand market comparable values and recorded a $12.6 million write-down of the vessel for the year ended December 31, 2017 . As at December 31, 2017 , the vessel was classified as held for sale in the Partnership's consolidated balance sheets. 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, based on second-hand market comparable values, and recorded a $12.5 million write-down of the vessel for the year ended December 31, 2017 . The Partnership commenced marketing the vessel for sale and expects to sell the vessel in 2018. As at December 31, 2017 , the vessel was classified as held for sale in the Partnership's consolidated balance sheets. 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 (see Note 19e). 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 the charterer 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 of $52.3 million 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 Toleto Spirit for the year ended December 31, 2017 . |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events a) On January 12, 2018, the Yamal LNG Joint Venture took delivery of its first ARC7 LNG carrier newbuilding, the Eduard Toll , in which the Partnership has a 50% ownership interest. The vessel concurrently commenced its 28 -year charter contract with Yamal Trade Pte. Ltd. b) On January 30, 2018, the Exmar LPG Joint Venture sold an LPG carrier, the Courcheville, to a third party for gross proceeds of $4.4 million . c) On January 31, 2018, the Pan Union Joint Venture took delivery of its second LNG carrier newbuilding, the Pan Americas , in which the Partnership has a 30% ownership interest. The vessel concurrently commenced its 20 -year charter contract with Shell. d) On January 31, 2018, the Partnership sold its 50% ownership interest in the Excelsior Joint Venture for net proceeds of approximately $44 million after repaying outstanding debt obligations. e) On February 8, 2018, CEPSA, the charterer (who is also the owner) of the Partnership's vessel related to capital lease, the Teide Spirit , sold the vessel to a third party. As a result of this sale, the Partnership returned the vessel to CEPSA and the full amount of the associated capital lease obligation was concurrently extinguished. In addition, the Partnership incurred seafarer severance payments of approximately $1.4 million upon the sale of the vessel. f) On February 8, 2018, the Partnership refinanced a loan maturing in 2018 with a new $197 million revolving credit facility maturing in 2022. g) On February 9, 2018, the Partnership took delivery of an LNG carrier newbuilding, the Magdala , which concurrently commenced its eight -year charter contract with Shell. Upon delivery of the vessel, the Partnership sold and leased back the vessel under a sale-leaseback financing transaction which includes a purchase obligation at the end of the 10 -year bareboat charter contract. h) On March 5, 2018, the Partnership's 50% -owned joint venture, Exmar LPG BVBA, took delivery of its seventh LPG carrier newbuilding, the Kapellen . On March 13, 2018, Exmar LPG BVBA sold and leased back the vessel under a sale-leaseback financing transaction which includes purchase options throughout the 15 -year bareboat charter contract. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The 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. (or the Partnership ), which is a limited partnership organized under the laws of the Republic of The Marshall Islands, its wholly-owned or controlled subsidiaries and any variable interest entities (or VIEs ) of which it is the primary beneficiary. 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 may differ from those estimates. Significant intercompany balances and transactions have been eliminated upon consolidation. In addition, because the Partnership has determined that the entities that have financed certain of the Partnership's LNG carriers or LNG carrier newbuildings through sale leaseback transactions are VIEs that should be consolidated, the presentation of the sale leaseback transactions in the consolidated statements of cash flows has been adjusted to reflect these transactions as financing activities instead of investing activities in the current and comparative period. |
Foreign currency | Foreign currency The consolidated financial statements are stated in U.S. Dollars and the functional currency of the Partnership and its subsidiaries is the U.S. Dollar. Transactions involving other currencies during the year are converted into U.S. Dollars using the exchange rates in effect at the time of the transactions. At the balance sheet date, monetary assets and liabilities that are denominated in currencies other than the U.S. Dollar are translated to reflect the year-end exchange rates. Resulting gains or losses are reflected separately in the accompanying consolidated statements of income. |
Operating revenues and expenses | Operating revenues and expenses The lease element of time-charters and bareboat charters accounted for as operating leases are recognized by the Partnership on a straight-line basis daily over the term of the charter as the applicable vessel operates under the charter. The lease element of the Partnership’s time-charters that are accounted for as direct financing leases is reflected on the balance sheets as net investments in direct financing leases. The lease element is recognized over the lease term using the effective interest rate method and is included in voyage revenues. The Partnership recognizes revenues from the non-lease element of time-charter contracts as services are performed. For time-charter contracts where the charterer is responsible for the operation of the vessel, the Partnership offsets any vessel operating expenses it incurs against reimbursements from the charterer. The Partnership does not recognize revenues during days that the vessel is off-hire or if collectability of receipts of charter payments from charterers is not reasonably assured. Voyage expenses are all expenses unique to a particular voyage, including bunker fuel expenses, port fees, cargo loading and unloading expenses, canal tolls, agency fees and commissions. Vessel operating expenses include crewing, ship management services, repairs and maintenance, insurance, stores, lube oils and communication expenses. Voyage expenses and vessel operating expenses are recognized when incurred. |
Cash and cash equivalents | Cash and cash equivalents The Partnership classifies all highly-liquid investments with a maturity date of three months or less when purchased as cash and cash equivalents. |
Restricted Cash | Restricted Cash The Partnership maintains restricted cash deposits relating to certain term loans, collateral for derivatives, project tenders, leasing arrangements, amounts received from charterers to be used only for dry-docking expenditures and emergency repairs and other obligations. |
Accounts receivable and allowance for doubtful accounts | Accounts receivable and allowance for doubtful accounts Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Partnership’s best estimate of the amount of probable credit losses in existing accounts receivable. The Partnership determines the allowance based on historical write-off experience and customer economic data. The Partnership reviews the allowance for doubtful accounts regularly and past due balances are reviewed for collectability. Account balances are charged against the allowance when the Partnership believes that the receivable will not be recovered. The Partnership’s advances to equity-accounted joint ventures are recorded at cost. The Partnership analyzes its loans for collectability during each reporting period. A loan provision is recorded, based on current information and events, if it is probable that the Partnership will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors the Partnership considers in determining that a loan provision is required include, among other things, an assessment of the financial condition of the debtor, payment history of the debtor, general economic conditions, the credit rating of the debtor (when available), any information provided by the debtor regarding its ability to repay the loan, and the fair value of the underlying collateral. When a loan provision is recorded, the Partnership measures the amount of the provision based on the present value of expected future cash flows discounted at the loan’s effective interest rate and recognizes the resulting provision in the statements of income. The carrying value of the loans is adjusted each subsequent period to reflect any changes in the present value of the expected future cash flows, which may result in increases or decreases to the loan provision. |
Vessels and equipment | Vessels and equipment All pre-delivery costs incurred during the construction of newbuildings, including interest and supervision and technical costs, are capitalized. The acquisition cost and all costs incurred to restore used vessels purchased by the Partnership to the standards required to properly service the Partnership’s customers are capitalized. Interest costs capitalized to vessels and equipment for the years ended December 31, 2017 , 2016 and 2015 aggregated $13.9 million , $9.9 million and $8.2 million , respectively. Vessel capital modifications include the addition of new equipment or certain modifications to the vessel which are aimed at improving or increasing the operational efficiency and functionality of the asset. This type of expenditure is amortized over the estimated useful life of the modification. Expenditures covering recurring routine repairs and maintenance are expensed as incurred. Depreciation is calculated on a straight-line basis over a vessel’s estimated useful life, less an estimated residual value. Depreciation is calculated using an estimated useful life of 25 years for conventional tankers, 30 years for liquefied petroleum gas (or LPG ) carriers and 35 years for liquefied natural gas (or LNG ) carriers, from the date the vessel is delivered from the shipyard, or a shorter period if regulations prevent the Partnership from operating the vessels for 25 years , 30 years , or 35 years , respectively. Depreciation of vessels and equipment for the years ended December 31, 2017 , 2016 and 2015 aggregated $96.7 million , $86.6 million and $83.4 million , respectively. Depreciation and amortization includes depreciation on all owned vessels and amortization of vessels accounted for as capital leases. Generally, the Partnership dry docks each of its vessels every five years. In addition, a shipping society classification intermediate survey is performed on the Partnership’s LNG and LPG carriers between the second and third year of the five -year dry-docking cycle. The Partnership capitalizes certain costs incurred during dry docking and for the survey and amortizes those costs on a straight-line basis from the completion of a dry docking or intermediate survey over the estimated useful life of the dry dock. The Partnership includes in capitalized dry docking those costs incurred as part of the dry docking to meet regulatory requirements, or expenditures that either add economic life to the vessel, increase the vessel’s earning capacity or improve the vessel’s operating efficiency. The Partnership expenses costs related to routine repairs and maintenance performed during dry docking that do not improve operating efficiency or extend the useful lives of the assets. The following table summarizes the change in the Partnership’s capitalized dry docking costs, from January 1, 2015 to December 31, 2017 : Year Ended December 31, 2017 2016 2015 Balance at January 1, 33,538 33,916 33,635 Cost incurred for dry docking 22,283 13,944 10,357 Write-downs and sales of vessels (2,782 ) (2,886 ) — Dry-dock amortization (13,895 ) (11,436 ) (10,076 ) Balance at December 31, 39,144 33,538 33,916 Vessels and equipment that are “held for use” are assessed for impairment when events or circumstances indicate the carrying amount of the asset may not be recoverable. If the asset’s net carrying value exceeds the net undiscounted cash flows expected to be generated over its remaining useful life, the carrying amount of the asset is reduced to its estimated fair value. The estimated fair value for the Partnership’s impaired vessels is determined using discounted cash flows or appraised values. In cases where an active second hand sale and purchase market does not exist, the Partnership uses a discounted cash flow approach to estimate the fair value of an impaired vessel. In cases where an active second hand sale and purchase market exists, an appraised value is generally the amount the Partnership would expect to receive if it were to sell the vessel. Such appraisal is normally completed by the Partnership. Vessels and equipment that are "held for sale" are measured at the lower of their carrying amount or fair value less costs to sell and are not depreciated while classified as held for sale. Interest and other expenses attributable to vessels and equipment classified as held for sale, or to their related liabilities, continue to be recognized as incurred. Gains on vessels sold and leased back under capital leases with lessor entities that are not considered VIEs are deferred and amortized over the remaining term of the capital lease. Losses on vessels sold and leased back under capital leases are recognized immediately when the fair value of the vessel at the time of a sale-leaseback transaction is less than its book value. In such case, the Partnership would recognize a loss in the amount by which book value exceeds fair value. |
Investments in and advances to equity-accounted joint ventures | Investments in and advances to equity-accounted joint ventures The Partnership’s investments in certain joint ventures are accounted for using the equity method of accounting. Under the equity method of accounting, investments are stated at initial cost and are adjusted for subsequent additional investments and the Partnership’s proportionate share of earnings or losses and distributions. In addition, the Partnership’s advances to equity-accounted joint ventures are recorded at cost. The Partnership evaluates its investment in and advances to equity-accounted joint ventures for impairment when events or circumstances indicate that the carrying value of such investments may have experienced an other-than-temporary decline in value below its carrying value. If the estimated fair value is less than the carrying value, the carrying value is written down to its estimated fair value and the resulting impairment is recorded in the Partnership’s consolidated statements of income. |
Debt issuance costs | Debt issuance costs Debt issuance costs related to a recognized debt liability, including fees, commissions and legal expenses, are presented as a direct reduction from the carrying amount of that debt liability and amortized on an effective interest rate method over the term of the relevant loan. Debt issuance costs related to loan facilities without a recognized debt liability or where the debt issuance costs exceed the carrying value of the related debt liability are deferred and presented as other non-current assets in the Partnership's consolidated balance sheets. Amortization of debt issuance costs is included in interest expense. Fees paid to amend a non-revolving credit facility shall be associated with the extinguishment of the old debt instrument and included in determining the debt extinguishment gain or loss to be recognized. Any unamortized debt issuance costs would be written off. If the amendment is considered not to be a substantial amendment, then the fees would be associated with the replacement or modified debt instrument and, along with any existing unamortized premium or discount, would be amortized as an adjustment of interest expense over the remaining term of the replacement or modified debt instrument using the effective interest method. Other related costs incurred with third parties directly related to the modification, other than the loan amendment fee, are expensed as incurred. Fees paid to amend revolving credit facilities are deferred and amortized over the term of the modified credit facility. If the borrowing capacity under the credit facility is increased as a result of the amendment, unamortized loan costs of the original facility would be deferred and amortized over the term of the modified credit facility. If the borrowing capacity is decreased as a result of the amendment, a proportionate amount, based on the reduction in borrowing capacity, of the unamortized debt issuance costs of the original facility would be written off and the remaining amount would be deferred and amortized over the term of the modified credit facility. |
Goodwill and intangible assets | Goodwill and intangible assets Goodwill is not amortized, but is reviewed for impairment at the reporting unit level on an annual basis or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. When goodwill is reviewed for impairment, the Partnership may elect to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. Alternatively, the Partnership may bypass this step and use a fair value approach to identify potential goodwill impairment and, when necessary, measure the amount of impairment. The Partnership uses a discounted cash flow model to determine the fair value of reporting units, unless there is a readily determinable fair market value. Intangible assets are assessed for impairment when and if impairment indicators exist. An impairment loss is recognized if the carrying amount of an intangible asset is not recoverable and its carrying amount exceeds its fair value. The Partnership’s finite life intangible assets consist of acquired time-charter contracts that are amortized on a straight-line basis over the remaining term of the time-charters. Finite life intangible assets are assessed for impairment when events or circumstances indicate that the carrying value may not be recoverable. |
Derivative instruments | Derivative instruments All derivative instruments are initially recorded at fair value as either assets or liabilities in the accompanying consolidated balance sheet and subsequently remeasured to fair value, regardless of the purpose or intent for holding the derivative. The method of recognizing the resulting gain or loss is dependent on whether the derivative contract is designed to hedge a specific risk and whether the contract qualifies for hedge accounting. When a derivative is designated as a cash flow hedge, the Partnership formally documents the relationship between the derivative and the hedged item. This documentation includes the strategy and risk management objective for undertaking the hedge and the method that will be used to assess the effectiveness of the hedge. Any hedge ineffectiveness is recognized immediately in earnings, as are any gains and losses on the derivative that are excluded from the assessment of hedge effectiveness. The Partnership does not apply hedge accounting if it is determined that the hedge was not effective or will no longer be effective, the derivative was sold or exercised, or the hedged item was sold, repaid or no longer possible of occurring. For derivative financial instruments designated and qualifying as cash flow hedges, changes in the fair value of the effective portion of the derivative financial instruments are initially recorded as a component of accumulated other comprehensive income in total equity. In the periods when the hedged items affect earnings, the associated fair value changes on the hedging derivatives are transferred from total equity to the corresponding earnings line item in the consolidated statements of income. The ineffective portion of the change in fair value of the derivative financial instruments is immediately recognized in earnings in the consolidated statements of income. If a cash flow hedge is terminated and the originally hedged item is still considered possible of occurring, the gains and losses initially recognized in total equity remain there until the hedged item impacts earnings, at which point they are transferred to the corresponding earnings line item (e.g. interest expense) in the consolidated statements of income. If the hedged items are no longer possible of occurring, amounts recognized in total equity are immediately transferred to the earnings item in the consolidated statements of income. For derivative financial instruments that are not designated or that do not qualify as hedges under Financial Accounting Standards Board (or FASB ) Accounting Standards Codification (or ASC ) 815, Derivatives and Hedging , the changes in the fair value of the derivative financial instruments are recognized in earnings. Gains and losses from the Partnership’s non-designated interest rate swaps, interest rate swaptions, and the Partnership’s agreement with Teekay Corporation for the Suezmax tanker the Toledo Spirit (see Note 11c) are recorded in realized and unrealized loss on non-designated derivative instruments in the Partnership’s consolidated statements of income. Gains and losses from the Partnership’s cross-currency swaps are recorded in foreign currency exchange (loss) gain in the Partnership’s consolidated statements of income. |
Unit-based compensation | Unit-based compensation 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 and its subsidiaries. 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 of 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 cost of the Partnership’s unit-based compensation awards is reflected in general and administrative expenses in the Partnership’s consolidated statements of income. |
Income taxes | Income taxes The Partnership accounts for income taxes using the liability method. All but two of the Partnership’s Spanish-flagged vessels are subject to the Spanish Tonnage Tax Regime (or TTR ). Under this regime, the applicable tax is based on the weight (measured as net tonnage) of the vessel and the number of days during the taxable period that the vessel is at the Partnership’s disposal, excluding time required for repairs. The income the Partnership receives with respect to the remaining two Spanish-flagged vessels is taxed in Spain at a rate of 25% . However, these two vessels are registered in the Canary Islands Special Ship Registry. Consequently, the Partnership is allowed a credit, equal to 90% of the tax payable on income from the commercial operation of these vessels, against the tax otherwise payable. This effectively results in an income tax rate of approximately 2.5% on income from the operation of these two Spanish-flagged vessels. The Partnership recognizes the benefits of uncertain tax positions when it is more-likely-than-not that a tax position taken or expected to be taken in a tax return will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. If a tax position meets the more-likely-than-not recognition threshold, it is measured to determine the amount of benefit to recognize in the financial statements. The Partnership recognizes interest and penalties related to uncertain tax positions in income tax expense in the Partnership’s consolidated statements of income. |
Guarantees | Guarantees Guarantees issued by the Partnership, excluding those that are guaranteeing its own performance, are recognized at fair value at the time the guarantees are issued and are presented in the Partnership’s consolidated balance sheets as other long-term liabilities. The liability recognized on issuance is amortized to other income on the Partnership’s consolidated statements of income over the term of the guarantee. If it becomes probable that the Partnership will have to perform under a guarantee, the Partnership will recognize an additional liability if the amount of the loss can be reasonably estimated. |
Accounting Pronouncements | In May 2014, the 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 at 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 January 1, 2018, and shall be applied, at the Partnership’s option, retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Partnership will adopt ASU 2014-09 as a cumulative-effect adjustment as of this date. The Partnership has elected to apply ASC 2014-09 only to those contracts that are not completed as of January 1, 2018. The Partnership has not identified any material impact on its consolidated financial statements based on the work performed to date. 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. For lessees, leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 requires lessors to classify leases as a sales-type, direct financing, or operating lease. A lease is a sales-type lease if any one of five criteria are met, each of which indicate that the lease, in effect, transfers control of the underlying asset to the lessee. If none of those five criteria are met, but two additional criteria are both met, indicating that the lessor has transferred substantially all of the risks and benefits of the underlying asset to the lessee and a third party, the lease is a direct financing lease. All leases that are not sales-type leases or direct financing leases are operating leases. ASU 2016-02 is effective January 1, 2019, with early adoption permitted. The Partnership currently intends to adopt ASU 2016-02 effective January 1, 2018 using a transition approach whereby a cumulative effect adjustment is made as of the effective date of January 1, 2018, with no retrospective effect. To determine the cumulative effect adjustment, the Partnership has no t reassessed whether any expired or existing contracts are, or contain leases, has not reassessed lease classification, and has not reassessed initial direct costs for any existing leases. The quarter in which the Partnership adopts ASU 2016-02 and the estimated impact from adoption contained below is based upon the expectation that FASB will issue an additional ASU prior to the filing of our consolidated financial statements for the first quarter of 2018. The Partnership is currently considering the potential impact of a delay in the finalization of this additional ASU on its adoption date . The Partnership has identified the following differences b ased on the work performed to date: • The adoption of ASU 2016-02 will result in a change in the accounting method for the lease portion of the daily charter hire for the chartered-in vessels of the Partnership’s equity-accounted joint ventures accounted for as operating leases with firm periods of greater than one year. Under ASU 2016-02, the equity accounted joint ventures will recognize a right-of-use asset and a lease liability on the balance sheet for these charters based on the present value of future minimum lease payments, whereas currently no right-of-use asset or lease liability is recognized. This will have the result of increasing the equity-accounted joint venture’s assets and liabilities. The pattern of expense recognition of chartered-in vessels is expected to remain substantially unchanged, unless the right of use asset becomes impaired. • The adoption of ASU 2016-02 will result in the Partnership completing its lease classification assessment when a lease commences instead of when the lease is entered into. The Partnership has entered into charters in prior periods for certain of its vessels currently under construction and which are expected to deliver over the period from 2018 to 2020. Historically, for charters that were negotiated concurrently with the construction of the related vessels, the fair value of the constructed asset was presumed to be its newbuilding cost and no gain or loss was recognized on commencement of the charter if such charters were classified as direct finance leases. On the adoption of ASU 2016-02, the fair value of the vessel is determined based on information available at the lease commencement date and any difference in the fair value of the ship upon commencement of the charter and its carrying value is recognized as a gain or loss upon commencement of the charter. • The adoption of ASU 2016-02 will result in the recognition of revenue from the reimbursement of scheduled dry-dock expenditures, where such charter contract is accounted for as an operating lease, occurring upon completion of the scheduled dry-dock, instead of ratably over the period between the previous scheduled dry-dock and the next scheduled dry-dock. The Partnership is in the process of determining which vessels this applies to and the cumulative impact to opening equity as at January 1, 2018. • The Partnership expects that certain pre-operational costs it currently expenses as incurred will be deferred and amortized over the contract term of a customer contract that the costs relate to. The Partnership is in the process of determining which pre-operational costs this applies to and the cumulative impact to opening equity as at January 1, 2018. • In addition, direct financing lease payments received will be presented as an operating cash inflow instead of an investing cash inflow in the statement of cash flows. In March 2016, the FASB issued Accounting Standards Update 2016-09, Improvements to Employee Share-Based Payment Accounting (or ASU 2016-09 ). ASU 2016-09 simplifies aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statements of cash flows. ASU 2016-09 became effective for the Partnership January 1, 2017. The impact of adopting this new accounting guidance is a change in the Partnership's presentation of cash payments for tax withholdings on share settled equity awards from an operating cash outflow to a financing cash outflow on the Partnership's statements of cash flows. In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (or ASU 2016-13 ). ASU 2016-13 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 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 (or ASU 2016-15 ), which, among other things, provides guidance on two acceptable approaches of classifying distributions received from equity-method investees in the statements of cash flows. ASU 2016-15 is effective for the Partnership January 1, 2018, with a retrospective approach. The Partnership is currently evaluating the effect of adopting this new guidance. In 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 being 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 for the Partnership January 1, 2019. The Partnership is currently evaluating the effect of adopting this new guidance. |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Changes in Partnership's Capitalized Dry Docking Costs | The following table summarizes the change in the Partnership’s capitalized dry docking costs, from January 1, 2015 to December 31, 2017 : Year Ended December 31, 2017 2016 2015 Balance at January 1, 33,538 33,916 33,635 Cost incurred for dry docking 22,283 13,944 10,357 Write-downs and sales of vessels (2,782 ) (2,886 ) — Dry-dock amortization (13,895 ) (11,436 ) (10,076 ) Balance at December 31, 39,144 33,538 33,916 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [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 a fair value on a recurring basis. December 31, 2017 December 31, 2016 Fair Value Carrying Fair Carrying Fair Recurring: Cash and cash equivalents and restricted cash Level 1 339,435 339,435 243,173 243,173 Derivative instruments (note 12) Interest rate swap agreements – assets Level 2 878 878 1,080 1,080 Interest rate swap agreements – liabilities Level 2 (73,984 ) (73,984 ) (87,681 ) (87,681 ) Interest rate swaption agreements – assets Level 2 Nominal Nominal 3,283 3,283 Interest rate swaption agreements – liabilities Level 2 (2 ) (2 ) (4,230 ) (4,230 ) Cross-currency swap agreements – assets Level 2 3,758 3,758 — — Cross-currency swap agreements – liabilities Level 2 (54,217 ) (54,217 ) (99,786 ) (99,786 ) Other derivative Level 3 1,648 1,648 2,134 2,134 Non-recurring: Vessels held for sale (note 18) Level 2 16,671 16,671 20,580 20,580 Other: Advances to equity-accounted joint ventures (note 6) (i) 131,685 (i) 272,514 (i) Long-term receivable included in accounts receivable and other assets (ii) Level 3 3,476 3,459 10,985 10,944 Long-term debt – public (note 9) Level 1 (376,581 ) (384,820 ) (368,612 ) (366,418 ) Long-term debt – non-public (note 9) Level 2 (1,421,411 ) (1,391,524 ) (1,422,614 ) (1,381,287 ) Obligations related to capital leases (note 5) Level 2 (1,011,549 ) (1,001,588 ) (392,839 ) (400,072 ) (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 at December 31, 2017 , the estimated fair value of the non-interest bearing receivable is based on the remaining future fixed payments of $3.5 million , to be received from Royal Dutch Shell Plc (or Shell ) (formerly BG International Limited) as part of the ship construction support agreement, and using an estimated 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, 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 years ended December 31, 2017 and 2016 for the Partnership’s other derivative asset, 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: Year Ended December 31, 2017 2016 Fair value at beginning of year 2,134 (6,296 ) Realized and unrealized gains included in earnings 788 3,316 Settlements (1,274 ) 5,114 Fair value at end of year 1,648 2,134 |
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. Class of Financing Receivable Credit Quality Indicator Grade December 31 December 31 Direct financing leases Payment activity Performing 495,990 643,008 Other receivables: Long-term receivable and accrued revenue included in accounts receivable and other assets Payment activity Performing 5,476 12,171 Advances to equity-accounted joint ventures Other internal metrics Performing 131,685 272,514 633,151 927,693 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Revenues and Percentage of Consolidated Voyage Revenues from Top Customers | The following table presents voyage revenues and percentage of consolidated voyage revenues for the Partnership’s customers who accounted for 10% or more of the Partnership's consolidated voyage revenues during any of the periods presented. (U.S. Dollars in millions) Year Ended Year Ended Year Ended Ras Laffan Liquefied Natural Gas Company Ltd. (i) $70.3 or 16% $70.3 or 18% $70.1 or 18% Cheniere Marketing International LLP (i) $60.2 or 14% Less than 10% - Royal Dutch Shell Plc. (i) (ii) $53.8 or 12% $48.2 or 12% $48.5 or 12% The Tangguh Production Sharing Contractors (i) $49.7 or 11% $44.4 or 11% $44.9 or 11% (i) Liquefied gas segment. (ii) Includes its subsidiaries Shell Spain LNG S.A.U. and Shell Tankers (Singapore) Private Ltd. |
Segment Reporting Information | The following tables include results for these segments for the years presented in these financial statements. Year Ended December 31, 2017 Liquefied Gas Conventional Total Voyage revenues 385,683 46,993 432,676 Voyage expenses (3,020 ) (5,182 ) (8,202 ) Vessel operating expenses (84,928 ) (18,211 ) (103,139 ) Depreciation and amortization (95,025 ) (10,520 ) (105,545 ) General and administrative expenses (i) (14,034 ) (2,507 ) (16,541 ) Write-down and loss on sales of vessels — (50,600 ) (50,600 ) Income (loss) from vessel operations 188,676 (40,027 ) 148,649 Equity income 9,789 — 9,789 Investment in and advances to equity-accounted joint ventures 1,094,596 — 1,094,596 Total assets at December 31, 2017 4,624,321 112,844 4,737,165 Expenditures for vessels and equipment (714,529 ) — (714,529 ) Expenditures for dry docking (20,153 ) (2,130 ) (22,283 ) Year Ended December 31, 2016 Liquefied Gas Conventional Total Voyage revenues 336,530 59,914 396,444 Voyage expenses (449 ) (1,207 ) (1,656 ) Vessel operating expenses (66,087 ) (22,503 ) (88,590 ) Depreciation and amortization (80,084 ) (15,458 ) (95,542 ) General and administrative expenses (i) (15,310 ) (3,189 ) (18,499 ) Write-down and loss on sales of vessels — (38,976 ) (38,976 ) Income (loss) from vessel operations 174,600 (21,419 ) 153,181 Equity income 62,307 — 62,307 Investment in and advances to equity-accounted joint ventures 1,037,726 — 1,037,726 Total assets at December 31, 2016 3,957,088 193,553 4,150,641 Expenditures for vessels and equipment (344,924 ) (63 ) (344,987 ) Expenditures for dry docking (13,944 ) — (13,944 ) Year Ended December 31, 2015 Liquefied Gas Conventional Total Voyage revenues 305,056 92,935 397,991 Voyage recoveries (expenses) 203 (1,349 ) (1,146 ) Vessel operating expenses (63,344 ) (30,757 ) (94,101 ) Depreciation and amortization (71,323 ) (20,930 ) (92,253 ) General and administrative expenses (i) (19,392 ) (5,726 ) (25,118 ) Restructuring charges — (4,001 ) (4,001 ) Income from vessel operations 151,200 30,172 181,372 Equity income 84,171 — 84,171 Expenditures for vessels and equipment (191,642 ) (327 ) (191,969 ) Expenditures for dry docking (8,659 ) (1,698 ) (10,357 ) (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 presented in the consolidated balance sheets is as follows: December 31 December 31 Total assets of the liquefied gas segment 4,624,321 3,957,088 Total assets of the conventional tanker segment 112,844 193,553 Unallocated: Cash and cash equivalents 244,241 126,146 Accounts receivable and prepaid expenses 30,593 28,948 Advances to affiliates 7,300 9,739 Consolidated total assets 5,019,299 4,315,474 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Capital Lease Obligations | Capital Lease Obligations December 31 December 31 LNG Carriers 961,711 338,257 Suezmax Tankers 49,838 54,582 Total obligations related to capital leases 1,011,549 392,839 Less current portion (106,946 ) (40,353 ) Long-term obligations related to capital leases 904,603 352,486 |
Commitment Under Capital Leases | As at December 31, 2017 , the remaining commitments related to the eight capital leases for the Partnership's LNG carriers and LNG carrier newbuildings, including the related purchase obligations, approximated $1.4 billion , including imputed interest of $429.9 million , repayable from 2018 through 2027, as indicated below: Year Commitment 2018 $ 111,678 2019 $ 119,564 2020 $ 118,901 2021 $ 117,904 2022 $ 117,109 Thereafter $ 806,458 |
Estimated Future Minimum Rental Payments to be Received and Paid Under the Lease Contracts | As at December 31, 2017 , the total estimated future minimum rental payments to be received and paid by the Teekay Tangguh Joint Venture related to the lease contracts are as follows: Year Head Lease Receipts (i) Sublease Payments (i) (ii) 2018 $ 21,242 $ 23,875 2019 $ 21,242 $ 23,875 2020 $ 21,242 $ 23,875 2021 $ 21,242 $ 23,875 2022 $ 21,242 $ 23,875 Thereafter $ 132,853 $ 149,360 Total $ 239,063 $ 268,735 (i) The Head Leases are fixed-rate operating leases while the Subleases have a variable-rate component. As at December 31, 2017 , the Partnership had received $271.3 million of aggregate Head Lease receipts and had paid $212.1 million of aggregate Sublease payments. The portion of the Head Lease receipts that have not been recognized into earnings is deferred and amortized on a straight-line basis over the lease terms and, as at December 31, 2017 , $3.7 million ( December 31, 2016 – $3.7 million ) and $33.0 million ( December 31, 2016 – $36.7 million ) of Head Lease receipts had been deferred and included in unearned revenue and other long-term liabilities, respectively, in the Partnership’s consolidated balance sheets. (ii) The amount of payments related to the Subleases are updated annually to reflect any changes in the lease payments due to changes in tax law. |
Net Investments in Direct Financing Leases | The following table lists the components of the net investments in direct financing leases: December 31 December 31 Total minimum lease payments to be received 568,710 764,970 Estimated unguaranteed residual value of leased properties 194,965 194,965 Initial direct costs 361 393 Less unearned revenue (268,046 ) (317,320 ) Total net investments in direct financing leases 495,990 643,008 Less current portion (9,884 ) (150,342 ) Net investments in direct financing leases 486,106 492,666 |
Equity-Accounted Investments (T
Equity-Accounted Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Financial Information of Joint Ventures | A summary of the Partnership's investments in and advances to equity-accounted investees are as follows: As at December 31, 2017 As at December 31, Name Ownership Percentage # of Delivered Vessels Newbuildings on order 2017 2016 Bahrain LNG Joint Venture (i) 30% - 1 77,706 63,933 Yamal LNG Joint Venture (ii) 50% - 6 193,774 152,702 Pan Union Joint Venture (iii) 20%-30% 1 3 43,538 33,860 Exmar LPG Joint Venture (iv) 50% 20 3 160,626 167,763 Teekay LNG-Marubeni Joint Venture (v) 52% 6 - 341,712 299,601 Excalibur and Excelsior Joint Ventures (vi) 49%-50% 2 - 79,915 79,577 Angola Joint Venture (vii) 33% 4 - 74,775 65,644 RasGas 3 Joint Venture (viii) 40% 4 - 122,550 174,646 37 13 1,094,596 1,037,726 (i) Bahrain LNG Joint Venture On December 2, 2015, the Partnership ( 30% ) entered into a joint venture agreement with National Oil & Gas Authority (or Nogaholding ) ( 30% ), Gulf Investment Corporation (or GIC ) ( 24% ) and Samsung C&T (or Samsung ) ( 16% ) to form a joint venture, Bahrain LNG W.L.L. (or the Bahrain LNG Joint Venture ), for the development of an LNG receiving and regasification terminal in Bahrain. The project will include an offshore LNG receiving jetty and breakwater, an adjacent regasification platform, subsea gas pipelines from the platform to shore, an onshore gas receiving facility, and an onshore nitrogen production facility with a total LNG terminal capacity of 800 million standard cubic feet per day and will be owned and operated under a 20 -year agreement commencing in early-2019. In addition, the Partnership will supply a floating storage unit (or FSU ) in connection with this project, which will be modified from one of the Partnership’s four MEGI LNG carrier newbuildings ordered from Daewoo Shipbuilding & Marine Engineering Co. (or DSME ) (see Note 13a), through a 20 -year time-charter contract with the Bahrain LNG Joint Venture. As at December 31, 2017 , the Partnership had advanced $79.1 million ( December 31, 2016 – $62.9 million ) to the Bahrain LNG Joint Venture. These advances bear interest at LIBOR plus 1.25% and as at December 31, 2017 , the interest accrued on these advances was $0.1 million ( December 31, 2016 – $0.1 million ). These amounts are included in the table above. (ii) Yamal LNG Joint Venture The Partnership has a 50 / 50 joint venture agreement with China LNG Shipping (Holdings) Limited (or the Yamal LNG Joint Venture ) and the joint venture has ordered six internationally-flagged icebreaker LNG carriers for a project located on the Yamal Peninsula in Northern Russia (or the Yamal LNG Project ). During the year ended, December 31, 2017 , the Yamal LNG Joint Venture converted the $195 million advances from 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 the advances are included in the table above. In December 2017, the Yamal LNG Joint Venture secured a $1.6 billion long-term debt facility to finance all six of its ARC7 LNG carrier newbuildings. As part of the completed financing, the Yamal LNG Joint Venture returned a total of $104 million of capital back to the joint venture partners in December 2017, of which the Partnership’s share was $52 million . The Partnership has guaranteed its 50% share of an $816 million secured loan facility in the Yamal LNG Joint Venture and, as a result, has recorded a guarantee liability. The carrying value of the guarantee liability as at December 31, 2017 was $0.6 million ( December 31, 2016 – $ nil ) and is included as part of other long-term liabilities in the Partnership’s consolidated balance sheets. (iii) Pan Union Joint Venture In June 2014, the Partnership acquired from Shell its ownership interests in four LNG carrier newbuildings. As compensation for Shell’s ownership interests in these four LNG carrier newbuildings, the Partnership assumed Shell’s obligation to provide the shipbuilding supervision and crew training services for the four LNG carrier newbuildings up to their delivery date pursuant to a ship construction support agreement. The Partnership initially estimated it would incur approximately $36.9 million of costs to provide these services, of which Shell has agreed to pay a fixed amount of $20.3 million . The Partnership estimated that the fair value of the service obligation was $33.3 million and the fair value of the amount due from Shell was $16.5 million . As at December 31, 2017 , the carrying value of the service obligation of $8.2 million ( December 31, 2016 – $22.6 million ) is included in both the current portion of in-process contracts and in-process contracts and the carrying value of the receivable from Shell of $3.5 million ( December 31, 2016 – $10.9 million ) is included in accounts receivable and other assets in the Partnership’s consolidated balance sheets. As at December 31, 2017 , the Partnership has a 30% ownership interest in one LNG carrier, the Pan Asia , and one LNG carrier newbuilding and a 20% ownership interest in the remaining two LNG carrier newbuildings (or collectively, the Pan Union Joint Venture ). The Pan Asia was delivered on October 13, 2017 and concurrently commenced its 20 -year charter contract with Shell. On initial acquisition, the basis difference between the Partnership's investment and the carrying value of the Pan Union Joint Venture's net assets was substantially attributed to ship construction support agreements and the time-charter contracts. At December 31, 2017 , the unamortized amount of the basis difference was $11.4 million ( December 31, 2016 - $16.8 million ). (iv) Exmar LPG Joint Venture The Partnership has a 50 / 50 joint venture agreement with Exmar NV (or Exmar) (or the Exmar LPG Joint Venture ). The Partnership has guaranteed its 50% share of a secured loan facility and four capital leases in the Exmar LPG Joint Venture and, as a result, has recorded a guarantee liability. The carrying value of the guarantee liability as at December 31, 2017 was $1.6 million ( December 31, 2016 – $1.3 million ) and is included as part of other long-term liabilities in the Partnership’s consolidated balance sheets. As at December 31, 2017 , the Partnership had advanced $52.3 million ( December 31, 2016 – $52.3 million ) to the Exmar LPG Joint Venture, which bears interest at LIBOR plus 0.50% and has no fixed repayment terms. As at December 31, 2017 , the interest accrued on these advances was $0.2 million ( December 31, 2016 – $1.1 million ). These amounts are included in the table above. On initial acquisition, the basis difference between the Partnership's investment and the carrying value of the Exmar LPG Joint Venture's net assets was substantially attributed to the value of the vessels and charter agreements of the Exmar LPG Joint Venture and goodwill in accordance with the finalized purchase price allocation. At December 31, 2017 , the unamortized amount of the basis difference was $25.5 million ( December 31, 2016 – $30.2 million ). (v) Teekay LNG-Marubeni Joint Venture The Partnership has a joint venture agreement with Marubeni Corporation (or the Teekay LNG-Marubeni Joint Ventur e). Since control of the Teekay LNG-Marubeni Joint Venture is shared jointly between Marubeni and the Partnership, the Partnership accounts for its investment in the Teekay LNG-Marubeni Joint Venture using the equity method. In March 2017, the Teekay LNG-Marubeni Joint Venture completed the refinancing of its previous $396 million debt facility by entering into a new $335 million U.S. Dollar-denominated term loan maturing in September 2019. As part of the completed refinancing, the Partnership invested $57 million of additional equity, based on its proportionate ownership interest, into the Teekay LNG-Marubeni Joint Venture. The Partnership has guaranteed its 52% share of the secured loan facilities of the Teekay LNG-Marubeni Joint Venture and, as a result, has recorded a guarantee liability. The carrying value of the guarantee liability as at December 31, 2017 was $0.5 million ( December 31, 2016 – $0.1 million ) and is included as part of other long-term liabilities in the Partnership’s consolidated balance sheets. (vi) Excalibur and Excelsior Joint Ventures The Partnership joint ventures with Exmar (or the Excalibur Joint Venture and the Excelsior Joint Ventures ) (see Note 19d). The Partnership has guaranteed its ownership share of the secured loan facilities of the Excalibur and Excelsior Joint Ventures and, as a result, has recorded a guarantee liability. The carrying value of the guarantee liability as of December 31, 2017 was $0.2 million ( December 31, 2016 – $0.2 million ) and is included as part of other long-term liabilities in the Partnership’s consolidated balance sheets. On initial acquisition, the basis difference between the Partnership's investment and the carrying value of the Excalibur and Excelsior Joint Venture's net assets was substantially attributed to an increase to the carrying value of the vessels of the Excalibur and Excelsior Joint Ventures in accordance with the finalized purchase price allocation. At December 31, 2017 , the unamortized amount of the basis difference was $35.6 million ( December 31, 2016 – $37.2 million ). (vii) Angola Joint Venture The Partnership has a 33% ownership interest in a joint venture (or the Angola Joint Venture ) that owns four 160,400 -cubic meter LNG carriers (or the Angola LNG Carriers ). The other partners of the Angola Joint Venture are NYK Energy Transport (or NYK ) ( 33% ) and Mitsui & Co. Ltd. ( 34% ). The Partnership has guaranteed its 33% share of the secured loan facilities and interest rate swaps of the Angola Joint Venture and, as a result, has recorded a guarantee liability. The carrying value of the guarantee liability as at December 31, 2017 was $0.7 million ( December 31, 2016 – $1.0 million ) and is included as part of other long-term liabilities in the Partnership’s consolidated balance sheets. (viii) RasGas 3 Joint Venture The Partnership has a 40% ownership interest in Teekay Nakilat (III) Corporation (or the RasGas 3 Joint Venture ), and the remaining 60% is held by Qatar Gas Transport Company Ltd. (Nakilat). The follo wing table presents aggregated summarized financial information reflecting a 100% ownership interest in the Partnership’s equity method investments and excluding the impact from purchase price adjustments arising from the acquisition of Exmar LPG BVBA, the Excalibur and Excelsior Joint Ventures and the Pan Union Joint Venture. The results include the Excalibur and Excelsior Joint Ventures, the RasGas 3 Joint Venture, the Angola Joint Venture, the Exmar LPG Joint Venture, the Teekay LNG-Marubeni Joint Venture, the Pan Union Joint Venture, the Yamal LNG Joint Venture, and the Bahrain LNG Joint Venture. As at December 31, 2017 2016 Cash and restricted cash – current 281,468 388,007 Other assets – current 97,832 111,847 Vessels and equipment, including vessels related to capital leases and advances on newbuilding contracts 3,284,441 2,837,870 Net investments in direct financing leases – non-current 1,961,299 1,776,954 Other assets – non-current 68,728 37,132 Current portion of long-term debt and obligations related to capital leases 168,715 209,814 Other liabilities – current 119,627 102,385 Long-term debt and obligations related to capital leases 3,386,800 3,233,425 Other liabilities – non-current 145,870 157,025 Years ended December 31, 2017 2016 2015 Voyage revenues 477,495 549,646 596,093 Income from vessel operations 178,763 268,049 302,731 Realized and unrealized loss on non-designated derivative instruments (2,067 ) (12,277 ) (25,108 ) Net income 54,418 167,052 203,280 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying Amount of Intangible Assets for Partnership's Reportable Segments | The carrying amount of intangible assets for the Partnership’s liquefied gas segment is as follows: December 31 December 31 Gross carrying amount 179,813 179,813 Accumulated amortization (118,735 ) (109,879 ) Net carrying amount 61,078 69,934 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | December 31 December 31 Interest including interest rate swaps 21,164 19,957 Voyage and vessel expenses 8,184 9,311 Payroll and benefits 3,900 3,355 Other general expenses 5,674 3,069 Income and other tax payable 1,335 189 Distributions payable on preferred units 5,500 — Total 45,757 35,881 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt | December 31, 2017 December 31, 2016 $ $ U.S. Dollar-denominated Revolving Credit Facilities due from 2018 to 2022 254,275 208,222 U.S. Dollar-denominated Term Loans due from 2018 to 2031 935,286 1,005,199 Norwegian Kroner-denominated Bonds due from 2018 to 2021 377,856 371,329 Euro-denominated Term Loans due from 2018 to 2023 232,957 219,733 Other U.S. Dollar-denominated Loans 10,000 — Total principal 1,810,374 1,804,483 Unamortized discount and debt issuance costs (12,382 ) (13,257 ) Total debt 1,797,992 1,791,226 Less current portion (552,404 ) (188,511 ) Long-term debt 1,245,588 1,602,715 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of Provision for Income Taxes | The components of the provision for income taxes were as follows: Year Ended Year Ended Year Ended Current (note 13d) (3,557 ) (962 ) (2,646 ) Deferred 2,733 (11 ) (76 ) Income tax expense (824 ) (973 ) (2,722 ) |
Reconciliations of Tax Charge | Reconciliations of the tax charge related to the relevant year at the applicable statutory income tax rates and the actual tax charge related to the relevant year are as follows: Year Ended Year Ended Year Ended Net income before income tax expenses 49,735 158,938 220,232 Net income not subject to taxes (94,106 ) (138,542 ) (173,298 ) Net (loss) income subject t o taxes (44,371 ) 20,396 46,934 At applicable statutory tax rates Amount computed using the standard rate of corporate tax 13,874 (3,338 ) (12,007 ) Adjustments to valuation allowance and uncertain tax positions 324 11,802 5,362 Permanent and currency differences (12,507 ) (9,125 ) 4,204 Change in tax rates (2,515 ) (312 ) (281 ) Tax expense related to the year (824 ) (973 ) (2,722 ) |
Components of Partnership's Deferred Tax Assets (Liabilities) | The significant components of the Partnership’s deferred tax assets (liabilities) were as follows: Year Ended Year Ended Derivative instruments 3,823 4,523 Taxation loss carryforwards and disallowed finance costs 35,326 34,927 Vessels and equipment 3,936 3,554 Capitalized interest (1,927 ) (2,027 ) 41,158 40,977 Valuation allowance (38,594 ) (41,064 ) Net deferred tax assets (liabilities) included in other assets or accrued liabilities 2,564 (87 ) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Such related party transactions were as follows for the periods indicated: Year Ended December 31 December 31 December 31 Voyage revenues (i) 36,358 37,336 35,887 Vessel operating expenses (25,164 ) (20,438 ) (19,914 ) General and administrative expenses (ii) (7,834 ) (11,890 ) (14,485 ) General and administrative expenses deferred and capitalized (iii) (859 ) (571 ) — (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 ). The original contract period for the Polar Spirit expired in March 2018 and for the Arctic Spirit will expire in April 2018. (ii) Includes commercial, strategic, advisory, business development and administrative management fees charged by Teekay Corporation and reimbursements to Teekay Corporation and our 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 $1.1 million was reimbursed by the Bahrain LNG Joint Venture during 2017 ( December 31, 2016 – $0.4 million ). 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 He40
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2017 . Floating Rate Receivable Principal Principal Reference Margin Fixed Rate Fair Value/ Weighted- 900,000 150,000 NIBOR 4.35 % 6.43 % (41,664 ) 0.7 1,000,000 134,000 NIBOR 3.70 % 5.92 % (12,553 ) 2.4 1,200,000 146,500 NIBOR 6.00 % 7.72 % 3,758 3.8 (50,459 ) |
Interest Rate Swap Agreements | At December 31, 2017 , the terms of the interest rate swaps underlying the interest rate swaption were as follows: Interest Principal Option Fair Value/ Remaining Interest Interest rate swaption - Call Option LIBOR 160,000 (i) January 31, 2018 Nominal 8.0 3.1 % Interest rate swaption - Put Option LIBOR 160,000 (i) January 31, 2018 (2 ) 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 December 31, 2017 , the Partnership was committed to the following interest rate swap agreements: Interest Principal Fair Value/ Weighted- Fixed Interest Rate (i) LIBOR-Based Debt: U.S. Dollar-denominated interest rate swaps LIBOR 60,000 (2,314 ) 1.1 4.9 % U.S. Dollar-denominated interest rate swaps (ii) LIBOR 143,750 (22,837 ) 11.0 5.2 % U.S. Dollar-denominated interest rate swaps (ii) LIBOR 42,845 (720 ) 3.6 2.8 % U.S. Dollar-denominated interest rate swaps (iii) LIBOR 160,000 (9,360 ) 0.3 3.5 % U.S. Dollar-denominated interest rate swaps (iv) LIBOR 171,933 (9,023 ) 2.8 3.3 % U.S. Dollar-denominated interest rate swaps (iv) LIBOR 99,667 123 1.0 1.7 % U.S. Dollar-denominated interest rate swaps (iv) LIBOR 195,008 260 9.0 2.3 % EURIBOR-Based Debt: Euro-denominated interest rate swaps (v) EURIBOR 232,957 (29,235 ) 3.0 3.1 % (73,106 ) (i) Excludes the margins the Partnership pays on its floating-rate term loans, which, at December 31, 2017 , ranged from 0.30% to 3.25% . (ii) Principal amount reduces 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 2018 to 2024. These interest rate swaps are subject to mandatory early termination in 2018, whereby the swaps will be settled based on their fair value at that time. (iv) Principal amount reduces quarterly. (v) Principal amount reduces monthly to 70.1 million Euros ( $84.2 million ) by the maturity dates of the swap agreements. |
Location and Fair Value Amounts of Derivative Instruments | The following table presents the location and fair value amounts of derivative instruments, segregated by type of contract, on the Partnership’s consolidated balance sheets. Derivative Current Derivative As at December 31, 2017 Interest rate swap agreements — 108 1,130 (4,101 ) (34,614 ) (35,629 ) Interest rate swaption agreements — — — — (2 ) — Cross-currency swap agreements — — 5,042 (810 ) (44,523 ) (10,168 ) Toledo Spirit time-charter derivative 678 970 — — — — 678 1,078 6,172 (4,910 ) (79,139 ) (45,797 ) 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 income is as follows: Year Ended December 31, 2017 2016 2015 Realized Unrealized Total Realized Unrealized Total Realized Unrealized Total Interest rate swap agreements (18,825 ) 12,393 (6,432 ) (25,940 ) 15,627 (10,313 ) (28,968 ) 14,768 (14,200 ) Interest rate swaption agreements — 945 945 — (164 ) (164 ) — (783 ) (783 ) Interest rate swaption agreements termination (610 ) — (610 ) — — — — — — Toledo Spirit time-charter derivative 678 110 788 (654 ) 3,970 3,316 (3,429 ) (1,610 ) (5,039 ) (18,757 ) 13,448 (5,309 ) (26,594 ) 19,433 (7,161 ) (32,397 ) 12,375 (20,022 ) The effect of the gain (loss) on these derivatives on the Partnership's consolidated statements of income is as follows: Year Ended December 31, 2017 2016 2015 Realized Unrealized Total Realized Unrealized Total Realized Unrealized Total Cross-currency swap agreements (9,344 ) 49,047 39,703 (9,063 ) 28,905 19,842 (7,640 ) (57,759 ) (65,399 ) Cross-currency swap agreements termination (25,733 ) — (25,733 ) (17,711 ) — (17,711 ) — — — (35,077 ) 49,047 13,970 (26,774 ) 28,905 2,131 (7,640 ) (57,759 ) (65,399 ) |
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. Year Ended December 31, 2017 Year Ended December 31, 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) $ 429 (427 ) (740 ) Interest expense 590 — — Interest expense 429 (427 ) (740 ) 590 — — (i) Effective portion of designated and qualifying cash flow hedges recognized in other comprehensive income (loss). (ii) Effective portion of designated and qualifying cash flow hedges recorded in accumulated other comprehensive income (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) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Partnership’s Share of Commitments to Fund Newbuilding and Other Construction Contract Costs | The Partnership’s share of commitments to fund newbuilding and other construction contract costs as at December 31, 2017 are as follows: Total 2018 2019 2020 DSME (i) 486,988 486,988 — — Hyundai Samho Heavy Industries Co. (ii) 317,530 65,460 252,070 — Yamal LNG Joint Venture (iii) 781,300 350,100 232,000 199,200 Pan Union Joint Venture (iv) 116,629 87,102 29,527 — Bahrain LNG Joint Venture (v) 133,936 80,733 53,203 — Exmar LPG Joint Venture (vi) 54,570 54,570 — — 1,890,953 1,124,953 566,800 199,200 (i) As at December 31, 2017 , the Partnership had four LNG carrier newbuildings on order with DSME which are scheduled for delivery in 2018. As at December 31, 2017 , costs incurred under these newbuilding contracts totaled $340.2 million . As at December 31, 2017 , the Partnership has secured financing for all of the four DSME LNG carrier newbuildings included in the table above (see Note 5). (ii) As at December 31, 2017 , the Partnership had two LNG carrier newbuildings on order with Hyundai Samho Heavy Industries Co. (or HHI ) scheduled for delivery in 2019. As at December 31, 2017 , costs incurred under these newbuilding contracts totaled $104.3 million . The Partnership has secured $139 million of financing as at December 31, 2017 for one of the two HHI LNG carrier newbuildings. (iii) The Partnership, through the Yamal LNG Joint Venture, has a 50% ownership interest in six 172,000 -cubic meter ARC7 LNG carrier newbuildings that have an estimated total fully built-up cost of approximately $2.1 billion . As at December 31, 2017 , the Partnership’s proportionate costs incurred under these newbuilding contracts totaled $240.1 million . The Yamal LNG Joint Venture has secured debt financing of $816 million for the six LNG carrier newbuildings, of which $751 million was undrawn at December 31, 2017, related to the Partnership's proportionate share of the commitments included in the table above. (iv) Through the Pan Union Joint Venture, the Partnership has ownership interests ranging from 20% to 30% in three LNG carrier newbuildings scheduled for delivery in 2018 and 2019. The Pan Union Joint Venture has secured financing of $87 million related to the Partnership's proportionate share of the commitments included in the table above and the Partnership is scheduled to receive $3.5 million of reimbursement directly from Shell (see Note 6a iii). (v) The Partnership has a 30% ownership interest in the Bahrain LNG Joint Venture for the development of an LNG receiving and regasification terminal in Bahrain. The project will include an FSU, which will be modified from one of the Partnership’s existing MEGI LNG carrier newbuildings, an offshore gas receiving facility, and an onshore nitrogen production facility. The terminal will have a capacity of 800 million standard cubic feet per day and will be owned and operated under a 20 -year agreement commencing early-2019. The receiving and regasification terminal is expected to have a fully-built up cost of approximately $960.0 million . The Bahrain LNG Joint Venture has secured debt financing of $134 million related to the Partnership's proportionate share of the commitments included in the table above. (vi) The Partnership has a 50% ownership interest in the Exmar LPG Joint Venture which has three LPG carrier newbuildings scheduled for delivery in 2018 and has secured $56 million of financing for two of the three LPG carrier newbuildings related to the Partnership's proportionate share of the commitments included in the table above. |
Supplemental Cash Flow Inform42
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Changes in Operating Assets and Liabilities | The changes in operating assets and liabilities for years ended December 31, 2017 , 2016 and 2015 are as follows: Year Ended Year Ended Year Ended Accounts receivable 1,620 5,494 (5,140 ) Prepaid expenses (2,815 ) 745 (494 ) Accounts payable (2,053 ) 2,791 2,127 Accrued liabilities 2,449 (1,572 ) (1,581 ) Unearned revenue and long-term unearned revenue (1,456 ) (3,218 ) (562 ) Restricted cash 4,249 (10,808 ) (2,785 ) Advances to and from affiliates (913 ) (9,699 ) (23,714 ) Other operating assets and liabilities 772 (4,402 ) (2,038 ) Total 1,853 (20,669 ) (34,187 ) |
Total Capital and Net Income 43
Total Capital and Net Income Per Common Unit (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Incentive Distributions | 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 shown below: Quarterly Distribution Target Amount (per unit) Unitholders General Partner Minimum quarterly distribution of $0.4125 98 % 2 % Up to $0.4625 98 % 2 % Above $0.4625 up to $0.5375 85 % 15 % Above $0.5375 up to $0.6500 75 % 25 % Above $0.6500 50 % 50 % |
Schedule of Net Income Per Common Unit | Year Ended December 31, 2017 2016 2015 $ $ $ Limited partners' interest in net income for basic net income per common unit 19,586 134,977 174,607 Weighted average number of common units 79,617,778 79,568,352 78,896,767 Dilutive effect of unit based compensation 173,263 103,506 64,335 Common units and common unit equivalents 79,791,041 79,671,858 78,961,102 Limited partner's interest in net income per common unit: basic 0.25 1.70 2.21 diluted 0.25 1.69 2.21 |
Issuances of Common Units | The following table summarizes the issuances of common and preferred units over the three years ended December 31, 2017 : Date Units Type of Units Offering Gross Proceeds (i) $ Net Proceeds $ Teekay Corporation’s Ownership After the Offering (ii) Use of Proceeds Continuous offering program during 2015 (iii) 1,173,428 Common (iv) 36,274 35,374 33.02 % General partnership purposes including funding newbuilding installments October 2016 Public Offering 2016 (v) 5,000,000 Preferred $ 25.00 125,000 120,707 33.02 % General partnership purposes, including debt repayments and funding newbuilding installments October 2017 Public Offering (vi) 6,800,000 Preferred $ 25.00 170,000 164,411 33.02 % General partnership purposes, including debt repayments and funding newbuilding installments (i) Including the General Partner’s 2% proportionate capital contribution. (ii) Including Teekay Corporation’s indirect 2% general partner interest relating to common unit offerings. (iii) Includes 160,000 common units sold under the Partnership's continuous offering program (or COP ) in December 2014 for which net proceeds of $6.8 million (including the General Partner’s 2% proportionate capital contribution) were received in January 2015. (iv) Commencing in May 2013, the Partnership implemented a COP under which the Partnership could issue new common units, representing limited partner interests, from time to time at market prices up to a maximum aggregate amount of $100 million . The COP expired in 2016. (v) On October 5, 2016, the Partnership issued Series A Preferred Units having a distribution rate of 9.0% per annum of the stated liquidation preference of $25.00 per unit. At any time on or after October 5, 2021, the Partnership may redeem the Series A Preferred Units, in whole or in part, at a redemption price of $25.00 per unit plus all accumulated and unpaid distributions to the date of redemption, whether or not declared. (vi) On October 23, 2017, the Partnership issued Series B Preferred Units having a distribution rate of 8.5% per annum of the stated liquidation preference of $25.00 per unit up to October 15, 2027, at which point the rate moves to a floating rate equal to three-month LIBOR plus a margin of 6.241% . At any time on or after October 15, 2027, the Partnership may redeem the Series B Preferred Units, in whole or in part, at a redemption price of $25.00 per unit plus all accumulated and unpaid distributions thereon to the date of redemption, whether or not declared. |
Summary of Significant Accoun44
Summary of Significant Accounting Policies - Basis of Presentation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net investing cash flow | $ 766,439 | $ 343,208 | $ 212,530 |
Net financing cash flow | $ 690,069 | 200,381 | $ (84,357) |
Restatement Adjustment | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net investing cash flow | 355,000 | ||
Net financing cash flow | $ 355,000 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies - Vessels and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Interest costs capitalized to vessels and equipment | $ 13.9 | $ 9.9 | $ 8.2 |
Property, Plant and Equipment [Line Items] | |||
Depreciation of vessels and equipment | $ 96.7 | $ 86.6 | $ 83.4 |
Conventional Tankers Segment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life in years | 25 years | ||
Liquefied Petroleum Gas | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life in years | 30 years | ||
Liquefied Natural Gas | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life in years | 35 years | ||
Dry-docking Activity | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life in years | 5 years |
Summary of Significant Accoun46
Summary of Significant Accounting Policies - Changes in Partnership's Capitalized Dry Docking Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Roll Forward] | |||
Beginning balance | $ 2,215,983 | ||
Cost incurred for dry docking | 22,283 | $ 13,944 | $ 10,357 |
Ending balance | 2,905,712 | 2,215,983 | |
Dry-docking Activity | |||
Property, Plant and Equipment [Roll Forward] | |||
Beginning balance | 33,538 | 33,916 | 33,635 |
Cost incurred for dry docking | 22,283 | 13,944 | 10,357 |
Write-downs and sales of vessels | (2,782) | (2,886) | 0 |
Dry-dock amortization | (13,895) | (11,436) | (10,076) |
Ending balance | $ 39,144 | $ 33,538 | $ 33,916 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies - Income Taxes (Details) - Spain | 12 Months Ended |
Dec. 31, 2017vessel | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Number of vessels | 2 |
Tax rate in Spain | 25.00% |
Effective income tax rate on revenue by Spanish vessels tax credit | 90.00% |
Effective tax rate on revenues by Spanish vessels | 2.50% |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted cash - current and - long-term | $ 95.2 | $ 117 |
Interest rate swaps and swaptions and cross currency swaps agreement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted cash - current and - long-term | $ 22.3 | $ 37.8 |
Toledo Spirit time-charter derivative | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Average daily tanker rate | 17,500 | 22,875 |
Discount rate over remaining duration of contract | 8.70% | 8.40% |
Financial Instruments - Schedul
Financial Instruments - Schedule of Estimated Fair Value of Partnership's Financial Instruments on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Vessels held for sale (note 18) | $ 33,671 | $ 20,580 |
Long-term debt | (1,797,992) | (1,791,226) |
Obligations related to capital leases (note 5) | (1,011,549) | (392,839) |
Carrying Amount Asset (Liability) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Advances to equity-accounted joint ventures (note 6) | 131,685 | 272,514 |
Carrying Amount Asset (Liability) | Level 1 | Public | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | (376,581) | (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 | 339,435 | 243,173 |
Carrying Amount Asset (Liability) | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Obligations related to capital leases (note 5) | (1,011,549) | (392,839) |
Carrying Amount Asset (Liability) | Level 2 | Non-public | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | (1,421,411) | (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 | 878 | 1,080 |
Interest rate swap agreements – liabilities | (73,984) | (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 | 3,283 | |
Interest rate swaption agreements – liabilities | (2) | (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 | 3,758 | 0 |
Cross-currency swap agreements – liabilities | (54,217) | (99,786) |
Carrying Amount Asset (Liability) | Level 2 | Non-recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Vessels held for sale (note 18) | 16,671 | 20,580 |
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 | 3,476 | 10,985 |
Carrying Amount Asset (Liability) | Level 3 | Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other derivative | 1,648 | 2,134 |
Fair Value Asset (Liability) | Level 1 | Public | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | (384,820) | (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 | 339,435 | 243,173 |
Fair Value Asset (Liability) | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Obligations related to capital leases (note 5) | (1,001,588) | (400,072) |
Fair Value Asset (Liability) | Level 2 | Non-public | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | (1,391,524) | (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 | 878 | 1,080 |
Interest rate swap agreements – liabilities | (73,984) | (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 | 3,283 | |
Interest rate swaption agreements – liabilities | (2) | (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 | 3,758 | 0 |
Cross-currency swap agreements – liabilities | (54,217) | (99,786) |
Fair Value Asset (Liability) | Level 2 | Non-recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Vessels held for sale (note 18) | 16,671 | 20,580 |
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 | 3,459 | 10,944 |
Fair Value Asset (Liability) | Level 3 | Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other derivative | $ 1,648 | $ 2,134 |
Financial Instruments - Sched50
Financial Instruments - Schedule of Estimated Fair Value of Partnership's Financial Instruments on Recurring Basis (Footnotes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Asset (Liability) | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivable and accrued revenue included in accounts receivable and other assets | $ 3,459 | $ 10,944 |
Royal Dutch Shell Plc. | Shipbuilding supervision and crew training services | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Discount rate over remaining duration of contract | 8.00% | |
Royal Dutch Shell Plc. | Shipbuilding supervision and crew training services | Fair Value Asset (Liability) | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivable and accrued revenue included in accounts receivable and other assets | $ 3,500 |
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 | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Fair value at beginning of year | $ 2,134 | $ (6,296) |
Realized and unrealized gains included in earnings | 788 | 3,316 |
Settlements | (1,274) | 5,114 |
Fair value at end of year | $ 1,648 | $ 2,134 |
Financial Instruments - Summary
Financial Instruments - Summary of Partnership's Loan Receivables and Other Financing Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Direct financing leases | $ 495,990 | $ 643,008 |
Other receivables: | ||
Total loans receivables and other financing receivables | 633,151 | 927,693 |
Performing | Payment activity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Direct financing leases | 495,990 | 643,008 |
Other receivables: | ||
Long-term receivable and accrued revenue included in accounts receivable and other assets | 5,476 | 12,171 |
Performing | Other internal metrics | ||
Other receivables: | ||
Advances to equity-accounted joint ventures | $ 131,685 | $ 272,514 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2017vesselsegment | |
Segment Reporting [Abstract] | |
Number of reportable segments | segment | 2 |
Liquefied Gas Segment | Liquefied Natural Gas | |
Segment Reporting Information [Line Items] | |
Number of vessels | 50 |
Liquefied Gas Segment | Liquefied Natural Gas | Corporate Joint Venture | |
Segment Reporting Information [Line Items] | |
Number of vessels | 26 |
Liquefied Gas Segment | Liquefied Petroleum Gas Multi Gas [Member] | |
Segment Reporting Information [Line Items] | |
Number of vessels in partnership | 30 |
Liquefied Gas Segment | Liquefied Petroleum Gas Multi Gas [Member] | Corporate Joint Venture | |
Segment Reporting Information [Line Items] | |
Number of vessels in partnership | 23 |
Conventional Tankers Segment | Suezmax Tankers | |
Segment Reporting Information [Line Items] | |
Number of vessels in partnership | 4 |
Conventional Tankers Segment | Handymax Product | |
Segment Reporting Information [Line Items] | |
Number of vessels in partnership | 1 |
Segment Reporting - Revenues an
Segment Reporting - Revenues and Percentage of Consolidated Voyage Revenues from Top Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue, Major Customer [Line Items] | |||
Voyage revenues from major customers | $ 432,676 | $ 396,444 | $ 397,991 |
Customer Concentration Risk | Sales Revenue, Net | Ras Laffan Liquefied Natural Gas Company Ltd. | |||
Revenue, Major Customer [Line Items] | |||
Voyage revenues from major customers | $ 70,300 | $ 70,300 | $ 70,100 |
Percentage of voyage revenues from major customers (less than) | 16.00% | 18.00% | 18.00% |
Customer Concentration Risk | Sales Revenue, Net | Cheniere Marketing International LLP | |||
Revenue, Major Customer [Line Items] | |||
Voyage revenues from major customers | $ 60,200 | ||
Percentage of voyage revenues from major customers (less than) | 14.00% | 10.00% | |
Customer Concentration Risk | Sales Revenue, Net | Royal Dutch Shell Plc. | |||
Revenue, Major Customer [Line Items] | |||
Voyage revenues from major customers | $ 53,800 | $ 48,200 | $ 48,500 |
Percentage of voyage revenues from major customers (less than) | 12.00% | 12.00% | 12.00% |
Customer Concentration Risk | Sales Revenue, Net | The Tangguh Production Sharing Contractors | |||
Revenue, Major Customer [Line Items] | |||
Voyage revenues from major customers | $ 49,700 | $ 44,400 | $ 44,900 |
Percentage of voyage revenues from major customers (less than) | 11.00% | 11.00% | 11.00% |
Segment Reporting - Segment Rep
Segment Reporting - Segment Reporting Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Voyage revenues | $ 432,676 | $ 396,444 | $ 397,991 |
Voyage expenses | (8,202) | (1,656) | (1,146) |
Vessel operating expenses | (103,139) | (88,590) | (94,101) |
Depreciation and amortization | (105,545) | (95,542) | (92,253) |
General and administrative expenses | (16,541) | (18,499) | (25,118) |
Write-down and loss on sale of vessels | (50,600) | (38,976) | 0 |
Restructuring charges | 0 | 0 | (4,001) |
Income from vessel operations | 148,649 | 153,181 | 181,372 |
Equity income | 9,789 | 62,307 | 84,171 |
Investment in and advances to equity-accounted joint ventures | 1,094,596 | 1,037,726 | |
Total assets | 5,019,299 | 4,315,474 | |
Expenditures for vessels and equipment | (714,529) | (344,987) | (191,969) |
Expenditures for dry docking | (22,283) | (13,944) | (10,357) |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total assets | 4,737,165 | 4,150,641 | |
Liquefied Gas Segment | |||
Segment Reporting Information [Line Items] | |||
Voyage revenues | 385,683 | 336,530 | 305,056 |
Voyage expenses | (3,020) | (449) | 203 |
Vessel operating expenses | (84,928) | (66,087) | (63,344) |
Depreciation and amortization | (95,025) | (80,084) | (71,323) |
General and administrative expenses | (14,034) | (15,310) | (19,392) |
Write-down and loss on sale of vessels | 0 | 0 | |
Restructuring charges | 0 | ||
Income from vessel operations | 188,676 | 174,600 | 151,200 |
Equity income | 9,789 | 62,307 | 84,171 |
Investment in and advances to equity-accounted joint ventures | 1,094,596 | 1,037,726 | |
Expenditures for vessels and equipment | (714,529) | (344,924) | (191,642) |
Expenditures for dry docking | (20,153) | (13,944) | (8,659) |
Liquefied Gas Segment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total assets | 4,624,321 | 3,957,088 | |
Conventional Tankers Segment | |||
Segment Reporting Information [Line Items] | |||
Voyage revenues | 46,993 | 59,914 | 92,935 |
Voyage expenses | (5,182) | (1,207) | (1,349) |
Vessel operating expenses | (18,211) | (22,503) | (30,757) |
Depreciation and amortization | (10,520) | (15,458) | (20,930) |
General and administrative expenses | (2,507) | (3,189) | (5,726) |
Write-down and loss on sale of vessels | (50,600) | (38,976) | |
Restructuring charges | (4,001) | ||
Income from vessel operations | (40,027) | (21,419) | 30,172 |
Equity income | 0 | 0 | 0 |
Investment in and advances to equity-accounted joint ventures | 0 | 0 | |
Expenditures for vessels and equipment | 0 | (63) | (327) |
Expenditures for dry docking | (2,130) | 0 | $ (1,698) |
Conventional Tankers Segment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total assets | $ 112,844 | $ 193,553 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Total Segment Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 5,019,299 | $ 4,315,474 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total assets | 4,737,165 | 4,150,641 |
Operating Segments | Liquefied Gas Segment | ||
Segment Reporting Information [Line Items] | ||
Total assets | 4,624,321 | 3,957,088 |
Operating Segments | Conventional Tankers Segment | ||
Segment Reporting Information [Line Items] | ||
Total assets | 112,844 | 193,553 |
Unallocated | Cash and cash equivalents | ||
Segment Reporting Information [Line Items] | ||
Total assets | 244,241 | 126,146 |
Unallocated | Accounts receivable and prepaid expenses | ||
Segment Reporting Information [Line Items] | ||
Total assets | 30,593 | 28,948 |
Unallocated | Advances to affiliates | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 7,300 | $ 9,739 |
Leases - Capital Lease Obligati
Leases - Capital Lease Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Capital Leased Assets [Line Items] | ||
Total obligations related to capital leases | $ 1,011,549 | $ 392,839 |
Less current portion | (106,946) | (40,353) |
Long-term obligations related to capital leases | 904,603 | 352,486 |
LNG Carriers | ||
Capital Leased Assets [Line Items] | ||
Total obligations related to capital leases | 961,711 | 338,257 |
Suezmax Tankers | ||
Capital Leased Assets [Line Items] | ||
Total obligations related to capital leases | $ 49,838 | $ 54,582 |
Leases - Capital Lease Obliga58
Leases - Capital Lease Obligations - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)vessel | Dec. 31, 2017USD ($)vessellease | Dec. 31, 2016USD ($) | |
Capital Leased Assets [Line Items] | |||
Capital lease obligation | $ 1,011,549 | $ 392,839 | |
Liquefied Natural Gas | |||
Capital Leased Assets [Line Items] | |||
Number of capital leases | lease | 5 | ||
Capital lease obligation | $ 193,000 | ||
Newbuildings | Forecast | |||
Capital Leased Assets [Line Items] | |||
Number of vessels with secured financing | vessel | 3 | ||
LNG Carriers | |||
Capital Leased Assets [Line Items] | |||
Number of capital leases | lease | 8 | ||
Term of contract | 10 years | ||
Weighted-average interest rate on lease | 5.20% | ||
Related purchase obligations | $ 1,400,000 | ||
Interest included in payments | $ 429,900 | ||
LNG Carriers | Liquefied Natural Gas | Forecast | |||
Capital Leased Assets [Line Items] | |||
Sale leaseback amount | $ 375,000 | ||
Fixed-Rate Capital Lease | |||
Capital Leased Assets [Line Items] | |||
Number of capital leases | lease | 4 | ||
Variable-Rate Capital Lease | |||
Capital Leased Assets [Line Items] | |||
Number of capital leases | lease | 1 | ||
Suezmax Tankers | |||
Capital Leased Assets [Line Items] | |||
Number of capital leases | vessel | 2 | ||
Weighted-average interest rate on lease | 5.50% | ||
Related purchase obligations | $ 51,000 | ||
Interest included in payments | $ 1,100 | ||
Number of vessels | vessel | 2 |
Leases - Commitment Under Capit
Leases - Commitment Under Capital Leases (Details) - LNG Carriers $ in Thousands | Dec. 31, 2017USD ($) |
Commitment | |
2,018 | $ 111,678 |
2,019 | 119,564 |
2,020 | 118,901 |
2,021 | 117,904 |
2,022 | 117,109 |
Thereafter | $ 806,458 |
Leases - Operating Lease Obliga
Leases - Operating Lease Obligations - Additional Information (Details) - Teekay Tangguh Joint Venture $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($)vessel | Dec. 31, 2016USD ($) | |
Property Subject to or Available for Operating Lease [Line Items] | ||
Number of vessels | vessel | 2 | |
Tax indemnification | $ | $ 7.1 | $ 7.5 |
Operating lease arrangement period, lessor | 20 years |
Leases - Estimated Future Minim
Leases - Estimated Future Minimum Rental Payments to be Received and Paid Under the Lease Contracts (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Head Lease Receipts | |
Head Lease Receipts | |
2,018 | $ 21,242 |
2,019 | 21,242 |
2,020 | 21,242 |
2,021 | 21,242 |
2,022 | 21,242 |
Thereafter | 132,853 |
Total | 239,063 |
Sublease Payments | |
Sublease Payments | |
2,018 | 23,875 |
2,019 | 23,875 |
2,020 | 23,875 |
2,021 | 23,875 |
2,022 | 23,875 |
Thereafter | 149,360 |
Total | $ 268,735 |
Leases - Estimated Future Min62
Leases - Estimated Future Minimum Rental Payments to be Received and Paid Under the Lease Contracts (Footnotes) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Operating Leased Assets [Line Items] | ||
Deferred head lease receipts, unearned revenue | $ 25,873 | $ 16,998 |
Teekay Tangguh Joint Venture | ||
Operating Leased Assets [Line Items] | ||
Head lease receipts | 271,300 | |
Sublease payments made | 212,100 | |
Deferred head lease receipts, unearned revenue | 3,700 | 3,700 |
Deferred head lease receipts, long-term liabilities | $ 33,000 | $ 36,700 |
Leases - Net Investments in Dir
Leases - Net Investments in Direct Financing Leases - Additional Information (Details) | 12 Months Ended | |||||
Dec. 31, 2017USD ($)vessel | Dec. 31, 2013vesselm³ | Dec. 31, 2019USD ($) | Aug. 31, 2018USD ($) | Jun. 30, 2017vessel | Dec. 31, 2016USD ($) | |
Capital Leased Assets [Line Items] | ||||||
Net investments in direct financing leases | $ 486,106,000 | $ 492,666,000 | ||||
Awilco LNG Carriers | ||||||
Capital Leased Assets [Line Items] | ||||||
Number of vessels | vessel | 2 | |||||
Volume of vessels (in cubic meter) | m³ | 155,900 | |||||
Additional time period for fixed rate time charters contract | 1 year | |||||
Number of vessels reclassified to operating lease as a result of the contract amendment | vessel | 1 | |||||
Minimum scheduled future revenues, capital lease, 2018 | $ 6,800,000 | |||||
Awilco LNG Carriers | Forecast | ||||||
Capital Leased Assets [Line Items] | ||||||
Net investments in direct financing leases | $ 131,000,000 | |||||
Awilco LNG Carriers | Vessel One | ||||||
Capital Leased Assets [Line Items] | ||||||
Operating lease arrangement period, lessor | 5 years | |||||
Awilco LNG Carriers | Vessel Two | ||||||
Capital Leased Assets [Line Items] | ||||||
Operating lease arrangement period, lessor | 4 years | |||||
Teekay Tangguh Joint Venture | ||||||
Capital Leased Assets [Line Items] | ||||||
Direct financing lease term | 20 years | |||||
Number of vessels | vessel | 2 | |||||
Operating lease arrangement period, lessor | 20 years | |||||
Minimum scheduled future revenues, capital lease, 2018 | $ 39,100,000 | |||||
Minimum scheduled future revenues, capital lease, 2019 | 39,100,000 | |||||
Minimum scheduled future revenues, capital lease, 2020 | 39,100,000 | |||||
Minimum scheduled future revenues, capital lease, 2021 | 39,100,000 | |||||
Minimum scheduled future revenues, capital lease, 2022 | $ 39,100,000 | |||||
Awilco LNG Carriers | Forecast | Minimum | ||||||
Capital Leased Assets [Line Items] | ||||||
Deferred lease per day per vessel | $ 10,600 | |||||
Awilco LNG Carriers | Forecast | Maximum | ||||||
Capital Leased Assets [Line Items] | ||||||
Deferred lease per day per vessel | $ 20,600 |
Leases - Net Investments in D64
Leases - Net Investments in Direct Financing Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Leases [Abstract] | ||
Total minimum lease payments to be received | $ 568,710 | $ 764,970 |
Estimated unguaranteed residual value of leased properties | 194,965 | 194,965 |
Initial direct costs | 361 | 393 |
Less unearned revenue | (268,046) | (317,320) |
Total net investments in direct financing leases | 495,990 | 643,008 |
Less current portion | (9,884) | (150,342) |
Net investments in direct financing leases | $ 486,106 | $ 492,666 |
Leases - Operating Leases - Add
Leases - Operating Leases - Additional Information (Details) - Property Subject to Operating Lease $ in Millions | Dec. 31, 2017USD ($) |
Operating Leased Assets [Line Items] | |
Minimum scheduled future revenues, operating lease, 2018 | $ 329.7 |
Minimum scheduled future revenues, operating lease, 2019 | 309.2 |
Minimum scheduled future revenues, operating lease, 2020 | 278.9 |
Minimum scheduled future revenues, operating lease, 2021 | 239.4 |
Minimum scheduled future revenues, operating lease, 2022 | $ 216.4 |
Equity-Accounted Investments -
Equity-Accounted Investments - Investments in and Advances to Equity Accounted Investees (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($)vessel | Dec. 31, 2017USD ($)lease | Dec. 31, 2016USD ($) | Dec. 02, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 100.00% | 100.00% | ||
Investment in and advances to equity-accounted joint ventures | $ | $ 1,094,596 | $ 1,094,596 | $ 1,037,726 | |
Bahrain LNG Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 30.00% | 30.00% | 30.00% | |
Yamal LNG Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 50.00% | 50.00% | ||
Excalibur and Excelsior Joint Ventures | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 50.00% | 50.00% | ||
Angola Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 33.00% | 33.00% | ||
Number of vessels | 4 | |||
RasGas 3 Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 40.00% | 40.00% | ||
Newbuildings on order | Yamal LNG Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of vessels | 6 | 6 | ||
Newbuildings on order | Pan Union Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of vessels | 3 | |||
Equity Method Investments | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of vessels | 37 | |||
Investment in and advances to equity-accounted joint ventures | $ | $ 1,094,596 | $ 1,094,596 | 1,037,726 | |
Equity Method Investments | Bahrain LNG Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 30.00% | 30.00% | ||
Investment in and advances to equity-accounted joint ventures | $ | $ 77,706 | $ 77,706 | 63,933 | |
Equity Method Investments | Yamal LNG Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 50.00% | 50.00% | ||
Investment in and advances to equity-accounted joint ventures | $ | $ 193,774 | $ 193,774 | 152,702 | |
Equity Method Investments | Pan Union Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of vessels | 1 | |||
Investment in and advances to equity-accounted joint ventures | $ | $ 43,538 | $ 43,538 | 33,860 | |
Equity Method Investments | Exmar LPG Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 50.00% | 50.00% | ||
Number of vessels | 20 | |||
Investment in and advances to equity-accounted joint ventures | $ | $ 160,626 | $ 160,626 | 167,763 | |
Equity Method Investments | Teekay LNG-Marubeni Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 52.00% | 52.00% | ||
Number of vessels | 6 | |||
Investment in and advances to equity-accounted joint ventures | $ | $ 341,712 | $ 341,712 | 299,601 | |
Equity Method Investments | Excalibur and Excelsior Joint Ventures | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of vessels | 2 | |||
Investment in and advances to equity-accounted joint ventures | $ | $ 79,915 | $ 79,915 | 79,577 | |
Equity Method Investments | Angola Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 33.00% | 33.00% | ||
Number of vessels | 4 | |||
Investment in and advances to equity-accounted joint ventures | $ | $ 74,775 | $ 74,775 | 65,644 | |
Equity Method Investments | RasGas 3 Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 40.00% | 40.00% | ||
Number of vessels | 4 | |||
Investment in and advances to equity-accounted joint ventures | $ | $ 122,550 | $ 122,550 | $ 174,646 | |
Equity Method Investments | Newbuildings on order | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of vessels | 13 | |||
Equity Method Investments | Newbuildings on order | Bahrain LNG Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of vessels | 1 | |||
Equity Method Investments | Newbuildings on order | Yamal LNG Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of vessels | 6 | |||
Equity Method Investments | Newbuildings on order | Pan Union Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of vessels | 3 | |||
Equity Method Investments | Newbuildings on order | Exmar LPG Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of vessels | 3 | |||
Equity Method Investments | Minimum | Pan Union Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 20.00% | 20.00% | ||
Equity Method Investments | Minimum | Excalibur and Excelsior Joint Ventures | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 49.00% | 49.00% | ||
Equity Method Investments | Maximum | Pan Union Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 30.00% | 30.00% | ||
Equity Method Investments | Maximum | Excalibur and Excelsior Joint Ventures | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 50.00% | 50.00% |
Equity-Accounted Investments 67
Equity-Accounted Investments - Bahrain LNG Joint Venture - Additional Information (Details) $ in Millions | Dec. 02, 2015vesselft³ | Dec. 31, 2017USD ($)ft³ | Dec. 31, 2016USD ($) |
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 100.00% | ||
Maximum | |||
Schedule of Equity Method Investments [Line Items] | |||
Basis spread on variable rate (as a percent) | 3.25% | ||
Newbuildings | Daewoo Shipbuilding & Marine Engineering Co. Ltd. | Liquefied Natural Gas | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of vessels | vessel | 4 | ||
Bahrain LNG Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 30.00% | 30.00% | |
Advances to equity-accounted joint ventures | $ | $ 79.1 | $ 62.9 | |
Interest accrued on advances | $ | $ 0.1 | $ 0.1 | |
Bahrain LNG Joint Venture | LIBOR | |||
Schedule of Equity Method Investments [Line Items] | |||
Basis spread on variable rate (as a percent) | 1.25% | ||
Bahrain LNG Joint Venture | Daewoo Shipbuilding & Marine Engineering Co. Ltd. | Modified Vessel | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of vessels | vessel | 1 | ||
Term of contract | 20 years | ||
Bahrain LNG Joint Venture | LNG Receiving and Regasification Terminal | |||
Schedule of Equity Method Investments [Line Items] | |||
Capacity of production facility, per day (in cubic feet) | ft³ | 800,000,000 | ||
Length of charter contract | 20 years | 20 years | |
Bahrain LNG Joint Venture | LNG Receiving and Regasification Terminal | Maximum | |||
Schedule of Equity Method Investments [Line Items] | |||
Capacity of production facility, per day (in cubic feet) | ft³ | 800,000,000 | ||
Bahrain LNG Joint Venture | Nogaholding | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 30.00% | ||
Bahrain LNG Joint Venture | GIC | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 24.00% | ||
Bahrain LNG Joint Venture | Samsung | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 16.00% |
Equity-Accounted Investments 68
Equity-Accounted Investments - Yamal LNG Joint Venture - Additional Information (Details) | 1 Months Ended | 12 Months Ended | |||||
Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($)vessel | Dec. 31, 2017USD ($)lease | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 11, 2017USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||||||
Joint venture ownership percentage | 100.00% | 100.00% | 100.00% | 100.00% | |||
Return of capital from equity-accounted joint ventures | $ 92,320,000 | $ 5,500,000 | $ 23,744,000 | ||||
Yamal LNG Joint Venture | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Advances from joint venture partner | $ 195,000,000 | $ 195,000,000 | $ 195,000,000 | $ 195,000,000 | |||
Total capital returned to joint venture partners | $ 104,000,000 | ||||||
Yamal LNG Joint Venture | Newbuildings | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Secured financing | $ 1,600,000,000 | ||||||
Yamal LNG Joint Venture | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Joint venture ownership percentage | 50.00% | 50.00% | 50.00% | 50.00% | |||
Advances from joint venture partner | 146,700,000 | ||||||
Interest accrued on advances | 9,400,000 | ||||||
Return of capital from equity-accounted joint ventures | $ 52,000,000 | ||||||
Carrying value of guarantee liability | 600,000 | $ 600,000 | $ 600,000 | $ 600,000 | $ 0 | ||
Yamal LNG Joint Venture | Newbuildings | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Number of vessels | 6 | 6 | |||||
Secured financing | $ 751,000,000 | $ 751,000,000 | $ 751,000,000 | $ 751,000,000 | $ 816,000,000 | ||
Yamal LNG Joint Venture | China LNG | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Joint venture ownership percentage | 50.00% | 50.00% | 50.00% | 50.00% |
Equity-Accounted Investments 69
Equity-Accounted Investments - Pan Union Joint Venture - Additional Information (Details) $ in Millions | Oct. 13, 2017 | Jun. 30, 2014USD ($)vessel | Dec. 31, 2017USD ($)vessel | Dec. 31, 2016USD ($) |
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 100.00% | |||
Pan Union Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Difference between carrying amount and book value | $ | $ 11.4 | $ 16.8 | ||
Pan Union Joint Venture | Pan Asia | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Charter contract period | 20 years | |||
Pan Union Joint Venture | Newbuildings | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of vessels | vessel | 3 | |||
Pan Union Joint Venture | Shipbuilding supervision and crew training services | 30% Ownership | Pan Asia | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of vessels | vessel | 1 | |||
Pan Union Joint Venture | Shipbuilding supervision and crew training services | Newbuildings | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of vessels | vessel | 4 | 4 | ||
Value of service obligation | $ | $ 36.9 | $ 8.2 | 22.6 | |
Amounts due | $ | 20.3 | $ 3.5 | $ 10.9 | |
Pan Union Joint Venture | Shipbuilding supervision and crew training services | Newbuildings | 30% Ownership | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of vessels | vessel | 1 | |||
Ownership percentage | 30.00% | |||
Pan Union Joint Venture | Shipbuilding supervision and crew training services | Newbuildings | 20% Ownership | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of vessels | vessel | 2 | |||
Ownership percentage | 20.00% | |||
Pan Union Joint Venture | Shipbuilding supervision and crew training services | Newbuildings | Fair Value Asset (Liability) | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Value of service obligation | $ | 33.3 | |||
Amounts due | $ | $ 16.5 |
Equity-Accounted Investments 70
Equity-Accounted Investments - Exmar LPG Joint Venture - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)lease | Dec. 31, 2016USD ($) | Jun. 30, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 100.00% | ||
Exmar LPG Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% | ||
Parent guarantee percent | 50.00% | ||
Number of capital leases | lease | 4 | ||
Carrying value of guarantee liability | $ 1.6 | $ 1.3 | |
Advances to equity-accounted joint ventures | 52.3 | 52.3 | |
Interest accrued on advances | 0.2 | 1.1 | |
Difference between carrying amount and book value | $ 25.5 | $ 30.2 | |
Exmar LPG Joint Venture | LIBOR | |||
Schedule of Equity Method Investments [Line Items] | |||
Basis spread on variable rate (as a percent) | 0.50% | ||
Exmar LPG Joint Venture | Exmar NV | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% |
Equity-Accounted Investments 71
Equity-Accounted Investments - Teekay LNG-Marubeni Joint Venture - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Teekay LNG-Marubeni Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Parent guarantee percent | 52.00% | ||
Carrying value of guarantee liability | $ 0.5 | $ 0.1 | |
Teekay LNG-Marubeni Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Amount of debt refinanced | $ 396 | ||
Amount of new debt facility | 335 | ||
Teekay LNG | Teekay LNG-Marubeni Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Additional contributions to the joint venture | $ 57 |
Equity-Accounted Investments 72
Equity-Accounted Investments - Excalibur and Excelsior Joint Ventures - Additional Information (Details) - Excalibur and Excelsior Joint Ventures - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Equity Method Investments [Line Items] | ||
Carrying value of guarantee liability | $ 0.2 | $ 0.2 |
Difference between carrying amount and book value | $ 35.6 | $ 37.2 |
Equity-Accounted Investments 73
Equity-Accounted Investments - Angola Joint Venture - Additional Information (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($)vesselm³ | Dec. 31, 2016USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||
Percentage of ownership in joint venture | 100.00% | |
Angola Joint Venture | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of ownership in joint venture | 33.00% | |
Number of vessels | vessel | 4 | |
Volume of vessels (in cubic meter) | m³ | 160,400 | |
Carrying value of guarantee liability | $ | $ 0.7 | $ 1 |
Angola Joint Venture | NYK Energy Transport | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of ownership in joint venture | 33.00% | |
Angola Joint Venture | Mitsui & Co. Ltd | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of ownership in joint venture | 34.00% |
Equity-Accounted Investments 74
Equity-Accounted Investments - RasGas 3 Joint Venture - Additional Information (Details) | Dec. 31, 2017 |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 100.00% |
RasGas 3 Joint Venture | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 40.00% |
RasGas 3 Joint Venture | Qatar Gas Transport Company Ltd | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 60.00% |
Equity-Accounted Investments 75
Equity-Accounted Investments - Other - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 02, 2015 |
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 100.00% | ||
Investment in and advances to equity-accounted joint ventures | $ 1,094,596 | $ 1,037,726 | |
Long-term debt | 1,797,992 | 1,791,226 | |
Equity Method Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in and advances to equity-accounted joint ventures | $ 1,094,596 | 1,037,726 | |
RasGas 3 Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 40.00% | ||
RasGas 3 Joint Venture | Equity Method Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 40.00% | ||
Investment in and advances to equity-accounted joint ventures | $ 122,550 | 174,646 | |
RasGas 3 Joint Venture | Qatar Gas Transport Company Ltd | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 60.00% | ||
Excelsior Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Long-term debt | $ 42,500 | 45,000 | |
Excelsior Joint Venture | Equity Method Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in and advances to equity-accounted joint ventures | $ 51,700 | ||
Angola LNG Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 33.00% | ||
Long-term debt | $ 239,600 | 256,100 | |
Angola LNG Joint Venture | Equity Method Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 33.00% | ||
Investment in and advances to equity-accounted joint ventures | $ 74,775 | 65,644 | |
Yamal LNG Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% | ||
Yamal LNG Joint Venture | Equity Method Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% | ||
Investment in and advances to equity-accounted joint ventures | $ 193,774 | 152,702 | |
Bahrain LNG Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 30.00% | 30.00% | |
Bahrain LNG Joint Venture | Equity Method Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 30.00% | ||
Investment in and advances to equity-accounted joint ventures | $ 77,706 | 63,933 | |
Excalibur and Excelsior Joint Ventures | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% | ||
Excalibur and Excelsior Joint Ventures | Equity Method Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in and advances to equity-accounted joint ventures | $ 79,915 | $ 79,577 | |
Excalibur and Excelsior Joint Ventures | Exmar | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% |
Equity-Accounted Investments 76
Equity-Accounted Investments - Financial Information of Joint Ventures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 100.00% | ||
Vessels and equipment, including vessels related to capital leases and advances on newbuilding contracts | $ 2,905,712 | $ 2,215,983 | |
Net investments in direct financing leases – non-current | 495,990 | 643,008 | |
Other assets – non-current | 8,043 | 5,529 | |
Other liabilities – non-current | 57,594 | 60,573 | |
Voyage revenues | 432,676 | 396,444 | $ 397,991 |
Income from vessel operations | 148,649 | 153,181 | 181,372 |
Realized and unrealized loss on non-designated derivative instruments | (5,309) | (7,161) | (20,022) |
Net income | 48,911 | 157,965 | 217,510 |
Equity Method Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Cash and restricted cash – current | 281,468 | 388,007 | |
Other assets – current | 97,832 | 111,847 | |
Vessels and equipment, including vessels related to capital leases and advances on newbuilding contracts | 3,284,441 | 2,837,870 | |
Net investments in direct financing leases – non-current | 1,961,299 | 1,776,954 | |
Other assets – non-current | 68,728 | 37,132 | |
Current portion of long-term debt and obligations related to capital leases | 168,715 | 209,814 | |
Other liabilities – current | 119,627 | 102,385 | |
Long-term debt and obligations related to capital leases | 3,386,800 | 3,233,425 | |
Other liabilities – non-current | 145,870 | 157,025 | |
Voyage revenues | 477,495 | 549,646 | 596,093 |
Income from vessel operations | 178,763 | 268,049 | 302,731 |
Realized and unrealized loss on non-designated derivative instruments | (2,067) | (12,277) | (25,108) |
Net income | $ 54,418 | $ 167,052 | $ 203,280 |
Intangible Assets and Goodwil77
Intangible Assets and Goodwill - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Weighted-average amortization period of intangible assets consisted of time-charter contracts | 20 years 8 months 12 days | 20 years 8 months 12 days | |
Amortization of intangible assets | $ 8,900,000 | $ 8,900,000 | $ 8,900,000 |
Amortization expense of intangible assets, 2018 | 8,900,000 | ||
Amortization expense of intangible assets, 2019 | 8,900,000 | ||
Amortization expense of intangible assets, 2020 | 8,900,000 | ||
Amortization expense of intangible assets, 2021 | 8,900,000 | ||
Amortization expense of intangible assets, 2022 | 8,900,000 | ||
Carrying amount of goodwill | 35,631,000 | 35,631,000 | |
Goodwill impairment | $ 0 | $ 0 |
Intangible Assets and Goodwil78
Intangible Assets and Goodwill - Carrying Amount of Intangible Assets for Partnership's Reportable Segments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Net carrying amount | $ 61,078 | $ 69,934 |
Liquefied Gas Segment | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 179,813 | 179,813 |
Accumulated amortization | (118,735) | (109,879) |
Net carrying amount | $ 61,078 | $ 69,934 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Interest including interest rate swaps | $ 21,164 | $ 19,957 |
Voyage and vessel expenses | 8,184 | 9,311 |
Payroll and benefits | 3,900 | 3,355 |
Other general expenses | 5,674 | 3,069 |
Income and other tax payable | 1,335 | 189 |
Distributions payable on preferred units | 5,500 | 0 |
Total | $ 45,757 | $ 35,881 |
Long-Term Debt - Components of
Long-Term Debt - Components of Long-Term Debt (Details) $ in Thousands, € in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) |
Debt Instrument [Line Items] | ||||
Total principal | $ 1,810,374 | $ 1,804,483 | ||
Unamortized discount and debt issuance costs | (12,382) | (13,257) | ||
Total debt | 1,797,992 | 1,791,226 | ||
Less current portion | (552,404) | (188,511) | ||
Long-term debt | 1,245,588 | 1,602,715 | ||
U.S. Dollar-denominated Revolving Credit Facilities due from 2018 to 2022 | ||||
Debt Instrument [Line Items] | ||||
Total principal | 254,275 | 208,222 | ||
U.S. Dollar-denominated Term Loans due from 2018 to 2031 | ||||
Debt Instrument [Line Items] | ||||
Total principal | 935,286 | 1,005,199 | ||
Norwegian Kroner-denominated Bonds due from 2018 to 2021 | ||||
Debt Instrument [Line Items] | ||||
Total principal | 377,856 | 371,329 | ||
Euro-denominated Term Loans due from 2018 to 2023 | ||||
Debt Instrument [Line Items] | ||||
Total principal | 232,957 | € 194.1 | 219,733 | € 208.9 |
Other U.S. Dollar-denominated Loans | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 10,000 | $ 0 |
Long-Term Debt - Revolving Cred
Long-Term Debt - Revolving Credit Facilities - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2017USD ($)vesselcredit_facility | Feb. 28, 2018USD ($) | Feb. 08, 2018USD ($) | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 1,810,374,000 | $ 1,804,483,000 | ||
Reduction in 2018 | 555,400,000 | |||
Reduction in 2019 | 83,900,000 | |||
Reduction in 2020 | 359,500,000 | |||
Reduction in 2021 | 346,700,000 | |||
Reduction in 2022 | $ 144,800,000 | |||
Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate (as a percent) | 0.30% | |||
Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate (as a percent) | 3.25% | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Reduction in 2018 | $ 268,100,000 | |||
Reduction in 2019 | 22,400,000 | |||
Reduction in 2020 | 23,400,000 | |||
Reduction in 2021 | 24,400,000 | |||
Reduction in 2022 | $ 105,400,000 | |||
Revolving Credit Facility Maturing 2018 [Member] | Revolving Credit Facility | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Borrowings provided under revolving credit facilities | $ 197,000,000 | |||
Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Months required to repay all borrowings | 12 months | |||
Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Borrowings provided under revolving credit facilities | $ 443,700,000 | 451,900,000 | ||
Undrawn amount of revolving credit facilities | $ 189,400,000 | 243,700,000 | ||
Line of Credit | Revolving Credit Facility | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Borrowings provided under revolving credit facilities | $ 197,000,000 | |||
Line of Credit | Revolving Credit Facility | LIBOR | Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate (as a percent) | 0.55% | |||
Line of Credit | Revolving Credit Facility | LIBOR | Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate (as a percent) | 1.25% | |||
Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Number of credit facilities | credit_facility | 1 | |||
Aggregate principal amount | $ 377,856,000 | $ 371,329,000 | ||
Collateralized Mortgage Backed Securities | ||||
Debt Instrument [Line Items] | ||||
Number of credit facilities | credit_facility | 2 | |||
Number of vessels | vessel | 4 | |||
revolving credit facility maturing in 2022 [Domain] | Revolving Credit Facility | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Borrowings provided under revolving credit facilities | $ 197,000,000 | |||
Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Number of credit facilities | credit_facility | 3 |
Long-Term Debt - U.S. Dollar-de
Long-Term Debt - U.S. Dollar-denominated Term Loans - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)vesselterm_loan | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||
Number of term loans | term_loan | 7 | |
Aggregate principal amount | $ 1,810,374 | $ 1,804,483 |
Teekay Nakilat Joint Venture | ||
Debt Instrument [Line Items] | ||
Partnership interest owned | 70.00% | |
Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 0.30% | |
Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 3.25% | |
Long-term Debt | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 935,286 | $ 1,005,199 |
Number of vessels | vessel | 16 | |
Long-term Debt | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 0.30% | |
Long-term Debt | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 3.25% |
Long-Term Debt - NOK Senior Uns
Long-Term Debt - NOK Senior Unsecured Bonds - Additional Information (Details) $ in Thousands, kr in Billions | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2017NOK (kr) | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | |||
Carrying amount of bonds | $ 1,810,374 | $ 1,804,483 | |
Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 0.30% | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 3.25% | ||
Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Senior unsecured bonds issued | kr | kr 3.1 | ||
Carrying amount of bonds | $ 377,856 | $ 371,329 | |
Unsecured Debt | Foreign Exchange Contract | |||
Debt Instrument [Line Items] | |||
Transfer of principal amount | $ 430,500 | ||
Unsecured Debt | Minimum | Foreign Exchange Contract | |||
Debt Instrument [Line Items] | |||
Fixed interest rate | 5.92% | 5.92% | |
Unsecured Debt | Maximum | Foreign Exchange Contract | |||
Debt Instrument [Line Items] | |||
Fixed interest rate | 7.72% | 7.72% | |
Unsecured Debt | NIBOR | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 3.70% | ||
Unsecured Debt | NIBOR | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 6.00% |
Long-Term Debt - Euro-denominat
Long-Term Debt - Euro-denominated term loans- Additional Information (Details) $ in Thousands, € in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($)vesselsubsidiarycredit_facilityterm_loan | Dec. 31, 2017EUR (€)credit_facilityterm_loan | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | |
Debt Instrument [Line Items] | ||||
Number of term loans | term_loan | 7 | 7 | ||
Aggregate principal amount | $ | $ 1,810,374 | $ 1,804,483 | ||
Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate (as a percent) | 0.30% | |||
Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate (as a percent) | 3.25% | |||
Euro-denominated Term Loans | ||||
Debt Instrument [Line Items] | ||||
Number of term loans | credit_facility | 2 | 2 | ||
Aggregate principal amount | $ 232,957 | € 194.1 | $ 219,733 | € 208.9 |
Number of vessels | vessel | 2 | |||
Number of subsidiaries | subsidiary | 1 | |||
Euro-denominated Term Loans | EURIBOR | Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate (as a percent) | 0.60% | |||
Euro-denominated Term Loans | EURIBOR | Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate (as a percent) | 2.25% |
Long-Term Debt - Other - Additi
Long-Term Debt - Other - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)credit_facilityterm_loan | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | |||
Weighted-average interest rate for the Partnership's long-term debt outstanding | 3.34% | 3.03% | |
Foreign exchange (losses) gains | $ (26,933) | $ 5,335 | $ 13,943 |
Aggregate annual long-term debt principal repayments, 2018 | 555,400 | ||
Aggregate annual long-term debt principal repayments, 2019 | 83,900 | ||
Aggregate annual long-term debt principal repayments, 2020 | 359,500 | ||
Aggregate annual long-term debt principal repayments, 2021 | 346,700 | ||
Aggregate annual long-term debt principal repayments, 2022 | 144,800 | ||
Aggregate annual long-term debt principal repayments, thereafter | $ 320,100 | ||
Number of term loans | term_loan | 7 | ||
Long-term debt | $ 1,797,992 | 1,791,226 | |
Restricted cash on deposits relating to certain term loans, collateral cross currency swaps, leasing arrangements, dry-docking expenditures and emergency repairs | $ 95,200 | $ 117,000 | |
Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 0.30% | ||
Minimum | Vessel | |||
Debt Instrument [Line Items] | |||
Percentage of vessel value to outstanding loan principal balance | 126.00% | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 3.25% | ||
Maximum | Vessel | |||
Debt Instrument [Line Items] | |||
Percentage of vessel value to outstanding loan principal balance | 243.00% | ||
Long-term Debt | LIBOR | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 0.30% | ||
Long-term Debt | LIBOR | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 3.25% | ||
Require Minimum Vessel Value to Outstanding Loan Principal Balance Ratios | |||
Debt Instrument [Line Items] | |||
Number of term loans | credit_facility | 2 | ||
Long-term debt | $ 90,600 | ||
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% | ||
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% |
Income Tax - Components of Prov
Income Tax - Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Current (note 13d) | $ (3,557) | $ (962) | $ (2,646) |
Deferred | 2,733 | (11) | (76) |
Income tax expense | $ (824) | $ (973) | $ (2,722) |
Income Tax - Reconciliations of
Income Tax - Reconciliations of Tax Charge (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Net income before income tax expense | $ 49,735 | $ 158,938 | $ 220,232 |
Net income not subject to taxes | (94,106) | (138,542) | (173,298) |
Net (loss) income subject to taxes | (44,371) | 20,396 | 46,934 |
At applicable statutory tax rates | |||
Amount computed using the standard rate of corporate tax | 13,874 | (3,338) | (12,007) |
Adjustments to valuation allowance and uncertain tax positions | 324 | 11,802 | 5,362 |
Permanent and currency differences | (12,507) | (9,125) | 4,204 |
Change in tax rates | (2,515) | (312) | (281) |
Income tax expense | $ (824) | $ (973) | $ (2,722) |
Income Tax - Components of Part
Income Tax - Components of Partnership's Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Abstract] | ||
Derivative instruments | $ 3,823 | $ 4,523 |
Taxation loss carryforwards and disallowed finance costs | 35,326 | 34,927 |
Vessels and equipment | 3,936 | 3,554 |
Capitalized interest | (1,927) | (2,027) |
Gross deferred tax assets | 41,158 | 40,977 |
Valuation allowance | (38,594) | (41,064) |
Net deferred tax assets included in other assets or accrued liabilities | $ 2,564 | |
Net deferred tax (liabilities) included in other assets or accrued liabilities | $ (87) |
Income Tax - Additional Informa
Income Tax - Additional Information (Details) € in Millions, $ in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) |
United Kingdom | ||||
Operating Loss Carryforwards [Line Items] | ||||
Taxation loss carryforwards | $ 7.9 | $ 12.7 | ||
Spain | ||||
Operating Loss Carryforwards [Line Items] | ||||
Taxation loss carryforwards | 132.5 | € 110.3 | 116.1 | € 110.3 |
Disallowed costs carried forward | 30.2 | 25.2 | 36.4 | 34.6 |
Luxembourg | ||||
Operating Loss Carryforwards [Line Items] | ||||
Taxation loss carryforwards | $ 109.9 | € 91.5 | $ 98.1 | € 93.3 |
Related Party Transactions - Ar
Related Party Transactions - Arctic Spirit and Polar Spirit - Additional Information (Details) - vessel | 1 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2017 | |
Newbuildings | Pan Union Joint Venture | ||
Related Party Transaction [Line Items] | ||
Number of vessels | 3 | |
Newbuildings | Pan Union Joint Venture | Shipbuilding supervision and crew training services | ||
Related Party Transaction [Line Items] | ||
Number of vessels | 4 | 4 |
Subsidiary of Common Parent | Liquefied Natural Gas | Charters-out | ||
Related Party Transaction [Line Items] | ||
Number of vessels | 2 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Voyage revenues | $ 432,676 | $ 396,444 | $ 397,991 |
Vessel operating expenses | (103,139) | (88,590) | (94,101) |
General and administrative expenses | (16,541) | (18,499) | (25,118) |
Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Voyage revenues | 36,358 | 37,336 | 35,887 |
Vessel operating expenses | (25,164) | (20,438) | (19,914) |
General and administrative expenses | (7,834) | (11,890) | (14,485) |
Affiliated Entity | Deferred and Capitalized Expenses | |||
Related Party Transaction [Line Items] | |||
General and administrative expenses | $ (859) | $ (571) | $ 0 |
Related Party Transactions - 92
Related Party Transactions - Schedule of Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
General and administrative expenses deferred and capitalized | $ 16,541 | $ 18,499 | $ 25,118 |
Bahrain LNG Joint Venture | Deferred and Capitalized Expenses | |||
Related Party Transaction [Line Items] | |||
General and administrative expenses deferred and capitalized | 1,100 | 400 | |
Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
General and administrative expenses deferred and capitalized | 7,834 | 11,890 | 14,485 |
Affiliated Entity | Deferred and Capitalized Expenses | |||
Related Party Transaction [Line Items] | |||
General and administrative expenses deferred and capitalized | $ 859 | $ 571 | $ 0 |
Affiliated Entity | Teekay Corporation | |||
Related Party Transaction [Line Items] | |||
Operating lease arrangement period, lessor | 10 years | ||
Affiliated Entity | Teekay Corporation | Maximum | |||
Related Party Transaction [Line Items] | |||
Additional time period for fixed-rate time-charters contract | 15 years |
Related Party Transactions - Sh
Related Party Transactions - Shipbuilding and Site Supervision Services Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Aggregate shipbuilding and site supervision costs | $ 444,493 | $ 357,602 | |
Affiliated Entity | Liquefied Natural Gas | Newbuildings | |||
Related Party Transaction [Line Items] | |||
Shipbuilding and site supervision costs | 13,200 | 8,500 | $ 4,300 |
Affiliated Entity | Liquefied Natural Gas | Newbuildings | Teekay Corporation Subsidiaries | |||
Related Party Transaction [Line Items] | |||
Aggregate shipbuilding and site supervision costs | $ 11,900 | $ 10,100 |
Related Party Transactions - No
Related Party Transactions - Non-interest Bearing Advances - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||
Advances to affiliates | $ 7,300 | $ 9,739 |
Advances from affiliates | 12,140 | 15,492 |
Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Advances to affiliates | 7,300 | 9,700 |
Advances from affiliates | $ 12,100 | $ 15,500 |
Derivative Instruments and He95
Derivative Instruments and Hedging Activities - Summary of Cross Currency Swap Agreements (Details) - Cross-currency swap agreements $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2017NOK (kr) | |
Derivative [Line Items] | ||
Fair Value / Carrying Amount of Asset (Liability) | $ (50,459) | |
NIBOR | 4.35% Margin | ||
Derivative [Line Items] | ||
Principal Amount | $ 150,000 | kr 900,000,000 |
Margin (as a percent) | 4.35% | 4.35% |
Fixed Rate Payable | 6.43% | 6.43% |
Fair Value / Carrying Amount of Asset (Liability) | $ (41,664) | |
Weighted- Average Remaining Term (Years) | 8 months 12 days | |
NIBOR | 3.70% Margin | ||
Derivative [Line Items] | ||
Principal Amount | $ 134,000 | kr 1,000,000,000 |
Margin (as a percent) | 3.70% | 3.70% |
Fixed Rate Payable | 5.92% | 5.92% |
Fair Value / Carrying Amount of Asset (Liability) | $ (12,553) | |
Weighted- Average Remaining Term (Years) | 2 years 4 months 24 days | |
NIBOR | 6.00% Margin | ||
Derivative [Line Items] | ||
Principal Amount | $ 146,500 | kr 1,200,000,000 |
Margin (as a percent) | 6.00% | 6.00% |
Fixed Rate Payable | 7.72% | 7.72% |
Fair Value / Carrying Amount of Asset (Liability) | $ 3,758 | |
Weighted- Average Remaining Term (Years) | 3 years 9 months 18 days |
Derivative Instruments and He96
Derivative Instruments and Hedging Activities - Interest Rate Swap Agreements (Details) $ in Thousands, € in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | |
Minimum | ||
Derivative [Line Items] | ||
Basis spread on variable rate (as a percent) | 0.30% | |
Maximum | ||
Derivative [Line Items] | ||
Basis spread on variable rate (as a percent) | 3.25% | |
U.S. Dollar-denominated interest rate swaps | LIBOR | ||
Derivative [Line Items] | ||
Principal Amount | $ 60,000 | |
Fair Value/Carrying Amount of Asset (Liability) | $ (2,314) | |
Weighted- Average Remaining Term (Years) | 1 year 1 month 6 days | |
Fixed Interest Rate (%) | 4.90% | 4.90% |
U.S. Dollar-denominated interest rate swaps | LIBOR | ||
Derivative [Line Items] | ||
Principal Amount | $ 143,750 | |
Fair Value/Carrying Amount of Asset (Liability) | $ (22,837) | |
Weighted- Average Remaining Term (Years) | 11 years | |
Fixed Interest Rate (%) | 5.20% | 5.20% |
U.S. Dollar-denominated interest rate swaps | LIBOR | ||
Derivative [Line Items] | ||
Principal Amount | $ 42,845 | |
Fair Value/Carrying Amount of Asset (Liability) | $ (720) | |
Weighted- Average Remaining Term (Years) | 3 years 7 months 6 days | |
Fixed Interest Rate (%) | 2.80% | 2.80% |
U.S. Dollar-denominated interest rate swaps | LIBOR | ||
Derivative [Line Items] | ||
Principal Amount | $ 160,000 | |
Fair Value/Carrying Amount of Asset (Liability) | $ (9,360) | |
Weighted- Average Remaining Term (Years) | 3 months 18 days | |
Fixed Interest Rate (%) | 3.50% | 3.50% |
U.S. Dollar-denominated interest rate swaps | LIBOR | ||
Derivative [Line Items] | ||
Principal Amount | $ 171,933 | |
Fair Value/Carrying Amount of Asset (Liability) | $ (9,023) | |
Weighted- Average Remaining Term (Years) | 2 years 9 months 18 days | |
Fixed Interest Rate (%) | 3.30% | 3.30% |
U.S. Dollar-denominated interest rate swaps | LIBOR | ||
Derivative [Line Items] | ||
Principal Amount | $ 99,667 | |
Fair Value/Carrying Amount of Asset (Liability) | $ 123 | |
Weighted- Average Remaining Term (Years) | 1 year | |
Fixed Interest Rate (%) | 1.70% | 1.70% |
U.S. Dollar-denominated interest rate swaps | LIBOR | ||
Derivative [Line Items] | ||
Principal Amount | $ 195,008 | |
Fair Value/Carrying Amount of Asset (Liability) | $ 260 | |
Weighted- Average Remaining Term (Years) | 9 years | |
Fixed Interest Rate (%) | 2.30% | 2.30% |
Euro-denominated interest rate swaps | ||
Derivative [Line Items] | ||
Reduced principal amount denominated interest rate swaps | $ 84,200 | € 70.1 |
Euro-denominated interest rate swaps | EURIBOR | ||
Derivative [Line Items] | ||
Principal Amount | 232,957 | |
Fair Value/Carrying Amount of Asset (Liability) | $ (29,235) | |
Weighted- Average Remaining Term (Years) | 3 years | |
Fixed Interest Rate (%) | 3.10% | 3.10% |
Interest rate swap agreements | ||
Derivative [Line Items] | ||
Interest rate swap agreements – liabilities | $ (73,106) |
Derivative Instruments and He97
Derivative Instruments and Hedging Activities - Additional Information (Details) $ in Millions | Dec. 31, 2017USD ($)agreement | Dec. 31, 2016USD ($) |
Derivative [Line Items] | ||
Restricted cash - current and - long-term | $ 95.2 | $ 117 |
Interest rate swaption agreements | ||
Derivative [Line Items] | ||
Number of interest rate derivatives held | agreement | 1 | |
Interest rate swaps and swaptions and cross currency swaps agreement | ||
Derivative [Line Items] | ||
Fair value, asset | $ 4.5 | |
Fair value, liability | 81.5 | |
Restricted cash - current and - long-term | 22.3 | 37.8 |
Toledo Spirit time-charter derivative | ||
Derivative [Line Items] | ||
Derivative fair value, net | $ 1.6 | $ 2.1 |
Derivative Instruments and He98
Derivative Instruments and Hedging Activities - Terms of Interest Rate Swaps Underlying Swaption (Details) - Interest rate swaption agreements - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 31, 2026 | Jan. 31, 2018 | |
Forecast | |||
Derivative [Line Items] | |||
Principal Amount | $ 82,500,000 | $ 160,000,000 | |
LIBOR | Call option | |||
Derivative [Line Items] | |||
Principal Amount | $ 160,000,000 | ||
Remaining Term (Years) | 8 years | ||
Fixed Interest Rate (%) | 3.10% | ||
LIBOR | Put option | |||
Derivative [Line Items] | |||
Principal Amount | $ 160,000,000 | ||
Fair Value/ Carrying Amount of Asset (Liability) | $ (2,000) | ||
Remaining Term (Years) | 8 years | ||
Fixed Interest Rate (%) | 2.00% |
Derivative Instruments and He99
Derivative Instruments and Hedging Activities - Location and Fair Value Amounts of Derivative Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Advances to affiliates | $ 7,300 | $ 9,739 |
Current portion of derivative assets | 1,078 | 531 |
Derivative assets | 6,172 | 4,692 |
Accrued liabilities | (45,757) | (35,881) |
Current portion of derivative liabilities | (79,139) | (56,800) |
Derivative liabilities | (45,797) | (128,293) |
Interest rate swap agreements | ||
Derivatives, Fair Value [Line Items] | ||
Advances to affiliates | 0 | 0 |
Current portion of derivative assets | 108 | 0 |
Derivative assets | 1,130 | 1,080 |
Accrued liabilities | (4,101) | (5,514) |
Current portion of derivative liabilities | (34,614) | (22,432) |
Derivative liabilities | (35,629) | (59,735) |
Interest rate swaption agreements | ||
Derivatives, Fair Value [Line Items] | ||
Advances to affiliates | 0 | 0 |
Current portion of derivative assets | 0 | 31 |
Derivative assets | 0 | 3,252 |
Accrued liabilities | 0 | 0 |
Current portion of derivative liabilities | (2) | (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 | 5,042 | 0 |
Accrued liabilities | (810) | (1,090) |
Current portion of derivative liabilities | (44,523) | (32,843) |
Derivative liabilities | (10,168) | (65,853) |
Toledo Spirit time-charter derivative | ||
Derivatives, Fair Value [Line Items] | ||
Advances to affiliates | 678 | 1,274 |
Current portion of derivative assets | 970 | 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 | 678 | 1,274 |
Current portion of derivative assets | 1,078 | 531 |
Derivative assets | 6,172 | 4,692 |
Accrued liabilities | (4,910) | (6,604) |
Current portion of derivative liabilities | (79,139) | (56,800) |
Derivative liabilities | $ (45,797) | $ (128,293) |
Derivative Instruments and H100
Derivative Instruments and Hedging Activities - Gain (Loss) for Derivative Instruments Not Designated or Qualifying as Hedging Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Realized gains (losses) | $ (18,757) | $ (26,594) | $ (32,397) |
Unrealized gains (losses) | 13,448 | 19,433 | 12,375 |
Unrealized gains (losses) | 10,257 | 42,009 | 26,090 |
Total | (5,309) | (7,161) | (20,022) |
Interest rate swap agreements | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Realized gains (losses) | (18,825) | (25,940) | (28,968) |
Unrealized gains (losses) | 12,393 | 15,627 | 14,768 |
Total | (6,432) | (10,313) | (14,200) |
Interest rate swaption agreements | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Realized gains (losses) | 0 | 0 | 0 |
Unrealized gains (losses) | 945 | (164) | (783) |
Total | 945 | (164) | (783) |
Interest rate swaption agreements termination | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Realized gains (losses) | (610) | 0 | 0 |
Unrealized gains (losses) | 0 | 0 | 0 |
Total | (610) | 0 | 0 |
Toledo Spirit time-charter derivative | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Realized gains (losses) | 678 | (654) | (3,429) |
Unrealized gains (losses) | 110 | 3,970 | (1,610) |
Total | 788 | 3,316 | (5,039) |
Cross-currency swap agreements | Foreign currency gain (loss) | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Realized gains (losses) | (9,344) | (9,063) | (7,640) |
Unrealized gains (losses) | 49,047 | 28,905 | (57,759) |
Total | 39,703 | 19,842 | (65,399) |
Cross-currency swap agreements termination | Foreign currency gain (loss) | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Realized gains (losses) | (25,733) | (17,711) | 0 |
Unrealized gains (losses) | 0 | 0 | 0 |
Total | (25,733) | (17,711) | 0 |
Cross-currency swap agreements | Foreign currency gain (loss) | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Realized gains (losses) | (35,077) | (26,774) | (7,640) |
Unrealized gains (losses) | 49,047 | 28,905 | (57,759) |
Total | $ 13,970 | $ 2,131 | $ (65,399) |
Derivative Instruments and H101
Derivative Instruments and Hedging Activities - Effective Portion of Gains (Losses) on Interest Rate Swap Agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | ||
Effective Portion Recognized in AOCI | $ 429 | $ 590 |
Effective Portion Reclassified from AOCI | (427) | 0 |
Ineffective Portion | (740) | 0 |
Interest Expense | ||
Derivative [Line Items] | ||
Effective Portion Recognized in AOCI | 429 | 590 |
Effective Portion Reclassified from AOCI | (427) | 0 |
Ineffective Portion | $ (740) | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Commitments to Fund Newbuilding and Other Construction Contract Costs (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Total | $ 1,890,953 |
2,018 | 1,124,953 |
2,019 | 566,800 |
2,020 | 199,200 |
Yamal LNG Joint Venture | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Total | 781,300 |
2,018 | 350,100 |
2,019 | 232,000 |
2,020 | 199,200 |
Pan Union Joint Venture | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Total | 116,629 |
2,018 | 87,102 |
2,019 | 29,527 |
2,020 | 0 |
Bahrain LNG Joint Venture | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Total | 133,936 |
2,018 | 80,733 |
2,019 | 53,203 |
2,020 | 0 |
Exmar LPG Joint Venture | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Total | 54,570 |
2,018 | 54,570 |
2,019 | 0 |
2,020 | 0 |
DSME | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Total | 486,988 |
2,018 | 486,988 |
2,019 | 0 |
2,020 | 0 |
Hyundai Samho Heavy Industries Co Ltd | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Total | 317,530 |
2,018 | 65,460 |
2,019 | 252,070 |
2,020 | $ 0 |
Commitments and Contingencie103
Commitments and Contingencies - DSME - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)vesselbuilding | Dec. 31, 2016USD ($) | |
Property, Plant and Equipment [Line Items] | ||
Payments made to commitments | $ 444,493 | $ 357,602 |
LNG Carriers | ||
Property, Plant and Equipment [Line Items] | ||
Number of carrier newbuildings | building | 4 | |
DSME | Liquefied Natural Gas | ||
Property, Plant and Equipment [Line Items] | ||
Number of vessels | vessel | 4 | |
Payments made to commitments | $ 340,200 |
Commitments and Contingencie104
Commitments and Contingencies - HHI - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)vessel | Dec. 31, 2016USD ($) | |
Property, Plant and Equipment [Line Items] | ||
Payments made to commitments | $ 444,493 | $ 357,602 |
Hyundai Samho Heavy Industries Co Ltd | Liquefied Natural Gas | ||
Property, Plant and Equipment [Line Items] | ||
Number of vessels | vessel | 2 | |
Payments made to commitments | $ 104,300 | |
Secured financing | $ 139,000 | |
Number of vessels with secured financing | vessel | 1 |
Commitments and Contingencie105
Commitments and Contingencies - Yamal LNG Joint Venture - Additional Information (Details) m³ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($)m³ | Dec. 31, 2017USD ($)vessel | Dec. 31, 2017USD ($)lease | Dec. 11, 2017USD ($) | Dec. 31, 2016USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 100.00% | 100.00% | 100.00% | 100.00% | ||
Payments made to commitments | $ 444,493 | $ 444,493 | $ 444,493 | $ 444,493 | $ 357,602 | |
Yamal LNG Joint Venture | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 50.00% | 50.00% | 50.00% | 50.00% | ||
Yamal LNG Joint Venture | Newbuildings | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of vessels | 6 | 6 | ||||
Volume of vessels (in cubic meter) | m³ | 172 | |||||
Cost of construction | $ 2,100,000 | |||||
Payments made to commitments | 240,100 | $ 240,100 | $ 240,100 | $ 240,100 | ||
Secured financing | $ 751,000 | $ 751,000 | $ 751,000 | $ 751,000 | $ 816,000 |
Commitments and Contingencie106
Commitments and Contingencies - Pan Union Joint Venture - Additional Information (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2014USD ($)vessel | Dec. 31, 2017USD ($)vessel | Dec. 31, 2016USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 100.00% | ||
Equity Method Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of vessels | 37 | ||
Equity Method Investments | Newbuildings | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of vessels | 13 | ||
Pan Union Joint Venture | Newbuildings | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of vessels | 3 | ||
Pan Union Joint Venture | Newbuildings | Shipbuilding supervision and crew training services | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of vessels | 4 | 4 | |
Secured financing | $ | $ 87 | ||
Amounts due | $ | $ 20.3 | $ 3.5 | $ 10.9 |
Pan Union Joint Venture | Equity Method Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of vessels | 1 | ||
Pan Union Joint Venture | Equity Method Investments | Newbuildings | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of vessels | 3 | ||
Pan Union Joint Venture | Minimum | Equity Method Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 20.00% | ||
Pan Union Joint Venture | Maximum | Equity Method Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 30.00% |
Commitments and Contingencie107
Commitments and Contingencies - Bahrain LNG Joint Venture - Additional Information (Details) $ in Millions | Dec. 02, 2015 | Dec. 31, 2017USD ($)vesselft³ |
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 100.00% | |
Bahrain LNG Joint Venture | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 30.00% | 30.00% |
Bahrain LNG Joint Venture | Modified Vessel | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of floating storage units | vessel | 1 | |
Bahrain LNG Joint Venture | LNG Receiving and Regasification Terminal | ||
Schedule of Equity Method Investments [Line Items] | ||
Capacity of production facility, per day (in cubic feet) | ft³ | 800,000,000 | |
Operating lease arrangement period, lessor | 20 years | 20 years |
Cost of construction | $ 960 | |
Secured financing | $ 134 |
Commitments and Contingencie108
Commitments and Contingencies - Exmar LPG Joint Venture - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($)vessel | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 100.00% |
Exmar LPG Joint Venture | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 50.00% |
Exmar LPG Joint Venture | Shipbuilding supervision and crew training services | Newbuildings | |
Schedule of Equity Method Investments [Line Items] | |
Number of vessels | 3 |
Secured financing | $ | $ 56 |
Number of vessels with secured financing | 2 |
Commitments and Contingencie109
Commitments and Contingencies - Going Concern - Additional Information (Details) $ in Thousands | Dec. 31, 2017USD ($) |
ERROR in label resolution. | |
Estimated payments during 2018 | $ 1,124,953 |
Estimated payments during 2019 | 566,800 |
Consolidated LNG carriew newbuildings | Newbuildings | |
ERROR in label resolution. | |
Estimated payments during 2018 | 552,400 |
Estimated payments during 2019 | $ 252,100 |
Commitments and Contingencie110
Commitments and Contingencies - Teekay Nakilat Joint Venture (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($)agreementvessel | Dec. 31, 2016USD ($) | |
Teekay Nakilat Corporation | ||
Capital Leased Assets [Line Items] | ||
Number of capital leases | agreement | 3 | |
Term of contract | 30 years | |
Number of vessels | vessel | 3 | |
Carrying value of guarantee liability | $ 12.7 | $ 13.3 |
Teekay Nakilat Corporation | Security Deposit | ||
Capital Leased Assets [Line Items] | ||
Security deposit against future claims | $ 7 | $ 6.8 |
Teekay Nakilat Joint Venture | ||
Capital Leased Assets [Line Items] | ||
Partnership interest owned | 70.00% | |
Teekay Nakilat Joint Venture | Foreign Tax Authority | ||
Capital Leased Assets [Line Items] | ||
Present value of the lease rental increase claim | $ 44 |
Commitments and Contingencie111
Commitments and Contingencies - Teekay Tangguh Joint Venture - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Teekay Tangguh Joint Venture | Settlement Proposal with HMRC Related to Deductibility of Certain Related Party Transactions in 2010 | |
Loss Contingencies [Line Items] | |
Loss Contingency, Loss in Period | $ 1.6 |
Teekay Tangguh Joint Venture | |
Loss Contingencies [Line Items] | |
Partnership interest owned | 69.00% |
Teekay Tangguh Joint Venture | Settlement Proposal with HMRC Related to Deductibility of Certain Related Party Transactions in 2010 | |
Loss Contingencies [Line Items] | |
Loss Contingency, Loss in Period | $ 1.1 |
Commitments and Contingencie112
Commitments and Contingencies - Teekay LNG-Marubeni Joint Venture (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2016USD ($) | May 31, 2016lease | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Loss Contingencies [Line Items] | |||||
Equity income | $ (9,789) | $ (62,307) | $ (84,171) | ||
Settled Litigation | |||||
Loss Contingencies [Line Items] | |||||
Equity income | $ 20,300 | ||||
Teekay LNG-Marubeni Joint Venture | Settled Litigation | |||||
Loss Contingencies [Line Items] | |||||
Number of vessels | lease | 1 | ||||
Litigation settlement | $ 39,000 |
Supplemental Cash Flow Infor113
Supplemental Cash Flow Information - Changes in Operating Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |||
Accounts receivable | $ 1,620 | $ 5,494 | $ (5,140) |
Prepaid expenses | (2,815) | 745 | (494) |
Accounts payable | (2,053) | 2,791 | 2,127 |
Accrued liabilities | 2,449 | (1,572) | (1,581) |
Unearned revenue and long-term unearned revenue | (1,456) | (3,218) | (562) |
Restricted cash | 4,249 | (10,808) | (2,785) |
Advances to and from affiliates | (913) | (9,699) | (23,714) |
Other operating assets and liabilities | 772 | (4,402) | (2,038) |
Total | $ 1,853 | $ (20,669) | $ (34,187) |
Supplemental Cash Flow Infor114
Supplemental Cash Flow Information - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule Of Supplemental Cash Flow [Line Items] | |||
Cash interest paid on long-term debt, advances from affiliates and capital lease obligations | $ 122.7 | $ 100.9 | $ 94.5 |
Income taxes paid | $ 2.9 | $ 4.9 | $ 7.8 |
Skaugen Gulf Petchem Carriers B.S.C | |||
Schedule Of Supplemental Cash Flow [Line Items] | |||
Ownership interest acquired (as a percent) | 100.00% | ||
Purchase price of ownership interest acquired | $ 13.2 | ||
Skaugen Gulf Petchem Carriers B.S.C | Skaugen | |||
Schedule Of Supplemental Cash Flow [Line Items] | |||
Ownership interest acquired (as a percent) | 35.00% | ||
Noncash portion of the consideration paid | $ 4.6 | ||
Skaugen Gulf Petchem Carriers B.S.C | The Oil & Gas Holding Company B.S.C. | |||
Schedule Of Supplemental Cash Flow [Line Items] | |||
Ownership interest acquired (as a percent) | 35.00% | ||
Skaugen Gulf Petchem Carriers B.S.C | Suffun Bahrain W.L.L. | |||
Schedule Of Supplemental Cash Flow [Line Items] | |||
Ownership interest acquired (as a percent) | 30.00% |
Total Capital and Net Income115
Total Capital and Net Income Per Common Unit - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Capital Unit [Line Items] | ||||
Days after year-end where limited partner's have right to receive cash distribution | 45 days | |||
Minimum percentage of holding by unitholders to remove general partner | 66.67% | |||
Distributions payable | $ 62,150,000 | $ 45,467,000 | $ 255,519,000 | |
Common Units | ||||
Capital Unit [Line Items] | ||||
Cash distributions (USD per unit) | $ 0.4625 | $ 0.4625 | $ 0.4625 | |
Teekay Corporation | ||||
Capital Unit [Line Items] | ||||
General partner interest percentage | 2.00% | 2.00% | ||
Public | ||||
Capital Unit [Line Items] | ||||
General partner's proportionate contribution | 68.30% | |||
Limited Partners | Common Units | ||||
Capital Unit [Line Items] | ||||
Distributions payable | $ 44,584,000 | $ 44,557,000 | $ 220,772,000 | |
Limited Partners | Preferred Units | ||||
Capital Unit [Line Items] | ||||
Distributions payable | 16,657,000 | |||
Limited Partners | Preferred Units | Series A Preferred Units | ||||
Capital Unit [Line Items] | ||||
Distributions payable | 11,300,000 | 2,700,000 | 0 | |
Limited Partners | Preferred Units | Series B Preferred Units | ||||
Capital Unit [Line Items] | ||||
Distributions payable | $ 2,700,000 | $ 0 | $ 0 |
Total Capital and Net Income116
Total Capital and Net Income Per Common Unit - Incentive Distributions (Details) | 12 Months Ended |
Dec. 31, 2017$ / shares | |
Minimum quarterly distribution of $0.4125 | Minimum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Incentive distribution, distribution (USD per unit) | $ 0.4125 |
Up to $0.4625 | Maximum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Incentive distribution, distribution (USD per unit) | 0.4625 |
Above $0.4625 up to $0.5375 | Minimum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Incentive distribution, distribution (USD per unit) | 0.4625 |
Above $0.4625 up to $0.5375 | Maximum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Incentive distribution, distribution (USD per unit) | 0.5375 |
Above $0.5375 up to $0.6500 | Minimum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Incentive distribution, distribution (USD per unit) | 0.5375 |
Above $0.5375 up to $0.6500 | Maximum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Incentive distribution, distribution (USD per unit) | 0.6500 |
Above $0.6500 | Minimum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Incentive distribution, distribution (USD per unit) | $ 0.6500 |
Unitholders | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Minimum quarterly distribution of $0.4125 | 98.00% |
Up to $0.4625 | 98.00% |
Above $0.4625 up to $0.5375 | 85.00% |
Above $0.5375 up to $0.6500 | 75.00% |
$0.6500 | 50.00% |
General Partner | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Minimum quarterly distribution of $0.4125 | 2.00% |
Up to $0.4625 | 2.00% |
Above $0.4625 up to $0.5375 | 15.00% |
Above $0.5375 up to $0.6500 | 25.00% |
$0.6500 | 50.00% |
Total Capital and Net Income117
Total Capital and Net Income Per Common Unit - Net Income Per Common Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity [Abstract] | |||
Limited partners' interest in net income for basic net income per common unit | $ 19,586 | $ 134,977 | $ 174,607 |
Weighted average number of common units | 79,617,778 | 79,568,352 | 78,896,767 |
Dilutive effect of unit based compensation | 173,263 | 103,506 | 64,335 |
Common units and common unit equivalents | 79,791,041 | 79,671,858 | 78,961,102 |
Limited partner's interest in net income per common unit: | |||
basic (USD per unit) | $ 0.25 | $ 1.70 | $ 2.21 |
diluted (USD per unit) | $ 0.25 | $ 1.69 | $ 2.21 |
Total Capital and Net Income118
Total Capital and Net Income Per Common Unit - Issuances of Common Units (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2017 | Oct. 31, 2016 | Dec. 31, 2015 | |
Common | |||
Capital Unit [Line Items] | |||
Units Issued | 1,173,428 | ||
Gross Proceeds | $ 36,274 | ||
Net Proceeds | $ 35,374 | ||
Teekay Corporation's Ownership After the Offering (as a percent) | 33.02% | ||
Preferred | |||
Capital Unit [Line Items] | |||
Units Issued | 6,800,000 | 5,000,000 | |
Offering Price (USD per unit) | $ 25 | $ 25 | |
Gross Proceeds | $ 170,000 | $ 125,000 | |
Net Proceeds | $ 164,411 | $ 120,707 | |
Teekay Corporation's Ownership After the Offering (as a percent) | 33.02% | 33.02% |
Total Capital and Net Income119
Total Capital and Net Income Per Common Unit - Issuances of Common Units (Footnotes) (Details) - USD ($) | Oct. 23, 2017 | Oct. 05, 2016 | Jan. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2017 | May 31, 2013 |
Capital Unit [Line Items] | ||||||
Issuance of new common units, maximum aggregate amount | $ 100,000,000 | |||||
Series A Preferred Units | ||||||
Capital Unit [Line Items] | ||||||
Dividend rate, percentage | 9.00% | |||||
Redemption price (USD per unit) | $ 25 | |||||
Series B Preferred Units | ||||||
Capital Unit [Line Items] | ||||||
Dividend rate, percentage | 8.50% | |||||
Redemption price (USD per unit) | $ 25 | |||||
Liquidation preference (USD per unit) | $ 25 | |||||
Series B Preferred Units | LIBOR | ||||||
Capital Unit [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 6.241% | |||||
Continuous Offering Program | ||||||
Capital Unit [Line Items] | ||||||
Units issued | 160,000 | |||||
Net proceeds | $ 6,800,000 | |||||
Teekay Corporation | ||||||
Capital Unit [Line Items] | ||||||
General partner interest percentage | 2.00% | 2.00% |
Unit-Based Compensation (Detail
Unit-Based Compensation (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restricted Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted unit-based compensation granted to Partnership's employee (in units) | 60,809 | 132,582 | 32,054 | |||
Fair values of units granted | $ 1 | $ 1.5 | $ 1.1 | |||
Restricted units, vesting period | 3 years | |||||
Restricted units expense | $ 1 | $ 1.3 | $ 1.2 | |||
Non-management Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common units granted | 17,345 | 32,723 | 10,447 | |||
Aggregate value of units issued | $ 0.3 |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 0 | $ 0 | $ 4,001 |
Restructuring Related to Alexander Spirit | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 4,000 |
Write-Down and Loss on Sale 122
Write-Down and Loss on Sale of Vessels (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Aug. 31, 2017 | Jun. 30, 2017 | May 17, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||||||
Write-down and loss on sales of vessels | $ 50,600 | $ 38,976 | $ 0 | |||
Proceeds from sale of vessels | 20,580 | 94,311 | $ 0 | |||
Centrofin | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Write-down and loss on sales of vessels | 27,400 | |||||
Proceeds from sale of vessels | $ 94,300 | |||||
Asian Spirit | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Write-down and loss on sales of vessels | 11,500 | |||||
Proceeds from sale of vessels | $ 20,600 | |||||
European Spirit | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Write-down and loss on sales of vessels | 12,600 | |||||
Extension option period | 1 year | |||||
African Spirit | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Write-down and loss on sales of vessels | 12,500 | |||||
Extension option period | 1 year | |||||
Teide Spirit and Toledo Spirit | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Write-down and loss on sales of vessels | 25,500 | |||||
Cancellation option period | 13 years | |||||
Teide Spirit and Toledo Spirit | Suezmax Tankers | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Estimated fair values of vessels | $ 52,300 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Mar. 05, 2018 | Feb. 09, 2018 | Feb. 08, 2018 | Jan. 31, 2018 | Jan. 30, 2018 | Jan. 12, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Subsequent Event [Line Items] | |||||||||
Ownership percentage | 100.00% | ||||||||
Proceeds from sale of vessels | $ 20,580,000 | $ 94,311,000 | $ 0 | ||||||
LNG Carriers | |||||||||
Subsequent Event [Line Items] | |||||||||
Term of contract | 10 years | ||||||||
Line of Credit | Revolving Credit Facility | |||||||||
Subsequent Event [Line Items] | |||||||||
Long-term debt facility | $ 443,700,000 | $ 451,900,000 | |||||||
Yamal LNG Joint Venture | |||||||||
Subsequent Event [Line Items] | |||||||||
Ownership percentage | 50.00% | ||||||||
Exmar LPG Joint Venture | |||||||||
Subsequent Event [Line Items] | |||||||||
Ownership percentage | 50.00% | ||||||||
Subsequent Event | LNG Carriers | |||||||||
Subsequent Event [Line Items] | |||||||||
Term of contract | 10 years | ||||||||
Subsequent Event | Line of Credit | Revolving Credit Facility | |||||||||
Subsequent Event [Line Items] | |||||||||
Long-term debt facility | $ 197,000,000 | ||||||||
Subsequent Event | Teide Spirit | CEPSA | |||||||||
Subsequent Event [Line Items] | |||||||||
Seafarer severance payments | $ 1,400,000 | ||||||||
Subsequent Event | Magdala | |||||||||
Subsequent Event [Line Items] | |||||||||
Charter contract period | 8 years | ||||||||
Subsequent Event | Yamal LNG Joint Venture | |||||||||
Subsequent Event [Line Items] | |||||||||
Ownership percentage | 50.00% | ||||||||
Subsequent Event | Yamal LNG Joint Venture | Eduard Toll | |||||||||
Subsequent Event [Line Items] | |||||||||
Charter contract period | 28 years | ||||||||
Subsequent Event | Exmar LPG Joint Venture | Liquefied Petroleum Gas Multi Gas [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Term of contract | 15 years | ||||||||
Subsequent Event | Exmar LPG Joint Venture | Courcheville | |||||||||
Subsequent Event [Line Items] | |||||||||
Proceeds from sale of vessels | $ 4,400,000 | ||||||||
Subsequent Event | Pan Union Joint Venture | |||||||||
Subsequent Event [Line Items] | |||||||||
Ownership percentage | 30.00% | ||||||||
Subsequent Event | Pan Union Joint Venture | Pan Americas | |||||||||
Subsequent Event [Line Items] | |||||||||
Charter contract period | 20 years | ||||||||
Subsequent Event | Excelsior Joint Venture | |||||||||
Subsequent Event [Line Items] | |||||||||
Ownership percentage | 50.00% | ||||||||
Net proceeds from sale | $ 44,000,000 | ||||||||
Subsequent Event | Exmar LPG BVBA | |||||||||
Subsequent Event [Line Items] | |||||||||
Ownership percentage | 50.00% |