Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q2 |
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 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Income (Loss) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Voyage revenues (notes 5b and 9a) | $ 122,315,000 | $ 100,904,000 | $ 237,621,000 | $ 202,084,000 |
Voyage expenses | (7,951,000) | (996,000) | (13,752,000) | (2,433,000) |
Vessel operating expenses (note 9a) | (33,969,000) | (26,001,000) | (62,436,000) | (49,389,000) |
Depreciation and amortization | (29,794,000) | (26,794,000) | (59,061,000) | (52,914,000) |
General and administrative expenses (notes 9a and 13) | (7,096,000) | (4,642,000) | (13,667,000) | (8,799,000) |
Write-down of vessels (notes 14a, b, d and e) | (33,000,000) | (12,600,000) | (51,662,000) | (12,600,000) |
Restructuring charges (note 14c) | 0 | 0 | (1,396,000) | 0 |
Income (loss) from vessel operations | 10,505,000 | 29,871,000 | 35,647,000 | 75,949,000 |
Equity income (loss) (note 6c) | 11,194,000 | (507,000) | 37,918,000 | 5,380,000 |
Interest expense (notes 7 and 10) | (28,171,000) | (20,525,000) | (52,877,000) | (37,513,000) |
Interest income | 902,000 | 579,000 | 1,816,000 | 1,433,000 |
Realized and unrealized gain (loss) on non-designated derivative instruments (note 10) | 4,302,000 | (7,384,000) | 12,303,000 | (6,197,000) |
Foreign currency exchange gain (loss) (notes 7 and 10) | 8,443,000 | (15,825,000) | 7,170,000 | (19,393,000) |
Other income (expense) (note 11c) | 350,000 | 390,000 | (52,232,000) | 781,000 |
Net income (loss) before income tax expense | 7,525,000 | (13,401,000) | (10,255,000) | 20,440,000 |
Income tax expense (note 8) | (843,000) | (236,000) | (1,622,000) | (393,000) |
Net income (loss) | 6,682,000 | (13,637,000) | (11,877,000) | 20,047,000 |
Non-controlling interest in net income (loss) | 3,948,000 | 2,436,000 | (7,717,000) | 7,063,000 |
Preferred unitholders' interest in net income (loss) | 6,426,000 | 2,813,000 | 12,851,000 | 5,625,000 |
General Partner’s interest in net income (loss) | (68,000) | (378,000) | (340,000) | 147,000 |
Limited partners’ interest in net income (loss) | $ (3,624,000) | $ (18,508,000) | $ (16,671,000) | $ 7,212,000 |
Limited partners’ interest in net income (loss) | ||||
• Basic (usd per unit) | $ (0.05) | $ (0.23) | $ (0.21) | $ 0.09 |
• Diluted (usd per unit) | $ (0.05) | $ (0.23) | $ (0.21) | $ 0.09 |
• Diluted | ||||
• Basic (units) | 79,687,499 | 79,626,819 | 79,667,384 | 79,608,587 |
• Diluted (units) | 79,687,499 | 79,626,819 | 79,667,384 | 79,741,256 |
Cash distributions declared per common unit (usd per unit) | $ 0.14 | $ 0.14 | $ 0.28 | $ 0.28 |
Unaudited Consolidated Stateme3
Unaudited Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net income (loss) | $ 6,682 | $ (13,637) | $ (11,877) | $ 20,047 |
Other comprehensive income before reclassifications | ||||
Unrealized gain (loss) on qualifying cash flow hedging instruments, net of tax (note 10) | 6,890 | (218) | 9,189 | (1,014) |
To interest expense: | ||||
Other comprehensive income | 6,362 | 377 | 8,820 | 278 |
Comprehensive income (loss) | 13,044 | (13,260) | (3,057) | 20,325 |
Non-controlling interest in comprehensive income (loss) | 4,408 | 2,115 | (6,190) | 6,732 |
Preferred unitholders' interest in comprehensive income (loss) | 6,426 | 2,813 | 12,851 | 5,625 |
General and limited partners' interest in comprehensive income (loss) | 2,210 | (18,188) | (9,718) | 7,968 |
Equity Income [Member] | ||||
To equity income: | ||||
Realized (gain) loss on qualifying cash flow hedging instruments | (526) | 595 | (617) | 1,292 |
Interest expense | ||||
To interest expense: | ||||
Realized (gain) loss on qualifying cash flow hedging instruments (note 10) | $ (2) | $ 0 | $ 248 |
Unaudited Consolidated Balance
Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Derivative Instruments and Hedges, Liabilities, Noncurrent | $ 37,059 | $ 45,797 |
Current | ||
Cash and cash equivalents | 177,071 | 244,241 |
Restricted cash – current (notes 7 and 10) | 53,599 | 22,326 |
Accounts receivable, including non-trade of $14,972 (2017 – $13,203) | 29,679 | 24,054 |
Prepaid expenses | 4,800 | 6,539 |
Vessels held for sale (notes 14a and 14b) | 29,911 | 33,671 |
Current portion of derivative assets (note 10) | 3,054 | 1,078 |
Current portion of net investments in direct financing leases (note 5b) | 10,453 | 9,884 |
Advances to affiliates (notes 9b and 10) | 8,538 | 7,300 |
Other current assets (note 2) | 2,035 | 0 |
Total current assets | 319,140 | 349,093 |
Restricted cash – long-term (note 7) | 29,823 | 72,868 |
Vessels and equipment | ||
At cost, less accumulated depreciation of $673,065 (2017 – $681,991) | 1,349,449 | 1,416,381 |
Vessels related to capital leases, at cost, less accumulated depreciation of $43,659 (2017 – $25,883) (note 5a) | 1,406,462 | 1,044,838 |
Advances on newbuilding contracts (note 9d) | 349,169 | 444,493 |
Total vessels and equipment | 3,105,080 | 2,905,712 |
Investments in and advances to equity-accounted joint ventures (note 6) | 1,100,674 | 1,094,596 |
Net investments in direct financing leases (note 5b) | 480,294 | 486,106 |
Derivative Instruments and Hedges, Noncurrent | 12,878 | 6,172 |
Intangible assets – net | 56,650 | 61,078 |
Goodwill – liquefied gas segment | 35,631 | 35,631 |
Other assets (note 5b) | 8,055 | 8,043 |
Total assets | 5,148,225 | 5,019,299 |
Current | ||
Accounts payable | 2,973 | 3,509 |
Accrued liabilities (notes 10, 11c and 14c) | 123,713 | 45,757 |
Unearned revenue (note 5b) | 25,227 | 25,873 |
Current portion of long-term debt (note 7) | 372,378 | 552,404 |
Current obligations related to capital leases (note 5a) | 83,374 | 106,946 |
In-process contracts | 3,445 | 7,946 |
Current portion of derivative liabilities (note 10) | 64,329 | 79,139 |
Advances from affiliates (note 9b) | 18,959 | 12,140 |
Total current liabilities | 694,398 | 833,714 |
Long-term debt (note 7) | 1,355,377 | 1,245,588 |
Long-term obligations related to capital leases (note 5a) | 1,123,419 | 904,603 |
Other long-term liabilities (note 5a) | 42,369 | 58,174 |
Total liabilities | 3,252,622 | 3,087,876 |
Commitments and contingencies (notes 5, 7, 10 and 11) | ||
Equity | ||
Limited Partners - preferred units (11.8 million units issued and outstanding at June 30, 2018 and December 31, 2017) | 1,502,492 | 1,539,248 |
Limited Partners - preferred units (11.8 million units issued and outstanding at June 30, 2018 and December 31, 2017) | 285,159 | 285,159 |
General Partner | 49,403 | 50,152 |
Accumulated other comprehensive income | 11,772 | 4,479 |
Partners' equity | 1,848,826 | 1,879,038 |
Non-controlling interest | 46,777 | 52,385 |
Total equity | 1,895,603 | 1,931,423 |
Total liabilities and total equity | $ 5,148,225 | $ 5,019,299 |
Unaudited Consolidated Balance5
Unaudited Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands, shares in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Non-trade accounts receivable | $ 14,972 | $ 13,203 |
Accumulated depreciation on vessel and equipment | 673,065 | 681,991 |
Accumulated depreciation on vessels under capital leases | $ 43,659 | $ 25,883 |
Limited Partners - common units issued (in shares) | 79.7 | 79.6 |
Limited Partners - common units outstanding (in shares) | 79.7 | 79.6 |
Limited Partners - preferred units issued (in shares) | 11.8 | 11.8 |
Limited Partners - preferred units outstanding (in shares) | 11.8 | 11.8 |
Unaudited Consolidated Stateme6
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
OPERATING ACTIVITIES | ||
Net (loss) income | $ (11,877) | $ 20,047 |
Non-cash items: | ||
Unrealized gain on non-designated derivative instruments (note 10) | (20,632) | (3,818) |
Depreciation and amortization | 59,061 | 52,914 |
Write-down of vessels | 51,662 | 12,600 |
Unrealized foreign currency exchange gain and other | (20,167) | (9,091) |
Equity (income) loss, net of dividends received of $11,583 (2017 - $21,281) | (26,335) | 15,901 |
Ineffective portion on qualifying cash flow hedging instruments included in interest expense | 0 | 747 |
Change in non-cash operating assets and liabilities | 56,299 | 3,145 |
Expenditures for dry docking | (4,423) | (11,042) |
Net operating cash flow | 83,588 | 81,403 |
Net operating cash flow | ||
Proceeds from issuance of long-term debt | 248,392 | 166,663 |
Scheduled repayments of long-term debt | (105,099) | (103,343) |
Prepayments of long-term debt | (205,765) | (63,704) |
Debt issuance costs | (4,971) | (2,077) |
Proceeds from financings related to sale-leaseback of vessels | 243,812 | 297,230 |
Scheduled repayments of obligations related to capital leases | (25,316) | (19,045) |
Cash distributions paid | (34,727) | (28,274) |
Dividends paid to non-controlling interest | (157) | (658) |
Other | 0 | (605) |
Net financing cash flow | 116,169 | 246,187 |
Net financing cash flow | ||
Capital contributions to equity-accounted joint ventures | (27,071) | (96,960) |
Return of capital from equity-accounted joint ventures | 0 | 40,320 |
Proceeds from sale of equity-accounted joint venture (note 6c) | 54,438 | 0 |
Receipts from direct financing leases | 5,242 | 9,037 |
Proceeds from sale of vessel | 0 | 20,580 |
Expenditures for vessels and equipment | (311,308) | (244,387) |
Expenditures for vessels and equipment | (278,699) | (271,410) |
(Decrease) increase in cash, cash equivalents and restricted cash | (78,942) | 56,180 |
Cash, cash equivalents and restricted cash, beginning of the period | 339,435 | 243,173 |
Cash, cash equivalents and restricted cash, end of the period | $ 260,493 | $ 299,353 |
Unaudited Consolidated Stateme7
Unaudited Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Cash Flows [Abstract] | ||
Dividends received | $ 11,583 | $ 21,281 |
Unaudited Consolidated Stateme8
Unaudited Consolidated Statement of Changes in Total Equity - 6 months ended Jun. 30, 2018 - USD ($) shares in Thousands, $ in Thousands | Total | General Partner | Common UnitsLimited Partners | Preferred UnitsLimited Partners | Accumulated Other Comprehensive Income | Non- controlling Interest |
Beginning balance, units at Dec. 31, 2017 | 79,627 | 11,800 | ||||
Beginning balance at Dec. 31, 2017 | $ 1,931,423 | $ 50,152 | $ 1,539,248 | $ 285,159 | $ 4,479 | $ 52,385 |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||
Net income (loss) | (11,877) | (340) | (16,671) | 12,851 | (7,717) | |
Other comprehensive income | 8,820 | 7,293 | 1,527 | |||
Distributions declared | (35,611) | (455) | (22,305) | $ (12,851) | ||
Dividends paid to non-controlling interest | (157) | (157) | ||||
Change in accounting policy (note 2) | 2,739 | 41 | $ 1,959 | 739 | ||
Equity based compensation, net of withholding tax, units | 61 | |||||
Equity based compensation, net of withholding tax of $0.7 million (note 13) | 266 | 5 | $ 261 | |||
Ending balance, units at Jun. 30, 2018 | 79,688 | 11,800 | ||||
Ending balance at Jun. 30, 2018 | $ 1,895,603 | $ 49,403 | $ 1,502,492 | $ 285,159 | $ 11,772 | $ 46,777 |
Unaudited Consolidated Stateme9
Unaudited Consolidated Statement of Changes in Total Equity (Parenthetical) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Statement of Partners' Capital [Abstract] | |
Equity based compensation, tax | $ 0.7 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited interim consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (or GAAP ). These financial statements include the accounts of Teekay LNG Partners L.P. (or the Partnership ), which is a limited partnership formed under the laws of the Republic of the Marshall Islands, its wholly-owned and 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 could differ from those estimates. Certain information and footnote disclosures required by GAAP for complete annual financial statements have been omitted and, therefore, these interim financial statements should be read in conjunction with the Partnership’s audited consolidated financial statements for the year ended December 31, 2017 , which are included in the Partnership’s Annual Report on Form 20-F for the year ended December 31, 2017 filed with the U.S. Securities and Exchange Commission (or SEC ) on April 16, 2018. In the opinion of management of Teekay GP L.L.C., the general partner of the Partnership (or the General Partner ), these interim unaudited consolidated financial statements reflect all adjustments consisting solely of a normal recurring nature, necessary to present fairly, in all material respects, the Partnership’s consolidated financial position, results of operations, changes in total equity and cash flows for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of those for a full fiscal year. Significant intercompany balances and transactions have been eliminated upon consolidation. In addition, because the Partnership has determined that the entities that have financed certain of the Partnership's liquefied natural gas (or 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 $297 million and an increase in net financing cash flow of $297 million for the six months ended June 30, 2017 . |
Accounting Pronouncements
Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Pronouncements | Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (or FASB ) issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers , (or ASU 2014-09 ). ASU 2014-09 requires 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 became effective for the Partnership as of January 1, 2018, and may 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 adopted ASU 2014-09 as a cumulative-effect adjustment as of such 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 identified the following differences on adoption of ASU 2014-09: • In certain cases, the Partnership will incur pre-operational costs that relate directly to a specific customer contract, that generate or enhance resources of the Partnership that will be used in satisfying performance obligations in the future, whereby such costs are expected to be recovered via the customer contract. Such costs will be deferred and amortized over the duration of the customer contract. The Partnership previously expensed such costs as incurred unless the costs were directly reimbursable by the contract. This change had no material impact on the statement of income (loss) for the three and six months ended June 30, 2018, and increased other assets by $2.5 million , investments in and advances to equity-accounted joint ventures by $0.2 million , and total equity by $2.7 million as at June 30, 2018. The cumulative increase to opening equity as at January 1, 2018 was $2.7 million . • The Partnership previously presented all accrued revenue as a component of accounts receivable. The Partnership has determined that if the right to such consideration is conditioned upon something other than the passage of time, such accrued revenue should be presented apart from accounts receivable. This had the effect of increasing other current assets and decreasing accounts receivable by $2.0 million at June 30, 2018. There was no cumulative impact to opening equity as at January 1, 2018. In February 2016, 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. FASB issued an additional accounting standards update in July 2018 that made further amendments to accounting for leases, including allowing the use of a transition approach whereby a cumulative effect adjustment is made as of the effective date, with no retrospective effect. The Partnership is currently assessing whether it will adopt ASU 2016-02 during 2018 or on January 1, 2019. To determine the cumulative effect adjustment, the Partnership will not reassess lease classification, initial direct costs for any existing leases and whether any expired or existing contracts are or contain leases. The Partnership has identified the following differences based 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's lease classification assessment being determined 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 cumulative effect adjustment to the Partnership's consolidated financial statements from the adoption of ASU 2016-02 will vary depending on the period in which the Partnership chooses to adopt ASU 2016-02. The Partnership is expecting to disclose in its consolidated financial statements for the third quarter of 2018 the quantitative impact of adopting ASU 2016-02, once the Partnership has determined the date on which it will adopt the new standard. • 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 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 became effective for the Partnership as of January 1, 2018, with a retrospective approach required on adoption. The Partnership has elected to classify distributions received from equity method investees in the statement of cash flows based on the nature of the distribution. The adoption of this update did not have a material impact on the financial statements of the Partnership. 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 are also required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. ASU 2016-18 became effective for the Partnership as of January 1, 2018. Adoption of ASU 2016-18 resulted in the Partnership including in the consolidated statements of cash flows changes in cash, cash equivalents and restricted cash. 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 as of January 1, 2019. The Partnership is currently evaluating the effect of adopting this new guidance. 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 as of January 1, 2020, with a modified-retrospective approach required on adoption. The Partnership is currently evaluating the effect of adopting this new guidance. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | Financial Instruments a) Fair Value Measurements For a description of how the Partnership estimates fair value and for a description of the fair value hierarchy levels, see Note 3 to the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year ended December 31, 2017 . The following table includes the estimated fair value and carrying value of those assets and liabilities that are measured at fair value on a recurring and non-recurring basis, as well as the estimated fair value of the Partnership’s financial instruments that are not accounted for at fair value on a recurring basis. June 30, 2018 December 31, 2017 Fair Value Hierarchy Level Carrying Amount Asset (Liability) $ Fair Value Asset (Liability) $ Carrying Amount Asset (Liability) $ Fair Value Asset (Liability) $ Recurring: Cash and cash equivalents and restricted cash Level 1 260,493 260,493 339,435 339,435 Derivative instruments (note 10) Interest rate swap agreements – assets Level 2 6,624 6,624 878 878 Interest rate swap agreements – liabilities Level 2 (53,679 ) (53,679 ) (73,984 ) (73,984 ) Cross-currency swap agreements – assets Level 2 6,449 6,449 3,758 3,758 Cross-currency swap agreements – liabilities Level 2 (50,975 ) (50,975 ) (54,217 ) (54,217 ) Other derivative Level 3 2,330 2,330 1,648 1,648 Non-recurring: Vessels held for sale (note 14b) Level 2 — — 16,671 16,671 Vessels and equipment (note 14e) Level 2 65,209 65,209 — — Other: Advances to equity-accounted joint ventures (note 6) (i) 131,411 (i) 131,685 (i) Long-term receivable included in (ii) Level 3 1,200 1,194 3,476 3,459 Long-term debt – public (note 7) Level 1 (379,813 ) (387,671 ) (376,581 ) (384,820 ) Long-term debt – non-public (note 7) Level 2 (1,347,942 ) (1,335,443 ) (1,421,411 ) (1,391,524 ) Obligations related to capital leases Level 2 (1,206,793 ) (1,165,890 ) (1,011,549 ) (1,001,588 ) (i) The advances to equity-accounted joint ventures together with the Partnership’s equity investments in the joint ventures form the net aggregate carrying value of the Partnership’s interests in the joint ventures in these consolidated financial statements. The fair values of the individual components of such aggregate interests are not determinable. (ii) As described in Note 3 to the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year-ended December 31, 2017 , the estimated fair value of the non-interest bearing receivable from Royal Dutch Shell Plc (or Shell ) is based on the remaining future fixed payments as well as an estimated discount rate. The estimated fair value of this receivable as of June 30, 2018 was $1.2 million ( December 31, 2017 – $3.5 million ) using a discount rate of 8.0% . As there is no market rate for the equivalent of an unsecured non-interest bearing receivable from Shell, the discount rate is based on unsecured debt instruments of similar maturity held by the Partnership, adjusted for a liquidity premium. A higher or lower discount rate would result in a lower or higher fair value asset. Changes in fair value during the six months ended June 30, 2018 and 2017 for the Partnership’s other derivative instrument, the Toledo Spirit time-charter derivative, which is described below and is measured at fair value on a recurring basis using significant unobservable inputs (Level 3), are as follows: Six Months Ended June 30, 2018 2017 $ $ Fair value at beginning of period 1,648 2,134 Realized and unrealized gains included in earnings 1,669 1,120 Settlement payments (987 ) (1,019 ) Fair value at end of period 2,330 2,235 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 August 2018. In May 2018, the charterer 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 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 June 30, 2018 is based upon an average daily tanker rate of $15,500 ( June 30, 2017 – $18,000 ) over the remaining duration of the charter contract and a discount rate of 9.3% ( June 30, 2017 – 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. June 30, 2018 December 31, 2017 Class of Financing Receivable Credit Indicator Grade $ $ Direct financing leases Payment activity Performing 490,747 495,990 Other receivables: Long-term receivable and accrued revenue included in accounts receivable and other assets Payment activity Performing 4,093 5,476 Advances to equity-accounted joint ventures (note 6) Other internal metrics Performing 131,411 131,685 626,251 633,151 |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The following table includes results for the Partnership’s segments for the periods presented in these financial statements. Three Months Ended June 30, 2018 2017 Liquefied Gas Segment $ Conventional Tanker Segment $ Total $ Liquefied Gas Segment $ Conventional Tanker Segment $ Total $ Voyage revenues 112,172 10,143 122,315 89,431 11,473 100,904 Voyage expenses (4,445 ) (3,506 ) (7,951 ) (602 ) (394 ) (996 ) Vessel operating expenses (30,422 ) (3,547 ) (33,969 ) (21,374 ) (4,627 ) (26,001 ) Depreciation and amortization (28,661 ) (1,133 ) (29,794 ) (23,839 ) (2,955 ) (26,794 ) General and administrative expenses (i) (6,199 ) (897 ) (7,096 ) (3,573 ) (1,069 ) (4,642 ) Write-down of vessels (33,000 ) — (33,000 ) — (12,600 ) (12,600 ) Income (loss) from vessel operations 9,445 1,060 10,505 40,043 (10,172 ) 29,871 Equity income (loss) 11,194 — 11,194 (507 ) — (507 ) Six Months Ended June 30, 2018 2017 Liquefied Gas Segment $ Conventional Tanker Segment $ Total $ Liquefied Gas Segment $ Conventional Tanker Segment $ Total $ Voyage revenues 217,221 20,400 237,621 178,378 23,706 202,084 Voyage expenses (7,253 ) (6,499 ) (13,752 ) (948 ) (1,485 ) (2,433 ) Vessel operating expenses (55,110 ) (7,326 ) (62,436 ) (40,039 ) (9,350 ) (49,389 ) Depreciation and amortization (55,882 ) (3,179 ) (59,061 ) (47,059 ) (5,855 ) (52,914 ) General and administrative expenses (i) (11,986 ) (1,681 ) (13,667 ) (6,953 ) (1,846 ) (8,799 ) Write-down of vessels (33,000 ) (18,662 ) (51,662 ) — (12,600 ) (12,600 ) Restructuring charges — (1,396 ) (1,396 ) — — — Income (loss) from vessel operations 53,990 (18,343 ) 35,647 83,379 (7,430 ) 75,949 Equity income 37,918 — 37,918 5,380 — 5,380 (i) Includes direct general and administrative expenses and indirect general and administrative expenses (allocated to each segment based on estimated use of corporate resources). A reconciliation of total segment assets to total assets presented in the consolidated balance sheets is as follows: June 30, 2018 December 31, 2017 $ $ Total assets of the liquefied gas segment 4,857,355 4,624,321 Total assets of the conventional tanker segment 70,782 112,844 Unallocated: Cash and cash equivalents 177,071 244,241 Accounts receivable and prepaid expenses 34,479 30,593 Advances to affiliates 8,538 7,300 Consolidated total assets 5,148,225 5,019,299 |
Vessel Charters
Vessel Charters | 6 Months Ended |
Jun. 30, 2018 | |
Leases [Abstract] | |
Vessel Charters | Vessel Charters a) Obligations Related to Capital Leases The minimum estimated charter hire and rental payments for the remainder of the year and the next four fiscal years, as at June 30, 2018 , for the Partnership’s vessels chartered-in are as follows: Remainder of 2018 2019 2020 2021 2022 Vessel Charters (i) $ $ $ $ $ Charters-in – capital leases (ii) 87,756 119,534 118,785 117,830 117,035 (i) The Partnership owns 69% of Teekay BLT Corporation (or the Teekay Tangguh Joint Venture ), which is a party to operating leases whereby the Teekay Tangguh Joint Venture is leasing the Tangguh Hiri and Tangguh Sago LNG carriers (or the Tangguh LNG Carriers ) to a third party, which is in turn leasing the vessels back to the joint venture. The table above does not include the Partnership’s minimum charter hire payments to be paid and received under these leases, which are described in more detail in Note 5 to the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year ended December 31, 2017 . Under the terms of the leasing arrangement for the Tangguh LNG Carriers, whereby the Teekay Tangguh Joint Venture is the lessee, the lessor claims tax depreciation on its lease of these vessels. As is typical in these types of leasing arrangements, tax and change of law risks are assumed by the lessee. Lease payments under the lease arrangements are based on certain tax and financial assumptions at the commencement of the leases. If an assumption proves to be incorrect, the lessor is entitled to increase the lease payments to maintain its agreed after-tax margin. The carrying amount of tax indemnification guarantees of the Partnership relating to the leasing arrangement through the Teekay Tangguh Joint Venture as at June 30, 2018 was $6.8 million ( December 31, 2017 – $7.1 million ) and is included as part of other long-term liabilities in the Partnership’s consolidated balance sheets. The tax indemnification is for the duration of the lease contracts with the third party plus the years it would take for the lease payments to be statute barred, which will end in 2033 for the vessels. Although there is no maximum potential amount of future payments, the Teekay Tangguh Joint Venture may terminate the lease arrangement on a voluntary basis at any time. If the lease arrangement terminates, the Teekay Tangguh Joint Venture will be required to pay termination sums to the lessor sufficient to repay the lessor’s investment in the vessels and to compensate it for the tax effect of the terminations, including recapture of any tax depreciation. (ii) As at June 30, 2018 , the Partnership was a party, as lessee, to a capital lease on one Suezmax tanker, the Toledo Spirit . Under this capital lease, the owner has the option to require the Partnership to purchase the vessel. The charterer, who is also the owner, also has the option to cancel the charter contract and the cancellation option is first exercisable in August 2018. The amounts in the table above assume the owner will not exercise its option to require the Partnership to purchase the vessel from the owner, but rather assume the owner will cancel the charter contract when the cancellation right is first exercisable in August 2018 and sell the vessel to a third party, upon which, the remaining lease obligation will be extinguished. Therefore, the table above does not include any amounts after the expected cancellation date of the lease. In May 2018, the charterer of the Toledo 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. The Partnership is also a party to capital leases on seven LNG carriers, the Creole Spirit , the Oak Spirit , the Torben Spirit , the Macoma , the Murex, the Magdala and the Myrina . Upon delivery of these seven LNG carriers between February 2016 and May 2018, the Partnership sold these respective vessels to third parties (or the Lessors ) and leased them back under 10 -year bareboat charter contracts ending in 2026 through to 2028. The bareboat charter contracts are accounted for as obligations related to capital leases and have fixed-price purchase obligations at the end of the lease terms. As at June 30, 2018 , the Partnership has a sale-leaseback agreement in place for one of its LNG carrier newbuildings scheduled to deliver during the remainder of 2018, and upon delivery, the Lessor will charter the vessel back to the Partnership (see Note 16c). As at June 30, 2018 , the Partnership had received $58 million from the Lessor relating to the one LNG carrier newbuilding that was recorded in current and long-term obligations related to capital leases in the Partnership's consolidated balance sheets. The Partnership has secured a further $127 million in capital lease financing to be received during the remainder of 2018 upon delivery of the vessel (see Note 16c). 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, each 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 obligations of the Partnership under the bareboat charter contracts are guaranteed by the Partnership. In addition, the guarantee agreements require the Partnership to maintain minimum levels of tangible net worth and aggregate liquidity, and not to exceed a maximum amount of leverage. As at June 30, 2018, the Partnership was in compliance with all covenants in respect of the obligations related to capital leases. b) Revenue The Partnership’s primary source of revenue is chartering its vessels to customers. The Partnership utilizes three primary forms of contracts, consisting of time-charter contracts, voyage charter contracts and bareboat charter contracts. The Partnership also generates revenue from construction supervision and crew-training for the vessels under construction in its joint venture with China LNG Shipping (Holdings) Limited (or China LNG ), CETS Investment Management (HK) Co. Ltd. and BW Investments Pte. Ltd (or the Pan Union Joint Venture ), in which the Partnership's ownership interests range from 20% to 30% , and from the operation of an LNG receiving and regasification terminal related to its 30% -owned joint venture with National Oil and Gas Authority ( 30% ), Gulf Investment Corporation ( 24% ), and Samsung C&T ( 16% ) (or the Bahrain LNG-Joint Venture ). Such services may include the procurement of third party goods and services for the asset’s owner. Time Charters Pursuant to a time charter, the Partnership charters a vessel to a customer for a fixed period of time, generally one year or more. The performance obligations within a time-charter contract, which will include the lease of the vessel to the charterer as well as the operation of the vessel, are satisfied as services are rendered over the duration of such contract, as measured using the time that has elapsed from commencement of performance. In addition, any expenses that are unique to a particular voyage, including any bunker fuel expenses, port fees, cargo loading and unloading expenses, canal tolls, agency fees and commissions, are the responsibility of the customer, as long as the vessel is not off-hire. Hire is based on a fixed daily hire amount and is typically invoiced monthly in advance for time-charter contracts. However, certain sources of variability exist. Those include penalties, such as those that relate to periods the vessels are off-hire and where minimum speed and performance metrics are not met. In addition, certain time charters contain provisions that allow the Partnership to be compensated for increases in the Partnerships costs during the term of the charter. Such provisions may be in the form of annual hire rate adjustments for changes in inflation indices or interest rates or in the form of cost reimbursements for vessel operating expenditures or dry-docking expenditures. Finally, in a small number of charters, the Partnership may earn a profit share consideration, which occurs when actual spot tanker rates earned by the vessel exceed certain thresholds for a period of time. Variable consideration of the Partnership’s contracts is typically recognized in the period in which the changes in facts and circumstances on which the variable lease payments are based occur as either such revenue is allocated and accounted for under lease accounting requirements or alternatively such consideration is allocated to distinct periods within a contract that such variable consideration was incurred in. The Partnership does not engage in any specific tactics to minimize residual value risk. As at June 30, 2018 , a substantial majority of the Partnership’s vessels operated under time charter contracts with the Partnership’s customers. Such contracts are scheduled to expire between 2018 and 2029. The time charters for many of the Partnership's LNG carriers have options whereby the charterer can extend the contract for periods up to a total extension of between three to 15 years. In addition, each of the Partnership's time-charters are subject to certain termination and purchase provisions. As at June 30, 2018 , the Partnership had $21.5 million of advanced payments recognized as contract liabilities included in unearned revenue (December 31, 2017 – $22.2 million ) which are expected to be recognized as voyage revenues in the following period and are included in unearned revenue on the Partnership's consolidated balance sheets. Voyage Charters Voyage charters are charters for a specific voyage that are usually priced on a current or “spot” market rate. The performance obligations within a voyage charter contract, which will typically include the lease of the vessel to the charterer as well as the operation of the vessel, are satisfied as services are rendered over the duration of the voyage, as measured using the time that has elapsed from commencement of performance. In addition, any expenses that are unique to a particular voyage, including any bunker fuel expenses, port fees, cargo loading and unloading expenses, canal tolls, agency fees and commissions, are the responsibility of the vessel owner. The Partnership’s voyage charters will normally contain a lease; however, judgment is necessary to determine this based upon the decision-making rights the charterer has within the contract. Consideration for such contracts are generally fixed, although certain sources of variability exist. Delays caused by the charterer result in additional consideration. Payment for the voyage is not due until the voyage is completed. The duration of a single voyage will typically be less than three months. The Partnership does not engage in any specific tactics to minimize residual value risk due to the short-term nature of the contracts. Bareboat Charters Pursuant to a bareboat charter, the Partnership charters a vessel to a customer for a fixed period of time, generally one year or more, at rates that are generally fixed. However, the customer is responsible for operation and maintenance of the vessel with its own crew as well as any expenses that are unique to a particular voyage, including any bunker fuel expenses, port fees, cargo loading and unloading expenses, canal tolls, agency fees and commissions. If the vessel goes off-hire due to a mechanical issue or any other reason, the monthly hire received by the vessel owner is normally not impacted by such events. The performance obligations within a bareboat charter, which will include the lease of the vessel to the charterer, are satisfied over the duration of such contract, as measured using the time that has elapsed from commencement of the lease. Hire is typically invoiced monthly in advance for bareboat charters, based on a fixed daily hire amount. Revenue Table The following tables contain the Partnership’s revenue for the three and six months ended June 30, 2018 and 2017, by contract type and by segment. Three Months Ended June 30, 2018 2017 Liquefied Gas Segment $ Conventional Tanker Segment $ Total $ Liquefied Gas Segment $ Conventional Total Time charters 96,857 4,316 101,173 79,404 10,965 90,369 Voyage charters 6,767 5,719 12,486 — 230 230 Bareboat charters 5,734 — 5,734 7,405 — 7,405 Management fees and other income 2,814 108 2,922 2,622 278 2,900 112,172 10,143 122,315 89,431 11,473 100,904 Six Months Ended June 30, 2018 2017 Liquefied Gas Segment $ Conventional Tanker Segment $ Total $ Liquefied Gas Segment $ Conventional Total Time charters 190,316 9,714 200,030 157,918 21,697 179,615 Voyage charters 10,390 10,470 20,860 — 1,453 1,453 Bareboat charters 11,111 — 11,111 15,835 — 15,835 Management fees and other income 5,404 216 5,620 4,625 556 5,181 217,221 20,400 237,621 178,378 23,706 202,084 The following table contains the Partnership’s revenue from contracts that do not contain a lease element and the non-lease element of time-charters accounted for as direct financing leases for the three months ended June 30, 2018 and 2017. Three Months Ended Six Months Ended June 30 June 30 June 30 June 30 Non-lease revenue - related to sales type or direct financing leases 4,124 4,880 8,264 12,211 Management fees and other income 2,922 2,900 5,620 5,181 Total 7,046 7,780 13,884 17,392 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 charters. 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 charter hire of 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 was 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: June 30, December 31, Total minimum lease payments to be received 543,569 568,710 Estimated unguaranteed residual value of leased properties 194,965 194,965 Initial direct costs 344 361 Less unearned revenue (248,131 ) (268,046 ) Total net investments in direct financing leases 490,747 495,990 Less current portion (10,453 ) (9,884 ) Net investments in direct financing leases 480,294 486,106 As at June 30, 2018 , 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 $ 19.6 million (remainder of 2018), $39.1 million per year from 2019 through 2022 and an aggregate of $235.7 million thereafter. 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 second Awilco LNG Carrier lease, up to its original contract term in August 2018, are approximately $ 1.0 million . Operating Leases As at June 30, 2018 , 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 time charters that were accounted for as operating leases are approximately $ 216.3 million (remainder of 2018), $383.4 million (2019), $ 350.0 million (2020), $ 310.4 million (2021), $ 281.1 million (2022), and $ 676.3 million thereafter. Minimum scheduled future rentals on operating lease contracts do not include rentals generated from new contracts entered into after June 30, 2018, rentals from vessels in the Partnership’s equity-accounted investments, rentals from unexercised option periods of contracts that existed on June 30, 2018, variable or contingent rentals, or rentals from contracts which commenced after June 30, 2018. Therefore, the minimum scheduled future rentals on operating leases should not be construed to reflect total charter hire revenues for any of these periods. The carrying amount of the Partnership's vessels which are employed on these time charters as at June 30, 2018, was $2.6 billion (December 31, 2017 – $2.2 billion ). The cost and accumulated depreciation of the vessels employed on these time charters as at June 30, 2018 were $3.3 billion (December 31, 2017 – $2.9 billion ) and $680.5 million (December 31, 2017 – $646.2 million ), respectively. Contract Costs In certain cases, the Partnership incurs pre-operational costs that relate directly to a specific customer contract, that generate or enhance resources of the Partnership that will be used in satisfying performance obligations in the future, whereby such costs are expected to be recovered via the customer contract. Those costs include costs incurred to reposition a vessel to a location where a charterer will take delivery of the vessel. In certain cases, the Partnership must make judgments about whether costs relate directly to a specific customer contract or whether costs were factored into the pricing of a customer contract and thus expected to be recovered. Such deferred costs are amortized on a straight-line basis over the duration of the customer contract. Amortization of such costs for the three and six months ended June 30, 2018 was $0.2 million and $0.4 million respectively. As at June 30, 2018, repositioning costs of $2.5 million were included as part of other assets in the Partnership's consolidated balance sheets. |
Equity-Accounted Investments
Equity-Accounted Investments | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Equity Accounted Investments | Equity-Accounted Investments a) As of June 30, 2018 , the Partnership had loans outstanding to Exmar LPG BVBA of $52.3 million ( December 31, 2017 – $52.3 million ), the Partnership's 50 / 50 joint venture (or the Exmar LPG Joint Venture ) with Exmar NV (or Exmar ). These advances bear interest at LIBOR plus 0.50% and have no fixed repayment terms. As at June 30, 2018 , the interest receivable on the advances was $ nil ( December 31, 2017 – $0.2 million ). Both the advances and the interest receivable on these advances are included in investments and advances to equity-accounted joint ventures in the Partnership’s consolidated balance sheets. b) As of June 30, 2018 , the Partnership had loans outstanding to the Bahrain LNG Joint Venture of $79.1 million ( December 31, 2017 – $79.1 million ). As of June 30, 2018 , the interest accrued on these advances was nominal ( December 31, 2017 – $0.1 million ). Both the advances and the accrued interest on these advances are included in investments and advances to equity-accounted joint ventures in the Partnership’s consolidated balance sheets. c) On January 31, 2018, the Partnership sold its 50% ownership interest in its equity-accounted joint venture with Exmar (or the Excelsior Joint Venture) for gross proceeds of approximately $54 million . As a result of the sale, the Partnership recorded a gain of $5.6 million for the six months ended June 30, 2018, which is included in equity income (loss) in the Partnership's consolidated statements of income (loss). |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt June 30, 2018 December 31, 2017 $ $ U.S. Dollar-denominated Revolving Credit Facilities due from 2018 to 2022 110,000 254,275 U.S. Dollar-denominated Term Loans due from 2019 to 2031 1,036,515 935,286 Norwegian Kroner-denominated Bonds due from 2018 to 2021 380,491 377,856 Euro-denominated Term Loans due from 2018 to 2023 217,621 232,957 Other U.S. Dollar-denominated loan — 10,000 Total principal 1,744,627 1,810,374 Unamortized discount and debt issuance costs (16,872 ) (12,382 ) Total debt 1,727,755 1,797,992 Less current portion (372,378 ) (552,404 ) Long-term debt 1,355,377 1,245,588 As at June 30, 2018 , the Partnership had two revolving credit facilities available, of which one credit facility is current and one is long-term. The two credit facilities, as at such date, provided for borrowings of up to $376.5 million ( December 31, 2017 – $443.7 million ), of which $266.5 million ( December 31, 2017 – $189.4 million ) was undrawn. Interest payments are based on LIBOR plus margins, which margins ranged from 1.25% to 2.25% . The amount available under the two revolving credit facilities will be reduced by $200.9 million during the remainder of 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. One of the revolving credit facilities is unsecured, while the other revolving credit facility is collateralized by first-priority mortgages granted on two of the Partnership’s vessels, together with other related security, and includes a guarantee from its two subsidiaries of all outstanding amounts. As at June 30, 2018 , the Partnership had eight U.S. Dollar-denominated term loans outstanding which totaled $1.0 billion in aggregate principal amount ( December 31, 2017 – $935.3 million ). Interest payments on the term loans are based on LIBOR plus a margin, which margins ranged from 0.30% to 3.25% . The eight term loans require quarterly interest and principal payments and seven term loans have balloon or bullet repayments due at maturity. The term loans are collateralized by first-priority mortgages on 20 of the Partnership’s vessels to which the loans relate, together with certain other related security. In addition, at June 30, 2018 , all of the outstanding term loans were guaranteed by either the Partnership or Teekay Nakilat Corporation, a joint venture of which the Partnership is a 70% owner (or the Teekay Nakilat Joint Venture ). The Partnership has Norwegian Kroner (or NOK ) 3.1 billion of senior unsecured bonds in the Norwegian bond market that mature through 2021. As at June 30, 2018 , the total amount of the bonds, which are listed on the Oslo Stock Exchange, was $ 380.5 million ( December 31, 2017 – $377.9 million ). The interest payments on the bonds are based on NIBOR plus a margin, which margins ranged from 3.70% to 6.00% . The Partnership entered into cross-currency rate swaps, to swap all interest and principal payments of the bonds into U.S. Dollars, with the interest payments fixed at rates ranging from 5.92% to 7.72% and the transfer of principal fixed at $430.5 million upon maturity in exchange for NOK 3.1 billion (see Note 10). The Partnership has two Euro-denominated term loans outstanding, which as at June 30, 2018 , totaled 186.2 million Euros ($ 217.6 million ) ( December 31, 2017 – 194.1 million Euros ( $233.0 million )). Interest payments are based on EURIBOR plus margins, which margins ranged from 0.60% to 2.25% as at June 30, 2018 , 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 of the Partnership's vessels to which the loans relate, together with certain other related security and are guaranteed by the Partnership and one of its subsidiaries. The weighted-average interest rates for the Partnership’s long-term debt outstanding at June 30, 2018 and December 31, 2017 were 4.11% and 3.34% , respectively. These rates do not reflect the effect of related interest rate swaps that the Partnership has used to economically hedge certain of its floating-rate debt (see Note 10). At June 30, 2018 , 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, and the change in the valuation of the Partnership’s cross-currency swaps, the Partnership incurred foreign exchange gains (losses) of $8.4 million and $(15.8) million for the three months ended June 30, 2018 and 2017 , respectively, and $7.2 million and $(19.4) million for the six months ended June 30, 2018 and 2017, respectively. The aggregate annual long-term debt principal repayments required subsequent to June 30, 2018 , after giving effect to the debt facility refinancing completed in July 2018 (see Note 16a), are $309.1 million (remainder of 2018 ), $131.5 million ( 2019 ), $400.5 million ( 2020 ), $405.5 million ( 2021 ), $76.7 million ( 2022 ) and $421.3 million ( thereafter ). Certain loan agreements require that (a) the Partnership maintain minimum levels of tangible net worth and aggregate liquidity, (b) the Partnership maintain certain ratios of vessel values related to the relevant outstanding loan principal balance, (c) the Partnership not exceed a maximum amount of leverage, and (d) certain of the Partnership’s subsidiaries maintain restricted cash deposits. As at June 30, 2018 , the Partnership has four facilities with an aggregate outstanding loan balance of $238.8 million that require it to maintain minimum vessel-value-to-outstanding-loan-principal-balance ratios ranging from 110% to 135% , which as at June 30, 2018 , ranged from 126% to 183% . The vessel values used in calculating these ratios are the appraised values provided by third parties where available, or prepared by the Partnership based on second-hand sale and purchase market data. 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 and, in addition, the term loan in the Teekay Nakilat Joint Venture requires it to satisfy a minimum vessel value to outstanding loan principal balance ratio to pay dividends. As at June 30, 2018 , the Partnership was in compliance with all covenants relating to the Partnership’s credit facilities and term loans. |
Income Tax
Income Tax | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Income Tax The components of the provision for income taxes were as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 $ $ $ $ Current (569 ) (236 ) (1,074 ) (474 ) Deferred (274 ) — (548 ) 81 Income tax expense (843 ) (236 ) (1,622 ) (393 ) |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions a) Two of the Partnership’s LNG carriers, the Arctic Spirit and Polar Spirit , were employed on long-term charter contracts with subsidiaries of Teekay Corporation which contracts ended in April 2018 and March 2018, respectively. The Partnership and certain of its operating subsidiaries have entered into service agreements with certain subsidiaries of Teekay Corporation pursuant to which the Teekay Corporation subsidiaries provide to the Partnership and its subsidiaries administrative, commercial, crew training, advisory, business development, technical management and strategic consulting services. In addition, as part of the Partnership's acquisition of its ownership interest in the Pan Union Joint Venture in 2014, 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 dates. All costs incurred by these Teekay Corporation subsidiaries related to these services are charged to the Partnership and recorded as part of vessel operating expenses. Finally, the Partnership reimburses the General Partner for expenses incurred by the General Partner that are necessary for the conduct of the Partnership’s business. Such related party transactions were as follows for the periods indicated: Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 $ $ $ $ Voyage revenues (i) 1,439 8,564 9,418 17,555 Vessel operating expenses (5,530 ) (4,264 ) (11,387 ) (9,580 ) General and administrative expenses (ii) (3,230 ) (2,355 ) (7,329 ) (4,462 ) General and administrative expenses (iii) (210 ) — (395 ) (507 ) (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. The contract periods for the Polar Spirit and for the Arctic Spirit expired in March 2018 and April 2018, respectively. (ii) Includes commercial, strategic, advisory, business development and administrative management fees charged by Teekay Corporation and reimbursements to Teekay Corporation and the Partnership's General Partner for costs incurred on the Partnership’s behalf. (iii) Includes the Partnership's proportionate costs associated with the Bahrain LNG Joint Venture, including pre-operation, engineering and financing-related expenses, of which $0.6 million and $0.6 million was reimbursed by the Bahrain LNG Joint Venture for the three and six months ended June 30, 2018 , respectively ( $0.4 million and $0.5 million for the three and six months ended June 30, 2017, respectively). The net costs are recorded as part of investments in and advances to equity-accounted joint ventures in the Partnership's consolidated balance sheets. b) As at June 30, 2018 and December 31, 2017 , non-interest bearing advances to affiliates totaled $8.5 million and $7.3 million , respectively, and non-interest bearing advances from affiliates totaled $19.0 million and $12.1 million , respectively. These advances are unsecured and have no fixed repayment terms. Affiliates are entities that are under common control with the Partnership. c) The Partnership’s Suezmax tanker, the Toledo Spirit , operates pursuant to a time-charter contract that increases or decreases the otherwise fixed-hire rate established in the charter depending on the spot charter rates that the Partnership would have earned had it traded the vessel in the spot tanker market. The time-charter contract ends in August 2025, although the charterer has the right to terminate the time-charter in August 2018. The charterer notified the Partnership in May 2018 of its intention to terminate its charter contract as early as August 2018, subject to certain conditions being met and the receipt of certain third-party approvals. The Partnership has entered into an agreement with Teekay Corporation under which Teekay Corporation pays the Partnership any amounts payable to the charterer as a result of spot rates being below the fixed rate, and the Partnership pays Teekay Corporation any amounts payable to the Partnership as a result of spot rates being in excess of the fixed rate. The amounts receivable or payable to Teekay Corporation are settled annually (see Notes 3 and 10). d) The Partnership entered into services agreements with certain subsidiaries of Teekay Corporation pursuant to which the Teekay Corporation subsidiaries provide the Partnership with shipbuilding and site supervision services related to certain LNG carrier newbuildings the Partnership has ordered. These costs are capitalized and included as part of advances on newbuilding contracts in the Partnership’s consolidated balance sheets. For the three and six months ended June 30, 2018 , the Partnership incurred shipbuilding and site supervision costs of $3.5 million and $6.8 million , respectively ( $6.1 million and $9.4 million for the three and six months ended June 30, 2017, respectively). e) The Partnership entered into an operation and maintenance contract with the Bahrain LNG Joint Venture and an operating and maintenance subcontract with Teekay Marine Solutions (Bermuda) Ltd. (or TMS ), an entity wholly-owned by Teekay Tankers Ltd., which is controlled by Teekay Corporation, relating to the LNG regasification terminal in Bahrain. The Partnership, as the contractor, and TMS, as the subcontractor, agreed to provide pre-mobilization services up to August 2018, and mobilization services and other general operational and maintenance services of the facility thereafter. The subcontractor fees from TMS of $ 0.1 million and $ 0.2 million for the three and six months ended June 30, 2018 , respectively ( $0.1 million and $0.2 million for the three and six months ended June 30, 2017, respectively), are included in general and administrative expenses in the Partnership’s consolidated statements of income (loss). Cost recoveries from the Bahrain LNG Joint Venture of $0.1 million and $0.2 million for the three and six months ended June 30, 2018 , respectively ( $0.1 million and $0.2 million for the three and six months ended June 30, 2017, respectively), are included in voyage revenues in the Partnership's consolidated statements of income (loss). |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2018 | |
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 7), 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 June 30, 2018 . Floating Rate Receivable Principal Amount NOK (in thousands) Principal Amount $ Reference Rate Margin Fixed Rate Payable Fair Value / Carrying Amount of Asset (Liability) $ Weighted- Average Remaining Term (Years) 900,000 150,000 NIBOR 4.35 % 6.43 % (40,214 ) 0.2 1,000,000 134,000 NIBOR 3.70 % 5.92 % (10,761 ) 1.9 1,200,000 146,500 NIBOR 6.00 % 7.72 % 6,449 3.3 (44,526 ) 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 June 30, 2018 , the Partnership was committed to the following interest rate swap agreements: Interest Rate Index Principal Amount $ Fair Value / Carrying Amount of Asset (Liability) $ Weighted- Average Remaining Term (years) Fixed Interest Rate (i) LIBOR-Based Debt: U.S. Dollar-denominated interest rate swaps LIBOR 60,000 (1,104 ) 0.6 4.9 U.S. Dollar-denominated interest rate swaps (ii) LIBOR 137,500 (16,656 ) 10.5 5.2 U.S. Dollar-denominated interest rate swaps (ii) LIBOR 37,490 (109 ) 3.1 2.8 U.S. Dollar-denominated interest rate swaps (iii) (iv) LIBOR 345,878 (9,703 ) 2.6 3.4 U.S. Dollar-denominated interest rate swaps (iv) LIBOR 95,333 513 0.5 1.7 U.S. Dollar-denominated interest rate swaps (iv) LIBOR 189,506 6,111 8.5 2.3 EURIBOR-Based Debt: Euro-denominated interest rate swaps (v) EURIBOR 217,621 (26,107 ) 2.4 3.1 (47,055 ) (i) Excludes the margins the Partnership pays on its floating-rate term loans, which, at June 30, 2018 , ranged from 0.30% to 3.25% . (ii) Principal amount reduces semi-annually. (iii) These interest rate swaps are subject to mandatory early termination in 2020 and 2021 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 ( $81.9 million ) by the maturity dates of the swap agreements. Certain of these Euro-denominated 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. Certain of these interest rate swaps were terminated in July 2018. As at June 30, 2018 , the Partnership had multiple interest rate swaps and cross-currency swaps with the same counterparty that are subject to the same master agreements. Each of these master agreements provides for the net settlement of all swaps subject to that master agreement through a single payment in the event of default or termination of any one swap. The fair value of these derivative instruments is presented on a gross basis in the Partnership’s consolidated balance sheets. As at June 30, 2018 , these interest rate swaps and cross-currency swaps had an aggregate fair value asset of $12.6 million and an aggregate fair value liability of $71.0 million . As at June 30, 2018 , the Partnership had $17.2 million ( December 31, 2017 – $22.3 million ) on deposit as security for swap liabilities under certain master agreements. The deposit is presented as restricted cash – current in the Partnership’s consolidated balance sheets. Credit Risk The Partnership is exposed to credit loss in the event of non-performance by the counterparties to the interest rate swap agreements. In order to minimize counterparty risk, the Partnership only enters into derivative transactions with counterparties that are rated A- or better by Standard & Poor’s or A3 or better by Moody’s at the time of the transactions. In addition, to the extent practical, interest rate swaps are entered into with different counterparties to reduce concentration risk. Other Derivative In order to reduce the variability of its revenue, the Partnership has entered into an agreement with Teekay Corporation under which Teekay Corporation pays the Partnership any amounts payable to the charterer of the Toledo Spirit as a result of spot rates being below the fixed rate, and the Partnership pays Teekay Corporation any amounts payable to the Partnership by the charterer of the Toledo Spirit as a result of spot rates being in excess of the fixed rate. The fair value of the derivative asset at June 30, 2018 was $2.3 million ( December 31, 2017 – asset of $1.6 million ). The following table presents the classification and fair value amounts of derivative instruments, segregated by type of contract, on the Partnership’s consolidated balance sheets. Accounts receivable/Advances to affiliates $ Current portion of derivative assets $ Derivative assets $ Accrued liabilities $ Current portion of derivative liabilities $ Derivative liabilities $ As at June 30, 2018 Interest rate swap agreements 156 874 5,666 (3,456 ) (22,045 ) (28,250 ) Cross-currency swap agreements — — 7,212 (645 ) (42,284 ) (8,809 ) Toledo Spirit time-charter derivative 150 2,180 — — — — 306 3,054 12,878 (4,101 ) (64,329 ) (37,059 ) 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 (4,911 ) (79,139 ) (45,797 ) 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 gain on non-designated derivative instruments in the Partnership’s consolidated statements of income (loss). The effect of the gain (loss) on these derivatives on the Partnership’s consolidated statements of income (loss) is as follows: Three Months Ended June 30, 2018 2017 Realized gains (losses) Unrealized gains (losses) Total Realized gains (losses) Unrealized gains (losses) Total $ $ $ $ $ $ Interest rate swap agreements (4,310 ) 7,522 3,212 (4,610 ) (1,866 ) (6,476 ) Interest rate swaption agreements — — — — 112 112 Interest rate swaption agreements termination — — — (1,005 ) — (1,005 ) Toledo Spirit time-charter derivative 150 940 1,090 (135 ) 120 (15 ) (4,160 ) 8,462 4,302 (5,750 ) (1,634 ) (7,384 ) Six Months Ended June 30, 2018 2017 Realized gains (losses) Unrealized gains (losses) Total Realized gains (losses) Unrealized gains (losses) Total $ $ $ $ $ $ Interest rate swap agreements (8,788 ) 19,420 10,632 (9,285 ) 2,436 (6,849 ) Interest rate swaption agreements — 2 2 — 142 142 Interest rate swaption agreements termination — — — (610 ) — (610 ) Toledo Spirit time-charter derivative 459 1,210 1,669 (120 ) 1,240 1,120 (8,329 ) 20,632 12,303 (10,015 ) 3,818 (6,197 ) Realized and unrealized gains (losses) relating to cross-currency swap agreements are recognized in earnings and reported in foreign currency exchange gain (loss) in the Partnership’s consolidated statements of income (loss). The effect of the gain (loss) on these derivatives on the Partnership's consolidated statements of income (loss) is as follows: Three Months Ended June 30, 2018 2017 Realized gains (losses) Unrealized gains (losses) Total Realized gains (losses) Unrealized gains (losses) Total $ $ $ $ $ $ Cross-currency swap agreements (1,798 ) (16,566 ) (18,364 ) (2,084 ) 34,906 32,822 Cross-currency swap agreements termination — — — (25,733 ) — (25,733 ) (1,798 ) (16,566 ) (18,364 ) (27,817 ) 34,906 7,089 Six Months Ended June 30, 2018 2017 Realized gains (losses) Unrealized gains (losses) Total Realized gains (losses) Unrealized gains (losses) Total $ $ $ $ $ $ Cross-currency swap agreements (3,182 ) 5,768 2,586 (5,621 ) 37,605 31,984 Cross-currency swap agreements termination — — — (25,733 ) — (25,733 ) (3,182 ) 5,768 2,586 (31,354 ) 37,605 6,251 For the periods indicated, the following table presents the effective and ineffective portions of gains or losses on interest rate swap agreements designated and qualifying as cash flow hedges. The following table excludes any interest rate swap agreements designated and qualifying as cash flow hedges in the Partnership’s equity-accounted joint ventures. Three Months Ended June 30, 2018 Three Months Ended June 30, 2017 Effective Portion Recognized in AOCI (i) $ Effective Portion Reclassified from AOCI (ii) $ Ineffective Portion (iii) $ Effective Portion Recognized in AOCI (i) $ Effective Portion Reclassified from AOCI (ii) $ Ineffective Portion (iii) $ 1,534 2 — Interest expense (1,070 ) — (747 ) Interest expense 1,534 2 — (1,070 ) — (747 ) Six Months Ended June 30, 2018 Six Months Ended June 30, 2017 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) $ 5,090 (248 ) 740 Interest expense (1,102 ) — (747 ) Interest expense 5,090 (248 ) 740 (1,102 ) — (747 ) (i) Effective portion of designated and qualifying cash flow hedges recognized in other comprehensive income (or OCI ). (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 recorded in interest expense. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 are as follows: Total Remainder of 2018 2019 2020 Consolidated LNG carrier newbuildings (i) 494,083 244,081 250,002 — Equity-accounted joint ventures (ii) 763,318 243,990 320,028 199,300 1,257,401 488,071 570,030 199,300 (i) As at June 30, 2018 , the Partnership had four LNG carrier newbuildings on order which are scheduled for delivery during 2018 and 2019. These commitment amounts are described in more detail in Note 13a of the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year-ended December 31, 2017 . The Partnership has secured $371 million of undrawn financing related to the remaining commitments for three of the four LNG carrier newbuildings included in the table above. (ii) The commitment amounts relating to the Partnership’s share of costs for newbuilding and other construction contracts in the Partnership’s equity-accounted joint ventures are based on the Partnership’s ownership percentage in each respective joint venture as of June 30, 2018 . These commitments are described in more detail in Note 13a of the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year-ended December 31, 2017 . Based on the Partnership's ownership percentage in each respective joint venture, the Partnership's equity-accounted joint ventures have secured $724 million of undrawn financing related to the Partnership's proportionate share of the remaining commitments included in the table above. b) Management is required to assess if the Partnership will have sufficient liquidity to continue as a going concern for the one-year period following the issuance of its financial statements. Over the one-year period following the issuance of these financial statements, the Partnership will need to obtain additional sources of financing, in addition to amounts generated from operations, to meet its minimum liquidity requirements under its financial covenants, to finance newbuildings for which financing commitments have not yet been obtained and to repay its debt facilities maturing during the remainder of 2018 and 2019. These anticipated sources of financing include refinancing loan facilities maturing in 2018 (see Note 16a) and 2019 as well as obtaining new debt financing for the unfinanced portion of the Partnership's vessels under construction. The Partnership anticipates making payments related to commitments to fund its wholly-owned vessels under construction of $244.1 million during the remainder of 2018 and $250.0 million during 2019 and to either repay or refinance its debt facilities of $215.5 million maturing during the remainder of 2018 and $26.5 million maturing during 2019. 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% interest in the Teekay Nakilat Joint Venture, which wholly owns a subsidiary 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 leases, 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 in 2006 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 joint venture remained obligated to the lessor for changes in tax treatment. The UK taxing authority (or HMRC ) has been challenging the use by third parties of similar lease structures in the United Kingdom 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 are 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 lessors. Under the terms of the Teekay Nakilat Joint Venture lease, the lessor is entitled to make a determination that additional rentals are due, even where a court has not made a determination on whether capital allowances are available or where discussions are otherwise ongoing with HMRC on the matter (such that additional rentals paid may be rebated in due course if the final tax position is not as determined by the lessor). On May 10, 2018, the lessor made a determination that additional rentals are due under the leases. As a result, during the six months ended June 30, 2018, the Teekay Nakilat Joint Venture recognized an additional tax indemnification guarantee liability of $53.0 million included as part of other income (expense) in the Partnership's consolidated statements of income (loss). In June 2018, the Teekay Nakilat Joint Venture partially paid the tax indemnification guarantee liability by releasing its $7.0 million deposit it had made with the lessor. As at June 30, 2018 , the Teekay Nakilat Joint Venture’s carrying amount of this estimated tax indemnification guarantee was $56.0 million or 42.3 million GBP ( December 31, 2017 – $12.7 million or 9.4 million GBP), which is included as part of accrued liabilities ( December 31, 2017 , included as part of other long-term liabilities) in the Partnership's consolidated balance sheets. The Teekay Nakilat Joint Venture is in discussions with HMRC in relation to the correct tax treatment to be applied to the leases. |
Total Capital and Net Income (L
Total Capital and Net Income (Loss) Per Unit | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Total Capital and Net (Loss) Income Per Unit | Total Capital and Net Income (Loss) Per Common Unit At June 30, 2018 , approximately 68.3% of the Partnership’s common units outstanding were held by the public. The remaining common units, as well as the 2% general partner interest, were held by a subsidiary of Teekay Corporation. All of the Partnership's 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 the Series B Preferred Units ) are held by the public. Net Income (Loss) Per Common Unit Limited partners' interest in net income (loss) per common unit is determined by dividing net income (loss), after deducting the amount of net income (loss) 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 computation of limited partners’ interest in net income per common unit - diluted assumes the exercise of all dilutive restricted units using the treasury stock method. The computation of limited partners’ interest in net loss per common unit - diluted does not assume such exercises as the effect would be anti-dilutive. The distributions payable on the Series A and Series B Preferred Units for the three and six months ended June 30, 2018 were $6.4 million and $ 12.9 million , respectively (three and six months ended June 30, 2017 were $2.8 million and $5.5 million , respectively). Three Months Ended June 30, 2018 2017 $ $ Limited partners' interest in net (loss) for basic net (loss) per common unit (3,624 ) (18,508 ) Weighted average number of common units 79,687,499 79,626,819 Dilutive effect of unit-based compensation — — Common units and common unit equivalents 79,687,499 79,626,819 Limited partner's interest in net (loss) per common unit: Basic (0.05 ) (0.23 ) Diluted (0.05 ) (0.23 ) Six Months Ended June 30, 2018 2017 $ $ Limited partners' interest in net (loss) income for basic net loss income per common unit (16,671 ) 7,212 Weighted average number of common units 79,667,384 79,608,587 Dilutive effect of unit-based compensation — 132,669 Common units and common unit equivalents 79,667,384 79,741,256 Limited partner's interest in net (loss) income per common unit: Basic (0.21 ) 0.09 Diluted (0.21 ) 0.09 The General Partner’s and common unitholders’ interests in net income (loss) are calculated as if all net income (loss) 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 (loss) is affected by non-cash items, such as depreciation and amortization, unrealized gains or losses on derivative instruments and foreign currency translation gains or losses. During the three and six months ended June 30, 2018 and 2017 , cash distributions were below $0.4625 per common unit and, consequently, the assumed distribution of net income (loss) was based on the limited partners' and General Partner’s ownership percentage for purposes of the net income (loss) per common unit calculation. For more information on the increasing percentages used to calculate the General Partner’s interest in net income (loss), please refer to the Partnership’s Annual Report on Form 20-F for the year ended December 31, 2017 . Pursuant to the partnership agreement, allocations to partners are made on a quarterly basis. |
Unit-Based Compensation
Unit-Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Unit-Based Compensation | Unit-Based Compensation In March 2018, a total of 17,498 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 2018 . The Partnership grants restricted unit awards as incentive-based compensation under the Teekay LNG Partners L.P. 2005 Long-Term Incentive Plan to certain of the Partnership’s employees and to certain employees of Teekay Corporation’s subsidiaries that provide services to the Partnership. The Partnership measures the cost of such awards using the grant date fair value of the award and recognizes that cost, net of estimated forfeitures, over the requisite service period. The requisite service period consists of the period from the grant date of the award to the earlier of the date of vesting or the date the recipient becomes eligible for retirement. For unit-based compensation awards subject to graded vesting, the Partnership calculates the value for the award as if it was one single award with one expected life and amortizes the calculated expense for the entire award on a straight-line basis over the requisite service period. The compensation costs of the Partnership’s unit-based compensation awards are reflected in general and administrative expenses in the Partnership’s consolidated statements of income (loss). During March 2018 and 2017, the Partnership granted 62,283 and 60,809 restricted units, respectively, with grant date fair values of $1.2 million and $1.0 million , respectively, to certain of the Partnership’s employees and to certain employees of Teekay Corporation’s subsidiaries who provide services to the Partnership, based on the Partnership’s closing unit price on the grant date. Each restricted unit is equal in value to one of the Partnership’s common units plus reinvested distributions from the grant date to the vesting date. The restricted units vest equally over three years from the grant date. Any portion of a restricted unit award that is not vested on the date of a recipient’s termination of service is canceled, unless their termination arises as a result of the recipient’s retirement, in which case, the restricted unit award will continue to vest in accordance with the vesting schedule. Upon vesting, the value of the restricted unit awards is paid to each recipient in the form of units, net of withholding tax. During the three and six months ended June 30, 2018 , a total of nil and 60,680 restricted units (three and six months ended June 30, 2017 – nil and 54,999 restricted units, respectively), with a fair value of $ nil and $1.0 million (three and six months ended June 30, 2017 – $ nil and $0.8 million ), vested. During the three and six months ended June 30, 2018 , the Partnership recognized expenses of $0.2 million and $0.9 million , respectively (three and six months ended June 30, 2017 – $0.1 million and $0.8 million , respectively), relating to the restricted units. |
Write-Down and Sale of Vessels
Write-Down and Sale of Vessels | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Write-Down and Sale of Vessels | Write-down and Sale of Vessel a) 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 at that time, and recorded a $12.6 million write-down of the vessel for the three and six months ended June 30, 2017 . During the six months ended June 30, 2018, the Partnership recorded a further write-down of $3.0 million to the vessel to its estimated resale value. The vessel is classified as held for sale in the Partnership's consolidated balance sheets as at June 30, 2018 and December 31, 2017 . b) 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 the charterer redelivered 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 at that time, and recorded a $12.5 million write-down of the vessel for the year-ended December 31, 2017 . During the six months ended June 30, 2018, the Partnership recorded a further write-down of $2.7 million to the vessel to its estimated resale value. The vessel is classified as held for sale in the Partnership's consolidated balance sheets as at June 30, 2018 and December 31, 2017 . c) 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 was marketing the Teide Spirit for sale and, upon sale of the vessel, it will concurrently terminate its existing charter contract with the Partnership. The charterer’s cancellation option for the Toledo Spirit is first exercisable in August 2018. On May 20, 2018, the charterer of the Toledo Spirit gave formal notification to the Partnership of its intention to terminate its charter contract as early as August 2018 subject to certain conditions being met and the receipt of certain third-party approvals. In February 2018, 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 the owner, and the full amount of the associated obligation related to capital lease was concurrently extinguished and no gain or loss was recognized during the six months ended June 30, 2018 . In addition, the Partnership recorded associated restructuring charges of $1.4 million for the six months ended June 30, 2018 in the Partnership's consolidated statements of income (loss). The remaining balance of unpaid restructuring charges of $0.7 million as at June 30, 2018 , is included in accrued liabilities in the Partnership's consolidated balance sheets. d) In March 2018, the carrying value of the Alexander Spirit conventional tanker was written down to its estimated fair value, using an appraised value, as a result of changes in the Partnership's expectations of the vessel's future opportunities once its current charter contract ends in 2019. The impairment charge of $13.0 million is included in write-down of vessels for the six months ended June 30, 2018 in the Partnership's consolidated statements of income (loss). e) In June 2018, the carrying values for four of the Partnership's seven wholly-owned Multi-gas carriers (the Napa Spirit , Pan Spirit , Camilla Spirit and Cathinka Spirit ), were written down to their estimated fair values, using appraised values, as a result of the Partnership's evaluation of alternative strategies for these assets, the current charter rate environment and the outlook for charter rates for these vessels. The total impairment charge of $33.0 million is included in write-down of vessels for the three and six months ended June 30, 2018 in the Partnership's consolidated statements of income (loss). |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following is a tabular reconciliation of the Partnership's cash, cash equivalents and restricted cash balances for the periods presented in the Partnership's consolidated statements of cash flows: June 30, 2018 December 31, 2017 June 30, 2017 December 31, 2016 $ $ $ $ Cash and cash equivalents 177,071 244,241 191,110 126,146 Restricted cash – current 53,599 22,326 5,896 10,145 Restricted cash – long-term 29,823 72,868 102,347 106,882 260,493 339,435 299,353 243,173 The Partnership maintains restricted cash deposits relating to certain term loans, collateral for cross-currency swaps (see Note 10), project tenders and amounts received from charterers to be used only for dry-docking expenditures and emergency repairs, which cash totaled $83.4 million and $95.2 million as at June 30, 2018 and December 31, 2017 , respectively. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events a) On July 6, 2018, the Partnership refinanced an outstanding $107 million Euro ( $125 million ) debt facility maturing in 2018 and secured by the Madrid Spirit LNG carrier with a new $100 million Euro ( $117 million ) debt facility maturing in 2024. b) On July 10, 2018, the Pan Union Joint Venture took delivery of its third LNG carrier newbuilding, the Pan Europe , in which the Partnership has a 20% ownership interest. The vessel concurrently commenced its 20 -year charter contract with Shell. c) On July 17, 2018, the Partnership took delivery of an LNG carrier newbuilding, the Megara , 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. d) On July 31, 2018, the Partnership’s 50% -owned Exmar LPG Joint Venture took delivery of its ninth LPG carrier newbuilding, the Wepion. In addition , the Exmar LPG Joint Venture completed a three -year, $35 million financing for the Wepion in July 2018. |
Accounting Pronouncements (Poli
Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
New accounting pronouncements | In May 2014, the Financial Accounting Standards Board (or FASB ) issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers , (or ASU 2014-09 ). ASU 2014-09 requires 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 became effective for the Partnership as of January 1, 2018, and may 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 adopted ASU 2014-09 as a cumulative-effect adjustment as of such 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 identified the following differences on adoption of ASU 2014-09: • In certain cases, the Partnership will incur pre-operational costs that relate directly to a specific customer contract, that generate or enhance resources of the Partnership that will be used in satisfying performance obligations in the future, whereby such costs are expected to be recovered via the customer contract. Such costs will be deferred and amortized over the duration of the customer contract. The Partnership previously expensed such costs as incurred unless the costs were directly reimbursable by the contract. This change had no material impact on the statement of income (loss) for the three and six months ended June 30, 2018, and increased other assets by $2.5 million , investments in and advances to equity-accounted joint ventures by $0.2 million , and total equity by $2.7 million as at June 30, 2018. The cumulative increase to opening equity as at January 1, 2018 was $2.7 million . • The Partnership previously presented all accrued revenue as a component of accounts receivable. The Partnership has determined that if the right to such consideration is conditioned upon something other than the passage of time, such accrued revenue should be presented apart from accounts receivable. This had the effect of increasing other current assets and decreasing accounts receivable by $2.0 million at June 30, 2018. There was no cumulative impact to opening equity as at January 1, 2018. In February 2016, 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. FASB issued an additional accounting standards update in July 2018 that made further amendments to accounting for leases, including allowing the use of a transition approach whereby a cumulative effect adjustment is made as of the effective date, with no retrospective effect. The Partnership is currently assessing whether it will adopt ASU 2016-02 during 2018 or on January 1, 2019. To determine the cumulative effect adjustment, the Partnership will not reassess lease classification, initial direct costs for any existing leases and whether any expired or existing contracts are or contain leases. The Partnership has identified the following differences based 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's lease classification assessment being determined 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 cumulative effect adjustment to the Partnership's consolidated financial statements from the adoption of ASU 2016-02 will vary depending on the period in which the Partnership chooses to adopt ASU 2016-02. The Partnership is expecting to disclose in its consolidated financial statements for the third quarter of 2018 the quantitative impact of adopting ASU 2016-02, once the Partnership has determined the date on which it will adopt the new standard. • 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 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 became effective for the Partnership as of January 1, 2018, with a retrospective approach required on adoption. The Partnership has elected to classify distributions received from equity method investees in the statement of cash flows based on the nature of the distribution. The adoption of this update did not have a material impact on the financial statements of the Partnership. 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 are also required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. ASU 2016-18 became effective for the Partnership as of January 1, 2018. Adoption of ASU 2016-18 resulted in the Partnership including in the consolidated statements of cash flows changes in cash, cash equivalents and restricted cash. 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 as of January 1, 2019. The Partnership is currently evaluating the effect of adopting this new guidance. 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 as of January 1, 2020, with a modified-retrospective approach required on adoption. The Partnership is currently evaluating the effect of adopting this new guidance. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments, All Other Investments [Abstract] | |
Schedule of Estimated Fair Value of Partnership's Financial Instruments on Recurring Basis | The following table includes the estimated fair value and carrying value of those assets and liabilities that are measured at fair value on a recurring and non-recurring basis, as well as the estimated fair value of the Partnership’s financial instruments that are not accounted for at fair value on a recurring basis. June 30, 2018 December 31, 2017 Fair Value Hierarchy Level Carrying Amount Asset (Liability) $ Fair Value Asset (Liability) $ Carrying Amount Asset (Liability) $ Fair Value Asset (Liability) $ Recurring: Cash and cash equivalents and restricted cash Level 1 260,493 260,493 339,435 339,435 Derivative instruments (note 10) Interest rate swap agreements – assets Level 2 6,624 6,624 878 878 Interest rate swap agreements – liabilities Level 2 (53,679 ) (53,679 ) (73,984 ) (73,984 ) Cross-currency swap agreements – assets Level 2 6,449 6,449 3,758 3,758 Cross-currency swap agreements – liabilities Level 2 (50,975 ) (50,975 ) (54,217 ) (54,217 ) Other derivative Level 3 2,330 2,330 1,648 1,648 Non-recurring: Vessels held for sale (note 14b) Level 2 — — 16,671 16,671 Vessels and equipment (note 14e) Level 2 65,209 65,209 — — Other: Advances to equity-accounted joint ventures (note 6) (i) 131,411 (i) 131,685 (i) Long-term receivable included in (ii) Level 3 1,200 1,194 3,476 3,459 Long-term debt – public (note 7) Level 1 (379,813 ) (387,671 ) (376,581 ) (384,820 ) Long-term debt – non-public (note 7) Level 2 (1,347,942 ) (1,335,443 ) (1,421,411 ) (1,391,524 ) Obligations related to capital leases Level 2 (1,206,793 ) (1,165,890 ) (1,011,549 ) (1,001,588 ) (i) The advances to equity-accounted joint ventures together with the Partnership’s equity investments in the joint ventures form the net aggregate carrying value of the Partnership’s interests in the joint ventures in these consolidated financial statements. The fair values of the individual components of such aggregate interests are not determinable. (ii) As described in Note 3 to the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year-ended December 31, 2017 , the estimated fair value of the non-interest bearing receivable from Royal Dutch Shell Plc (or Shell ) is based on the remaining future fixed payments as well as an estimated discount rate. The estimated fair value of this receivable as of June 30, 2018 was $1.2 million ( December 31, 2017 – $3.5 million ) using a discount rate of 8.0% . As there is no market rate for the equivalent of an unsecured non-interest bearing receivable from Shell, the discount rate is based on unsecured debt instruments of similar maturity held by the Partnership, adjusted for a liquidity premium. A higher or lower discount rate would result in a lower or higher fair value asset. |
Changes in Fair Value of Assets Measured on Recurring Basis Using Significant Unobservable Inputs (Level 3) | Changes in fair value during the six months ended June 30, 2018 and 2017 for the Partnership’s other derivative instrument, the Toledo Spirit time-charter derivative, which is described below and is measured at fair value on a recurring basis using significant unobservable inputs (Level 3), are as follows: Six Months Ended June 30, 2018 2017 $ $ Fair value at beginning of period 1,648 2,134 Realized and unrealized gains included in earnings 1,669 1,120 Settlement payments (987 ) (1,019 ) Fair value at end of period 2,330 2,235 |
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. June 30, 2018 December 31, 2017 Class of Financing Receivable Credit Indicator Grade $ $ Direct financing leases Payment activity Performing 490,747 495,990 Other receivables: Long-term receivable and accrued revenue included in accounts receivable and other assets Payment activity Performing 4,093 5,476 Advances to equity-accounted joint ventures (note 6) Other internal metrics Performing 131,411 131,685 626,251 633,151 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Information | The following table includes results for the Partnership’s segments for the periods presented in these financial statements. Three Months Ended June 30, 2018 2017 Liquefied Gas Segment $ Conventional Tanker Segment $ Total $ Liquefied Gas Segment $ Conventional Tanker Segment $ Total $ Voyage revenues 112,172 10,143 122,315 89,431 11,473 100,904 Voyage expenses (4,445 ) (3,506 ) (7,951 ) (602 ) (394 ) (996 ) Vessel operating expenses (30,422 ) (3,547 ) (33,969 ) (21,374 ) (4,627 ) (26,001 ) Depreciation and amortization (28,661 ) (1,133 ) (29,794 ) (23,839 ) (2,955 ) (26,794 ) General and administrative expenses (i) (6,199 ) (897 ) (7,096 ) (3,573 ) (1,069 ) (4,642 ) Write-down of vessels (33,000 ) — (33,000 ) — (12,600 ) (12,600 ) Income (loss) from vessel operations 9,445 1,060 10,505 40,043 (10,172 ) 29,871 Equity income (loss) 11,194 — 11,194 (507 ) — (507 ) Six Months Ended June 30, 2018 2017 Liquefied Gas Segment $ Conventional Tanker Segment $ Total $ Liquefied Gas Segment $ Conventional Tanker Segment $ Total $ Voyage revenues 217,221 20,400 237,621 178,378 23,706 202,084 Voyage expenses (7,253 ) (6,499 ) (13,752 ) (948 ) (1,485 ) (2,433 ) Vessel operating expenses (55,110 ) (7,326 ) (62,436 ) (40,039 ) (9,350 ) (49,389 ) Depreciation and amortization (55,882 ) (3,179 ) (59,061 ) (47,059 ) (5,855 ) (52,914 ) General and administrative expenses (i) (11,986 ) (1,681 ) (13,667 ) (6,953 ) (1,846 ) (8,799 ) Write-down of vessels (33,000 ) (18,662 ) (51,662 ) — (12,600 ) (12,600 ) Restructuring charges — (1,396 ) (1,396 ) — — — Income (loss) from vessel operations 53,990 (18,343 ) 35,647 83,379 (7,430 ) 75,949 Equity income 37,918 — 37,918 5,380 — 5,380 (i) Includes direct general and administrative expenses and indirect general and administrative expenses (allocated to each segment based on estimated use of corporate resources). |
Reconciliation of Total Segment Assets | A reconciliation of total segment assets to total assets presented in the consolidated balance sheets is as follows: June 30, 2018 December 31, 2017 $ $ Total assets of the liquefied gas segment 4,857,355 4,624,321 Total assets of the conventional tanker segment 70,782 112,844 Unallocated: Cash and cash equivalents 177,071 244,241 Accounts receivable and prepaid expenses 34,479 30,593 Advances to affiliates 8,538 7,300 Consolidated total assets 5,148,225 5,019,299 |
Vessel Charters (Tables)
Vessel Charters (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments for Capital Leases | The minimum estimated charter hire and rental payments for the remainder of the year and the next four fiscal years, as at June 30, 2018 , for the Partnership’s vessels chartered-in are as follows: Remainder of 2018 2019 2020 2021 2022 Vessel Charters (i) $ $ $ $ $ Charters-in – capital leases (ii) 87,756 119,534 118,785 117,830 117,035 (i) The Partnership owns 69% of Teekay BLT Corporation (or the Teekay Tangguh Joint Venture ), which is a party to operating leases whereby the Teekay Tangguh Joint Venture is leasing the Tangguh Hiri and Tangguh Sago LNG carriers (or the Tangguh LNG Carriers ) to a third party, which is in turn leasing the vessels back to the joint venture. The table above does not include the Partnership’s minimum charter hire payments to be paid and received under these leases, which are described in more detail in Note 5 to the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year ended December 31, 2017 . Under the terms of the leasing arrangement for the Tangguh LNG Carriers, whereby the Teekay Tangguh Joint Venture is the lessee, the lessor claims tax depreciation on its lease of these vessels. As is typical in these types of leasing arrangements, tax and change of law risks are assumed by the lessee. Lease payments under the lease arrangements are based on certain tax and financial assumptions at the commencement of the leases. If an assumption proves to be incorrect, the lessor is entitled to increase the lease payments to maintain its agreed after-tax margin. The carrying amount of tax indemnification guarantees of the Partnership relating to the leasing arrangement through the Teekay Tangguh Joint Venture as at June 30, 2018 was $6.8 million ( December 31, 2017 – $7.1 million ) and is included as part of other long-term liabilities in the Partnership’s consolidated balance sheets. The tax indemnification is for the duration of the lease contracts with the third party plus the years it would take for the lease payments to be statute barred, which will end in 2033 for the vessels. Although there is no maximum potential amount of future payments, the Teekay Tangguh Joint Venture may terminate the lease arrangement on a voluntary basis at any time. If the lease arrangement terminates, the Teekay Tangguh Joint Venture will be required to pay termination sums to the lessor sufficient to repay the lessor’s investment in the vessels and to compensate it for the tax effect of the terminations, including recapture of any tax depreciation. (ii) As at June 30, 2018 , the Partnership was a party, as lessee, to a capital lease on one Suezmax tanker, the Toledo Spirit . Under this capital lease, the owner has the option to require the Partnership to purchase the vessel. The charterer, who is also the owner, also has the option to cancel the charter contract and the cancellation option is first exercisable in August 2018. The amounts in the table above assume the owner will not exercise its option to require the Partnership to purchase the vessel from the owner, but rather assume the owner will cancel the charter contract when the cancellation right is first exercisable in August 2018 and sell the vessel to a third party, upon which, the remaining lease obligation will be extinguished. Therefore, the table above does not include any amounts after the expected cancellation date of the lease. In May 2018, the charterer of the Toledo 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. The Partnership is also a party to capital leases on seven LNG carriers, the Creole Spirit , the Oak Spirit , the Torben Spirit , the Macoma , the Murex, the Magdala and the Myrina . Upon delivery of these seven LNG carriers between February 2016 and May 2018, the Partnership sold these respective vessels to third parties (or the Lessors ) and leased them back under 10 -year bareboat charter contracts ending in 2026 through to 2028. The bareboat charter contracts are accounted for as obligations related to capital leases and have fixed-price purchase obligations at the end of the lease terms. As at June 30, 2018 , the Partnership has a sale-leaseback agreement in place for one of its LNG carrier newbuildings scheduled to deliver during the remainder of 2018, and upon delivery, the Lessor will charter the vessel back to the Partnership (see Note 16c). As at June 30, 2018 , the Partnership had received $58 million from the Lessor relating to the one LNG carrier newbuilding that was recorded in current and long-term obligations related to capital leases in the Partnership's consolidated balance sheets. The Partnership has secured a further $127 million in capital lease financing to be received during the remainder of 2018 upon delivery of the vessel (see Note 16c). 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, each 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 obligations of the Partnership under the bareboat charter contracts are guaranteed by the Partnership. In addition, the guarantee agreements require the Partnership to maintain minimum levels of tangible net worth and aggregate liquidity, and not to exceed a maximum amount of leverage. As at June 30, 2018, the Partnership was in compliance with all covenants in respect of the obligations related to capital leases. |
Disaggregation of Revenue | The following tables contain the Partnership’s revenue for the three and six months ended June 30, 2018 and 2017, by contract type and by segment. Three Months Ended June 30, 2018 2017 Liquefied Gas Segment $ Conventional Tanker Segment $ Total $ Liquefied Gas Segment $ Conventional Total Time charters 96,857 4,316 101,173 79,404 10,965 90,369 Voyage charters 6,767 5,719 12,486 — 230 230 Bareboat charters 5,734 — 5,734 7,405 — 7,405 Management fees and other income 2,814 108 2,922 2,622 278 2,900 112,172 10,143 122,315 89,431 11,473 100,904 Six Months Ended June 30, 2018 2017 Liquefied Gas Segment $ Conventional Tanker Segment $ Total $ Liquefied Gas Segment $ Conventional Total Time charters 190,316 9,714 200,030 157,918 21,697 179,615 Voyage charters 10,390 10,470 20,860 — 1,453 1,453 Bareboat charters 11,111 — 11,111 15,835 — 15,835 Management fees and other income 5,404 216 5,620 4,625 556 5,181 217,221 20,400 237,621 178,378 23,706 202,084 The following table contains the Partnership’s revenue from contracts that do not contain a lease element and the non-lease element of time-charters accounted for as direct financing leases for the three months ended June 30, 2018 and 2017. Three Months Ended Six Months Ended June 30 June 30 June 30 June 30 Non-lease revenue - related to sales type or direct financing leases 4,124 4,880 8,264 12,211 Management fees and other income 2,922 2,900 5,620 5,181 Total 7,046 7,780 13,884 17,392 |
Schedule of Capital Leased Assets | The following table lists the components of the net investments in direct financing leases: June 30, December 31, Total minimum lease payments to be received 543,569 568,710 Estimated unguaranteed residual value of leased properties 194,965 194,965 Initial direct costs 344 361 Less unearned revenue (248,131 ) (268,046 ) Total net investments in direct financing leases 490,747 495,990 Less current portion (10,453 ) (9,884 ) Net investments in direct financing leases 480,294 486,106 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt | June 30, 2018 December 31, 2017 $ $ U.S. Dollar-denominated Revolving Credit Facilities due from 2018 to 2022 110,000 254,275 U.S. Dollar-denominated Term Loans due from 2019 to 2031 1,036,515 935,286 Norwegian Kroner-denominated Bonds due from 2018 to 2021 380,491 377,856 Euro-denominated Term Loans due from 2018 to 2023 217,621 232,957 Other U.S. Dollar-denominated loan — 10,000 Total principal 1,744,627 1,810,374 Unamortized discount and debt issuance costs (16,872 ) (12,382 ) Total debt 1,727,755 1,797,992 Less current portion (372,378 ) (552,404 ) Long-term debt 1,355,377 1,245,588 |
Income Tax (Tables)
Income Tax (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Provision for Income Taxes | The components of the provision for income taxes were as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 $ $ $ $ Current (569 ) (236 ) (1,074 ) (474 ) Deferred (274 ) — (548 ) 81 Income tax expense (843 ) (236 ) (1,622 ) (393 ) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Such related party transactions were as follows for the periods indicated: Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 $ $ $ $ Voyage revenues (i) 1,439 8,564 9,418 17,555 Vessel operating expenses (5,530 ) (4,264 ) (11,387 ) (9,580 ) General and administrative expenses (ii) (3,230 ) (2,355 ) (7,329 ) (4,462 ) General and administrative expenses (iii) (210 ) — (395 ) (507 ) (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. The contract periods for the Polar Spirit and for the Arctic Spirit expired in March 2018 and April 2018, respectively. (ii) Includes commercial, strategic, advisory, business development and administrative management fees charged by Teekay Corporation and reimbursements to Teekay Corporation and the Partnership's General Partner for costs incurred on the Partnership’s behalf. (iii) Includes the Partnership's proportionate costs associated with the Bahrain LNG Joint Venture, including pre-operation, engineering and financing-related expenses, of which $0.6 million and $0.6 million was reimbursed by the Bahrain LNG Joint Venture for the three and six months ended June 30, 2018 , respectively ( $0.4 million and $0.5 million for the three and six months ended June 30, 2017, respectively). The net costs are recorded as part of investments in and advances to equity-accounted joint ventures in the Partnership's consolidated balance sheets. |
Derivative Instruments and He33
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 . Floating Rate Receivable Principal Amount NOK (in thousands) Principal Amount $ Reference Rate Margin Fixed Rate Payable Fair Value / Carrying Amount of Asset (Liability) $ Weighted- Average Remaining Term (Years) 900,000 150,000 NIBOR 4.35 % 6.43 % (40,214 ) 0.2 1,000,000 134,000 NIBOR 3.70 % 5.92 % (10,761 ) 1.9 1,200,000 146,500 NIBOR 6.00 % 7.72 % 6,449 3.3 (44,526 ) |
Interest Rate Swap Agreements | As at June 30, 2018 , the Partnership was committed to the following interest rate swap agreements: Interest Rate Index Principal Amount $ Fair Value / Carrying Amount of Asset (Liability) $ Weighted- Average Remaining Term (years) Fixed Interest Rate (i) LIBOR-Based Debt: U.S. Dollar-denominated interest rate swaps LIBOR 60,000 (1,104 ) 0.6 4.9 U.S. Dollar-denominated interest rate swaps (ii) LIBOR 137,500 (16,656 ) 10.5 5.2 U.S. Dollar-denominated interest rate swaps (ii) LIBOR 37,490 (109 ) 3.1 2.8 U.S. Dollar-denominated interest rate swaps (iii) (iv) LIBOR 345,878 (9,703 ) 2.6 3.4 U.S. Dollar-denominated interest rate swaps (iv) LIBOR 95,333 513 0.5 1.7 U.S. Dollar-denominated interest rate swaps (iv) LIBOR 189,506 6,111 8.5 2.3 EURIBOR-Based Debt: Euro-denominated interest rate swaps (v) EURIBOR 217,621 (26,107 ) 2.4 3.1 (47,055 ) (i) Excludes the margins the Partnership pays on its floating-rate term loans, which, at June 30, 2018 , ranged from 0.30% to 3.25% . (ii) Principal amount reduces semi-annually. (iii) These interest rate swaps are subject to mandatory early termination in 2020 and 2021 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 ( $81.9 million ) by the maturity dates of the swap agreements. Certain of these Euro-denominated 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. Certain of these interest rate swaps were terminated in July 2018. |
Location and Fair Value Amounts of Derivative Instruments | The following table presents the classification and fair value amounts of derivative instruments, segregated by type of contract, on the Partnership’s consolidated balance sheets. Accounts receivable/Advances to affiliates $ Current portion of derivative assets $ Derivative assets $ Accrued liabilities $ Current portion of derivative liabilities $ Derivative liabilities $ As at June 30, 2018 Interest rate swap agreements 156 874 5,666 (3,456 ) (22,045 ) (28,250 ) Cross-currency swap agreements — — 7,212 (645 ) (42,284 ) (8,809 ) Toledo Spirit time-charter derivative 150 2,180 — — — — 306 3,054 12,878 (4,101 ) (64,329 ) (37,059 ) 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 (4,911 ) (79,139 ) (45,797 ) |
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 (loss) is as follows: Three Months Ended June 30, 2018 2017 Realized gains (losses) Unrealized gains (losses) Total Realized gains (losses) Unrealized gains (losses) Total $ $ $ $ $ $ Cross-currency swap agreements (1,798 ) (16,566 ) (18,364 ) (2,084 ) 34,906 32,822 Cross-currency swap agreements termination — — — (25,733 ) — (25,733 ) (1,798 ) (16,566 ) (18,364 ) (27,817 ) 34,906 7,089 Six Months Ended June 30, 2018 2017 Realized gains (losses) Unrealized gains (losses) Total Realized gains (losses) Unrealized gains (losses) Total $ $ $ $ $ $ Cross-currency swap agreements (3,182 ) 5,768 2,586 (5,621 ) 37,605 31,984 Cross-currency swap agreements termination — — — (25,733 ) — (25,733 ) (3,182 ) 5,768 2,586 (31,354 ) 37,605 6,251 The effect of the gain (loss) on these derivatives on the Partnership’s consolidated statements of income (loss) is as follows: Three Months Ended June 30, 2018 2017 Realized gains (losses) Unrealized gains (losses) Total Realized gains (losses) Unrealized gains (losses) Total $ $ $ $ $ $ Interest rate swap agreements (4,310 ) 7,522 3,212 (4,610 ) (1,866 ) (6,476 ) Interest rate swaption agreements — — — — 112 112 Interest rate swaption agreements termination — — — (1,005 ) — (1,005 ) Toledo Spirit time-charter derivative 150 940 1,090 (135 ) 120 (15 ) (4,160 ) 8,462 4,302 (5,750 ) (1,634 ) (7,384 ) Six Months Ended June 30, 2018 2017 Realized gains (losses) Unrealized gains (losses) Total Realized gains (losses) Unrealized gains (losses) Total $ $ $ $ $ $ Interest rate swap agreements (8,788 ) 19,420 10,632 (9,285 ) 2,436 (6,849 ) Interest rate swaption agreements — 2 2 — 142 142 Interest rate swaption agreements termination — — — (610 ) — (610 ) Toledo Spirit time-charter derivative 459 1,210 1,669 (120 ) 1,240 1,120 (8,329 ) 20,632 12,303 (10,015 ) 3,818 (6,197 ) |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The following table excludes any interest rate swap agreements designated and qualifying as cash flow hedges in the Partnership’s equity-accounted joint ventures. Three Months Ended June 30, 2018 Three Months Ended June 30, 2017 Effective Portion Recognized in AOCI (i) $ Effective Portion Reclassified from AOCI (ii) $ Ineffective Portion (iii) $ Effective Portion Recognized in AOCI (i) $ Effective Portion Reclassified from AOCI (ii) $ Ineffective Portion (iii) $ 1,534 2 — Interest expense (1,070 ) — (747 ) Interest expense 1,534 2 — (1,070 ) — (747 ) Six Months Ended June 30, 2018 Six Months Ended June 30, 2017 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) $ 5,090 (248 ) 740 Interest expense (1,102 ) — (747 ) Interest expense 5,090 (248 ) 740 (1,102 ) — (747 ) (i) Effective portion of designated and qualifying cash flow hedges recognized in other comprehensive income (or OCI ). (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 recorded in interest expense. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Unrecorded Unconditional Purchase Obligations Disclosure | The Partnership’s share of commitments to fund newbuilding and other construction contract costs as at June 30, 2018 are as follows: Total Remainder of 2018 2019 2020 Consolidated LNG carrier newbuildings (i) 494,083 244,081 250,002 — Equity-accounted joint ventures (ii) 763,318 243,990 320,028 199,300 1,257,401 488,071 570,030 199,300 (i) As at June 30, 2018 , the Partnership had four LNG carrier newbuildings on order which are scheduled for delivery during 2018 and 2019. These commitment amounts are described in more detail in Note 13a of the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year-ended December 31, 2017 . The Partnership has secured $371 million of undrawn financing related to the remaining commitments for three of the four LNG carrier newbuildings included in the table above. (ii) The commitment amounts relating to the Partnership’s share of costs for newbuilding and other construction contracts in the Partnership’s equity-accounted joint ventures are based on the Partnership’s ownership percentage in each respective joint venture as of June 30, 2018 . These commitments are described in more detail in Note 13a of the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year-ended December 31, 2017 . Based on the Partnership's ownership percentage in each respective joint venture, the Partnership's equity-accounted joint ventures have secured $724 million of undrawn financing related to the Partnership's proportionate share of the remaining commitments included in the table above. |
Total Capital and Net Income 35
Total Capital and Net Income (Loss) Per Unit Tables (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended June 30, 2018 2017 $ $ Limited partners' interest in net (loss) for basic net (loss) per common unit (3,624 ) (18,508 ) Weighted average number of common units 79,687,499 79,626,819 Dilutive effect of unit-based compensation — — Common units and common unit equivalents 79,687,499 79,626,819 Limited partner's interest in net (loss) per common unit: Basic (0.05 ) (0.23 ) Diluted (0.05 ) (0.23 ) Six Months Ended June 30, 2018 2017 $ $ Limited partners' interest in net (loss) income for basic net loss income per common unit (16,671 ) 7,212 Weighted average number of common units 79,667,384 79,608,587 Dilutive effect of unit-based compensation — 132,669 Common units and common unit equivalents 79,667,384 79,741,256 Limited partner's interest in net (loss) income per common unit: Basic (0.21 ) 0.09 Diluted (0.21 ) 0.09 |
Supplemental Cash Flow Inform36
Supplemental Cash Flow Information Schedule (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The following is a tabular reconciliation of the Partnership's cash, cash equivalents and restricted cash balances for the periods presented in the Partnership's consolidated statements of cash flows: June 30, 2018 December 31, 2017 June 30, 2017 December 31, 2016 $ $ $ $ Cash and cash equivalents 177,071 244,241 191,110 126,146 Restricted cash – current 53,599 22,326 5,896 10,145 Restricted cash – long-term 29,823 72,868 102,347 106,882 260,493 339,435 299,353 243,173 |
Basis of Presentation Narrative
Basis of Presentation Narrative (Details) - Restatement Adjustment [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Decrease in investing cash flow | $ 297 |
Increase in financing cash flow | $ 297 |
Accounting Pronouncements Narra
Accounting Pronouncements Narrative (Details) - Accounting Standards Update 2014-09 [Member] - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jan. 01, 2018 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Increase (decrease) in other assets | $ 2,500,000 | |
Increase in investments in equity accounted joint ventures | 200,000 | |
Equity, period increase (decrease) | 2,700,000 | |
Cumulative effect of new accounting principle in period of adoption | $ 2,700,000 | |
Increase (decrease) in accounts receivable | $ 2,000,000 | |
Accounts Receivable [Member] | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Cumulative effect of new accounting principle in period of adoption | $ 0 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Estimated Fair Value of Partnership's Financial Instruments on Recurring Basis (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents and restricted cash | $ 260,493 | $ 339,435 | $ 299,353 | $ 243,173 |
Vessels held for sale (note 14b) | 29,911 | 33,671 | ||
Long-term debt | $ (1,727,755) | (1,797,992) | ||
Shipbuilding supervision and crew training services | Shell | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Discount rate over remaining duration of contract | 8.00% | |||
Carrying Amount Asset (Liability) | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Advances to equity-accounted joint ventures (note 6) | $ 131,411 | 131,685 | ||
Carrying Amount Asset (Liability) | Level 1 | Public | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term debt | (379,813) | (376,581) | ||
Carrying Amount Asset (Liability) | Level 1 | Recurring | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents and restricted cash | 260,493 | 339,435 | ||
Carrying Amount Asset (Liability) | Level 2 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Obligations related to capital leases | (1,206,793) | (1,011,549) | ||
Carrying Amount Asset (Liability) | Level 2 | Non-public | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term debt | (1,347,942) | (1,421,411) | ||
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 | 6,624 | 878 | ||
Interest rate swap agreements – liabilities | (53,679) | (73,984) | ||
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 | 6,449 | 3,758 | ||
Cross-currency swap agreements – liabilities | (50,975) | (54,217) | ||
Carrying Amount Asset (Liability) | Level 2 | Nonrecurring | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Vessels held for sale (note 14b) | 0 | 16,671 | ||
Vessels and equipment (note 14e) | 65,209 | 0 | ||
Carrying Amount Asset (Liability) | Level 3 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term receivable included in accounts receivable and other assets (ii) | 1,200 | 3,476 | ||
Carrying Amount Asset (Liability) | Level 3 | Recurring | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Other derivative | 2,330 | 1,648 | ||
Fair Value Asset (Liability) | Level 1 | Public | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term debt | (387,671) | (384,820) | ||
Fair Value Asset (Liability) | Level 1 | Recurring | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents and restricted cash | 260,493 | 339,435 | ||
Fair Value Asset (Liability) | Level 2 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Obligations related to capital leases | (1,165,890) | (1,001,588) | ||
Fair Value Asset (Liability) | Level 2 | Non-public | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term debt | (1,335,443) | (1,391,524) | ||
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 | 6,624 | 878 | ||
Interest rate swap agreements – liabilities | (53,679) | (73,984) | ||
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 | 6,449 | 3,758 | ||
Cross-currency swap agreements – liabilities | (50,975) | (54,217) | ||
Fair Value Asset (Liability) | Level 2 | Nonrecurring | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Vessels held for sale (note 14b) | 0 | 16,671 | ||
Vessels and equipment (note 14e) | 65,209 | 0 | ||
Fair Value Asset (Liability) | Level 3 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term receivable included in accounts receivable and other assets (ii) | 1,194 | 3,459 | ||
Fair Value Asset (Liability) | Level 3 | Shipbuilding supervision and crew training services | Shell | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term receivable included in accounts receivable and other assets (ii) | 1,200 | 3,500 | ||
Fair Value Asset (Liability) | Level 3 | Recurring | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Other derivative | $ 2,330 | $ 1,648 |
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 | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Assets Measured on Recurring Basis | ||
Fair value at beginning of period | $ 1,648 | $ 2,134 |
Realized and unrealized gains included in earnings | 1,669 | 1,120 |
Settlement payments | (987) | (1,019) |
Fair value at end of period | $ 2,330 | $ 2,235 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) - Toledo Spirit time-charter derivative - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Average daily tanker rate over remaining duration of charter contract | $ 16 | $ 18 |
Discount rate over remaining duration of contract | 9.30% | 8.40% |
Financial Instruments - Summary
Financial Instruments - Summary of Partnership's Loan Receivables and Other Financing Receivables (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Direct financing leases | $ 490,747 | $ 495,990 |
Other receivables: | ||
Total loans receivables and other financing receivables | 626,251 | 633,151 |
Payment activity | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Direct financing leases | 490,747 | 495,990 |
Other receivables: | ||
Long-term receivable and accrued revenue included in accounts receivable and other assets | 4,093 | 5,476 |
Other internal metrics | Performing | ||
Other receivables: | ||
Advances to equity-accounted joint ventures (note 6) | $ 131,411 | $ 131,685 |
Segment Reporting - Segment Rep
Segment Reporting - Segment Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Voyage revenues | $ 122,315 | $ 100,904 | $ 237,621 | $ 202,084 |
Voyage expenses | (7,951) | (996) | (13,752) | (2,433) |
Vessel operating expenses | (33,969) | (26,001) | (62,436) | (49,389) |
Depreciation and amortization | (29,794) | (26,794) | (59,061) | (52,914) |
General and administrative expenses | (7,096) | (4,642) | (13,667) | (8,799) |
Write-down and loss on sales of vessels | (33,000) | (12,600) | (51,662) | (12,600) |
Restructuring charges | 0 | 0 | (1,396) | 0 |
Income (loss) from vessel operations | 10,505 | 29,871 | 35,647 | 75,949 |
Equity income (loss) | 11,194 | (507) | 37,918 | 5,380 |
Operating Segments | Liquefied Gas Segment | ||||
Segment Reporting Information [Line Items] | ||||
Voyage revenues | 112,172 | 89,431 | 217,221 | 178,378 |
Voyage expenses | (4,445) | (602) | (7,253) | (948) |
Vessel operating expenses | (30,422) | (21,374) | (55,110) | (40,039) |
Depreciation and amortization | (28,661) | (23,839) | (55,882) | (47,059) |
General and administrative expenses | (6,199) | (3,573) | (11,986) | (6,953) |
Write-down and loss on sales of vessels | (33,000) | 0 | (33,000) | 0 |
Restructuring charges | 0 | 0 | ||
Income (loss) from vessel operations | 9,445 | 40,043 | 53,990 | 83,379 |
Equity income (loss) | 11,194 | (507) | 37,918 | 5,380 |
Operating Segments | Conventional Tanker Segment | ||||
Segment Reporting Information [Line Items] | ||||
Voyage revenues | 10,143 | 11,473 | 20,400 | 23,706 |
Voyage expenses | (3,506) | (394) | (6,499) | (1,485) |
Vessel operating expenses | (3,547) | (4,627) | (7,326) | (9,350) |
Depreciation and amortization | (1,133) | (2,955) | (3,179) | (5,855) |
General and administrative expenses | (897) | (1,069) | (1,681) | (1,846) |
Write-down and loss on sales of vessels | 0 | (12,600) | (18,662) | (12,600) |
Restructuring charges | (1,396) | 0 | ||
Income (loss) from vessel operations | 1,060 | (10,172) | (18,343) | (7,430) |
Equity income (loss) | $ 0 | $ 0 | $ 0 | $ 0 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Total Segment Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||||
Total assets | $ 5,148,225 | $ 5,019,299 | ||
Unallocated: | ||||
Cash and cash equivalents | 177,071 | 244,241 | $ 191,110 | $ 126,146 |
Advances to affiliates | 8,538 | 7,300 | ||
Operating Segments | Liquefied Gas Segment | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 4,857,355 | 4,624,321 | ||
Operating Segments | Conventional Tanker Segment | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 70,782 | 112,844 | ||
Unallocated | ||||
Unallocated: | ||||
Cash and cash equivalents | 177,071 | 244,241 | ||
Accounts receivable and prepaid expenses | 34,479 | 30,593 | ||
Advances to affiliates | $ 8,538 | $ 7,300 |
Vessel Charters - Minimum Estim
Vessel Charters - Minimum Estimated Charter Hire Payments (Details) $ in Thousands | 6 Months Ended | 28 Months Ended | |
Jun. 30, 2018USD ($)vessel | May 31, 2018 | Dec. 31, 2017USD ($) | |
Other Commitments [Line Items] | |||
Remainder of 2018 | $ 87,756 | ||
2,019 | 119,534 | ||
2,020 | 118,785 | ||
2,021 | 117,830 | ||
2,022 | 117,035 | ||
Sale Leaseback Transaction, Term Of Contract | 10 years | ||
Sale Leaseback Transaction, Net Book Value | $ 127,000 | ||
Teekay Tangguh Joint Venture | |||
Other Commitments [Line Items] | |||
Percentage of ownership interest | 69.00% | ||
Teekay Tangguh Joint Venture | |||
Other Commitments [Line Items] | |||
Guarantor Obligations, Current Carrying Value | $ 6,800 | $ 7,100 | |
Suezmax Tankers [Member] | |||
Other Commitments [Line Items] | |||
Number of capital leased assets | vessel | 1 | ||
LNG Carriers | |||
Other Commitments [Line Items] | |||
Number of capital leased assets | vessel | 7 | ||
Number of vessels with secured financing | vessel | 1 | ||
Capital Lease Obligations | $ 58,000 |
Vessel Charters Vessel Charters
Vessel Charters Vessel Charters - Revenue - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Contract with customer, liability, advance payments | $ 21.5 | $ 22.2 |
Minimum | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Percentage of ownership in joint venture by noncontrolling owners | 20.00% | |
Charter contract extension, period | 3 years | |
Maximum | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Percentage of ownership in joint venture by noncontrolling owners | 30.00% | |
Charter contract extension, period | 15 years | |
National Oil and Gas Authority | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Percentage of ownership in joint venture by noncontrolling owners | 30.00% | |
Gulf Investment Corporation | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Percentage of ownership in joint venture by noncontrolling owners | 24.00% | |
Samsung C&T | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Percentage of ownership in joint venture by noncontrolling owners | 16.00% |
Vessel Charters Vessel Charte47
Vessel Charters Vessel Charters - Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Voyage revenues | $ 122,315 | $ 100,904 | $ 237,621 | $ 202,084 |
Conventional Tanker Segment | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Voyage revenues | 10,143 | 11,473 | 20,400 | 23,706 |
Liquefied Gas Segment | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Voyage revenues | 112,172 | 89,431 | 217,221 | 178,378 |
Time charters | ||||
Segment Reporting Information [Line Items] | ||||
Voyage revenues | 101,173 | 90,369 | 200,030 | 179,615 |
Time charters | Conventional Tanker Segment | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Voyage revenues | 4,316 | 10,965 | 9,714 | 21,697 |
Time charters | Liquefied Gas Segment | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Voyage revenues | 96,857 | 79,404 | 190,316 | 157,918 |
Voyage charters | ||||
Segment Reporting Information [Line Items] | ||||
Voyage revenues | 12,486 | 230 | 20,860 | 1,453 |
Voyage charters | Conventional Tanker Segment | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Voyage revenues | 5,719 | 230 | 10,470 | 1,453 |
Voyage charters | Liquefied Gas Segment | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Voyage revenues | 6,767 | 0 | 10,390 | 0 |
Bareboat charters | ||||
Segment Reporting Information [Line Items] | ||||
Voyage revenues | 5,734 | 7,405 | 11,111 | 15,835 |
Bareboat charters | Conventional Tanker Segment | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Voyage revenues | 0 | 0 | 0 | 0 |
Bareboat charters | Liquefied Gas Segment | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Voyage revenues | 5,734 | 7,405 | 11,111 | 15,835 |
Management fees and other | ||||
Segment Reporting Information [Line Items] | ||||
Voyage revenues | 2,922 | 2,900 | 5,620 | 5,181 |
Management fees and other | Conventional Tanker Segment | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Voyage revenues | 108 | 278 | 216 | 556 |
Management fees and other | Liquefied Gas Segment | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Voyage revenues | 2,814 | 2,622 | 5,404 | 4,625 |
Non-lease revenue | ||||
Segment Reporting Information [Line Items] | ||||
Voyage revenues | 4,124 | 4,880 | 8,264 | 12,211 |
Non-lease | ||||
Segment Reporting Information [Line Items] | ||||
Voyage revenues | $ 7,046 | $ 7,780 | $ 13,884 | $ 17,392 |
Vessel Charters Vessel Charte48
Vessel Charters Vessel Charters - Net Investments in Direct Financing Leases (Details) | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018USD ($) | Dec. 31, 2013vesselm³ | Dec. 31, 2019USD ($) | Aug. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2017vessel | |
Capital Leased Assets [Line Items] | ||||||
Total minimum lease payments to be received | $ 543,569,000 | $ 568,710,000 | ||||
Estimated unguaranteed residual value of leased properties | 194,965,000 | 194,965,000 | ||||
Initial direct costs | 344,000 | 361,000 | ||||
Less unearned revenue | (248,131,000) | (268,046,000) | ||||
Total net investments in direct financing leases | 490,747,000 | 495,990,000 | ||||
Less current portion | (10,453,000) | (9,884,000) | ||||
Net investments in direct financing leases | $ 480,294,000 | $ 486,106,000 | ||||
Teekay Tangguh Joint Venture | ||||||
Capital Leased Assets [Line Items] | ||||||
Lessor, direct financing lease, term of contract | 20 years | |||||
Capital leases, future minimum payments receivable, next twelve months | $ 19,600,000 | |||||
Capital leases, future minimum payments, receivable in two years | 39,100,000 | |||||
Capital leases, future minimum payments, receivable in three years | 39,100,000 | |||||
Capital leases, future minimum payments, receivable in four years | 39,100,000 | |||||
Capital leases, future minimum payments, receivable in five years | 39,100,000 | |||||
Capital leases, future minimum payments, receivable thereafter | 235,700,000 | |||||
Awilco Lng Carrier | ||||||
Capital Leased Assets [Line Items] | ||||||
Number of vessels | vessel | 2 | |||||
Volume of vessels | m³ | 155,900 | |||||
Additional time period for fixed rate time charters contract | 1 year | |||||
Property subject to or available for operating lease, number of units reclassified | vessel | 1 | |||||
Capital leases, future minimum payments receivable, next twelve months | $ 1,000,000 | |||||
Vessel One | Awilco Lng Carrier | ||||||
Capital Leased Assets [Line Items] | ||||||
Operating lease arrangement period, lessor | 5 years | |||||
Vessel Two | Awilco Lng Carrier | ||||||
Capital Leased Assets [Line Items] | ||||||
Operating lease arrangement period, lessor | 4 years | |||||
Forecast | Awilco Lng Carrier | ||||||
Capital Leased Assets [Line Items] | ||||||
Net investments in direct financing leases | $ 131,000,000 | |||||
Minimum | Forecast | Awilco Lng Carrier | ||||||
Capital Leased Assets [Line Items] | ||||||
Deferred rent receivables, net | $ 10,600 | |||||
Maximum | Forecast | Awilco Lng Carrier | ||||||
Capital Leased Assets [Line Items] | ||||||
Deferred rent receivables, net | $ 20,600 |
Vessel Charters Vessel Charte49
Vessel Charters Vessel Charters - Operating leases (Details) - Property Available for Operating Lease - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Property Subject to or Available for Operating Lease [Line Items] | ||
Operating leases, future minimum payments receivable, remainder of fiscal year | $ 216.3 | |
Operating leases, future minimum payments receivable, in two years | 383.4 | |
Operating leases, future minimum payments receivable, in three years | 350 | |
Operating leases, future minimum payments receivable, in four years | 310.4 | |
Operating leases, future minimum payments receivable, in five years | 281.1 | |
Operating leases, future minimum payments receivable, thereafter | 676.3 | |
Property subject to or available for operating lease, gross | 3,300 | $ 2,900 |
Property subject to or available for operating lease, net | 2,600 | 2,200 |
Property Subject to or Available for Operating Lease, Accumulated Depreciation | $ 680.5 | $ 646.2 |
Vessel Charters Vessel Charte50
Vessel Charters Vessel Charters - Contract costs (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($) | |
Capitalized Contract Cost [Line Items] | ||
Capitalized contract cost, amortization | $ 0.2 | $ 0.4 |
Other Noncurrent Assets | ||
Capitalized Contract Cost [Line Items] | ||
Capitalized contract cost | $ 2.5 | $ 2.5 |
Equity-Accounted Investments (D
Equity-Accounted Investments (Details) - USD ($) | Jan. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Exmar LPG BVBA | |||
Investments in and Advances to Affiliates [Line Items] | |||
Percentage of ownership in joint venture | 50.00% | ||
Advances to equity accounted joint venture partner | $ 52,300,000 | $ 52,300,000 | |
Interest receivable on advances to equity accounted joint ventures | $ 0 | 200,000 | |
Exmar LPG BVBA | LIBOR | |||
Investments in and Advances to Affiliates [Line Items] | |||
Variable interest rate on debt | 0.50% | ||
Exmar LPG BVBA | Exmar | |||
Investments in and Advances to Affiliates [Line Items] | |||
Percentage of ownership in joint venture | 50.00% | ||
Bahrain LNG Joint Venture | |||
Investments in and Advances to Affiliates [Line Items] | |||
Advances to equity accounted joint venture partner | $ 79,100,000 | 79,100,000 | |
Interest receivable on advances to equity accounted joint ventures | 0 | $ 100,000 | |
Excelsior Joint Venture [Member] | |||
Investments in and Advances to Affiliates [Line Items] | |||
Percentage of ownership in joint venture | 50.00% | ||
Proceeds from sale of equity-accounted joint venture (note 6c) | $ 54,000,000 | ||
Gain (loss) on sale of equity investments | $ 5,600,000 |
Long-Term Debt - Components of
Long-Term Debt - Components of Long-Term Debt (Details) $ in Thousands, € in Millions | Jun. 30, 2018USD ($) | Jun. 30, 2018EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) |
Debt Instrument [Line Items] | ||||
Total principal | $ 1,744,627 | $ 1,810,374 | ||
Unamortized discount and debt issuance costs | (16,872) | (12,382) | ||
Total debt | 1,727,755 | 1,797,992 | ||
Less current portion | (372,378) | (552,404) | ||
Long-term debt | 1,355,377 | 1,245,588 | ||
U.S. Dollar-denominated Revolving Credit Facilities due from 2018 to 2022 | ||||
Debt Instrument [Line Items] | ||||
Total principal | 110,000 | 254,275 | ||
U.S. Dollar-denominated Term Loans due from 2019 to 2031 | ||||
Debt Instrument [Line Items] | ||||
Total principal | 1,036,515 | 935,286 | ||
Norwegian Kroner-denominated Bonds due from 2018 to 2021 | ||||
Debt Instrument [Line Items] | ||||
Total principal | 380,491 | 377,856 | ||
Euro-denominated Term Loans due from 2018 to 2023 | ||||
Debt Instrument [Line Items] | ||||
Total principal | 217,621 | € 186.2 | 232,957 | € 194.1 |
Other U.S. Dollar-denominated loan | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 0 | $ 10,000 |
Long-Term Debt - Revolvers - Ad
Long-Term Debt - Revolvers - Additional Information (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2018USD ($)subsidiaryterm_loancredit_facilityvessel | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | ||
Number of term loans | term_loan | 8 | |
Line of credit facility, borrowing capacity, reduction in year two | $ 131.5 | |
Line of credit facility, borrowing capacity, reduction in year three | 400.5 | |
Line of credit facility, borrowing capacity, reduction in year four | 405.5 | |
Line of credit facility, borrowing capacity, reduction in year five | $ 76.7 | |
Number of subsidiaries | subsidiary | 2 | |
Minimum | ||
Debt Instrument [Line Items] | ||
Variable interest rate on debt | 0.30% | |
Maximum | ||
Debt Instrument [Line Items] | ||
Variable interest rate on debt | 3.25% | |
Balloon or Bullet Repayments Due at Maturity [Member] | ||
Debt Instrument [Line Items] | ||
Number of term loans | term_loan | 7 | |
Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Number of credit facilities | credit_facility | 1 | |
First-priority Mortgages | ||
Debt Instrument [Line Items] | ||
Number of vessels | vessel | 2 | |
Revolving Credit Facilities | ||
Debt Instrument [Line Items] | ||
Number of credit facilities | credit_facility | 2 | |
Line of credit facility, borrowing capacity, reduction for remainder of year | $ 200.9 | |
Line of credit facility, borrowing capacity, reduction in year two | 22.4 | |
Line of credit facility, borrowing capacity, reduction in year three | 23.4 | |
Line of credit facility, borrowing capacity, reduction in year four | 24.4 | |
Line of credit facility, borrowing capacity, reduction in year five | $ 105.4 | |
Revolving Credit Facilities | Line of Credit | ||
Debt Instrument [Line Items] | ||
Number of credit facilities | credit_facility | 1 | |
Revolving Credit Facilities | Line of Credit | ||
Debt Instrument [Line Items] | ||
Number of credit facilities | credit_facility | 1 | |
Line of credit facility, maximum borrowing capacity | $ 376.5 | $ 443.7 |
Undrawn amount of revolving credit facilities | $ 266.5 | $ 189.4 |
Revolving Credit Facilities | Line of Credit | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Variable interest rate on debt | 1.25% | |
Revolving Credit Facilities | Line of Credit | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Variable interest rate on debt | 2.25% |
Long-Term Debt - USD Term Loans
Long-Term Debt - USD Term Loans - Additional Information (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018USD ($)term_loanvessel | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | ||
Number of term loans | term_loan | 8 | |
Aggregate principal amount | $ | $ 1,744,627 | $ 1,810,374 |
Teekay Nakilat Corporation | ||
Debt Instrument [Line Items] | ||
Percentage of ownership interest | 70.00% | |
Minimum | ||
Debt Instrument [Line Items] | ||
Variable interest rate on debt | 0.30% | |
Maximum | ||
Debt Instrument [Line Items] | ||
Variable interest rate on debt | 3.25% | |
Long-term Debt | ||
Debt Instrument [Line Items] | ||
Number of vessels | vessel | 20 | |
Aggregate principal amount | $ | $ 1,036,515 | $ 935,286 |
Long-term Debt | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Variable interest rate on debt | 0.30% | |
Long-term Debt | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Variable interest rate on debt | 3.25% | |
Balloon or Bullet Repayments Due at Maturity [Member] | ||
Debt Instrument [Line Items] | ||
Number of term loans | term_loan | 7 |
Long-Term Debt - NOK Bonds - Ad
Long-Term Debt - NOK Bonds - Additional Information (Details) $ in Thousands, kr in Billions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018NOK (kr) | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | ||||||
Carrying amount of debt | $ 1,744,627 | $ 1,744,627 | $ 1,810,374 | |||
Foreign exchange gains (losses) | 8,443 | $ (15,825) | $ 7,170 | $ (19,393) | ||
Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Variable interest rate on debt | 0.30% | |||||
Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Variable interest rate on debt | 3.25% | |||||
Bonds | ||||||
Debt Instrument [Line Items] | ||||||
Senior unsecured bonds issued | kr | kr 3.1 | |||||
Carrying amount of debt | 380,491 | $ 380,491 | $ 377,856 | |||
Bonds | Foreign Exchange Contract | ||||||
Debt Instrument [Line Items] | ||||||
Transfer of principal amount | $ 430,500 | $ 430,500 | ||||
Bonds | Minimum | Foreign Exchange Contract | ||||||
Debt Instrument [Line Items] | ||||||
Fixed interest rate | 5.92% | 5.92% | 5.92% | |||
Bonds | Maximum | Foreign Exchange Contract | ||||||
Debt Instrument [Line Items] | ||||||
Fixed interest rate | 7.72% | 7.72% | 7.72% | |||
Bonds | NIBOR | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Variable interest rate on debt | 3.70% | |||||
Bonds | NIBOR | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Variable interest rate on debt | 6.00% |
Long-Term Debt - Euro-denominat
Long-Term Debt - Euro-denominated Term Loans- Additional Information (Details) $ in Thousands, € in Millions | 6 Months Ended | |||
Jun. 30, 2018USD ($)subsidiaryterm_loancredit_facilityvessel | Jun. 30, 2018EUR (€)term_loancredit_facility | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | |
Debt Instrument [Line Items] | ||||
Number of loan facilities | term_loan | 8 | 8 | ||
Carrying amount of debt | $ | $ 1,744,627 | $ 1,810,374 | ||
Number of subsidiaries that guaranteed the term loans | 2 | |||
Minimum | ||||
Debt Instrument [Line Items] | ||||
Variable interest rate on debt | 0.30% | |||
Maximum | ||||
Debt Instrument [Line Items] | ||||
Variable interest rate on debt | 3.25% | |||
Euro-denominated Term Loans | ||||
Debt Instrument [Line Items] | ||||
Number of loan facilities | credit_facility | 2 | 2 | ||
Carrying amount of debt | $ 217,621 | € 186.2 | $ 232,957 | € 194.1 |
Number of vessels | vessel | 2 | |||
Number of subsidiaries that guaranteed the term loans | 1 | |||
Euro-denominated Term Loans | EURIBOR | Minimum | ||||
Debt Instrument [Line Items] | ||||
Variable interest rate on debt | 0.60% | |||
Euro-denominated Term Loans | EURIBOR | Maximum | ||||
Debt Instrument [Line Items] | ||||
Variable interest rate on debt | 2.25% |
Long-Term Debt - Other - Additi
Long-Term Debt - Other - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($)term_loancredit_facility | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)term_loancredit_facility | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | |||||
Weighted-average interest rate for the Partnership's long-term debt outstanding | 4.11% | 4.11% | 3.34% | ||
Foreign exchange gains (losses) | $ 8,443 | $ (15,825) | $ 7,170 | $ (19,393) | |
Aggregate annual long-term debt principal repayments, remainder of 2018 | 309,100 | 309,100 | |||
Line of credit facility, borrowing capacity, reduction in year two | 131,500 | 131,500 | |||
Line of credit facility, borrowing capacity, reduction in year three | 400,500 | 400,500 | |||
Line of credit facility, borrowing capacity, reduction in year four | 405,500 | 405,500 | |||
Line of credit facility, borrowing capacity, reduction in year five | 76,700 | 76,700 | |||
Aggregate annual long-term debt principal repayments, thereafter | $ 421,300 | $ 421,300 | |||
Number of loan facilities | term_loan | 8 | 8 | |||
Long-term debt | $ 1,727,755 | $ 1,727,755 | $ 1,797,992 | ||
Minimum | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate on debt | 0.30% | ||||
Minimum | Vessel | |||||
Debt Instrument [Line Items] | |||||
Percentage of vessel value to outstanding loan Principal balance | 126.00% | 126.00% | |||
Maximum | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate on debt | 3.25% | ||||
Maximum | Vessel | |||||
Debt Instrument [Line Items] | |||||
Percentage of vessel value to outstanding loan Principal balance | 183.00% | 183.00% | |||
Long-term Debt | LIBOR | Minimum | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate on debt | 0.30% | ||||
Long-term Debt | LIBOR | Maximum | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate on debt | 3.25% | ||||
Require Minimum Vessel Value To Outstanding Loan Principal Balance Ratios | |||||
Debt Instrument [Line Items] | |||||
Number of loan facilities | credit_facility | 4 | 4 | |||
Long-term debt | $ 238,800 | $ 238,800 | |||
Require Minimum Vessel Value To Outstanding Loan Principal Balance Ratios | Minimum | |||||
Debt Instrument [Line Items] | |||||
Percentage of vessel value to outstanding loan Principal balance | 110.00% | 110.00% | |||
Require Minimum Vessel Value To Outstanding Loan Principal Balance Ratios | Maximum | |||||
Debt Instrument [Line Items] | |||||
Percentage of vessel value to outstanding loan Principal balance | 135.00% | 135.00% |
Income Tax (Details)
Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Current | $ (569) | $ (236) | $ (1,074) | $ (474) |
Deferred | (274) | 0 | (548) | 81 |
Income tax expense | $ (843) | $ (236) | $ (1,622) | $ (393) |
Related Party Transactions - Ar
Related Party Transactions - Arctic Spirit and Polar Spirit - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2018vessel | |
Newbuildings | |
Related Party Transaction [Line Items] | |
Number of vessels | 4 |
Newbuildings | Pan Union Joint Venture | Shipbuilding supervision and crew training services | |
Related Party Transaction [Line Items] | |
Number of vessels | 4 |
Subsidiary of Common Parent | Charters-out | LNG | |
Related Party Transaction [Line Items] | |
Number of vessels | 2 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Related Party Transaction [Line Items] | ||||
Voyage revenues (notes 5b and 9a) | $ 122,315 | $ 100,904 | $ 237,621 | $ 202,084 |
Vessel operating expenses | (33,969) | (26,001) | (62,436) | (49,389) |
General and administrative expenses | (7,096) | (4,642) | (13,667) | (8,799) |
Deferred and Capitalized Expenses | Bahrain LNG Joint Venture | ||||
Related Party Transaction [Line Items] | ||||
General and administrative expenses | (600) | (400) | (600) | (500) |
Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
Voyage revenues (notes 5b and 9a) | 1,439 | 8,564 | 9,418 | 17,555 |
Vessel operating expenses | (5,530) | (4,264) | (11,387) | (9,580) |
General and administrative expenses | (3,230) | (2,355) | (7,329) | (4,462) |
Affiliated Entity | Deferred and Capitalized Expenses | ||||
Related Party Transaction [Line Items] | ||||
General and administrative expenses | $ (210) | $ 0 | $ (395) | $ (507) |
Parent Company | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
Operating lease arrangement period, lessor | 10 years |
Related Party Transactions - No
Related Party Transactions - Non-interest Bearing Advances - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Related Party Transactions [Abstract] | ||
Advances to affiliates | $ 8,538 | $ 7,300 |
Advances from affiliates | $ 18,959 | $ 12,140 |
Related Party Transactions - Sh
Related Party Transactions - Shipbuilding and Site Supervision Services - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Asset under Construction | Affiliated Entity | LNG | ||||
Related Party Transaction [Line Items] | ||||
Shipbuilding and site supervision costs | $ 3.5 | $ 6.1 | $ 6.8 | $ 9.4 |
Related Party Transactions - Ba
Related Party Transactions - Bahrain LNG and Teekay Marine Solutions - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Related Party Transaction [Line Items] | ||||
General and administrative expenses | $ 7,096 | $ 4,642 | $ 13,667 | $ 8,799 |
Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
General and administrative expenses | 3,230 | 2,355 | 7,329 | 4,462 |
Affiliated Entity | TMS | ||||
Related Party Transaction [Line Items] | ||||
General and administrative expenses | 100 | 100 | 200 | 200 |
Affiliated Entity | Bahrain LNG Joint Venture | ||||
Related Party Transaction [Line Items] | ||||
Cost recoveries | $ 100 | $ 100 | $ 200 | $ 200 |
Derivative Instruments and He64
Derivative Instruments and Hedging Activities - Summary of Cross Currency Swap Agreements (Details) - Cross-currency swap agreements $ in Thousands | 6 Months Ended | |
Jun. 30, 2018USD ($) | Jun. 30, 2018NOK (kr) | |
Derivative [Line Items] | ||
Fair Value / Carrying Amount of Asset (Liability) | $ (44,526) | |
NIBOR | 4.35% Margin | ||
Derivative [Line Items] | ||
Principal Amount | $ 150,000 | kr 900,000,000 |
Margin | 4.35% | 4.35% |
Fixed Rate Payable | 6.43% | 6.43% |
Fair Value / Carrying Amount of Asset (Liability) | $ (40,214) | |
Weighted- Average Remaining Term (Years) | 2 months 12 days | |
NIBOR | 3.70% Margin | ||
Derivative [Line Items] | ||
Principal Amount | $ 134,000 | kr 1,000,000,000 |
Margin | 3.70% | 3.70% |
Fixed Rate Payable | 5.92% | 5.92% |
Fair Value / Carrying Amount of Asset (Liability) | $ (10,761) | |
Weighted- Average Remaining Term (Years) | 1 year 10 months 24 days | |
NIBOR | 6.00% Margin | ||
Derivative [Line Items] | ||
Principal Amount | $ 146,500 | kr 1,200,000,000 |
Margin | 6.00% | 6.00% |
Fixed Rate Payable | 7.72% | 7.72% |
Fair Value / Carrying Amount of Asset (Liability) | $ 6,449 | |
Weighted- Average Remaining Term (Years) | 3 years 3 months 18 days |
Derivative Instruments and He65
Derivative Instruments and Hedging Activities - Interest Rate Swap Agreements (Details) $ in Thousands, € in Millions | 6 Months Ended | |
Jun. 30, 2018USD ($) | Jun. 30, 2018EUR (€) | |
Minimum | ||
Derivative [Line Items] | ||
Variable interest rate on debt | 0.30% | |
Maximum | ||
Derivative [Line Items] | ||
Variable interest rate on debt | 3.25% | |
Interest rate swap agreements | ||
Derivative [Line Items] | ||
Derivative Liability | $ 47,055 | |
U.S. Dollar-denominated interest rate swaps 1 | LIBOR | ||
Derivative [Line Items] | ||
Principal Amount | 60,000 | |
Fair Value / Carrying Amount of (Liability) | $ (1,104) | |
Weighted- Average Remaining Term (Years) | 7 months 6 days | |
Fixed Interest Rate | 4.90% | 4.90% |
U.S. Dollar-denominated interest rate swaps 2 | LIBOR | ||
Derivative [Line Items] | ||
Principal Amount | $ 137,500 | |
Fair Value / Carrying Amount of (Liability) | $ (16,656) | |
Weighted- Average Remaining Term (Years) | 10 years 6 months | |
Fixed Interest Rate | 5.20% | 5.20% |
U.S. Dollar-denominated interest rate swaps 3 | LIBOR | ||
Derivative [Line Items] | ||
Principal Amount | $ 37,490 | |
Fair Value / Carrying Amount of (Liability) | $ (109) | |
Weighted- Average Remaining Term (Years) | 3 years 1 month 6 days | |
Fixed Interest Rate | 2.80% | 2.80% |
U.S. Dollar-denominated interest rate swaps 4 | LIBOR | ||
Derivative [Line Items] | ||
Principal Amount | $ 345,878 | |
Fair Value / Carrying Amount of (Liability) | $ (9,703) | |
Weighted- Average Remaining Term (Years) | 2 years 7 months 6 days | |
Fixed Interest Rate | 3.40% | 3.40% |
U.S. Dollar-denominated interest rate swaps 5 | LIBOR | ||
Derivative [Line Items] | ||
Principal Amount | $ 95,333 | |
Fair Value / Carrying Amount of Asset | $ 513 | |
Weighted- Average Remaining Term (Years) | 6 months | |
Fixed Interest Rate | 1.70% | 1.70% |
U.S. Dollar-denominated interest rate swaps 6 | LIBOR | ||
Derivative [Line Items] | ||
Principal Amount | $ 189,506 | |
Fair Value / Carrying Amount of Asset | $ 6,111 | |
Weighted- Average Remaining Term (Years) | 8 years 6 months | |
Fixed Interest Rate | 2.30% | 2.30% |
Euro-denominated interest rate swaps | ||
Derivative [Line Items] | ||
Reduced principal amount denominated interest rate swaps | $ 81,900 | € 70.1 |
Euro-denominated interest rate swaps | EURIBOR | ||
Derivative [Line Items] | ||
Principal Amount | 217,621 | |
Fair Value / Carrying Amount of (Liability) | $ (26,107) | |
Weighted- Average Remaining Term (Years) | 2 years 4 months 24 days | |
Fixed Interest Rate | 3.10% | 3.10% |
Derivative Instruments and He66
Derivative Instruments and Hedging Activities - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Interest rate swaps and cross currency swaps agreement | ||
Derivative [Line Items] | ||
Fair value of derivative asset | $ 12.6 | |
Fair value of derivative liability | 71 | |
Restricted cash - current and - long-term | 17.2 | |
Interest rate swaps and swaptions and cross currency swaps agreement | ||
Derivative [Line Items] | ||
Restricted cash - current and - long-term | $ 22.3 | |
Toledo Spirit time-charter derivative | ||
Derivative [Line Items] | ||
Derivative fair value, net | $ 2.3 | $ 1.6 |
Derivative Instruments and He67
Derivative Instruments and Hedging Activities - Location and Fair Value Amounts of Derivative Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Advances to affiliates | $ 8,538 | $ 7,300 |
Current portion of derivative assets | 3,054 | 1,078 |
Derivative Instruments and Hedges, Noncurrent | 12,878 | 6,172 |
Accrued liabilities | (123,713) | (45,757) |
Current portion of derivative liabilities | (64,329) | (79,139) |
Interest rate swap agreements | ||
Derivatives, Fair Value [Line Items] | ||
Accounts receivable, net | 156 | |
Advances to affiliates | 0 | |
Current portion of derivative assets | 874 | 108 |
Derivative Instruments and Hedges, Noncurrent | 5,666 | 1,130 |
Accrued liabilities | (3,456) | (4,101) |
Current portion of derivative liabilities | (22,045) | (34,614) |
Derivative liabilities | (28,250) | (35,629) |
Interest rate swaption agreements | ||
Derivatives, Fair Value [Line Items] | ||
Advances to affiliates | 0 | |
Current portion of derivative assets | 0 | |
Derivative Instruments and Hedges, Noncurrent | 0 | |
Accrued liabilities | 0 | |
Current portion of derivative liabilities | (2) | |
Derivative liabilities | 0 | |
Cross-currency swap agreements | ||
Derivatives, Fair Value [Line Items] | ||
Advances to affiliates | 0 | 0 |
Current portion of derivative assets | 0 | 0 |
Derivative Instruments and Hedges, Noncurrent | 7,212 | 5,042 |
Accrued liabilities | (645) | (810) |
Current portion of derivative liabilities | (42,284) | (44,523) |
Derivative liabilities | (8,809) | (10,168) |
Toledo Spirit time-charter derivative | ||
Derivatives, Fair Value [Line Items] | ||
Advances to affiliates | 150 | 678 |
Current portion of derivative assets | 2,180 | 970 |
Derivative Instruments and Hedges, Noncurrent | 0 | 0 |
Accrued liabilities | 0 | 0 |
Current portion of derivative liabilities | 0 | 0 |
Derivative liabilities | 0 | 0 |
Derivative | ||
Derivatives, Fair Value [Line Items] | ||
Advances to affiliates | 306 | 678 |
Current portion of derivative assets | 3,054 | 1,078 |
Derivative Instruments and Hedges, Noncurrent | 12,878 | 6,172 |
Accrued liabilities | (4,101) | (4,911) |
Current portion of derivative liabilities | (64,329) | (79,139) |
Derivative liabilities | $ (37,059) | $ (45,797) |
Derivative Instruments and He68
Derivative Instruments and Hedging Activities - Gain (Loss) for Derivative Instruments Not Designated or Qualifying as Hedging Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Realized gains (losses) | $ (4,160) | $ (5,750) | $ (8,329) | $ (10,015) |
Unrealized gains (losses) | 8,462 | (1,634) | 20,632 | 3,818 |
Realized and unrealized loss on non-designated derivative instruments (note 10) | 4,302 | (7,384) | 12,303 | (6,197) |
Unrealized gains (losses) | 20,167 | 9,091 | ||
Foreign Currency Gain (Loss) | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Realized and unrealized loss on non-designated derivative instruments (note 10) | (18,364) | 7,089 | 2,586 | 6,251 |
Realized gains (losses) | (1,798) | (27,817) | (3,182) | (31,354) |
Unrealized gains (losses) | (16,566) | 34,906 | 5,768 | 37,605 |
Interest rate swap agreements | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Realized gains (losses) | (4,310) | (4,610) | (8,788) | (9,285) |
Unrealized gains (losses) | 7,522 | (1,866) | 19,420 | 2,436 |
Realized and unrealized loss on non-designated derivative instruments (note 10) | 3,212 | (6,476) | 10,632 | (6,849) |
Interest rate swaption agreements | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Realized gains (losses) | 0 | 0 | 0 | 0 |
Unrealized gains (losses) | 0 | 112 | 2 | 142 |
Realized and unrealized loss on non-designated derivative instruments (note 10) | 0 | 112 | 2 | 142 |
Interest rate swaption agreements termination | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Realized gains (losses) | 0 | (1,005) | 0 | (610) |
Unrealized gains (losses) | 0 | 0 | 0 | 0 |
Realized and unrealized loss on non-designated derivative instruments (note 10) | 0 | (1,005) | 0 | (610) |
Toledo Spirit time-charter derivative | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Realized gains (losses) | 150 | (135) | 459 | (120) |
Unrealized gains (losses) | 940 | 120 | 1,210 | 1,240 |
Realized and unrealized loss on non-designated derivative instruments (note 10) | 1,090 | (15) | 1,669 | 1,120 |
Cross-currency swap agreements | Foreign Currency Gain (Loss) | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Realized and unrealized loss on non-designated derivative instruments (note 10) | (18,364) | 32,822 | 2,586 | 31,984 |
Realized gains (losses) | (1,798) | (2,084) | (3,182) | (5,621) |
Unrealized gains (losses) | (16,566) | 34,906 | 5,768 | 37,605 |
Cross-currency swap agreements termination | Foreign Currency Gain (Loss) | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Realized and unrealized loss on non-designated derivative instruments (note 10) | 0 | (25,733) | 0 | (25,733) |
Realized gains (losses) | 0 | (25,733) | 0 | (25,733) |
Unrealized gains (losses) | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Instruments and He69
Derivative Instruments and Hedging Activities - Effective Portion of Gains (Losses) on Interest Rate Swap Agreements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative [Line Items] | ||||
Effective Portion Recognized in AOCI | $ 1,534 | $ (1,070) | $ 5,090 | $ (1,102) |
Effective Portion Reclassified from AOCI | 2 | 0 | (248) | 0 |
Ineffective Portion | 0 | (747) | 740 | (747) |
Interest expense | ||||
Derivative [Line Items] | ||||
Effective Portion Recognized in AOCI | 1,534 | (1,070) | 5,090 | (1,102) |
Effective Portion Reclassified from AOCI | 2 | 0 | (248) | 0 |
Ineffective Portion | $ 0 | $ (747) | $ 740 | $ (747) |
Commitments and Contingencies -
Commitments and Contingencies - Commitments to Fund Newbuilding and Other Construction Contract Costs (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($)vessel | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Total | $ 1,257,401 |
Remainder of 2018 | 488,071 |
2,019 | 570,030 |
2,020 | $ 199,300 |
Newbuildings | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Number of vessels | vessel | 4 |
Debt facility used to finance a portion of estimated fully built-up cost | $ 371,000 |
Number of vessels with secured financing | vessel | 3 |
Consolidated LNG carrier newbuildings | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Total | $ 494,083 |
Remainder of 2018 | 244,081 |
2,019 | 250,002 |
2,020 | 0 |
Consolidated LNG carrier newbuildings | Newbuildings | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Remainder of 2018 | 244,100 |
2,019 | 250,000 |
Equity-accounted joint ventures | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Total | 763,318 |
Remainder of 2018 | 243,990 |
2,019 | 320,028 |
2,020 | 199,300 |
Debt facility used to finance a portion of estimated fully built-up cost | $ 724,000 |
Commitments and Contingencies71
Commitments and Contingencies - Additional Information (Details) $ in Thousands, £ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2018USD ($)agreement | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)agreement | Jun. 30, 2017USD ($) | Jun. 30, 2018GBP (£)agreement | Dec. 31, 2017USD ($) | Dec. 31, 2017GBP (£) | Dec. 31, 2016USD ($) | |
Loss Contingencies [Line Items] | ||||||||
Remainder of 2018 | $ 488,071 | $ 488,071 | ||||||
2,019 | 570,030 | 570,030 | ||||||
Aggregate annual long-term debt principal repayments, remainder of 2018 | 309,100 | 309,100 | ||||||
Line of credit facility, borrowing capacity, reduction in year two | 131,500 | 131,500 | ||||||
Other income (expense) (note 11c) | 350 | $ 390 | (52,232) | $ 781 | ||||
Restricted cash – current (notes 7 and 10) | $ 53,599 | $ 5,896 | $ 53,599 | $ 5,896 | $ 22,326 | $ 10,145 | ||
Teekay Nakilat Corporation | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of capital leased assets | agreement | 3 | 3 | 3 | |||||
Capital lease term | 30 years | |||||||
Restricted cash – current (notes 7 and 10) | $ 7,000 | $ 7,000 | ||||||
Teekay Nakilat Joint Venture | ||||||||
Loss Contingencies [Line Items] | ||||||||
Percentage of ownership interest | 70.00% | |||||||
Other income (expense) (note 11c) | $ 53,000 | |||||||
Loss contingency, estimate of possible loss | 56,000 | 56,000 | £ 42.3 | $ 12,700 | £ 9.4 | |||
Consolidated LNG carrier newbuildings | ||||||||
Loss Contingencies [Line Items] | ||||||||
Remainder of 2018 | 244,081 | 244,081 | ||||||
2,019 | 250,002 | 250,002 | ||||||
Newbuildings | Consolidated LNG carrier newbuildings | ||||||||
Loss Contingencies [Line Items] | ||||||||
Remainder of 2018 | 244,100 | 244,100 | ||||||
2,019 | 250,000 | 250,000 | ||||||
Long Term Debt Maturing or Refinancing by 2019 [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Aggregate annual long-term debt principal repayments, remainder of 2018 | 215,500 | 215,500 | ||||||
Line of credit facility, borrowing capacity, reduction in year two | $ 26,500 | $ 26,500 |
Total Capital and Net Income 72
Total Capital and Net Income (Loss) Per Unit (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Equity [Abstract] | ||||
Limited partners' interest in net (loss) for basic net (loss) per common unit (in USD per unit) | $ (3,624,000) | $ (18,508,000) | $ (16,671,000) | $ 7,212,000 |
Weighted average number of common units (in units) | 79,687,499 | 79,626,819 | 79,667,384 | 79,608,587 |
Dilutive effect of unit-based compensation (in units) | 0 | 0 | 0 | 132,669 |
Common units and common unit equivalents (in units) | 79,687,499 | 79,626,819 | 79,667,384 | 79,741,256 |
• Basic (usd per unit) | $ (0.05) | $ (0.23) | $ (0.21) | $ 0.09 |
• Diluted (usd per unit) | $ (0.05) | $ (0.23) | $ (0.21) | $ 0.09 |
Total Capital and Net Income 73
Total Capital and Net Income (Loss) Per Unit Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Class of Stock [Line Items] | ||||
Managing member or general partner, ownership interest | 2.00% | |||
Partners' capital account, distributions | $ 35,611 | |||
Public | ||||
Class of Stock [Line Items] | ||||
Members or limited partners, ownership interest | 68.30% | |||
Preferred Units | Limited Partners | ||||
Class of Stock [Line Items] | ||||
Partners' capital account, distributions | $ 6,400 | $ 2,800 | $ 12,851 | $ 5,500 |
Common Units | ||||
Class of Stock [Line Items] | ||||
Common stock, dividends, declared (in USD per share) | $ 0.4625 | $ 0.4625 | $ 0.4625 | $ 0.4625 |
Common Units | Limited Partners | ||||
Class of Stock [Line Items] | ||||
Partners' capital account, distributions | $ 22,305 |
Unit-Based Compensation (Detail
Unit-Based Compensation (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Restricted Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Granted, Value, Share-based Compensation, Gross | $ 1,200,000 | $ 1,000,000 | ||||
Restricted unit-based compensation granted to Partnership's employee (in units) | 62,283 | 60,809 | ||||
Restricted units, vesting period | 3 years | |||||
Number of restricted units vested (in units) | 0 | 0 | 60,680 | 54,999 | ||
Restricted units, vested in period, fair value | $ 0 | $ 0 | $ 1,000,000 | $ 800,000 | ||
Restricted units expense | $ 200,000 | $ 100,000 | $ 900,000 | $ 800,000 | ||
Non-management Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of common units granted (in units) | 17,498 | |||||
Aggregate value of units issued (in units) | $ 300,000 |
Write-Down and Sale of Vessels
Write-Down and Sale of Vessels (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Aug. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||||||
Write-down of vessels | $ 33,000 | $ 12,600 | $ 51,662 | $ 12,600 | |||
Restructuring charges | 0 | 0 | 1,396 | 0 | |||
European Spirit | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Extension option period | 1 year | ||||||
Write-down of vessels | $ 12,600 | 3,000 | $ 12,600 | ||||
African Spirit | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Extension option period | 1 year | ||||||
Write-down of vessels | 2,700 | $ 12,500 | |||||
Teide Spirit and Toledo Spirit | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Cancellation option period | 13 years | ||||||
Alexander Spirit | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Write-down of vessels | 13,000 | ||||||
Napa Spirit, Pan Spirit, Camilla Spirit and Cathinka Spirit | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Write-down of vessels | 33,000 | (33,000) | |||||
Teide Spirit | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Restructuring charges | 1,400 | ||||||
Restructuring Reserve | $ 700 | $ 700 |
Supplemental Cash Flow Inform76
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | $ 177,071 | $ 244,241 | $ 191,110 | $ 126,146 |
Restricted cash – current (notes 7 and 10) | 53,599 | 22,326 | 5,896 | 10,145 |
Restricted cash – long-term (note 7) | 29,823 | 72,868 | 102,347 | 106,882 |
Cash and cash equivalents and restricted cash | 260,493 | 339,435 | $ 299,353 | $ 243,173 |
Collateral Pledged [Member] | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | $ 83,400 | $ 95,200 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event € in Millions | Jul. 31, 2018USD ($) | Jul. 17, 2018 | Jul. 10, 2018 | Jul. 06, 2018USD ($) | Jul. 06, 2018EUR (€) |
The Wepion | Exmar LPG Joint Venture | |||||
Subsequent Event [Line Items] | |||||
Ownership percentage | 50.00% | ||||
Shell | Pan Europe | Pan Union Joint Venture | |||||
Subsequent Event [Line Items] | |||||
Ownership percentage | 20.00% | ||||
Lessor, direct financing lease, term of contract | 20 years | ||||
Shell | The Megara | |||||
Subsequent Event [Line Items] | |||||
Operating lease arrangement period, lessor | 8 years | ||||
Capital lease term | 10 years | ||||
Debt facility maturing in 2024 | |||||
Subsequent Event [Line Items] | |||||
Debt instrument, face amount | $ 117,000,000 | € 100 | |||
Line of Credit | The Wepion | Exmar LPG Joint Venture | |||||
Subsequent Event [Line Items] | |||||
Debt instrument, face amount | $ 35,000,000 | ||||
Debt Instrument, Term | 3 years | ||||
Revolving Credit Facility Maturing 2018 | U.S. Dollar-denominated Revolving Credit Facilities due from 2018 to 2022 | |||||
Subsequent Event [Line Items] | |||||
Debt instrument, face amount | $ 125,000,000 | € 107 |