Financial Instruments | 6 Months Ended |
Jun. 30, 2021 |
Fair Value Disclosures [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 Item 18 – Financial Statements: 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, 2020. 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, 2021 December 31, 2020 Fair Carrying Fair Carrying Fair Recurring: Cash and cash equivalents and restricted cash (note 15) Level 1 190,200 190,200 257,943 257,943 Derivative instruments (note 11) Interest rate swap agreements – assets Level 2 1,363 1,363 — — Interest rate swap agreements – liabilities Level 2 (40,048) (40,048) (75,468) (75,468) Cross currency swap agreements – assets Level 2 5,820 5,820 4,505 4,505 Cross currency swap agreements – liabilities Level 2 (18,524) (18,524) (20,022) (20,022) Non-recurring: Vessels and equipment Level 2 — — 40,717 40,717 Other: Loans to equity-accounted joint ventures (note 7) (i) 106,301 (i) 116,632 (i) Long-term debt – public (note 8) Level 1 (351,786) (360,319) (352,260) (359,581) Long-term debt – non-public (note 8) Level 2 (1,065,593) (1,084,437) (1,119,953) (1,137,050) Obligations related to finance leases (note 5a) Level 2 (1,305,055) (1,386,363) (1,340,922) (1,456,927) (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 unaudited consolidated financial statements. The fair values of the individual components of such aggregate interests are not determinable. b) Credit Losses For a description of the Partnership's exposure to potential credit losses under ASC 326, see Item 18 – Financial Statements: Note 3b to the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year ended December 31, 2020. The following table includes the amortized cost basis of the Partnership’s direct interests in financing receivables and net investment in direct financing leases by class of financing receivables and by period of origination and their associated credit quality as at June 30, 2021 and December 31, 2020. Amortized Cost Basis by Origination Year Credit Quality Grade (1) 2020 2018 2016 and prior Total As at June 30, 2021 $ $ $ $ Direct financing leases Tangguh Hiri and Tangguh Sago Performing — — 326,166 326,166 Bahrain Spirit Performing — 210,795 — 210,795 — 210,795 326,166 536,961 Loans to equity-accounted joint ventures Exmar LPG Joint Venture Performing — — 32,266 32,266 Bahrain LNG Joint Venture Performing — — 73,375 73,375 Other Performing 660 — — 660 660 — 105,641 106,301 660 210,795 431,807 643,262 As at December 31, 2020 Direct financing leases Tangguh Hiri and Tangguh Sago Performing — — 332,308 332,308 Bahrain Spirit Performing — 211,939 — 211,939 — 211,939 332,308 544,247 Loans to equity-accounted joint ventures Exmar LPG Joint Venture Performing — — 42,266 42,266 Bahrain LNG Joint Venture Performing — — 73,375 73,375 Other Performing 991 — — 991 991 — 115,641 116,632 991 211,939 447,949 660,879 (1) For a description of how the Partnership's credit quality grades are determined see Item 18 – Financial Statements: Note 3b to the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year ended December 31, 2020. As at June 30, 2021 and December 31, 2020, all direct financing and sales-type leases held by the Partnership and the Partnership’s equity-accounted joint ventures had a credit quality grade of performing. Changes in the Partnership's allowance for credit losses for the three and six months ended June 30, 2021 and 2020 are as follows: Direct Financing Leases (1) (2) $ Direct Financing and Sales-Type Leases and Other within Equity-Accounted Joint Ventures (1) (2) $ Loans to Equity-Accounted Joint Ventures (1) $ Guarantees of Debt (1) $ Total Three and Six Months Ended June 30, 2021 As at December 31, 2020 30,177 54,937 4,726 2,080 91,920 Provision for (reversal of) potential credit losses 4,436 6,677 (981) 218 10,350 As at March 31, 2021 34,613 61,614 3,745 2,298 102,270 Provision for (reversal of) potential credit losses 787 722 255 (298) 1,466 As at June 30, 2021 35,400 62,336 4,000 2,000 103,736 Three and Six Months Ended June 30, 2020 As at January 1, 2020 11,155 36,292 3,714 2,139 53,300 (Reversal of) provision for potential credit losses (100) 8,980 — — 8,880 As at March 31, 2020 11,055 45,272 3,714 2,139 62,180 Provision for (reversal of) potential credit losses 465 (423) 83 (288) (163) As at June 30, 2020 11,520 44,849 3,797 1,851 62,017 (1) For a description of how the credit loss provision for direct financing leases, direct financing and sales-type leases and other within equity-accounted joint ventures, loans to equity-accounted joint ventures and guarantees of debt was determined for the three and six months ended June 30, 2021 and 2020, see Item 18 – Financial Statements: Note 3b to the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year ended December 31, 2020. (2) The change in credit loss provision of $0.8 million and $5.2 million for the Partnership's consolidated vessels for the three and six months ended June 30, 2021, respectively ($0.5 million and $0.4 million for the three and six months ended June 30, 2020, respectively), was included in other expense in the Partnership's consolidated statements of income. The change in the credit loss provision for the six months ended June 30, 2021 primarily reflects a decline in the estimated charter-free valuations for certain types of its liquefied natural gas (or LNG ) carriers at the end of their time-charter contract which are accounted for as direct financing leases. These estimated future charter-free values are subject to change based on the underlying LNG shipping market fundamentals. The change in credit loss provision of $0.7 million and $7.4 million for the three and six months ended June 30, 2021, respectively ($(0.4) million and $8.6 million for the three and six months ended June 30, 2020, respectively), relating to the direct financing and sales-type leases and other within the Partnership's equity-accounted joint ventures was included in equity income in the Partnership's consolidated statements of income. The change in credit loss provision for the six months ended June 30, 2021 primarily reflects a decline in the estimated charter-free valuations for certain types of LNG carriers at the end of their time-charter contract, which are accounted for as direct financing and sales-type leases. |
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring | 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 Item 18 – Financial Statements: 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, 2020. 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, 2021 December 31, 2020 Fair Carrying Fair Carrying Fair Recurring: Cash and cash equivalents and restricted cash (note 15) Level 1 190,200 190,200 257,943 257,943 Derivative instruments (note 11) Interest rate swap agreements – assets Level 2 1,363 1,363 — — Interest rate swap agreements – liabilities Level 2 (40,048) (40,048) (75,468) (75,468) Cross currency swap agreements – assets Level 2 5,820 5,820 4,505 4,505 Cross currency swap agreements – liabilities Level 2 (18,524) (18,524) (20,022) (20,022) Non-recurring: Vessels and equipment Level 2 — — 40,717 40,717 Other: Loans to equity-accounted joint ventures (note 7) (i) 106,301 (i) 116,632 (i) Long-term debt – public (note 8) Level 1 (351,786) (360,319) (352,260) (359,581) Long-term debt – non-public (note 8) Level 2 (1,065,593) (1,084,437) (1,119,953) (1,137,050) Obligations related to finance leases (note 5a) Level 2 (1,305,055) (1,386,363) (1,340,922) (1,456,927) (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 unaudited consolidated financial statements. The fair values of the individual components of such aggregate interests are not determinable. |
Credit Loss, Financial Instrument | b) Credit Losses For a description of the Partnership's exposure to potential credit losses under ASC 326, see Item 18 – Financial Statements: Note 3b to the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year ended December 31, 2020. The following table includes the amortized cost basis of the Partnership’s direct interests in financing receivables and net investment in direct financing leases by class of financing receivables and by period of origination and their associated credit quality as at June 30, 2021 and December 31, 2020. Amortized Cost Basis by Origination Year Credit Quality Grade (1) 2020 2018 2016 and prior Total As at June 30, 2021 $ $ $ $ Direct financing leases Tangguh Hiri and Tangguh Sago Performing — — 326,166 326,166 Bahrain Spirit Performing — 210,795 — 210,795 — 210,795 326,166 536,961 Loans to equity-accounted joint ventures Exmar LPG Joint Venture Performing — — 32,266 32,266 Bahrain LNG Joint Venture Performing — — 73,375 73,375 Other Performing 660 — — 660 660 — 105,641 106,301 660 210,795 431,807 643,262 As at December 31, 2020 Direct financing leases Tangguh Hiri and Tangguh Sago Performing — — 332,308 332,308 Bahrain Spirit Performing — 211,939 — 211,939 — 211,939 332,308 544,247 Loans to equity-accounted joint ventures Exmar LPG Joint Venture Performing — — 42,266 42,266 Bahrain LNG Joint Venture Performing — — 73,375 73,375 Other Performing 991 — — 991 991 — 115,641 116,632 991 211,939 447,949 660,879 (1) For a description of how the Partnership's credit quality grades are determined see Item 18 – Financial Statements: Note 3b to the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year ended December 31, 2020. As at June 30, 2021 and December 31, 2020, all direct financing and sales-type leases held by the Partnership and the Partnership’s equity-accounted joint ventures had a credit quality grade of performing. Changes in the Partnership's allowance for credit losses for the three and six months ended June 30, 2021 and 2020 are as follows: Direct Financing Leases (1) (2) $ Direct Financing and Sales-Type Leases and Other within Equity-Accounted Joint Ventures (1) (2) $ Loans to Equity-Accounted Joint Ventures (1) $ Guarantees of Debt (1) $ Total Three and Six Months Ended June 30, 2021 As at December 31, 2020 30,177 54,937 4,726 2,080 91,920 Provision for (reversal of) potential credit losses 4,436 6,677 (981) 218 10,350 As at March 31, 2021 34,613 61,614 3,745 2,298 102,270 Provision for (reversal of) potential credit losses 787 722 255 (298) 1,466 As at June 30, 2021 35,400 62,336 4,000 2,000 103,736 Three and Six Months Ended June 30, 2020 As at January 1, 2020 11,155 36,292 3,714 2,139 53,300 (Reversal of) provision for potential credit losses (100) 8,980 — — 8,880 As at March 31, 2020 11,055 45,272 3,714 2,139 62,180 Provision for (reversal of) potential credit losses 465 (423) 83 (288) (163) As at June 30, 2020 11,520 44,849 3,797 1,851 62,017 (1) For a description of how the credit loss provision for direct financing leases, direct financing and sales-type leases and other within equity-accounted joint ventures, loans to equity-accounted joint ventures and guarantees of debt was determined for the three and six months ended June 30, 2021 and 2020, see Item 18 – Financial Statements: Note 3b to the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year ended December 31, 2020. (2) The change in credit loss provision of $0.8 million and $5.2 million for the Partnership's consolidated vessels for the three and six months ended June 30, 2021, respectively ($0.5 million and $0.4 million for the three and six months ended June 30, 2020, respectively), was included in other expense in the Partnership's consolidated statements of income. The change in the credit loss provision for the six months ended June 30, 2021 primarily reflects a decline in the estimated charter-free valuations for certain types of its liquefied natural gas (or LNG ) carriers at the end of their time-charter contract which are accounted for as direct financing leases. These estimated future charter-free values are subject to change based on the underlying LNG shipping market fundamentals. The change in credit loss provision of $0.7 million and $7.4 million for the three and six months ended June 30, 2021, respectively ($(0.4) million and $8.6 million for the three and six months ended June 30, 2020, respectively), relating to the direct financing and sales-type leases and other within the Partnership's equity-accounted joint ventures was included in equity income in the Partnership's consolidated statements of income. The change in credit loss provision for the six months ended June 30, 2021 primarily reflects a decline in the estimated charter-free valuations for certain types of LNG carriers at the end of their time-charter contract, which are accounted for as direct financing and sales-type leases. |