Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2016 | |
Document And Entity Information [Abstract] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q3 |
Trading Symbol | TOO |
Entity Registrant Name | Teekay Offshore Partners L.P. |
Entity Central Index Key | 1,382,298 |
Current Fiscal Year End Date | --12-31 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues (note 8) | $ 286,298 | $ 314,054 | $ 877,470 | $ 890,271 |
Voyage expenses | (21,495) | (28,166) | (57,427) | (71,399) |
Vessel operating expenses (note 8) | (94,008) | (95,172) | (280,121) | (269,560) |
Time-charter hire expenses | (18,894) | (18,893) | (53,045) | (36,638) |
Depreciation and amortization | (74,159) | (72,827) | (223,138) | (202,625) |
General and administrative (notes 8 and 13) | (15,201) | (27,321) | (43,491) | (58,423) |
(Write down) and gain on sale of vessels (note 14) | 0 | 0 | (43,650) | (14,353) |
Restructuring charge (note 7) | (802) | (157) | (2,289) | (292) |
Income from vessel operations | 61,739 | 71,518 | 174,309 | 236,981 |
Interest expense (notes 6, 8 and 9) | (35,379) | (33,645) | (104,752) | (89,825) |
Interest income | 298 | 153 | 995 | 430 |
Realized and unrealized gains (losses) on derivative instruments (note 9) | 20,247 | (77,102) | (102,280) | (90,182) |
Equity income (loss) | 4,937 | (7,052) | 13,846 | 6,759 |
Foreign currency exchange gain (loss) (note 9) | 817 | (10,257) | (15,108) | (16,640) |
Other (expense) income - net (notes 4 and 11d) | (195) | (373) | (21,472) | 266 |
Income (loss) before income tax (expense) recovery | 52,464 | (56,758) | (54,462) | 47,789 |
Income tax (expense) recovery (note 10) | (1,603) | 5,465 | 2,671 | 5,654 |
Net income (loss) | 50,861 | (51,293) | (51,791) | 53,443 |
Non-controlling interests in net income (loss) | 3,161 | 3,446 | 7,545 | 11,082 |
Preferred unitholders' interest in net income (loss) (note 12) | 12,386 | 10,349 | 33,449 | 17,859 |
General Partner’s interest in net income (loss) | 706 | 5,738 | (1,857) | 15,655 |
Limited partners' interest in net income (loss) | 34,608 | (70,826) | (90,928) | (1,254) |
Net Income (Loss) Available to Common Stockholders, Basic | $ 33,782 | $ (70,826) | $ (108,484) | $ (1,254) |
Limited partner's interest in net income (loss) per common unit | ||||
- basic (usd per share) | $ 0.24 | $ (0.69) | $ (0.92) | $ (0.01) |
- diluted (usd per share) | $ 0.24 | $ (0.69) | $ (0.92) | $ (0.01) |
Weighted-average number of common units outstanding: | ||||
- basic (shares) | 139,057,659 | 102,009,737 | 118,046,087 | 95,640,284 |
- diluted (shares) | 157,914,277 | 102,009,737 | 118,046,087 | 95,640,284 |
Cash distributions declared per unit (usd per share) | $ 0.1100 | $ 0.5384 | $ 0.3300 | $ 1.6152 |
Dropdown Predecessor [Member] | ||||
Net income (loss) | $ 0 | $ 0 | $ 0 | $ 10,101 |
Unaudited Consolidated Stateme3
Unaudited Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net income (loss) | $ 50,861 | $ (51,293) | $ (51,791) | $ 53,443 |
Unrealized gain (loss) on qualifying cash flow hedging instruments (note 9) | 2,182 | (1,085) | (17,705) | (1,085) |
Other comprehensive income (loss) | 2,182 | (1,085) | (17,705) | (1,085) |
Comprehensive income (loss) | 53,043 | (52,378) | (69,496) | 52,358 |
Non-controlling interests in comprehensive income (loss) | 3,161 | 3,446 | 7,545 | 11,082 |
Preferred unitholders' interest in net income (loss) (note 12) | 12,386 | 10,349 | 33,449 | 17,859 |
General and limited partners' interest in comprehensive income (loss) | 37,496 | (66,173) | (110,490) | 13,316 |
Dropdown Predecessor [Member] | ||||
Net income (loss) | $ 0 | $ 0 | $ 0 | $ 10,101 |
Unaudited Consolidated Balance
Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current | ||
Cash and cash equivalents | $ 222,872 | $ 258,473 |
Restricted cash (note 9) | 31,403 | 51,431 |
Accounts receivable, including non-trade of $1,352 (December 31, 2015 - $4,140) | 130,716 | 153,662 |
Vessels held for sale (note 14) | 7,538 | 55,450 |
Net investments in direct financing leases - current (note 4b) | 5,227 | 5,936 |
Prepaid expenses | 45,626 | 34,027 |
Due from affiliates (note 8c) | 88,367 | 81,271 |
Other current assets (note 9) | 22,377 | 20,490 |
Total current assets | 554,126 | 660,740 |
Restricted cash - long-term (note 9) | 15,227 | 9,089 |
Vessels and equipment | ||
At cost, less accumulated depreciation of $1,438,887 (December 31, 2015 - $1,230,868) | 4,168,926 | 4,348,535 |
Advances on newbuilding contracts and conversion costs (notes 11b,11c,11f and 11g) | 576,173 | 395,084 |
Net investments in direct financing leases (note 4b) | 13,725 | 11,535 |
Investment in equity accounted joint ventures (notes 11e and 15) | 126,835 | 77,647 |
Deferred tax asset | 34,367 | 30,050 |
Other assets (notes 1 and 9) | 92,568 | 82,341 |
Goodwill | 129,145 | 129,145 |
Total assets | 5,711,092 | 5,744,166 |
Current | ||
Accounts payable | 13,211 | 15,899 |
Accrued liabilities (notes 7, 9 and 13) | 155,434 | 91,065 |
Deferred revenues | 61,091 | 54,378 |
Due to affiliates (note 8c) | 112,369 | 304,583 |
Current portion of derivative instruments (note 9) | 50,839 | 201,456 |
Current portion of long-term debt (note 6) | 528,568 | 485,069 |
Current portion of in-process revenue contracts | 12,744 | 12,779 |
Other current liabilities | 6,211 | 0 |
Total current liabilities | 940,467 | 1,165,229 |
Long-term debt (note 6) | 2,620,283 | 2,878,805 |
Derivative instruments (note 9) | 371,216 | 221,329 |
Due to affiliates (notes 8b, 8c and 8f) | 200,000 | 0 |
In-process revenue contracts | 53,494 | 63,026 |
Other long-term liabilities (note 1) | 215,265 | 192,258 |
Total liabilities | 4,400,725 | 4,520,647 |
Commitments and contingencies (notes 6, 9 and 11) | ||
Redeemable non-controlling interest (note 11a) | 3,292 | 3,173 |
Convertible Preferred Units (12.5 million and 10.4 million units issued and outstanding at September 30, 2016 and December 31, 2015, respectively) (note 12) | 270,402 | 252,498 |
Equity | ||
Limited partners - common units (143.1 million and 107.0 million units issued and outstanding at September 30, 2016 and December 31, 2015, respectively) (notes 12 and 13) | 697,102 | 629,264 |
Limited partners - preferred units (11.0 million units issued and outstanding at September 30, 2016 and December 31, 2015) (note 12) | 266,925 | 266,925 |
General Partner | 18,937 | 17,608 |
Warrants (note 12) | 13,797 | 0 |
Accumulated other comprehensive (loss) income | (17,009) | 696 |
Non-controlling interests | 56,921 | 53,355 |
Total equity | 1,036,673 | 967,848 |
Total liabilities and total equity | 5,711,092 | 5,744,166 |
Convertible Preferred Stock [Member] | ||
Equity | ||
Total equity | $ 270,402 | $ 252,498 |
Unaudited Consolidated Balance5
Unaudited Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands, shares in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Accounts receivable non-trade | $ 1,352 | $ 4,140 |
At cost, less accumulated depreciation | $ 1,438,887 | $ 1,230,868 |
Convertible Preferred Stock [Member] | ||
Convertible Preferred Units, issued | 12.5 | 10.4 |
Convertible Preferred Units, outstanding | 12.5 | 10.4 |
Common Stock Class Undefined [Member] | ||
Limited partners - units issued | 143.1 | 107 |
Limited partners - units outstanding | 143.1 | 107 |
Preferred Units [Member] | ||
Limited partners - units issued | 11 | 11 |
Limited partners - units outstanding | 11 | 11 |
Unaudited Consolidated Stateme6
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ (51,791) | $ 53,443 |
Non-cash items: | ||
Unrealized (gain) loss on derivative instruments (note 9) | (4,353) | 77,421 |
Equity income, net of dividends received of $3,472 (2015 - $nil) | (10,374) | (6,759) |
Depreciation and amortization | 223,138 | 202,625 |
Write-down and (gain) on sale of vessel (note 14) | 43,650 | 14,353 |
Deferred income tax recovery (note 10) | (6,013) | (6,399) |
Amortization of in-process revenue contracts | (9,567) | (9,533) |
Unrealized foreign currency exchange loss and other | 43,446 | (84,622) |
Change in non-cash working capital items related to operating activities | 68,277 | 51,300 |
Expenditures for dry docking | (22,343) | (8,485) |
Net operating cash flow | 274,070 | 283,344 |
FINANCING ACTIVITIES | ||
Proceeds from long-term debt (note 6) | 283,828 | 547,707 |
Scheduled repayments of long-term debt (note 6) | (314,653) | (251,646) |
Prepayments of long-term debt (note 6) | (197,776) | (83,606) |
Debt issuance costs (note 6) | (10,988) | (20,222) |
Decrease (increase) in restricted cash (note 9) | 13,890 | (2,590) |
Purchase of Teekay Knarr AS and Knarr L.L.C from Teekay Corporation (net of cash acquired of $14.2 million) (note 3) | 0 | (112,710) |
Proceeds from issuance of common units (note 12) | 124,879 | 9,336 |
Proceeds from issuance of preferred units and warrants (note 12) | 100,000 | 375,000 |
Expenses relating to equity offerings | (5,911) | (4,469) |
Cash distributions paid by the Partnership | (61,827) | (176,592) |
Cash distributions paid by subsidiaries to non-controlling interests | (4,610) | (13,480) |
Equity contribution from joint venture partners | 750 | 5,500 |
Settlement of contingent consideration liability (note 4) | 0 | (3,303) |
Other | 0 | 873 |
Net financing cash flow | (72,418) | 269,798 |
INVESTING ACTIVITIES | ||
Net expenditures for vessels and equipment, including advances on newbuilding contracts and conversion costs | (238,349) | (563,260) |
Proceeds from sale of vessel and equipment (note 14) | 55,450 | 8,918 |
Repayment from joint ventures (note 15) | 0 | 5,225 |
Direct financing lease (investments) payments received | (1,481) | 3,639 |
Investment in equity accounted joint ventures | (52,873) | (8,744) |
Net investing cash flow | (237,253) | (554,222) |
Decrease in cash and cash equivalents | (35,601) | (1,080) |
Cash and cash equivalents, beginning of the period | 258,473 | 252,138 |
Cash and cash equivalents, end of the period | $ 222,872 | $ 251,058 |
Unaudited Consolidated Stateme7
Unaudited Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Cash Flows [Abstract] | ||
Net cash acquired on business acquisition | $ 14,200 | |
Dividends received | $ 3,472 | $ 0 |
Unaudited Consolidated Stateme8
Unaudited Consolidated Statement of Changes in Total Equity - 9 months ended Sep. 30, 2016 - USD ($) shares in Thousands, $ in Thousands | Total | Convertible Preferred Stock [Member] | General Partner [Member] | Common Units [Member]Limited Partner [Member] | Common Stock Including Additional Paid in Capital [Member]Limited Partner [Member] | Preferred Units [Member]Preferred Partner [Member] | Warrant [Member] | Accumulated Other Comprehensive Loss [Member] | Non-controlling Interests [Member] | Redeemable Non-controlling Interest [Member] |
Beginning balance at Dec. 31, 2015 | $ 967,848 | $ 252,498 | $ 17,608 | $ 629,264 | $ 266,925 | $ 696 | $ 53,355 | $ 3,173 | ||
Beginning balance, units at Dec. 31, 2015 | 10,438 | 107,027 | 11,000 | |||||||
Net loss | (69,234) | $ 17,324 | (1,857) | (90,928) | $ 16,125 | 7,426 | 119 | |||
Other comprehensive loss (note 9) | (17,705) | (17,705) | ||||||||
Cash distributions | (51,077) | (10,750) | (480) | (34,472) | (16,125) | |||||
Stock Issued During Period, Shares, Dividend Reinvestment Plan | 1,959 | |||||||||
Dividends, Paid-in-kind | 5,728 | (5,728) | (309) | 6,037 | ||||||
Distribution to non-controlling interests | (4,610) | (4,610) | ||||||||
Contribution of capital from joint venture partner | 750 | 750 | ||||||||
Equity Contribution From Parent Company | 1,828 | 37 | 1,791 | |||||||
Proceeds from equity offerings, net of offering costs (note 12) | 134,981 | $ 83,453 | 2,629 | 118,555 | $ 13,797 | |||||
Proceeds from equity offerings, net of offering costs (note 12), units | 4,000 | 25,648 | ||||||||
Conversion of Convertible Preferred Units (note 12) | 47,171 | $ (46,429) | 889 | 46,282 | ||||||
Conversion of Convertible Preferred Units (note 12), units | (1,921) | 8,324 | ||||||||
Exchange of Convertible Preferred Units (note 12) | 20,644 | $ (20,644) | 413 | 20,231 | ||||||
Equity based compensation and other (note 13) | 349 | 678 | 7 | 342 | ||||||
Equity based compensation and other (note 13), units | 101 | |||||||||
Ending balance at Sep. 30, 2016 | $ 1,036,673 | $ 270,402 | $ 18,937 | $ 697,102 | $ 266,925 | $ 13,797 | $ (17,009) | $ 56,921 | $ 3,292 | |
Ending balance, units at Sep. 30, 2016 | 12,517 | 143,059 | 11,000 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [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 Offshore Partners L.P., which is a limited partnership organized under the laws of the Republic of The Marshall Islands, its wholly owned or controlled subsidiaries and the Dropdown Predecessor (see note 3 ) (collectively, the Partnership ). The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Certain information and footnote disclosures required by GAAP for complete annual financial statements have been omitted and, therefore, these interim financial statements should be read in conjunction with the Partnership’s audited consolidated financial statements for the year ended December 31, 2015, which are included in the Partnership’s Annual Report on Form 20-F, filed with the U.S. Securities and Exchange Commission (or SEC ) on April 18, 2016. In the opinion of management of the Partnership’s general partner, Teekay Offshore GP L.L.C. (or the general partner ), these interim unaudited consolidated financial statements reflect all adjustments, which are 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. Historically, the utilization of shuttle tankers in the North Sea is higher in the winter months as favorable weather conditions in the summer months provide opportunities for repairs and maintenance to the Partnership’s vessels and the offshore oil platforms. Downtime for repairs and maintenance generally reduces oil production and, thus, transportation requirements. Intercompany balances and transactions have been eliminated upon consolidation. Vessels and equipment The Partnership considers its shuttle tankers to be comprised of two components: i) a conventional tanker (or the tanker componen t) and ii) specialized shuttle equipment (or the shuttle component ). The Partnership differentiates these two components on the principle that a shuttle tanker can also operate as a conventional tanker without the use of the shuttle component. The economics of this alternate use depend on the supply and demand fundamentals in the two segments. Historically, the useful life of both components was assessed as 25 years commencing from the date the vessel is delivered from the shipyard. During the nine months ended September 30, 2016 , the Partnership has considered factors related to the ongoing use of the shuttle component and has reassessed the useful life as being 20 years based on the challenges associated with adverse market conditions in the energy sector and other long term factors associated with the global oil industry. This change in estimate, commencing January 1, 2016, impacts the entire fleet of its shuttle tanker vessels. Separately, the Partnership has reviewed the depreciation of the tanker component for eight vessels in its fleet that are 17 years of age or older. Based on the Partnership’s expected operating plan for these vessels, the Partnership has reassessed the estimated useful life of the tanker component for these vessels as 20 years commencing January 1, 2016. As market conditions evolve, the Partnership will continue to monitor the useful life of the tanker component for other vessels within the shuttle tanker segment. The effect of these changes in estimates was an increase in depreciation and amortization expense and a decrease in net income by $7.4 million , or a decrease of $0.05 per basic and diluted common unit, for the three months ended September 30, 2016 , and an increase in depreciation and amortization expense and net loss by $21.9 million , or $0.19 per basic and diluted common unit, for the nine months ended September 30, 2016. Asset retirement obligation The Partnership has an asset retirement obligation (or ARO ) relating to the sub-sea mooring and riser system associated with the Gina Krog FSO unit expected to commence operations in the North Sea in early-2017 (see note 11b ). This obligation involves the costs associated with the restoration of the environment surrounding the facility and removal of all equipment, which are subsequently to be reimbursed by the charterer. This obligation is expected to be settled at the end of the contract under which the FSO unit is expected to operate, which is a three -year time-charter contract which includes 12 additional one -year extension options. The Partnership records the fair value of an ARO as a liability in the period when the obligation arises. The fair value of the ARO is measured using expected future cash outflows discounted at the Partnership’s credit-adjusted risk-free interest rate. When the liability is recorded, and as the ARO will be covered by contractual payments to be received from the charterer, the Partnership records a separate receivable concurrently with the ARO being created. Each period, the liability is increased for the change in its present value. Changes in the amount or timing of the estimated ARO are recorded as an adjustment to the related asset and liability. As at September 30, 2016 , the ARO and associated receivable, which is recorded in other long-term liabilities and other non-current assets, respectively, were both $21.3 million . |
Accounting Pronouncements
Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Pronouncements | Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (or FASB ) issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers , (or ASU 2014-09 ). ASU 2014-09 will require an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update creates a five-step model that requires entities to exercise judgment when considering the terms of the contract(s) which include (i) identifying the contract(s) with the customer, (ii) identifying the separate performance obligations in the contract, (iii) determining the transaction price, (iv) allocating the transaction price to the separate performance obligations, and (v) recognizing revenue as each performance obligation is satisfied. ASU 2014-09 is effective for the Partnership January 1, 2018 and shall be applied, at the Partnership’s option, retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Partnership is evaluating the effect of adopting this new accounting guidance. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (or ASU 2016-02 ). ASU 2016-02 establishes a right-of-use model that requires a lessee to record a right of use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 is effective for the Partnership January 1, 2019 with early adoption permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Partnership is evaluating the effect of adopting this new accounting guidance. In March 2016, the FASB issued Accounting Standards Update 2016-09, Improvements to Employee Share-Based Payment Accounting (or ASU 2016-09 ). ASU 2016-09 simplifies aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. ASU 2016-09 is effective for the Partnership January 1, 2017 with early adoption permitted. The Partnership expects the impact of adopting this new accounting guidance will be a change in presentation of cash payments for tax withholdings on share settled equity awards from an operating cash outflow to a financing cash outflow on the Partnership's statement of cash flows. In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments . This update replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This update is effective for the Partnership January 1, 2020, with a modified-retrospective approach. The Partnership is currently evaluating the effect of adopting this new guidance. In August 2016, the FASB issued Accounting Standards Update 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments , which, among other things, provides guidance on two acceptable approaches of classifying distributions received from equity method investees in the statement of cash flows. This update is effective for the Partnership January 1, 2018, with a retrospective approach. The Partnership is currently evaluating the effect of adopting this new guidance. |
Dropdown Predecessor
Dropdown Predecessor | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Dropdown Predecessor | Dropdown Predecessor On July 1, 2015, the Partnership acquired from Teekay Corporation, which controls the Partnership, Teekay Corporation's 100% interest in Teekay Knarr AS and Knarr L.L.C. (referred to herein as the Dropdown Predecessor ). The purchase price of $529.4 million that the Partnership paid for the acquisition was based on a $1.26 billion fully built-up cost of the Petrojarl Knarr , a floating, production, storage and offloading (or FPSO ) unit owned by the Dropdown Predecessor, and consisted of actual costs incurred for construction and mobilization of the unit less cash generated from operations between March 9, 2015 and July 1, 2015, plus $14.5 million of working capital of the Dropdown Predecessor less $745.1 million of assumed debt. The purchase price was primarily financed with a $492.0 million convertible promissory note issued to Teekay Corporation. The convertible promissory note was due in full on July 1, 2016, bearing interest at an annual rate of 6.5% on the outstanding principal balance; however, the promissory note was refinanced on July 1, 2016, with a two -year promissory note to Teekay Corporation (see note 8f ). The Partnership paid $35.0 million of the remaining $37.4 million of the purchase price in cash to Teekay Corporation upon the acquisition of the Dropdown Predecessor. During July 2015, $300.0 million of the convertible promissory note was converted into 14.4 million common units of the Partnership and the Partnership repaid an additional $92.0 million of the convertible promissory note. Concurrently with the conversion of the promissory note, Teekay Corporation contributed $6.1 million to the Partnership to maintain its 2% general partner interest. The Petrojarl Knarr operates on the Knarr oil and gas field in the North Sea under a six -year fixed-rate charter contract, plus extension options, with Royal Dutch Shell Plc, as the operator. The $103.3 million excess of the purchase price over Teekay Corporation’s carrying value of the Dropdown Predecessor was accounted for as an equity distribution to Teekay Corporation. In addition, the acquisition of the Dropdown Predecessor has been accounted for as if the acquisition occurred on March 9, 2015, the date that the Partnership and the Petrojarl Knarr FPSO were both under the common control of Teekay Corporation and had begun operations. As a result, the Partnership’s financial statements prior to the Partnership’s July 1, 2015 acquisition of the Dropdown Predecessor were retroactively adjusted to include the financial results of the Dropdown Predecessor as if the Partnership had acquired the FPSO on March 9, 2015. This had the effect of increasing the Partnership’s revenues by $nil and $69.5 million , respectively, and net income by $nil and $10.1 million , respectively, for the three and nine months ended September 30, 2015 . |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
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 4 in the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year ended December 31, 2015 . The following table includes the estimated fair value and carrying value of those assets and liabilities that are measured at fair value on a recurring and non-recurring basis, as well as the estimated fair value of the Partnership’s financial instruments that are not accounted for at fair value on a recurring basis. September 30, 2016 December 31, 2015 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 1 269,502 269,502 318,993 318,993 Logitel contingent consideration (see below) Level 3 — — (14,830 ) (14,830 ) Derivative instruments (note 9) Interest rate swap agreements Level 2 (309,003 ) (309,003 ) (235,998 ) (235,998 ) Cross currency swap agreements Level 2 (125,258 ) (125,258 ) (183,327 ) (183,327 ) Foreign currency forward contracts Level 2 1,429 1,429 (11,509 ) (11,509 ) Non-Recurring: Vessels held for sale (note 14) Level 2 — — 55,450 55,450 Vessels and equipment (note 14) Level 2 — — 100,600 100,600 Other: Long-term debt - public (note 6) Level 1 (592,464 ) (512,064 ) (620,746 ) (473,729 ) Long-term debt - non-public (note 6) Level 2 (2,556,387 ) (2,476,960 ) (2,743,128 ) (2,783,597 ) Contingent consideration liability – In August 2014, the Partnership acquired 100% of the outstanding shares of Logitel Offshore Holding AS (or Logitel ), a Norway-based company focused on high-end Units for Maintenance and Safety (or UMS ), from Cefront Technology AS (or Cefront ) for $4.0 million . The Partnership paid the purchase price in cash at closing, plus a commitment to pay an additional amount of up to $27.6 million , depending on certain performance criteria. During the second quarter of 2016, the Partnership canceled the UMS construction contracts for its two remaining UMS newbuildings. This is expected to eliminate any future purchase price contingent consideration payments. Consequently, the contingent liability was reversed in the second quarter of 2016. The gain associated with this reversal is included in Other (expense) income - net on the Partnership's consolidated statements of loss for the nine months ended September 30, 2016 . Changes in the estimated fair value of the Partnership’s contingent consideration liability relating to the acquisition of Logitel, which is measured at fair value on a recurring basis using significant unobservable inputs (Level 3), during the three and nine months ended September 30, 2016 and 2015 are as follows: Three Months Ended Nine Months Ended September 30, 2016 2015 2016 2015 Asset (Liability) Asset (Liability) $ $ $ $ Balance at beginning of period — (15,292 ) (14,830 ) (21,448 ) Acquisition of Logitel — — — 2,569 Settlement of liability — — — 3,540 Gain (loss) included in Other (expense) income - net — (253 ) 14,830 (206 ) Balance at end of period — (15,545 ) — (15,545 ) b) Financing Receivables The following table contains a summary of the Partnership’s 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: Credit Quality Indicator Grade September 30, December 31, $ $ Direct financing leases Payment activity Performing 18,952 17,471 |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The following tables include results for the Partnership’s FPSO unit segment; shuttle tanker segment; floating storage and off-take (or FSO ) unit segment; UMS segment; towage segment; and conventional tanker segment for the periods presented in these consolidated financial statements. Three Months Ended September 30, 2016 FPSO Segment Shuttle Tanker Segment FSO UMS Segment Towage Conventional Tanker Segment Total Revenues 121,294 128,482 14,251 13,395 5,345 3,531 286,298 Voyage expenses — (18,898 ) (96 ) — (2,440 ) (61 ) (21,495 ) Vessel operating expenses (42,353 ) (33,062 ) (6,056 ) (8,331 ) (4,206 ) — (94,008 ) Time-charter hire expenses — (14,723 ) — — — (4,171 ) (18,894 ) Depreciation and amortization (37,180 ) (30,166 ) (2,205 ) (1,647 ) (2,961 ) — (74,159 ) General and administrative (1) (10,235 ) (1,147 ) (230 ) (2,640 ) (859 ) (90 ) (15,201 ) Restructuring charge (597 ) (205 ) — — — — (802 ) Income (loss) from vessel operations 30,929 30,281 5,664 777 (5,121 ) (791 ) 61,739 Three Months Ended September 30, 2015 FPSO Segment Shuttle Tanker Segment FSO UMS Segment Towage Conventional Tanker Segment Total Revenues 137,888 131,381 14,234 11,737 10,808 8,006 314,054 Voyage expenses — (22,844 ) (217 ) — (4,340 ) (765 ) (28,166 ) Vessel operating expenses (47,542 ) (28,814 ) (6,511 ) (5,976 ) (4,709 ) (1,620 ) (95,172 ) Time-charter hire expenses — (18,893 ) — — — — (18,893 ) Depreciation and amortization (38,051 ) (25,362 ) (3,295 ) (1,677 ) (2,766 ) (1,676 ) (72,827 ) General and administrative (1)(2) (17,600 ) (4,162 ) (183 ) (2,558 ) (2,670 ) (148 ) (27,321 ) Restructuring charge — (157 ) — — — — (157 ) Income (loss) from vessel operations 34,695 31,149 4,028 1,526 (3,677 ) 3,797 71,518 Nine Months Ended September 30, 2016 FPSO Segment Shuttle Tanker Segment FSO UMS Segment Towage Conventional Tanker Segment Total Revenues (3) 378,793 380,505 42,403 30,612 28,158 16,999 877,470 Voyage expenses — (45,409 ) (431 ) — (10,239 ) (1,348 ) (57,427 ) Vessel operating expenses (130,632 ) (91,735 ) (17,724 ) (25,576 ) (13,015 ) (1,439 ) (280,121 ) Time-charter hire expenses — (44,298 ) — — — (8,747 ) (53,045 ) Depreciation and amortization (111,998 ) (90,903 ) (6,586 ) (5,037 ) (8,614 ) — (223,138 ) General and administrative (1) (27,126 ) (8,975 ) (612 ) (4,166 ) (2,350 ) (262 ) (43,491 ) Write down of vessels — — — (43,650 ) — — (43,650 ) Restructuring charge (2,084 ) (205 ) — — — — (2,289 ) Income (loss) from vessel operations 106,953 98,980 17,050 (47,817 ) (6,060 ) 5,203 174,309 Nine Months Ended September 30, 2015 FPSO Segment Shuttle Tanker Segment FSO UMS Segment Towage Conventional Tanker Segment Total Revenues 377,885 402,370 42,885 15,423 27,395 24,313 890,271 Voyage expenses — (61,349 ) (438 ) — (7,632 ) (1,980 ) (71,399 ) Vessel operating expenses (134,752 ) (94,250 ) (19,791 ) (7,102 ) (9,157 ) (4,508 ) (269,560 ) Time-charter hire expenses — (35,976 ) — — (662 ) — (36,638 ) Depreciation and amortization (100,319 ) (80,524 ) (9,191 ) (2,078 ) (5,488 ) (5,025 ) (202,625 ) General and administrative (1)(2) (29,433 ) (19,349 ) (1,213 ) (3,704 ) (3,817 ) (907 ) (58,423 ) (Write down) and gain on sale of vessels — (13,853 ) — (500 ) — — (14,353 ) Restructuring charge — (292 ) — — — — (292 ) Income from vessel operations 113,381 96,777 12,252 2,039 639 11,893 236,981 (1) Includes direct general and administrative expenses and indirect general and administrative expenses (allocated to each segment based on estimated use of corporate resources). (2) General and administrative expenses for the three and nine months ended September 30, 2015 includes business development fees of $9.7 million , $2.2 million and $2.0 million to Teekay Corporation in connection with the acquisition of the Petrojarl Knarr FPSO Unit in the FPSO segment, six long-distance towing and offshore installation vessels in the towage segment, and the Arendal Spirit UMS in the UMS segment, respectively (see notes 3 and 8b ). (3) Revenues includes a $4.0 million early termination fee received from Teekay Corporation during the nine months ended September 30, 2016 , which is included in the Partnership's conventional tanker segment (see notes 8a and 14 ). A reconciliation of total segment assets to total assets presented in the accompanying consolidated balance sheets is as follows: September 30, 2016 December 31, 2015 $ $ FPSO segment 2,715,893 2,717,193 Shuttle tanker segment 1,677,203 1,732,769 FSO segment 398,658 281,776 UMS segment 224,311 267,935 Towage segment 381,735 309,009 Conventional tanker segment 14,336 63,900 Unallocated: Cash and cash equivalents and restricted cash 269,502 318,993 Other assets 29,454 52,591 Consolidated total assets 5,711,092 5,744,166 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt September 30, 2016 December 31, 2015 $ $ U.S. Dollar-denominated Revolving Credit Facilities due through 2019 178,949 429,279 Norwegian Kroner Bonds due through 2019 300,578 327,941 U.S. Dollar-denominated Term Loans due through 2018 116,967 129,133 U.S. Dollar-denominated Term Loans due through 2028 2,135,135 2,037,766 U.S. Dollar Non-Public Bonds due through 2024 174,839 202,449 U.S. Dollar Bonds due through 2019 300,000 300,000 Total principal 3,206,468 3,426,568 Less debt issuance costs and other (57,617 ) (62,694 ) Total debt 3,148,851 3,363,874 Less current portion (528,568 ) (485,069 ) Long-term portion 2,620,283 2,878,805 As at September 30, 2016 , the Partnership had five revolving credit facilities, which, as at such date, provided for total borrowings of up to $354.1 million , of which $ 175.2 million was undrawn. The total amount available under the revolving credit facilities reduces by $29.0 million (remainder of 2016 ), $166.7 million ( 2017 ), $115.4 million ( 2018 ) and $43.0 million ( 2019 ). Four of the revolving credit facilities are guaranteed by the Partnership and certain of its subsidiaries for all outstanding amounts and contain covenants that require the Partnership to maintain an amount equal to the greater of a minimum amount of liquidity (cash, cash equivalents and undrawn committed revolving credit lines with at least six months to maturity) of at least $75.0 million and 5.0% of the Partnership’s total consolidated debt. One revolving credit facility is guaranteed by Teekay Corporation and contains a covenant that requires Teekay Corporation to maintain an amount equal to the greater of a minimum amount of liquidity (cash and cash equivalents) of at least $50.0 million and 5.0% of Teekay Corporation’s total consolidated debt which has recourse to Teekay Corporation. The revolving credit facilities are collateralized by first-priority mortgages granted on 21 of the Partnership’s vessels, together with other related security. The Partnership has guaranteed $338.5 million of these revolvers, of which $163.3 million was drawn as at September 30, 2016 , and Teekay Corporation has guaranteed $15.6 million which was fully drawn as at September 30, 2016 . In January 2014, the Partnership issued Norwegian Kroner (or NOK ) 1,000 million in senior unsecured bonds that mature in January 2019 in the Norwegian bond market. As of September 30, 2016 , the carrying amount of the bonds was $125.2 million . The bonds are listed on the Oslo Stock Exchange. The interest payments on the bonds are based on NIBOR plus a margin of 4.25% . During the nine months ended September 30, 2016, the Partnership amended its existing cross currency rate swaps to swap all interest and principal payments into U.S. Dollars, with the interest payments fixed at a rate of 7.45% , and the transfer of the principal amount fixed at $162.2 million upon maturity in exchange for NOK 1,000 million (see note 9 ). In January 2013, the Partnership issued NOK 1,300 million in senior unsecured bonds in the Norwegian bond market. The bonds were issued in two tranches, of which one tranche matured and was paid in January 2016 (NOK 500 million ) and the remaining tranche which was originally scheduled to mature in January 2018 (NOK 800 million ). In June 2016, the terms of the remaining tranche were amended such that NOK 160 million is now repayable in January 2018 with the remaining balance of NOK 640 million repayable in December 2018 at 103% of the amount outstanding. In addition, the Partnership was granted an option, exercisable at any time, to prepay the bonds in amounts ranging from 101% to 103% of the amount of bonds outstanding depending on the timing of settlement. The bonds are listed on the Oslo Stock Exchange. Interest payments previously were based on NIBOR plus a margin of 4.75% ; however, under the June 2016 amended bond agreement, interest payments have increased to NIBOR plus a margin of 5.75% . As at September 30, 2016 , the carrying amount of the remaining bonds was $100.2 million . The Partnership also amended its existing cross currency rate swaps to swap all interest and principal payments into U.S. Dollars, with interest payments fixed at a rate of 7.58% and the transfer of the principal amount fixed at $28.7 million in exchange for NOK 160 million on the tranche maturing in January 2018 and $118.3 million in exchange for NOK 659 million on the tranche maturing in December 2018 (see note 9 ). The Partnership recorded a $32.6 million realized foreign currency exchange gain on the payment of the NOK 500 million tranche that matured in January 2016 and a corresponding $32.6 million realized loss on the maturing cross currency swap for the nine months ended September 30, 2016 , both of which are included in foreign currency exchange loss on the Partnership’s consolidated statement of loss for the nine months ended September 30, 2016 . In January 2012, the Partnership issued NOK 600 million in senior unsecured bonds that were originally scheduled to mature in January 2017 in the Norwegian bond market. In June 2016, the terms of these bonds were amended such that NOK 180 million was repaid in October 2016, NOK 180 million is repayable in October 2017 and NOK 240 million is repayable in November 2018 at 103% of the amount outstanding. In addition, the Partnership was granted an option, exercisable at any time, to prepay the bonds in amounts ranging from 101% to 103% of the amount of bonds outstanding depending on the timing of settlement. The bonds are listed on the Oslo Stock Exchange. The interest payments on the bonds are based on NIBOR plus a margin of 5.75% . As at September 30, 2016 , the carrying amount of the bonds was $75.1 million . The Partnership also amended its existing cross currency rate swap to swap all interest and principal payments into U.S. Dollars, with the interest payments fixed at a rate of 8.84% , and the transfer of the principal amount fixed at $30.4 million in exchange for NOK 180 million on the tranche matured in October 2016, $30.4 million in exchange for NOK 180 million on the tranche maturing in October 2017 and $41.8 million in exchange for NOK 247 million on the tranche maturing in November 2018 (see note 9 ). As at September 30, 2016 , three of the Partnership’s 50% -owned subsidiaries each had an outstanding term loan, which in the aggregate totaled $117.0 million . The term loans reduce over time with quarterly and semi-annual payments and have varying maturities through 2018 . These term loans are collateralized by first-priority mortgages on the three shuttle tankers to which the loans relate, together with other related security. As at September 30, 2016 , the Partnership had guaranteed $26.6 million of these term loans, which represents its 50% share of the outstanding term loans of two of these 50% -owned subsidiaries. The other owner and Teekay Corporation have guaranteed $58.5 million and $31.9 million , respectively. As at September 30, 2016 , the Partnership had term loans outstanding for six shuttle tankers , for three East Coast of Canada shuttle tanker newbuildings, for the Suksan Salamander and Gina Krog FSO units, for four FPSO units, for ten towing and offshore installation vessels and vessel newbuildings, and for the Arendal Spirit UMS, which totaled $2.1 billion in the aggregate. For the term loans for two shuttle tankers, one tranche reduces in semi-annual payments while another tranche correspondingly is drawn up every six months with final bullet payments of $29.0 million due in 2022 and $29.1 million due in 2023, respectively. The other term loans reduce over time with quarterly or semi-annual payments. These term loans have varying maturities through 2028 and are collateralized by first-priority mortgages on the vessels to which the loans relate, together with other related security. As at September 30, 2016 , the Partnership had guaranteed $1.8 billion of these term loans and Teekay Corporation had guaranteed $316.8 million . In February 2015, the Partnership issued $30.0 million in senior bonds that mature in June 2024 in a U.S. private placement. As of September 30, 2016 , the carrying amount of the bonds was $25.4 million . The interest payments on the bonds are fixed at a rate of 4.27% . The bonds are collateralized by a first-priority mortgage on the Dampier Spirit FSO unit, together with other related security, and are guaranteed by the Partnership. In September 2013 and November 2013, the Partnership issued, in a U.S. private placement, a total of $174.2 million of ten -year senior bonds that mature in December 2023, to finance the Bossa Nova Spirit and Sertanejo Spirit shuttle tankers. The bonds accrue interest at a fixed combined rate of 4.96% . The bonds are collateralized by first-priority mortgages on the two vessels to which the bonds relate, together with other related security. The Partnership makes semi-annual repayments on the bonds and as of September 30, 2016 , the carrying amount of the bonds was $149.4 million . In May 2014, the Partnership issued $300.0 million five -year senior unsecured bonds that mature in July 2019 in the U.S. bond market. As of September 30, 2016 , the carrying amount of the bonds was $300.0 million . The bonds are listed on the New York Stock Exchange. The interest payments on the bonds are fixed at a rate of 6.00% . Interest payments on the revolving credit facilities and the term loans are based on LIBOR plus margins, except for $58.3 million of one tranche of the term loan for the ALP newbuilding towing and offshore installation vessels, which is fixed at 2.93% . At September 30, 2016 and December 31, 2015 , the margins ranged between 0.30% and 4.00% , and 0.30% and 3.25% , respectively. The weighted-average effective interest rate on the Partnership’s variable rate long-term debt as at September 30, 2016 was 3.1% ( December 31, 2015 - 2.9% ). This rate does not include the effect of the Partnership’s interest rate swaps (see note 9 ). The aggregate annual long-term debt principal repayments required to be made subsequent to September 30, 2016 are $106.1 million (remainder of 2016 ), $537.1 million ( 2017 ), $643.7 million ( 2018 ), $781.5 million ( 2019 ), $273.3 million ( 2020 ), and $864.8 million (thereafter). Obligations under the Partnership’s credit facilities are secured by certain vessels, and if the Partnership is unable to repay debt under the credit facilities, the lenders could seek to foreclose on those assets. The Partnership has two revolving credit facilities, of which one revolving credit facility was undrawn as at September 30, 2016 , and five term loans that require the Partnership to maintain vessel values to drawn principal balance ratios of a minimum range of 113% to 125% . Such requirement is assessed either on a semi-annual or annual basis, with reference to vessel valuations complied by one or more agreed upon third parties. Should the ratio drop below the required amount, the lender may request the Partnership to either prepay a portion of the loan in the amount of the shortfall or provide additional collateral in the amount of the shortfall, at the Partnership's option. As at September 30, 2016 , these ratios were estimated to range from 116% to 352% and exceeded the minimum ratios required. The vessel values used in calculating these ratios are the appraised values prepared by the Partnership based on second-hand sale and purchase market data. Changes in the shuttle tanker, towing and offshore installation, UMS or FPSO markets could negatively affect these ratios. Please read Item 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources - Liquidity and Capital Needs for a description of certain covenants contained in the Partnership’s credit facilities and loan agreements. As at September 30, 2016 , the Partnership and Teekay Corporation were in compliance with all covenants related to the credit facilities and long-term debt. |
Related Party Transactions and
Related Party Transactions and Balances | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions and Balances | Related Party Transactions and Balances a) During the three months ended September 30, 2016 , two shuttle tankers and three FSO units of the Partnership were employed on bareboat contracts with subsidiaries of Teekay Corporation. During the nine months ended September 30, 2016 , one conventional tanker, two shuttle tankers and three FSO units of the Partnership were employed on long-term time-charter-out or bareboat contracts with subsidiaries of Teekay Corporation. In the first quarter of 2016, the Partnership terminated the long-term time-charter-out contract under which the one conventional tanker was employed with a subsidiary of Teekay Corporation. The Partnership concurrently received an early termination fee from Teekay Corporation of $4.0 million (see note 14 ), which is recorded in revenue on the consolidated statement of loss for the nine months ended September 30, 2016 . b) Teekay Corporation and its wholly-owned subsidiaries provide substantially all of the Partnership’s commercial, technical, crew training, strategic, business development and administrative service needs. In addition, the Partnership reimburses the general partner for expenses incurred by the general partner that are necessary or appropriate for the conduct of the Partnership’s business. Such related party transactions were as follows for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 $ $ $ $ Revenues (1) 13,733 17,591 38,651 52,410 Vessel operating expenses (2) (8,889 ) (9,821 ) (26,951 ) (29,671 ) General and administrative (3)(4) (7,469 ) (22,928 ) (22,817 ) (38,990 ) Interest expense (5)(6)(7)(8) (6,927 ) (3,136 ) (15,409 ) (3,359 ) _______________ (1) Includes revenue from time-charter-out or bareboat contracts with subsidiaries or affiliates of Teekay Corporation, including management fees from ship management services provided by the Partnership to a subsidiary of Teekay Corporation, and an early termination fee received by the Partnership from Teekay Corporation (see note 14 ). (2) Includes ship management and crew training services provided by Teekay Corporation. (3) Includes commercial, technical, strategic, business development and administrative management fees charged by Teekay Corporation and reimbursements to Teekay Corporation and the general partner for costs incurred on the Partnership’s behalf. (4) Includes business development fees of $9.7 million , $2.2 million and $2.0 million to Teekay Corporation in connection with the acquisition of the Petrojarl Knarr FPSO unit, six long-distance towing and offshore installation vessels, and the Arendal Spirit UMS, respectively, during the three and nine months ended September 30, 2015 . (5) Includes guarantee fees related to the final bullet payment of the Piranema Spirit FPSO debt facility and for the Partnership's liabilities associated with the long-term debt financing relating to the East Coast of Canada shuttle tanker newbuildings and certain of the Partnerships interest rate swaps and cross currency swaps (see note 8g ). (6) Includes interest expense of $3.2 million for the nine months ended September 30, 2016 incurred on the convertible promissory note issued to Teekay Corporation in connection with the financing of the acquisition of the Dropdown Predecessor (see note 3 ) bearing interest at an annual rate of 6.50% on the outstanding principal balance. The outstanding principal balance of $100.0 million , together with accrued interest, was payable in full on July 1, 2016; however, this convertible promissory note was refinanced on July 1, 2016 (see note 8f ). The outstanding principal balance of this convertible promissory note was $nil as at September 30, 2016 . (7) Includes interest expense of $5.0 million for the nine months ended September 30, 2016 , incurred on a $100.0 million six month loan made by Teekay Corporation to the Partnership on January 1, 2016, bearing interest at an annual rate of 10.00% on the outstanding principal balance. The outstanding principal balance, together with accrued interest, was payable in full on July 1, 2016; however, this loan was refinanced on July 1, 2016 (see note 8f ). The outstanding principal balance of this loan was $nil as at September 30, 2016 . (8) Includes interest expense of $5.0 million for the three and nine months ended September 30, 2016 , incurred on a $200.0 million subordinated promissory note issued to Teekay Corporation effective July 1, 2016 (see note 8f ). The subordinated promissory note bears interest at an annual rate of 10.00% on the outstanding principal balance, which as at September 30, 2016 , was $200.0 million . The outstanding principal balance, together with accrued interest, is payable in full on January 1, 2019. c) At September 30, 2016 , due from affiliates totaled $88.4 million ( December 31, 2015 - $81.3 million ) and due to affiliates totaled $312.4 million ( December 31, 2015 - $304.6 million ). Amounts due to and from affiliates, other than the $200.0 million subordinated promissory note to Teekay Corporation (see b(8) above and note 8f ), are non-interest bearing and unsecured, and all Current due to and from affiliates balances are expected to be settled within the next fiscal year in the normal course of operations or from financings. d) In May 2013, the Partnership entered into an agreement with Statoil ASA (or Statoil ), on behalf of the field license partners, to provide an FSO unit for the Gina Krog oil and gas field located in the North Sea. The contract will be serviced by a new FSO unit that is being converted from the Randgrid shuttle tanker, which commenced its conversion during the second quarter of 2015. The Partnership received project management and engineering services from certain subsidiaries of Teekay Corporation relating to this FSO unit conversion. These costs are capitalized and included as part of advances on newbuilding contracts and will be reclassified to vessels and equipment upon completion of the conversion in early-2017. Project management and engineering costs paid to Teekay Corporation subsidiaries amounted to $11.9 million up to September 30, 2016 . e) On July 1, 2015 the Partnership acquired from Teekay Corporation its 100% interest in the Dropdown Predecessor, which owns the Petrojarl Knarr FPSO unit, which operates on the Knarr Field in the North Sea, for an equity purchase price of $529.4 million (see note 3 ). f) In May 2016, the Partnership agreed to issue a $200.0 million subordinated promissory note to Teekay Corporation effective July 1, 2016, to refinance the $100.0 million outstanding balance on the convertible promissory note in connection with the financing of the Dropdown Predecessor (see b(6) above) and the $100.0 million six-month loan issued by Teekay Corporation to the Partnership in January 2016 (see b(7) above), both due July 1, 2016. The subordinated promissory note bears interest at an annual rate of 10.00% on the outstanding principal balance, which is payable quarterly and, of which (a) 5.00% is payable in cash and (b) 5.00% is payable in common units of the Partnership, or in cash, at the election of Teekay Corporation. If the Partnership elects to pay cash for such second 5.00% of interest, the Partnership must raise at least an equal amount of cash proceeds from the issuance of common units in advance of or within six months of the applicable interest payment date. The outstanding principal balance of the subordinated promissory note, together with accrued interest, is payable in full on January 1, 2019. g) In June 2016, as part of various other financing initiatives, Teekay Corporation agreed to provide financial guarantees for the Partnership's liabilities associated with the long-term debt financing relating to the East Coast of Canada newbuilding shuttle tankers until their deliveries, which are expected to be in the third quarter of 2017 through the first half of 2018 (see note 11g ), and for certain of the Partnerships interest rate swaps and cross currency swaps until early-2019. The guarantees cover liabilities totaling up to a maximum amount of $495 million . During the three and nine months ended September 30, 2016 , a guarantee fee of $1.8 million was recognized in interest expense on the Partnership's consolidated statements of income (loss) , which represents the estimated fee a third party would charge to provide such financial guarantees. The guarantee fee was accounted for as an equity contribution by Teekay Corporation in the Partnership's consolidated statement of changes in total equity as Teekay Corporation has provided such financial guarantees at no cost to the Partnership. |
Restructuring Charge
Restructuring Charge | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charge | Restructuring Charge During the three and nine months ended September 30, 2016 , the Partnership recognized restructuring charges of $0.8 million and $2.3 million , respectively, mainly relating to the reorganization of the Partnership’s FPSO business to create better alignment with the Partnership’s offshore operations, resulting in a lower cost organization going forward. The Partnership expects to incur a total of $2.6 million of restructuring charges under this plan and the reorganization is expected to be completed in early-2017. As of September 30, 2016 , restructuring liabilities of $1.4 million were recorded in accrued liabilities on the consolidated balance sheet. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Partnership uses derivatives to manage certain risks in accordance with its overall risk management policies. Foreign Exchange Risk The Partnership economically hedges portions of its forecasted expenditures denominated in foreign currencies with foreign currency forward contracts. The Partnership has not designated, for accounting purposes, any of the foreign currency forward contracts held during the nine months ended September 30, 2016 as cash flow hedges. As at September 30, 2016 , the Partnership was committed to the following foreign currency forward contracts: Contract Amount in Foreign Currency (thousands) Fair Value / Carrying Amount of Asset (Liability) (in thousands of U.S. Dollars) Non-hedge Average Forward Rate (1) Expected Maturity 2016 2017 (in thousands of U.S. Dollars) Norwegian Kroner 371,000 1,412 8.23 12,875 32,214 Euro 2,250 85 0.92 2,447 — Singapore Dollar 14,026 (68 ) 1.35 10,361 — 1,429 25,683 32,214 (1) Average forward rate represents the contracted amount of foreign currency one U.S. Dollar will buy. In connection with its issuance of NOK bonds, the Partnership entered into cross currency swaps pursuant to which it receives the principal amounts of the bonds in NOK on the repayment and maturity dates, in exchange for payments of fixed U.S. Dollar amounts. 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 repayments of principal amounts of the Partnership’s NOK bonds with maturity dates from 2018 to 2019 (see note 6 ). In addition, the cross currency swaps economically hedge the interest rate exposure on the NOK bonds. The Partnership has not designated, for accounting purposes, these cross currency swaps as cash flow hedges of its NOK bonds. As at September 30, 2016 , the Partnership was committed to the following cross currency swaps: Notional Principal Floating Rate Receivable Fixed Rate Fair Value / Remaining Reference Margin 600,000 (1)(2) 101,351 NIBOR 5.75 % 8.84 % (30,393 ) 2.2 800,000 (1)(3) 143,536 NIBOR 5.75 % 7.58 % (48,454 ) 2.3 1,000,000 162,200 NIBOR 4.25 % 7.45 % (46,411 ) 2.3 (125,258 ) (1) Notional amount reduces equally with NOK bond repayments (see note 6 ). (2) Excludes an economic hedge on the foreign currency exposure for a three percent premium upon maturity of the NOK bonds which exchanges NOK 7.2 million for $1.2 million (see note 6 ). (3) Excludes an economic hedge on the foreign currency exposure for a three percent premium upon maturity of the NOK bonds which exchanges NOK 19.2 million for $3.4 million (see note 6 ). 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 its outstanding floating-rate debt. As at September 30, 2016 , the Partnership was committed to the following interest rate swap agreements: Interest Rate Index Notional Amount $ Fair Value / Carrying Amount of Asset (Liability) $ Weighted- Average Remaining Term (years) Fixed Interest Rate (%) (1) U.S. Dollar-denominated interest rate swaps (2) LIBOR 950,000 (210,365 ) 5.2 4.0 U.S. Dollar-denominated interest rate swaps (3) LIBOR 1,246,849 (98,638 ) 5.1 2.7 2,196,849 (309,003 ) (1) Excludes the margin the Partnership pays on its variable-rate debt, which as at September 30, 2016 , ranged between 0.30% and 4.00% (2) Notional amount remains constant over the term of the swap. (3) Principal amount reduces quarterly or semi-annually. For the periods indicated, the following table presents the effective and ineffective portion of losses on interest rate swap agreements designated and qualifying as cash flow hedges. The following table excludes any interest rate swap agreements designated and qualifying as cash flow hedges in the Partnership’s equity accounted joint ventures. Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 Effective Effective Effective Effective Portion Portion Portion Portion Recognized Reclassified Ineffective Recognized Reclassified Ineffective in AOCI (1) from AOCI (2) Portion (3) in AOCI (1) from AOCI (2) Portion (3) 640 — 126 Interest expense (1,085) — (1,058) Interest expense 640 — 126 (1,085) — (1,058) Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Effective Effective Effective Effective Portion Portion Portion Portion Recognized Reclassified Ineffective Recognized Reclassified Ineffective in AOCI (1) from AOCI (2) Portion (3) in AOCI (1) from AOCI (2) Portion (3) (3,870) — 984 Interest expense (1,085) — (1,058) Interest expense (3,870) — 984 (1,085) — (1,058) (1) Effective portion of designated and qualifying cash flow hedges recognized in accumulated other comprehensive income (loss) (or AOCI ). (2) Effective portion of designated and qualifying cash flow hedges recorded in AOCI during the term of the hedging relationship and reclassified to earnings. (3) Ineffective portion of designated and qualifying cash flow hedges. As at September 30, 2016 , the Partnership had multiple interest rate swaps, cross currency swaps and foreign currency forward contracts governed by the same master agreement. Each of these master agreements provides for the net settlement of all derivatives subject to that master agreement through a single payment in the event of default or termination of any one derivative. The fair value of these derivatives is presented on a gross basis in the Partnership’s consolidated balance sheets. As at September 30, 2016 , these derivatives had an aggregate fair value asset amount of $1.9 million and an aggregate fair value liability amount of $235.7 million (December 31, 2015 - an aggregate fair value asset amount of $nil and an aggregate fair liability amount of $360.6 million ). As at September 30, 2016 , the Partnership had $21.9 million on deposit with the relevant counterparties as security for swap liabilities under certain master agreements (December 31, 2015 - $60.5 million ). The deposit is presented in Restricted cash and Restricted cash - long-term on the consolidated balance sheets. Tabular disclosure The following table presents the location and fair value amounts of derivative instruments, segregated by type of contract, on the Partnership’s balance sheets. Other Current Assets $ Other Assets Accrued Liabilities $ Current Portion of Derivative Liabilities $ Derivative Liabilities $ As at September 30, 2016 Foreign currency contracts 1,661 256 — (488 ) — Cross currency swaps — — (2,403 ) (17,747 ) (105,108 ) Interest rate swaps — 100 (10,391 ) (32,604 ) (266,108 ) 1,661 356 (12,794 ) (50,839 ) (371,216 ) As at As at December 31, 2015 Foreign currency contracts 80 — — (10,266 ) (1,323 ) Cross currency swaps — — (2,196 ) (42,878 ) (138,253 ) Interest rate swaps — 1,894 (7,827 ) (148,312 ) (81,753 ) 80 1,894 (10,023 ) (201,456 ) (221,329 ) Total realized and unrealized gains (losses) on interest rate swaps and foreign currency forward contracts that are not designated for accounting purposes as cash flow hedges are recognized in earnings and reported in realized and unrealized gains (losses) on derivative instruments in the consolidated statements of income (loss) . The effect of the gains (losses) on these derivatives in the consolidated statements of income (loss) for the three and nine months ended September 30, 2016 and 2015 is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 $ $ $ $ Realized losses on derivative instruments Interest rate swap termination — (10,876 ) — (10,876 ) Interest rate swaps (13,507 ) (15,857 ) (40,989 ) (45,378 ) Foreign currency forward contracts (1,764 ) (4,064 ) (6,384 ) (9,890 ) (15,271 ) (30,797 ) (47,373 ) (66,144 ) Unrealized gains (losses) on derivative instruments Interest rate swaps 31,894 (43,453 ) (67,845 ) (22,303 ) Foreign currency forward contracts 3,624 (2,852 ) 12,938 (1,735 ) 35,518 (46,305 ) (54,907 ) (24,038 ) Total realized and unrealized gains (losses) on derivative instruments 20,247 (77,102 ) (102,280 ) (90,182 ) Realized and unrealized gains (losses) on cross currency swaps are recognized in earnings and reported in foreign currency exchange gain (loss) in the consolidated statements of income (loss) . The effect of the gains (losses) on cross currency swaps in the consolidated statements of income (loss) for the three and nine months ended September 30, 2016 and 2015 is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 $ $ $ $ Realized losses (3,330 ) (2,840 ) (41,276 ) (7,173 ) Unrealized gains (losses) 19,803 (32,649 ) 58,276 (52,325 ) Total realized and unrealized gains (losses) on cross currency swaps 16,473 (35,489 ) 17,000 (59,498 ) The Partnership is exposed to credit loss in the event of non-performance by the counterparties, all of which are financial institutions, to the foreign currency forward contracts and 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 possible and practical, interest rate swaps are entered into with different counterparties to reduce concentration risk. |
Income Tax
Income Tax | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Income Tax The components of the provision for income tax are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 $ $ $ $ Current (2,180 ) (119 ) (3,342 ) (745 ) Deferred 577 5,584 6,013 6,399 Income tax (expense) recovery (1,603 ) 5,465 2,671 5,654 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies a) During 2010, an unrelated party contributed a shuttle tanker to a subsidiary of the Partnership for a 33% equity interest in the subsidiary. The non-controlling interest owner in the subsidiary holds a put option which, if exercised, would obligate the Partnership to purchase the non-controlling interest owner’s 33% share in the entity for cash in accordance with a defined formula. The redeemable non-controlling interest is subject to remeasurement if the formulaic redemption amount exceeds the carrying value. No remeasurement was required as at September 30, 2016 . b) In May 2013, the Partnership entered into an agreement with Statoil, on behalf of the field license partners, to provide an FSO unit for the Gina Krog oil and gas field located in the North Sea. The contract will be serviced by a new FSO unit that will be converted from the Randgrid shuttle tanker, which the Partnership purchased in August 2015 from a 67% -owned subsidiary. The FSO conversion project is expected to cost approximately $305 million , including amounts reimbursable upon delivery of the unit relating to installation and mobilization. As at September 30, 2016 , payments made towards this commitment totaled $223.6 million and the remaining payments required to be made are $44.4 million (remainder of 2016 ) and $37.0 million ( 2017 ). Following scheduled completion of the conversion in early-2017, the FSO unit will commence operations under a three -year time-charter contract to Statoil, which includes 12 additional one -year extension options. The Partnership secured a long-term debt facility providing total borrowings up to $230 million in December 2015, of which $65.5 million was undrawn as at September 30, 2016 . c) In March 2014, the Partnership acquired 100% of the shares of ALP, a Netherlands-based provider of long-distance ocean towage and offshore installation services to the global offshore oil and gas industry. Concurrently with this transaction, the Partnership and ALP entered into an agreement with Niigata Shipbuilding & Repair of Japan for the construction of four state-of-the-art SX-157 Ulstein Design ultra-long distance towing and anchor handling offshore installation vessel newbuildings. These vessels will be equipped with dynamic positioning capability. One vessel was delivered to the Partnership during September 2016 and the remaining three vessel newbuildings are scheduled for delivery during the first half of 2017. The total cost to acquire these newbuildings is approximately $220 million , net of amounts reimbursable by Niigata Shipbuilding & Repair of Japan upon the delivery of the vessels. The Partnership paid $17.1 million upon the delivery of the first newbuilding, ALP Striker , in September 2016, net of a reimbursement of $7.0 million from the yard resulting from the delay in delivery. As at September 30, 2016 , payments made towards these commitments totaled $170.2 million and the remaining payments required to be made under these newbuilding contracts are $0.6 million (remainder of 2016 ) and $48.9 million ( 2017 ). The Partnership secured a long-term debt facility of approximately $185 million to finance the newbuilding installments, of which $68.3 million was undrawn as at September 30, 2016 . d) In August 2014, the Partnership acquired 100% of the outstanding shares of Logitel, a Norway-based company focused on high-end UMS. As part of this transaction, the Partnership assumed three UMS newbuilding contracts ordered from the COSCO (Nantong) Shipyard ( COSCO ) in China. The Partnership took delivery of one of the UMS newbuildings, the Arendal Spirit, in February 2015. In June 2016, the Partnership canceled the UMS construction contracts for the two remaining UMS newbuildings, the Stavanger Spirit and the Nantong Spirit . As a result of this cancellation during the second quarter of 2016, the Partnership wrote-off $43.7 million of assets related to these newbuildings and reversed contingent liabilities of $14.5 million associated with the delivery of these assets (see notes 4 and 14 ). In addition, the estimate of potential damages for the cancellation of the Stavanger Spirit newbuilding contract is based on the amount due for the final yard instalment of approximately $170 million less the estimated fair value of the Stavanger Spirit . Given the unique design of the vessel as well as the lack of recent sale and purchase transactions for this type of asset, the value of this vessel, and thus ultimately the amount of potential damages that may result from the cancellation, is uncertain. Pursuant to the Stavanger Spirit newbuilding contract and related agreements, COSCO only has recourse to the single purpose subsidiary that is a party to the Stavanger Spirit newbuilding contract and its immediate parent company, Logitel Offshore Pte. Ltd., for damages incurred. The estimate of potential damages for the cancellation of the Nantong Spirit newbuilding contract is based upon estimates of a number of factors, which will ultimately be decided upon between the parties, including accumulated costs incurred by COSCO, sub-supplier contract cancellation costs, as well as how such costs are treated under the termination provisions in the contract. The Partnership estimates that the amount of potential damages related to the cancellation of the Nantong Spirit contract could range between $10 million and $40 million . Pursuant to the Nantong Spirit newbuilding contract, COSCO only has recourse to the single purpose subsidiary that is a party to the Nantong Spirit newbuilding contract. During September 2016, Sevan Marine ASA (or Sevan ) commenced an action against Logitel in the Oslo District Court. The action relates to the agreements between Sevan and CeFront Technology AS (or CeFront ), related to the 2013 transfer to Logitel Offshore Pte. Ltd. or its wholly-owned subsidiaries (collectively Logitel Offshore ) of two hulls to be converted into UMS, including a $60 million bond loan (of which $41 million was a vendor credit and $19 million was a cash loan) granted by a Sevan affiliate to Logitel (or the 2013 Transaction ). The action also relates to agreements between Sevan and the Partnership entered into in connection with a 2014 transaction whereby the Partnership acquired Logitel from CeFront (or the 2014 Transaction ). Sevan has claimed that the $60 million bond loan to Logitel contravened certain provisions of the Norwegian Corporate Law and thus, Sevan is entitled to the remaining payment of $50 million plus interest set at the court’s discretion. Logitel intends to dispute these claims. In addition, Sevan has presented the Partnership with a formal notice of claim and request for arbitration seeking $10 million for license and service fees, which Sevan claims is payable in connection with the delivery of the Arendal Spirit . The parties are in the process of selecting an arbitration tribunal and exchanging information on their respective calculations of the amount of license and service fees that may be due. In addition, the Partnership received a demand letter from CeFront in September 2016, which claims that $2.7 million is due under a management agreement and $3.7 million will fall due by May 2017 under this agreement. Such letter also claims that $3.3 million is due for the earn-out provisions of the contracts related to the Arendal Spirit and $20.2 million is due or will become due related to the earn-out provisions of the contracts for the Stavanger Spirit and Nantong Spirit . The Partnership intends to dispute these claims. Uncertainty exists as to the ultimate resolution of these claims (see note 4 ). As at September 30, 2016 , the Partnership has accrued $61.1 million in the aggregate related to the above claims and potential claims related to Logitel from Sevan, COSCO and CeFront. e) In October 2014, the Partnership sold a 1995-built shuttle tanker, the Navion Norvegia, to a 50 /50 joint venture of the Partnership and Odebrecht Oil and Gas S.A. (or OOG ) on behalf of its field license partners. The vessel is committed to a new FPSO conversion for the Libra field located in the Santos Basin offshore Brazil. The conversion project will be completed at Sembcorp Marine’s Jurong Shipyard in Singapore and the FPSO unit is scheduled to commence operations in mid-2017 under a 12 -year fixed-rate contract with a consortium led by Petroleo Brasileiro SA (or Petrobras ). The FPSO conversion is expected to cost approximately $1.0 billion . As at September 30, 2016 , payments made by the joint venture towards these commitments totaled $596.9 million and the remaining payments required to be made by the joint venture are $117.7 million (remainder of 2016 ) and $290.0 million ( 2017 ). The joint venture secured a long-term debt facility in 2015 providing total borrowings of up to $804 million for the FPSO conversion (see note 15 ), of which $363.3 million was undrawn as at September 30, 2016. f) In December 2014, the Partnership acquired the Petrojarl I FPSO unit from Teekay Corporation for $57 million . The Petrojarl I is undergoing upgrades at the Damen Shipyard Group’s DSR Schiedam Shipyard (or Damen ) in the Netherlands with an estimated total cost of approximately $350 million , which includes the cost of acquiring the Petrojarl I . The FPSO is expected to commence operations in the second half of 2017 under a five -year charter contract with Queiroz Galvão Exploração e Produção SA (or QGEP ). As at September 30, 2016 , payments made towards these commitments, including the acquisition of the Petrojarl I FPSO unit from Teekay Corporation, totaled $237.8 million and the remaining payments required to be made are estimated to be $5.0 million in 2016 , with the balance to be paid in 2017. The Partnership has financed $171.2 million of the Petrojarl I FPSO upgrade cost through a fully-drawn long-term loan. Due to project delays in the delivery of the unit resulting from shipyard delays, an increased scope of work relating to field-specific requirements and the age of the unit, the Partnership is currently in discussions with QGEP, Damen and its lenders in the Petrojarl I loan facility to agree on revised delivery/acceptance dates for the unit and other terms associated with the charter, shipyard contract and loan facility. In October 2016, the lenders agreed to extend the availability date of the loan for two months, as the loan was subject to a mandatory prepayment provision in early October 2016 if the unit was not accepted by QGEP by then. This interim extension provides time for the Partnership to negotiate a revised schedule for the delivery of the unit and thereafter, amend the loan facility accordingly to reflect the revised delivery schedule. g) In June 2015, the Partnership entered into 15 -year contracts, plus extension options, with a group of oil companies to provide shuttle tanker services for oil production on the East Coast of Canada. These contracts were initially being serviced by three third party-owned shuttle tankers operating on the East Coast of Canada, which were chartered-in to the Partnership. One of these vessels was replaced by one of the Partnership’s existing shuttle tankers, the Navion Hispania, during the third quarter of 2015. The Partnership has entered into contracts to construct three Suezmax DP2 shuttle tanker newbuildings for a fully built-up cost of approximately $372 million . These vessels will replace the existing vessels servicing the East Coast of Canada. The three newbuildings are expected to be delivered in the third quarter of 2017 through the first half of 2018. As at September 30, 2016 , payments made towards these commitments totaled $59.9 million and the remaining payments required to be made under these newbuilding contracts are $20.7 million (remainder of 2016 ), $221.2 million ( 2017 ), and $70.6 million ( 2018 ). The Partnership secured long-term debt financing of $250 million to finance the newbuilding installments, of which $209.3 million was undrawn as at September 30, 2016 . h) In March 2016, Petrobras claimed that the Partnership’s November 2011 cessation of paying certain agency fees with respect to the Piranema Spirit FPSO unit’s employment should have resulted in a corresponding 2% rate reduction on the FPSO contract with Petrobras. The Partnership has estimated the maximum amount of the claim at $7.5 million , consisting of $5.3 million (which is the amount accrued by the Partnership as at September 30, 2016) from a return of 2% of the charter hire previously paid by Petrobras to the Partnership for the period from November 2011 up to September 30, 2016 , and $2.2 million from a 2% reduction of future charter hire to the end of the term of the FPSO contract with Petrobras. |
Total Capital and Net Income (L
Total Capital and Net Income (Loss) Per Common Unit | 9 Months Ended |
Sep. 30, 2016 | |
Partners' Capital [Abstract] | |
Total Capital and Net Income (Loss) Per Common Unit | Total Capital and Net Income (Loss) Per Common Unit At September 30, 2016 , a total of 72.6% of the Partnership’s common units outstanding were held by the public. The remaining common units, as well as the 2% general partner interest, were held by subsidiaries of Teekay Corporation. All of the Partnership’s outstanding Series A Cumulative Redeemable Preferred Units (the Series A Preferred Units ), Series B Cumulative Redeemable Preferred Units (the Series B Preferred Units ), the Series C-1 Cumulative Convertible Perpetual Preferred Units (the Series C-1 Preferred Units ), and 74.0% of the 10.5% Series D Cumulative Exchangeable Perpetual Preferred Units (the Series D Preferred Units ) are held by entities other than Teekay Corporation and its affiliates. A total of 26.0% of the Series D Preferred Units are held by Teekay Corporation. Common Units In 2016, the Partnership implemented a continuous offering program (or COP ) under which the Partnership may issue new common units, representing limited partner interests, at market prices up to a maximum aggregate amount of $100.0 million . For the three and nine months ended September 30, 2016 , the Partnership sold an aggregate of 3.7 million common units under the COP, generating net proceeds of approximately $21.4 million (including the general partner’s 2% proportionate capital contribution of $0.4 million and net of approximately $0.3 million of offering costs). The Partnership used the net proceeds from the issuance of these common units for general partnership purposes. In August 2016, the Partnership issued 2.0 million common units with a total value of $10.4 million (including the general partner's 2% proportionate capital contribution of $0.2 million ) as a payment-in-kind for the distributions on the Partnership's Series C-1 and D Preferred Units and on the Partnership's common units and general partner interest held by subsidiaries of Teekay Corporation. In June 2016, the Partnership agreed with Teekay Corporation that, until the Partnership's Norwegian Kroner bonds maturing in 2018 have been repaid, all cash distributions (other than with respect to incentive distribution rights) to be paid by the Partnership to Teekay Corporation or its affiliates, including the Partnership's general partner, will instead be paid in common units or from the proceeds of the sale of common units. In June 2016, the Partnership issued 22.0 million common units in a private placement for net proceeds of $99.5 million , including the general partner's 2% proportionate capital contribution. The Partnership used the proceeds for general partnership purposes, including the funding of existing newbuilding installments and capital conversion projects. Series C Preferred Units and Series C-1 Preferred Units In July 2015, the Partnership issued 10.4 million of its 8.60% Series C Cumulative Convertible Perpetual Preferred Units (the Series C Preferred Units ) in a private placement for net proceeds of approximately $249.8 million . The terms of this original agreement provided that at any time after the 18 months anniversary of the closing date, at the election of each holder, the Series C Preferred Units could be converted on a one -for- one basis into common units of the Partnership. In addition, if after the three -year anniversary of the closing date, the volume weighted average price of the common units exceeded $35.925 , the Partnership had the option to convert the Series C Preferred Units into common units. Distributions on the Series C Preferred Units were cumulative from the date of original issue and are payable quarterly in arrears, when, as and if declared by the board of directors of the general partner. The Series C Preferred Units could be redeemed in cash if a change of control occurred in the Partnership. As a result, the Series C Preferred Units that were subject to this redemption feature were not included on the Partnership's consolidated balance sheet as part of the total equity and were presented as temporary equity above the equity section but below the liabilities section. A summary description of the Series C Preferred Units is included in the Partnership’s Report on Form 6-K filed with the SEC on July 6, 2015. No series C Preferred Units were outstanding as of September 30, 2016 . In June 2016, the Partnership and the unitholders of the Series C Preferred Units exchanged approximately 1.9 million of the Series C Preferred Units for approximately 8.3 million common units of the Partnership. The number of common units issued consists of the approximately 1.9 million common units that would have been issuable under the original conversion terms of the Series C Preferred Units plus an additional approximately 6.4 million common units to induce the exchange (the Inducement Premium ). The value of the additional 6.4 million common units on the date of conversion was approximately $37.7 million and has been charged to the limited partner - common units and the general partner. In June 2016, the Partnership and the unitholders of the Series C Preferred Units also exchanged the remaining approximately 8.5 million Series C Preferred Units for approximately 8.5 million Series C-1 Preferred Units. The terms of the Series C-1 Preferred Units are equivalent to the terms of the Series C Preferred Units, with the exception that at any time after the 18 months anniversary of the original Series C Preferred Units closing date, at the election of each holder, each Series C-1 Preferred Unit is convertible into 1.474 common units of the Partnership. In addition, if a unitholder of the Series C-1 Preferred Units elects to convert their Series C-1 Preferred Units into common units of the Partnership, the Partnership now has the option to redeem these Series C-1 Preferred Units for cash based on the closing market price of the common units of the Partnership instead of common units. Furthermore, if after the three -year anniversary of the closing date, the volume weighted average price of the common units exceeds 150% of $16.25 per unit, the Partnership has the option to convert the Series C-1 Preferred Units into common units. In addition, unlike the Series C Preferred Units, for which distributions were to be paid in cash, quarterly distributions on the Series C-1 Preferred Units for the eight consecutive quarters ending March 31, 2018 may be paid, in the Partnership's sole discretion, in cash, common units (at a discount of 2% to the ten days trading volume weighted average price ending on the distribution declaration date) or a combination of cash and common units (at the same discount), and thereafter, the distributions will be paid in cash. Consistent with the terms of the Series C Preferred Units, the Series C-1 Preferred Units may be redeemed in cash if a change of control occurs in the Partnership. As a result, the Series C-1 Preferred Units are not included on the Partnership's consolidated balance sheet as part of the total equity and are presented as temporary equity above the equity section but below the liabilities section. A summary description of the Series C-1 Preferred Units is included in the Partnership’s Report on Form 6-K filed with the SEC on June 30, 2016. The exchange of the Series C Preferred Units for Series C-1 Preferred Units has been accounted for as an extinguishment of the Series C Preferred Units and the issuance of the Series C-1 Preferred Units. As a result, the excess of the carrying value of the Series C Preferred Units over the fair value of Series C-1 Preferred Units of $20.6 million was accounted for as an increase to the limited partner - common units and the general partner (the Exchange Contribution ). Series D Preferred Units and Detachable Warrants On June 29, 2016, the Partnership issued a total of 4.0 million of its 10.50% Series D Preferred Units to a group of investors and subsidiaries of Teekay Corporation. These investors and Teekay Corporation also received an aggregate of 4,500,000 warrants with an exercise price equal to the closing price of the Partnership’s common units on June 16, 2016, or $4.55 per unit (the $4.55 Warrants ) and an aggregate of 2,250,000 warrants with an exercise price at a 33% premium to the closing price of the Partnership’s common units on June 16, 2016, or $6.05 per unit (the $6.05 Warrants ). The gross proceeds from the sale of these securities was $100.0 million (approximately $97.2 million net of offering costs). The Partnership pays to holders of the Series D Preferred Units a cumulative, quarterly cash distribution in arrears at an annual rate of 10.50% . However, the Partnership may elect to pay the quarterly distributions for the first eight consecutive quarters following issuance with common units, in the Partnership's sole discretion, in cash, common units (at a discount of 4% discount to the ten days trading volume weighted average price ending on the distribution declaration date) or a combination of cash and common units (at the same discount), and thereafter, the distributions will be paid in cash. The Series D Preferred Units have a liquidation value of $25.00 per unit plus an amount equal to any accrued but unpaid distributions to the date fixed for payment. The Series D Preferred Units have no mandatory redemption date, but they are redeemable at the Partnership’s option after June 29, 2021 for a 10% premium to the liquidation value and for a 5% premium to the liquidation value any time after June 29, 2022 . The Series D Preferred Units are exchangeable into common units of the Partnership at the option of the holder at any time after June 29, 2021 , based on the greater of the ten days trading volume weighted average price at the time of the notice of exchange or $4.00 . A change of control event involving the purchase of at least 90% of the Partnership's common units would result in the Series D Preferred Units being redeemable for cash. The change of control premium to the liquidation preference on the redemption is initially 25% until June 29, 2017, scaling down five percentage points per anniversary thereof to 5% from June 29, 2021 . Other change of control events may result in the holders of the Series D Preferred Units retaining their interest in the Series D Preferred Units, receiving from the surviving corporation a mirror security to the Series D Preferred Units or the Series D Preferred Units being redeemed for cash and/or common units. The Series D Preferred Units rank senior to all common units, pari passu with the Series A, B and C-1 Preferred Units and junior with respect to any senior securities, with respect to distribution rights and liquidation preference. The holders of Series D Preferred Units generally only have voting rights in proposed transactions that would result in a change of control, the creation or issuance of any senior securities and the issuance of any parity securities if distributions payable on any of the Partnership's Preferred Units are in arrears. The Partnership has filed a registration statement with respect to the Series D Preferred Units and the common warrants issuable upon exercise of the Warrants, which was declared effective August 31, 2016 and has agreed to use commercially reasonable efforts to cause a registration statement with respect to the common units underlying the Series D Preferred Units to be declared effective within 60 days prior to June 29, 2021 . In addition, the Partnership has agreed to pay liquidated damages in the event it fails to do so; however, this is not considered probable of occurring. The Partnership issued warrants which allow the holders to acquire up to 4,500,000 common units for a price of $4.55 per common unit and 2,250,000 common units for a price of $6.05 per common unit (the Warrants ). The Warrants have a seven -year term and are exercisable any time after six months following their issuance date. The Warrants will be net settled in either cash or common units at the Partnership’s option. In the event of a change in control in which the Partnership is not the surviving entity, the Partnership will use commercially reasonable efforts to deliver or cause to be delivered one or more warrants in the surviving entity that has substantially similar rights, preferences and privileges as the Series D Preferred Units. The Partnership has agreed to use commercially reasonable efforts to cause a registration statement with respect to the common units issuable upon exercise of the Warrants and to be declared effective by the six months anniversary of the issuance date of the Warrants. In addition, the Partnership has agreed to pay liquidated damages in the event it fails to do so; however, this is not considered probable of occurring. Net cash proceeds of approximately $97.2 million (which is net of approximately $2.8 million of issuance costs), were allocated on a relative fair value basis to the Series D Preferred Units (approximately $83.5 million ), to the $4.55 Warrants (approximately $9.5 million ) and to the $6.05 Warrants (approximately $4.3 million ). The Warrants qualify as freestanding financial instruments and are accounted for separately from the Series D Preferred Units. The Series D Preferred Units are presented as temporary equity as they are not mandatorily redeemable and the prospect of a forced redemption paid with cash due to a change of control event is not presently probable. The Warrants are recorded as permanent equity in the Partnership's consolidated balance sheets with 6,750,000 Warrants outstanding at September 30, 2016 (December 31, 2015 - nil ). The $16.5 million difference between the amount of net proceeds allocated to the Series D Preferred Units based on relative fair values and the redemption value of the Series D Preferred Units is subject to periodic accretion over the five -year period until they become redeemable. As a result, for the three and nine months ended September 30, 2016 , $0.8 million was accounted for as a charge to the limited partners - common units and the general partner. The portion of proceeds allocated to the Warrants is included in Partner’s Equity as a net cash settlement that cannot be forced upon the Partnership by the holders of the Warrants or by any other circumstance. Net Income (Loss) Per Common Unit Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 $ $ $ $ Limited partners' interest in net income (loss) 34,608 (70,826) (90,928) (1,254) Preferred units - periodic accretion (826 ) — (826) — Additional consideration for induced conversion of Series C Preferred Units — — (36,961) — Deemed contribution on exchange of Series C Preferred Units — — 20,231 — Limited partners' interest in net income (loss) for basic net income (loss) per common unit 33,782 (70,826) (108,484) (1,254) Series D Preferred Units - cash distributions 2,573 — — — Preferred units - periodic accretion 826 — — — Limited partners' interest in diluted net income (loss) 37,181 (70,826) (108,484) (1,254 ) Weighted average number of common units 139,057,659 102,009,737 118,046,087 95,640,284 Dilutive effect of unit based compensation, Series D Preferred Units and Warrants 18,856,618 — — — Common units and common unit equivalents 157,914,277 102,009,737 118,046,087 95,640,284 Limited partner's interest in net income (loss) per common unit - basic 0.24 (0.69) (0.92) (0.01) - diluted 0.24 (0.69) (0.92) (0.01) Limited partners’ interest in net income (loss) per common unit – basic is determined by dividing net income, after deducting the amount of net income attributable to the non-controlling interests, the general partner’s interest, the distributions on the Series A, B, C, C-1 and D Preferred Units, the periodic accretion of the Series D Preferred Units, the Inducement Premium and the Exchange Contribution, by the weighted-average number of common units outstanding during the period. The distributions payable and paid on the preferred units for the three and nine months ended September 30, 2016 were $12.4 million and $33.4 million , respectively, and $10.3 million and $17.9 million , respectively, for the three and nine months ended September 30, 2015 . The computation of limited partners’ interest in net income per common unit - diluted assumes the issuance of common units for all potential dilutive securities, consisting of restricted units (see note 13 ), the Warrants and Series C, C-1 and D Preferred Units. Consequently, the net income attributable to limited partners’ interest is exclusive of any distributions on the Series C, C-1 and D Preferred Units, the periodic accretion of the Series D Preferred Units, the Inducement Premium and the Exchange Contribution. In addition, the weighted average number of common units outstanding has been increased assuming exercise of the restricted units and Warrants using the treasury stock method and the Series C, C-1 and D are converted to common units using the if-converted method. The computation of limited partners’ interest in net income per common unit - diluted does not assume the issuance of common units pursuant to the restricted units, Warrants and Series C, C-1 and D Preferred Units if the effect would be anti-dilutive. In periods where a loss is attributable to common unitholders all restricted units, Warrants, the Series C, C-1 and D Preferred Units are anti-dilutive. Therefore, for the three months ended September 30, 2016 , a total of 12.6 million common unit equivalent Series C-1 Preferred Units and 2.3 million common unit equivalent Warrants were excluded from the computation of limited partners’ interest in net income per common unit - diluted, as their effect was anti-dilutive. For the nine months ended September 30, 2016 , 39.0 million common unit equivalent restricted units, Series C, C-1 and D Preferred Units and 6.8 million common unit equivalent Warrants, respectively, were excluded from the computation of limited partners’ interest in net loss per common unit - diluted, as their effect was anti-dilutive. For the three and nine months ended September 30, 2015 , 9.7 million and 3.3 million , respectively, common unit equivalent restricted units and Series C Preferred Units were excluded from the computation of limited partners' interest in net (loss) income per unit - diluted, as their effect was anti-dilutive. The general partner’s and common unitholders’ interests in net income are calculated as if all net income was distributed according to the terms of the Partnership’s partnership agreement, regardless of whether those earnings would or could be distributed. The partnership agreement does not provide for the distribution of net income; rather, it provides for the distribution of available cash, which is a contractually defined term that generally means all cash on hand at the end of each quarter less, among other things, the amount of cash reserves established 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, anticipated capital requirements and any accumulated distributions on, or redemptions of, the Series A Preferred Units, Series B Preferred Units, Series C-1 Preferred Units and Series D Preferred Units. Unlike available cash, net income is affected by non-cash items such as depreciation and amortization, unrealized gains and losses on derivative instruments and unrealized foreign currency translation gains and losses. The general partner holds incentive distribution rights, which entitle the general partner to increasing percentages of incremental cash based on the amount of quarterly cash distributions per common unit. For more information on the increasing percentages which may be used to calculate the general partner’s interest in net income or loss, please refer to the Partnership’s Annual Report on Form 20-F for the year ended December 31, 2015. Cash distributions were below $0.35 per common unit during the three and nine months ended September 30, 2016 , and exceeded $0.4025 per common unit during the three and nine months ended September 30, 2015 . Consequently, the increasing percentages were not used to calculate the general partner’s interest in net income (loss) for the purposes of the net income (loss) per common unit calculation for the three and nine months ended September 30, 2016 , but were used to calculate the general partner’s interest in net (loss) income for the purposes of the net (loss) income per common unit calculation for the three and nine months ended September 30, 2015 . Pursuant to the partnership agreement, allocations to partners are made on a quarterly basis. |
Unit Based Compensation
Unit Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Unit Based Compensation | Unit Based Compensation During the nine months ended September 30, 2016 , a total of 76,084 common units, with an aggregate value of $0.3 million , were granted and issued to non-management directors of the general partner as part of their annual compensation for 2016 . The Partnership grants restricted unit-based compensation awards as incentive-based compensation to certain employees of Teekay Corporation’s subsidiaries that provide services to the Partnership. During March 2016 and 2015, the Partnership granted restricted unit-based compensation awards with respect to 601,368 and 102,834 units, respectively, with aggregate grant date fair values of $2.4 million and $2.1 million , respectively, based on the Partnership’s closing unit price on the grant dates. Each restricted unit is equal in value to one of the Partnership’s common units. Each award represents the specified number of the Partnership’s common units plus reinvested distributions from the grant date to the vesting date. The awards vest equally over three years from the grant date. Any portion of an award that is not vested on the date of a recipient’s termination of service is cancelled, unless their termination arises as a result of the recipient’s retirement and, in this case, the award will continue to vest in accordance with the vesting schedule. Upon vesting, the awards are paid to each grantee in the form of common units or cash. During the nine months ended September 30, 2016 , restricted unit-based awards with respect to a total of 76,637 common units with a fair value of $2.0 million , based on the Partnership’s closing unit price on the grant date, vested and the amount paid to the grantees was made by issuing 25,286 common units and by paying $0.2 million in cash. During the nine months ended September 30, 2015 , restricted unit-based awards with respect to a total of 48,488 common units with a fair value of $1.5 million , based on the Partnership’s closing unit price on the grant date, vested and the amount paid to the grantees was made by issuing 12,612 common units and by paying $0.5 million in cash. The Partnership recorded unit-based compensation expense (recovery) of $0.3 million and ($0.1) million , during the three months ended September 30, 2016 and 2015 , respectively, and $1.9 million and $1.2 million , during the nine months ended September 30, 2016 and 2015 , respectively, in general and administrative expenses in the Partnership’s consolidated statements of income (loss) . As of September 30, 2016 and December 31, 2015 , liabilities relating to cash settled restricted unit-based compensation awards of $1.2 million and $0.4 million , respectively, were recorded in accrued liabilities on the Partnership’s consolidated balance sheets. As at September 30, 2016 , the Partnership had $1.7 million of non-vested awards not yet recognized, which the Partnership expects to recognize over a weighted average period of 1.2 years . |
(Write-down) and Gain on Sale o
(Write-down) and Gain on Sale of Vessels | 9 Months Ended |
Sep. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
(Write-down) and Gain on Sale of Vessels | (Write-down) and Gain on Sale of Vessels During the three and nine months ended September 30, 2016 , the Partnership entered into an agreement to sell a 1995-built shuttle tanker, the Navion Europa, which is expected to be delivered to its buyers in late-2016 and as a result, the Partnership classified the vessel as held for sale on the Partnership's consolidated balance sheet as at September 30, 2016 . As at September 30, 2016 , as the sales price of the vessel was in excess of its carrying amount and the Partnership expects to record a gain on the sale of this vessel during the fourth quarter of 2016 in a 67%-owned subsidiary of the Partnership. During the nine months ended September 30, 2016 , the Partnership canceled the UMS construction contracts for its two UMS newbuildings. As a result, the carrying values of these two UMS newbuildings were written down to $ nil . The Partnership's consolidated statements of income for the nine months ended September 30, 2016 includes a $43.7 million write-down related to these two UMS newbuildings (see notes 4 and 11d ). The write-down is included in the Partnership’s UMS segment. During the nine months ended September 30, 2016 , the Partnership sold a 1992-built shuttle tanker, the Navion Torinita , for net proceeds of $5.0 million , which was the approximate carrying value of the vessel at the time of sale. During the three months ended March 31, 2015, the carrying value of this shuttle tanker was written down to its estimated fair value, using an appraised value as a result of the expected sale of the vessel and the vessel was classified as held for sale on the Partnership’s consolidated balance sheet as at December 31, 2015. The Partnership’s consolidated statement of income for the nine months ended September 30, 2015 includes a $1.7 million write-down related to this vessel. The write-down is included in the Partnership’s shuttle tanker segment. In March 2016, the time-charter contract with a subsidiary of Teekay Corporation for a 2004-built conventional tanker, the Kilimanjaro Spirit , was terminated by the Partnership. The Partnership concurrently received an early termination fee of $4.0 million from Teekay Corporation. Immediately following the charter termination, the Partnership sold the Kilimanjaro Spirit for net proceeds of $26.7 million and also sold a 2003-built conventional tanker, the Fuji Spirit , for net proceeds of $23.7 million , which were the approximate carrying values of the vessels at the time of sale. Both vessels were classified as held for sale on the Partnership’s consolidated balance sheet as at December 31, 2015. As part of the sale of these vessels, the Partnership is in-chartering these vessels for a period of three years each, both with an additional one -year extension option. One vessel is fixed on a two -year time-charter-out contract which commenced during the second quarter of 2016, and the other vessel is currently trading in the spot conventional tanker market. During the nine months ended September 30, 2015 , the carrying value of one of the Partnership’s 1999-built shuttle tankers was written down to its estimated fair value, using an appraised value. The write-down was a result of a recent change in the operating plan of the vessel. The Partnership’s consolidated statement of income for the nine months ended September 30, 2015 , includes a $13.8 million write-down related to this vessel. The write-down is included in the Partnership’s shuttle tanker segment. During the nine months ended September 30, 2015 , the Partnership sold a 1997-built shuttle tanker, the Navion Svenita , for net proceeds of $8.6 million . The Partnership’s consolidated statement of income for the nine months ended September 30, 2015 includes a $1.6 million gain related to the sale of this vessel. The gain on sale is included in the Partnership’s shuttle tanker segment. |
Investment in Equity Accounted
Investment in Equity Accounted Joint Ventures and Advances to Joint Venture | 9 Months Ended |
Sep. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Equity Accounted Joint Ventures and Advances to Joint Venture | Investment in Equity Accounted Joint Ventures and Advances to Joint Venture In October 2014, the Partnership sold a 1995-built shuttle tanker, the Navion Norvegia , to OOG-TK Libra GmbH & Co KG (or Libra Joint Venture ), its 50 / 50 joint venture with OOG. The vessel is committed to a new FPSO unit conversion for the Libra field. The FPSO unit is scheduled to commence operations in mid-2017 (see note 11e ). In conjunction with the conversion project in late-2015, the Libra Joint Venture entered into a ten -year plus construction period loan facility providing total borrowings of up to $804 million , of which $440.4 million was drawn as of September 30, 2016 . The interest payments of the loan facility are based on LIBOR, plus margins which range between 2.50% to 2.65% . The final payment under the loan facility is due October 2027 . The Partnership and OOG have severally guaranteed to the banks their 50% shares of the equity contributions scheduled to fund the conversion project, and have jointly guaranteed any unexpected equity requirements. In addition, the Libra Joint Venture entered into ten -year interest rate swap agreements to economically hedge expected interest payments on the loan facility from 2017 to 2027, with an aggregate notional amount of $ 301 million which amortizes quarterly over the term of the interest rate swap agreements. These interest rate swap agreements exchange the receipt of LIBOR-based interest for the payment of a fixed rate of 2.49% . These interest rate swap agreements have been designated as qualifying cash flow hedging instruments for accounting purposes. During 2016, as a result of certain defaults on interest payments by an OOG affiliate which OOG had guaranteed, the Libra Joint Venture was required to obtain cross default waivers from the lenders of the construction period loan facility. The current waiver is effective until the earlier of December 19, 2016 and the date on which the debt of the OOG’s affiliate is accelerated by its lenders. Although the Libra Joint Venture expects to obtain further cross default waivers from the facility lenders, a failure to do so could adversely affect its ability to fund and complete the Libra FPSO conversion. In June 2013, the Partnership acquired Teekay Corporation’s 50% interest in OOG-TKP FPSO GmbH & Co KG, a joint venture with OOG, which owns the Itajai FPSO unit. Included in the joint venture is an eight -year loan facility, which as at September 30, 2016 had an outstanding balance of $198.0 million . The interest payments of the loan facility are based on LIBOR, plus margins which range between 2.15% and 2.45% . The final payment under the loan facility is due October 2021. The Partnership has guaranteed its 50% share of the loan facility. In addition, the joint venture entered into ten -year interest rate swap agreements with an aggregate notional amount of $88.0 million as at September 30, 2016, which amortizes semi-annually over the term of the interest rate swap agreements. These interest rate swap agreements exchange the receipt of LIBOR-based interest for the payment of a fixed rate of 2.63% . These interest rate swap agreements are not designated as qualifying cash flow hedging instruments for accounting purposes. As at December 31, 2014 , the Partnership advanced $5.2 million to the joint venture, which was repaid during the nine months ended September 30, 2015 . As at September 30, 2016 and December 31, 2015 , the Partnership had total investments of $126.8 million and $77.6 million , respectively, in joint ventures. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 Offshore Partners L.P., which is a limited partnership organized under the laws of the Republic of The Marshall Islands, its wholly owned or controlled subsidiaries and the Dropdown Predecessor (see note 3 ) (collectively, the Partnership ). The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Certain information and footnote disclosures required by GAAP for complete annual financial statements have been omitted and, therefore, these interim financial statements should be read in conjunction with the Partnership’s audited consolidated financial statements for the year ended December 31, 2015, which are included in the Partnership’s Annual Report on Form 20-F, filed with the U.S. Securities and Exchange Commission (or SEC ) on April 18, 2016. In the opinion of management of the Partnership’s general partner, Teekay Offshore GP L.L.C. (or the general partner ), these interim unaudited consolidated financial statements reflect all adjustments, which are 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. Historically, the utilization of shuttle tankers in the North Sea is higher in the winter months as favorable weather conditions in the summer months provide opportunities for repairs and maintenance to the Partnership’s vessels and the offshore oil platforms. Downtime for repairs and maintenance generally reduces oil production and, thus, transportation requirements. Intercompany balances and transactions have been eliminated upon consolidation. |
Accounting Pronouncements | In May 2014, the Financial Accounting Standards Board (or FASB ) issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers , (or ASU 2014-09 ). ASU 2014-09 will require an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update creates a five-step model that requires entities to exercise judgment when considering the terms of the contract(s) which include (i) identifying the contract(s) with the customer, (ii) identifying the separate performance obligations in the contract, (iii) determining the transaction price, (iv) allocating the transaction price to the separate performance obligations, and (v) recognizing revenue as each performance obligation is satisfied. ASU 2014-09 is effective for the Partnership January 1, 2018 and shall be applied, at the Partnership’s option, retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Partnership is evaluating the effect of adopting this new accounting guidance. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (or ASU 2016-02 ). ASU 2016-02 establishes a right-of-use model that requires a lessee to record a right of use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 is effective for the Partnership January 1, 2019 with early adoption permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Partnership is evaluating the effect of adopting this new accounting guidance. In March 2016, the FASB issued Accounting Standards Update 2016-09, Improvements to Employee Share-Based Payment Accounting (or ASU 2016-09 ). ASU 2016-09 simplifies aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. ASU 2016-09 is effective for the Partnership January 1, 2017 with early adoption permitted. The Partnership expects the impact of adopting this new accounting guidance will be a change in presentation of cash payments for tax withholdings on share settled equity awards from an operating cash outflow to a financing cash outflow on the Partnership's statement of cash flows. In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments . This update replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This update is effective for the Partnership January 1, 2020, with a modified-retrospective approach. The Partnership is currently evaluating the effect of adopting this new guidance. In August 2016, the FASB issued Accounting Standards Update 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments , which, among other things, provides guidance on two acceptable approaches of classifying distributions received from equity method investees in the statement of cash flows. This update is effective for the Partnership January 1, 2018, with a retrospective approach. The Partnership is currently evaluating the effect of adopting this new guidance. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investments, All Other Investments [Abstract] | |
Estimated Fair Value of Financial Instruments Measured at Fair Value on Recurring Basis | The following table includes the estimated fair value and carrying value of those assets and liabilities that are measured at fair value on a recurring and non-recurring basis, as well as the estimated fair value of the Partnership’s financial instruments that are not accounted for at fair value on a recurring basis. September 30, 2016 December 31, 2015 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 1 269,502 269,502 318,993 318,993 Logitel contingent consideration (see below) Level 3 — — (14,830 ) (14,830 ) Derivative instruments (note 9) Interest rate swap agreements Level 2 (309,003 ) (309,003 ) (235,998 ) (235,998 ) Cross currency swap agreements Level 2 (125,258 ) (125,258 ) (183,327 ) (183,327 ) Foreign currency forward contracts Level 2 1,429 1,429 (11,509 ) (11,509 ) Non-Recurring: Vessels held for sale (note 14) Level 2 — — 55,450 55,450 Vessels and equipment (note 14) Level 2 — — 100,600 100,600 Other: Long-term debt - public (note 6) Level 1 (592,464 ) (512,064 ) (620,746 ) (473,729 ) Long-term debt - non-public (note 6) Level 2 (2,556,387 ) (2,476,960 ) (2,743,128 ) (2,783,597 ) |
Changes in Fair Value for Partnership's Contingent Consideration Liability Measured Recurring Basis Using Significant Unobservable Inputs (Level 3) | Changes in the estimated fair value of the Partnership’s contingent consideration liability relating to the acquisition of Logitel, which is measured at fair value on a recurring basis using significant unobservable inputs (Level 3), during the three and nine months ended September 30, 2016 and 2015 are as follows: Three Months Ended Nine Months Ended September 30, 2016 2015 2016 2015 Asset (Liability) Asset (Liability) $ $ $ $ Balance at beginning of period — (15,292 ) (14,830 ) (21,448 ) Acquisition of Logitel — — — 2,569 Settlement of liability — — — 3,540 Gain (loss) included in Other (expense) income - net — (253 ) 14,830 (206 ) Balance at end of period — (15,545 ) — (15,545 ) |
Summary of Partnership's Financing Receivables | The following table contains a summary of the Partnership’s 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: Credit Quality Indicator Grade September 30, December 31, $ $ Direct financing leases Payment activity Performing 18,952 17,471 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Results as Presented in Consolidated Financial Statements | The following tables include results for the Partnership’s FPSO unit segment; shuttle tanker segment; floating storage and off-take (or FSO ) unit segment; UMS segment; towage segment; and conventional tanker segment for the periods presented in these consolidated financial statements. Three Months Ended September 30, 2016 FPSO Segment Shuttle Tanker Segment FSO UMS Segment Towage Conventional Tanker Segment Total Revenues 121,294 128,482 14,251 13,395 5,345 3,531 286,298 Voyage expenses — (18,898 ) (96 ) — (2,440 ) (61 ) (21,495 ) Vessel operating expenses (42,353 ) (33,062 ) (6,056 ) (8,331 ) (4,206 ) — (94,008 ) Time-charter hire expenses — (14,723 ) — — — (4,171 ) (18,894 ) Depreciation and amortization (37,180 ) (30,166 ) (2,205 ) (1,647 ) (2,961 ) — (74,159 ) General and administrative (1) (10,235 ) (1,147 ) (230 ) (2,640 ) (859 ) (90 ) (15,201 ) Restructuring charge (597 ) (205 ) — — — — (802 ) Income (loss) from vessel operations 30,929 30,281 5,664 777 (5,121 ) (791 ) 61,739 Three Months Ended September 30, 2015 FPSO Segment Shuttle Tanker Segment FSO UMS Segment Towage Conventional Tanker Segment Total Revenues 137,888 131,381 14,234 11,737 10,808 8,006 314,054 Voyage expenses — (22,844 ) (217 ) — (4,340 ) (765 ) (28,166 ) Vessel operating expenses (47,542 ) (28,814 ) (6,511 ) (5,976 ) (4,709 ) (1,620 ) (95,172 ) Time-charter hire expenses — (18,893 ) — — — — (18,893 ) Depreciation and amortization (38,051 ) (25,362 ) (3,295 ) (1,677 ) (2,766 ) (1,676 ) (72,827 ) General and administrative (1)(2) (17,600 ) (4,162 ) (183 ) (2,558 ) (2,670 ) (148 ) (27,321 ) Restructuring charge — (157 ) — — — — (157 ) Income (loss) from vessel operations 34,695 31,149 4,028 1,526 (3,677 ) 3,797 71,518 Nine Months Ended September 30, 2016 FPSO Segment Shuttle Tanker Segment FSO UMS Segment Towage Conventional Tanker Segment Total Revenues (3) 378,793 380,505 42,403 30,612 28,158 16,999 877,470 Voyage expenses — (45,409 ) (431 ) — (10,239 ) (1,348 ) (57,427 ) Vessel operating expenses (130,632 ) (91,735 ) (17,724 ) (25,576 ) (13,015 ) (1,439 ) (280,121 ) Time-charter hire expenses — (44,298 ) — — — (8,747 ) (53,045 ) Depreciation and amortization (111,998 ) (90,903 ) (6,586 ) (5,037 ) (8,614 ) — (223,138 ) General and administrative (1) (27,126 ) (8,975 ) (612 ) (4,166 ) (2,350 ) (262 ) (43,491 ) Write down of vessels — — — (43,650 ) — — (43,650 ) Restructuring charge (2,084 ) (205 ) — — — — (2,289 ) Income (loss) from vessel operations 106,953 98,980 17,050 (47,817 ) (6,060 ) 5,203 174,309 Nine Months Ended September 30, 2015 FPSO Segment Shuttle Tanker Segment FSO UMS Segment Towage Conventional Tanker Segment Total Revenues 377,885 402,370 42,885 15,423 27,395 24,313 890,271 Voyage expenses — (61,349 ) (438 ) — (7,632 ) (1,980 ) (71,399 ) Vessel operating expenses (134,752 ) (94,250 ) (19,791 ) (7,102 ) (9,157 ) (4,508 ) (269,560 ) Time-charter hire expenses — (35,976 ) — — (662 ) — (36,638 ) Depreciation and amortization (100,319 ) (80,524 ) (9,191 ) (2,078 ) (5,488 ) (5,025 ) (202,625 ) General and administrative (1)(2) (29,433 ) (19,349 ) (1,213 ) (3,704 ) (3,817 ) (907 ) (58,423 ) (Write down) and gain on sale of vessels — (13,853 ) — (500 ) — — (14,353 ) Restructuring charge — (292 ) — — — — (292 ) Income from vessel operations 113,381 96,777 12,252 2,039 639 11,893 236,981 (1) Includes direct general and administrative expenses and indirect general and administrative expenses (allocated to each segment based on estimated use of corporate resources). (2) General and administrative expenses for the three and nine months ended September 30, 2015 includes business development fees of $9.7 million , $2.2 million and $2.0 million to Teekay Corporation in connection with the acquisition of the Petrojarl Knarr FPSO Unit in the FPSO segment, six long-distance towing and offshore installation vessels in the towage segment, and the Arendal Spirit UMS in the UMS segment, respectively (see notes 3 and 8b ). (3) Revenues includes a $4.0 million early termination fee received from Teekay Corporation during the nine months ended September 30, 2016 , which is included in the Partnership's conventional tanker segment (see notes 8a and 14 ). |
Reconciliation of Total Segment Assets to Total Assets Presented in Accompanying Consolidated Balance Sheets | A reconciliation of total segment assets to total assets presented in the accompanying consolidated balance sheets is as follows: September 30, 2016 December 31, 2015 $ $ FPSO segment 2,715,893 2,717,193 Shuttle tanker segment 1,677,203 1,732,769 FSO segment 398,658 281,776 UMS segment 224,311 267,935 Towage segment 381,735 309,009 Conventional tanker segment 14,336 63,900 Unallocated: Cash and cash equivalents and restricted cash 269,502 318,993 Other assets 29,454 52,591 Consolidated total assets 5,711,092 5,744,166 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | September 30, 2016 December 31, 2015 $ $ U.S. Dollar-denominated Revolving Credit Facilities due through 2019 178,949 429,279 Norwegian Kroner Bonds due through 2019 300,578 327,941 U.S. Dollar-denominated Term Loans due through 2018 116,967 129,133 U.S. Dollar-denominated Term Loans due through 2028 2,135,135 2,037,766 U.S. Dollar Non-Public Bonds due through 2024 174,839 202,449 U.S. Dollar Bonds due through 2019 300,000 300,000 Total principal 3,206,468 3,426,568 Less debt issuance costs and other (57,617 ) (62,694 ) Total debt 3,148,851 3,363,874 Less current portion (528,568 ) (485,069 ) Long-term portion 2,620,283 2,878,805 |
Related Party Transactions an28
Related Party Transactions and Balances (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Revenues (Expenses) from Related Party Transactions | Such related party transactions were as follows for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 $ $ $ $ Revenues (1) 13,733 17,591 38,651 52,410 Vessel operating expenses (2) (8,889 ) (9,821 ) (26,951 ) (29,671 ) General and administrative (3)(4) (7,469 ) (22,928 ) (22,817 ) (38,990 ) Interest expense (5)(6)(7)(8) (6,927 ) (3,136 ) (15,409 ) (3,359 ) _______________ (1) Includes revenue from time-charter-out or bareboat contracts with subsidiaries or affiliates of Teekay Corporation, including management fees from ship management services provided by the Partnership to a subsidiary of Teekay Corporation, and an early termination fee received by the Partnership from Teekay Corporation (see note 14 ). (2) Includes ship management and crew training services provided by Teekay Corporation. (3) Includes commercial, technical, strategic, business development and administrative management fees charged by Teekay Corporation and reimbursements to Teekay Corporation and the general partner for costs incurred on the Partnership’s behalf. (4) Includes business development fees of $9.7 million , $2.2 million and $2.0 million to Teekay Corporation in connection with the acquisition of the Petrojarl Knarr FPSO unit, six long-distance towing and offshore installation vessels, and the Arendal Spirit UMS, respectively, during the three and nine months ended September 30, 2015 . (5) Includes guarantee fees related to the final bullet payment of the Piranema Spirit FPSO debt facility and for the Partnership's liabilities associated with the long-term debt financing relating to the East Coast of Canada shuttle tanker newbuildings and certain of the Partnerships interest rate swaps and cross currency swaps (see note 8g ). (6) Includes interest expense of $3.2 million for the nine months ended September 30, 2016 incurred on the convertible promissory note issued to Teekay Corporation in connection with the financing of the acquisition of the Dropdown Predecessor (see note 3 ) bearing interest at an annual rate of 6.50% on the outstanding principal balance. The outstanding principal balance of $100.0 million , together with accrued interest, was payable in full on July 1, 2016; however, this convertible promissory note was refinanced on July 1, 2016 (see note 8f ). The outstanding principal balance of this convertible promissory note was $nil as at September 30, 2016 . (7) Includes interest expense of $5.0 million for the nine months ended September 30, 2016 , incurred on a $100.0 million six month loan made by Teekay Corporation to the Partnership on January 1, 2016, bearing interest at an annual rate of 10.00% on the outstanding principal balance. The outstanding principal balance, together with accrued interest, was payable in full on July 1, 2016; however, this loan was refinanced on July 1, 2016 (see note 8f ). The outstanding principal balance of this loan was $nil as at September 30, 2016 . (8) Includes interest expense of $5.0 million for the three and nine months ended September 30, 2016 , incurred on a $200.0 million subordinated promissory note issued to Teekay Corporation effective July 1, 2016 (see note 8f ). The subordinated promissory note bears interest at an annual rate of 10.00% on the outstanding principal balance, which as at September 30, 2016 , was $200.0 million . The outstanding principal balance, together with accrued interest, is payable in full on January 1, 2019. |
Derivative Instruments and He29
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Foreign Currency Forward Contracts | As at September 30, 2016 , the Partnership was committed to the following foreign currency forward contracts: Contract Amount in Foreign Currency (thousands) Fair Value / Carrying Amount of Asset (Liability) (in thousands of U.S. Dollars) Non-hedge Average Forward Rate (1) Expected Maturity 2016 2017 (in thousands of U.S. Dollars) Norwegian Kroner 371,000 1,412 8.23 12,875 32,214 Euro 2,250 85 0.92 2,447 — Singapore Dollar 14,026 (68 ) 1.35 10,361 — 1,429 25,683 32,214 (1) Average forward rate represents the contracted amount of foreign currency one U.S. Dollar will buy. |
Schedule of Cross Currency Contracts Statement of Financial Position | As at September 30, 2016 , the Partnership was committed to the following cross currency swaps: Notional Principal Floating Rate Receivable Fixed Rate Fair Value / Remaining Reference Margin 600,000 (1)(2) 101,351 NIBOR 5.75 % 8.84 % (30,393 ) 2.2 800,000 (1)(3) 143,536 NIBOR 5.75 % 7.58 % (48,454 ) 2.3 1,000,000 162,200 NIBOR 4.25 % 7.45 % (46,411 ) 2.3 (125,258 ) (1) Notional amount reduces equally with NOK bond repayments (see note 6 ). (2) Excludes an economic hedge on the foreign currency exposure for a three percent premium upon maturity of the NOK bonds which exchanges NOK 7.2 million for $1.2 million (see note 6 ). (3) Excludes an economic hedge on the foreign currency exposure for a three percent premium upon maturity of the NOK bonds which exchanges NOK 19.2 million for $3.4 million (see note 6 ). |
Interest Rate Swap Agreements | As at September 30, 2016 , the Partnership was committed to the following interest rate swap agreements: Interest Rate Index Notional Amount $ Fair Value / Carrying Amount of Asset (Liability) $ Weighted- Average Remaining Term (years) Fixed Interest Rate (%) (1) U.S. Dollar-denominated interest rate swaps (2) LIBOR 950,000 (210,365 ) 5.2 4.0 U.S. Dollar-denominated interest rate swaps (3) LIBOR 1,246,849 (98,638 ) 5.1 2.7 2,196,849 (309,003 ) (1) Excludes the margin the Partnership pays on its variable-rate debt, which as at September 30, 2016 , ranged between 0.30% and 4.00% (2) Notional amount remains constant over the term of the swap. (3) Principal amount reduces quarterly or semi-annually. |
Derivative Instruments, Gain (Loss) | For the periods indicated, the following table presents the effective and ineffective portion of losses on interest rate swap agreements designated and qualifying as cash flow hedges. The following table excludes any interest rate swap agreements designated and qualifying as cash flow hedges in the Partnership’s equity accounted joint ventures. Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 Effective Effective Effective Effective Portion Portion Portion Portion Recognized Reclassified Ineffective Recognized Reclassified Ineffective in AOCI (1) from AOCI (2) Portion (3) in AOCI (1) from AOCI (2) Portion (3) 640 — 126 Interest expense (1,085) — (1,058) Interest expense 640 — 126 (1,085) — (1,058) Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Effective Effective Effective Effective Portion Portion Portion Portion Recognized Reclassified Ineffective Recognized Reclassified Ineffective in AOCI (1) from AOCI (2) Portion (3) in AOCI (1) from AOCI (2) Portion (3) (3,870) — 984 Interest expense (1,085) — (1,058) Interest expense (3,870) — 984 (1,085) — (1,058) (1) Effective portion of designated and qualifying cash flow hedges recognized in accumulated other comprehensive income (loss) (or AOCI ). (2) Effective portion of designated and qualifying cash flow hedges recorded in AOCI during the term of the hedging relationship and reclassified to earnings. (3) Ineffective portion of designated and qualifying cash flow hedges. |
Location and Fair Value Amounts of Assets (Liabilities) of Partnership's Derivative Instruments | The following table presents the location and fair value amounts of derivative instruments, segregated by type of contract, on the Partnership’s balance sheets. Other Current Assets $ Other Assets Accrued Liabilities $ Current Portion of Derivative Liabilities $ Derivative Liabilities $ As at September 30, 2016 Foreign currency contracts 1,661 256 — (488 ) — Cross currency swaps — — (2,403 ) (17,747 ) (105,108 ) Interest rate swaps — 100 (10,391 ) (32,604 ) (266,108 ) 1,661 356 (12,794 ) (50,839 ) (371,216 ) As at As at December 31, 2015 Foreign currency contracts 80 — — (10,266 ) (1,323 ) Cross currency swaps — — (2,196 ) (42,878 ) (138,253 ) Interest rate swaps — 1,894 (7,827 ) (148,312 ) (81,753 ) 80 1,894 (10,023 ) (201,456 ) (221,329 ) |
Effect of Losses on Derivatives | The effect of the gains (losses) on these derivatives in the consolidated statements of income (loss) for the three and nine months ended September 30, 2016 and 2015 is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 $ $ $ $ Realized losses on derivative instruments Interest rate swap termination — (10,876 ) — (10,876 ) Interest rate swaps (13,507 ) (15,857 ) (40,989 ) (45,378 ) Foreign currency forward contracts (1,764 ) (4,064 ) (6,384 ) (9,890 ) (15,271 ) (30,797 ) (47,373 ) (66,144 ) Unrealized gains (losses) on derivative instruments Interest rate swaps 31,894 (43,453 ) (67,845 ) (22,303 ) Foreign currency forward contracts 3,624 (2,852 ) 12,938 (1,735 ) 35,518 (46,305 ) (54,907 ) (24,038 ) Total realized and unrealized gains (losses) on derivative instruments 20,247 (77,102 ) (102,280 ) (90,182 ) |
Effect of Gain (Loss) on Cross Currency Swaps on Consolidated Statements of Income (Loss) | The effect of the gains (losses) on cross currency swaps in the consolidated statements of income (loss) for the three and nine months ended September 30, 2016 and 2015 is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 $ $ $ $ Realized losses (3,330 ) (2,840 ) (41,276 ) (7,173 ) Unrealized gains (losses) 19,803 (32,649 ) 58,276 (52,325 ) Total realized and unrealized gains (losses) on cross currency swaps 16,473 (35,489 ) 17,000 (59,498 ) |
Income Tax (Tables)
Income Tax (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Components of Provision for Income Tax | The components of the provision for income tax are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 $ $ $ $ Current (2,180 ) (119 ) (3,342 ) (745 ) Deferred 577 5,584 6,013 6,399 Income tax (expense) recovery (1,603 ) 5,465 2,671 5,654 |
Total Capital and Net Income 31
Total Capital and Net Income (Loss) Per Common Unit (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Partners' Capital [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Net Income (Loss) Per Common Unit Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 $ $ $ $ Limited partners' interest in net income (loss) 34,608 (70,826) (90,928) (1,254) Preferred units - periodic accretion (826 ) — (826) — Additional consideration for induced conversion of Series C Preferred Units — — (36,961) — Deemed contribution on exchange of Series C Preferred Units — — 20,231 — Limited partners' interest in net income (loss) for basic net income (loss) per common unit 33,782 (70,826) (108,484) (1,254) Series D Preferred Units - cash distributions 2,573 — — — Preferred units - periodic accretion 826 — — — Limited partners' interest in diluted net income (loss) 37,181 (70,826) (108,484) (1,254 ) Weighted average number of common units 139,057,659 102,009,737 118,046,087 95,640,284 Dilutive effect of unit based compensation, Series D Preferred Units and Warrants 18,856,618 — — — Common units and common unit equivalents 157,914,277 102,009,737 118,046,087 95,640,284 Limited partner's interest in net income (loss) per common unit - basic 0.24 (0.69) (0.92) (0.01) - diluted 0.24 (0.69) (0.92) (0.01) |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
May 31, 2013ExtensionOptions | Sep. 30, 2016USD ($)$ / shares | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)component$ / shares | Sep. 30, 2015USD ($) | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, useful life | 20 years | 25 years | ||||
Depreciation and amortization | $ 74,159 | $ 72,827 | $ 223,138 | $ 202,625 | ||
Net income (loss) | 50,861 | (51,293) | (51,791) | 53,443 | ||
Asset retirement obligation | 21,300 | 21,300 | ||||
Restatement Adjustment [Member] | Service Life [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Depreciation and amortization | 7,400 | 21,900 | ||||
Net income (loss) | $ (7,400) | $ (21,900) | ||||
Net income (loss), per unit, basic and diluted (usd per share) | $ / shares | $ (0.05) | $ (0.19) | ||||
Shuttle Tanker [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Number of components in segment | component | 2 | |||||
Depreciation and amortization | $ 30,166 | $ 25,362 | $ 90,903 | $ 80,524 | ||
Randgrid shuttle tanker [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Operating lease arrangement period, lessor | 3 years | |||||
Number of extension options | ExtensionOptions | 12 | |||||
Additional term of contract | 1 year |
Dropdown Predecessor (Details)
Dropdown Predecessor (Details) - USD ($) shares in Millions | Jul. 01, 2015 | Jun. 30, 2016 | Jul. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | May 31, 2016 |
Business Acquisition [Line Items] | ||||||||
Proceeds from equity offerings, net of offering costs (note 12) | $ 134,981,000 | |||||||
Cash distributions | 51,077,000 | |||||||
Revenues (note 8) | $ 286,298,000 | $ 314,054,000 | 877,470,000 | $ 890,271,000 | ||||
Net income (loss) | $ 50,861,000 | (51,293,000) | (51,791,000) | 53,443,000 | ||||
Petrojarl Knarr Fpso [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Long-term debt | $ 745,100,000 | |||||||
Portion of purchase price paid in cash | 35,000,000 | |||||||
Entity acquired, Purchase price, excluding promissory note | $ 37,400,000 | |||||||
Operating lease arrangement period, lessor | 6 years | |||||||
Revenues (note 8) | 0 | 69,500,000 | ||||||
Net income (loss) | $ 0 | $ 10,100,000 | ||||||
Affiliated Entity [Member] | Petrojarl Knarr Fpso [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of ownership in acquired entity after acquisition | 100.00% | |||||||
Business acquisition, purchase price | $ 529,400,000 | |||||||
Common Units [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Proceeds from equity offerings, net of offering costs (note 12), units | 22 | |||||||
Common Units [Member] | Petrojarl Knarr Fpso [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Proceeds from equity offerings, net of offering costs (note 12), units | 14.4 | |||||||
General Partner [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Proceeds from equity offerings, net of offering costs (note 12) | 2,629,000 | |||||||
Cash distributions | $ 480,000 | |||||||
General Partner [Member] | Petrojarl Knarr Fpso [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Proceeds from equity offerings, net of offering costs (note 12) | $ 6,100,000 | |||||||
General partner's interest | 2.00% | |||||||
July 1, 2016 [Member] | Petrojarl Knarr Fpso [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Outstanding principal balance of convertible debt | $ 300,000,000 | |||||||
Convertible promissory note [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Outstanding principal balance of convertible debt | $ 100,000,000 | |||||||
Convertible promissory note [Member] | Petrojarl Knarr Fpso [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Interest rate, percentage | 6.50% | 6.50% | ||||||
Outstanding principal balance of convertible debt | $ 0 | $ 0 | ||||||
Subordinated promissory note [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Interest rate, percentage | 10.00% | 10.00% | ||||||
Teekay Corporation [Member] | Petrojarl Knarr Fpso [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Estimated cost of project | 1,260,000,000 | |||||||
Cash distributions | 103,300,000 | |||||||
Teekay Corporation [Member] | July 1, 2016 [Member] | Petrojarl Knarr Fpso [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Repayments of long-term debt | $ 92,000,000 | |||||||
Teekay Corporation [Member] | Convertible promissory note [Member] | July 1, 2016 [Member] | Petrojarl Knarr Fpso [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Long-term debt | $ 492,000,000 | |||||||
Interest rate, percentage | 6.50% | |||||||
Teekay Corporation [Member] | Subordinated promissory note [Member] | July 1, 2016 [Member] | Petrojarl Knarr Fpso [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Debt instrument, term | 2 years | |||||||
Working Capital [Member] | Petrojarl Knarr Fpso [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, purchase price | $ 14,500,000 |
Financial Instruments - Estimat
Financial Instruments - Estimated Fair Value of Financial Instruments Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Other: | ||
Long-term debt | $ (3,148,851) | $ (3,363,874) |
Interest Rate Swap [Member] | ||
Derivative instruments (note 9) | ||
Fair Value/Carrying Amount of Assets (Liability) | (309,003) | |
Cross currency swaps agreements [Member] | ||
Derivative instruments (note 9) | ||
Fair Value/Carrying Amount of Assets (Liability) | (125,258) | |
Foreign currency forward contracts [Member] | ||
Derivative instruments (note 9) | ||
Fair Value/Carrying Amount of Assets (Liability) | 1,429 | |
Carrying Amount [Member] | Level 1 [Member] | Public [Member] | ||
Other: | ||
Long-term debt | (592,464) | (620,746) |
Carrying Amount [Member] | Level 1 [Member] | Recurring [Member] | ||
Recurring: | ||
Cash and cash equivalents and restricted cash | 269,502 | 318,993 |
Carrying Amount [Member] | Level 3 [Member] | Recurring [Member] | Logitel Offshore Holdings As [Member] | ||
Recurring: | ||
Contingent consideration | 0 | (14,830) |
Carrying Amount [Member] | Level 2 [Member] | Non-Public [Member] | ||
Other: | ||
Long-term debt | (2,556,387) | (2,743,128) |
Carrying Amount [Member] | Level 2 [Member] | Recurring [Member] | Interest Rate Swap [Member] | ||
Derivative instruments (note 9) | ||
Fair Value/Carrying Amount of Assets (Liability) | (309,003) | (235,998) |
Carrying Amount [Member] | Level 2 [Member] | Recurring [Member] | Cross currency swaps agreements [Member] | ||
Derivative instruments (note 9) | ||
Fair Value/Carrying Amount of Assets (Liability) | (125,258) | (183,327) |
Carrying Amount [Member] | Level 2 [Member] | Recurring [Member] | Foreign currency forward contracts [Member] | ||
Derivative instruments (note 9) | ||
Fair Value/Carrying Amount of Assets (Liability) | 1,429 | (11,509) |
Carrying Amount [Member] | Level 2 [Member] | Nonrecurring [Member] | ||
Non-Recurring: | ||
Vessels held for sale (note 14) | 0 | 55,450 |
Vessels and equipment (note 14) | 0 | 100,600 |
Fair Value [Member] | Level 1 [Member] | Public [Member] | ||
Other: | ||
Long-term debt | (512,064) | (473,729) |
Fair Value [Member] | Level 1 [Member] | Recurring [Member] | ||
Recurring: | ||
Cash and cash equivalents and restricted cash | 269,502 | 318,993 |
Fair Value [Member] | Level 3 [Member] | Recurring [Member] | Logitel Offshore Holdings As [Member] | ||
Recurring: | ||
Contingent consideration | 0 | (14,830) |
Fair Value [Member] | Level 2 [Member] | Non-Public [Member] | ||
Other: | ||
Long-term debt | (2,476,960) | (2,783,597) |
Fair Value [Member] | Level 2 [Member] | Recurring [Member] | Interest Rate Swap [Member] | ||
Derivative instruments (note 9) | ||
Fair Value/Carrying Amount of Assets (Liability) | (309,003) | (235,998) |
Fair Value [Member] | Level 2 [Member] | Recurring [Member] | Cross currency swaps agreements [Member] | ||
Derivative instruments (note 9) | ||
Fair Value/Carrying Amount of Assets (Liability) | (125,258) | (183,327) |
Fair Value [Member] | Level 2 [Member] | Recurring [Member] | Foreign currency forward contracts [Member] | ||
Derivative instruments (note 9) | ||
Fair Value/Carrying Amount of Assets (Liability) | 1,429 | (11,509) |
Fair Value [Member] | Level 2 [Member] | Nonrecurring [Member] | ||
Non-Recurring: | ||
Vessels held for sale (note 14) | 0 | 55,450 |
Vessels and equipment (note 14) | $ 0 | $ 100,600 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) $ in Millions | Aug. 11, 2014USD ($) | Sep. 30, 2016Vessel | Aug. 31, 2014 |
Logitel Offshore Holdings As [Member] | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Percentage of noncontrolling interest acquired | 100.00% | 100.00% | |
Portion of purchase price paid in cash | $ 4 | ||
Potential additional cash amount for purchase price | $ 27.6 | ||
Impaired Asset [Member] | UMS Segment [Member] | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Number of vessels | Vessel | 2 |
Financial Instruments - Changes
Financial Instruments - Changes in Fair Value for Partnership's Contingent Consideration Liability Measured Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) - Contingent Consideration [Member] - Logitel Offshore Holding [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at beginning of period | $ 0 | $ (15,292) | $ (14,830) | $ (21,448) |
Acquisition of Logitel | 0 | 0 | 0 | 2,569 |
Settlement of liability | 0 | 0 | 0 | 3,540 |
Gain (loss) included in Other (expense) income - net | 0 | (253) | 14,830 | (206) |
Balance at end of period | $ 0 | $ (15,545) | $ 0 | $ (15,545) |
Financial Instruments - Summary
Financial Instruments - Summary of Partnership's Financing Receivables (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Payment activity [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Direct financing leases | $ 18,952 | $ 17,471 |
Segment Reporting - Segment Res
Segment Reporting - Segment Results as Presented in Consolidated Financial Statements (Detail) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016USD ($) | Sep. 30, 2016USD ($)Vessel | Sep. 30, 2015USD ($)Vessel | Sep. 30, 2016USD ($)Vessel | Sep. 30, 2015USD ($)Vessel | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 286,298,000 | $ 314,054,000 | $ 877,470,000 | $ 890,271,000 | |
Voyage expenses | (21,495,000) | (28,166,000) | (57,427,000) | (71,399,000) | |
Vessel operating expenses | (94,008,000) | (95,172,000) | (280,121,000) | (269,560,000) | |
Time-charter hire expenses | (18,894,000) | (18,893,000) | (53,045,000) | (36,638,000) | |
Depreciation and amortization | (74,159,000) | (72,827,000) | (223,138,000) | (202,625,000) | |
General and administrative | (15,201,000) | (27,321,000) | (43,491,000) | (58,423,000) | |
(Write down) and gain on sale of vessels | 0 | 0 | (43,650,000) | (14,353,000) | |
Restructuring charge | (802,000) | (157,000) | (2,289,000) | (292,000) | |
Income from vessel operations | 61,739,000 | 71,518,000 | 174,309,000 | 236,981,000 | |
Early termination fee received | $ 4,000,000 | ||||
FPSO Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 121,294,000 | 137,888,000 | 378,793,000 | 377,885,000 | |
Voyage expenses | 0 | 0 | 0 | 0 | |
Vessel operating expenses | (42,353,000) | (47,542,000) | (130,632,000) | (134,752,000) | |
Time-charter hire expenses | 0 | 0 | 0 | 0 | |
Depreciation and amortization | (37,180,000) | (38,051,000) | (111,998,000) | (100,319,000) | |
General and administrative | (10,235,000) | (17,600,000) | (27,126,000) | (29,433,000) | |
(Write down) and gain on sale of vessels | 0 | 0 | |||
Restructuring charge | (597,000) | 0 | (2,084,000) | 0 | |
Income from vessel operations | 30,929,000 | 34,695,000 | 106,953,000 | 113,381,000 | |
Shuttle Tanker [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 128,482,000 | 131,381,000 | 380,505,000 | 402,370,000 | |
Voyage expenses | (18,898,000) | (22,844,000) | (45,409,000) | (61,349,000) | |
Vessel operating expenses | (33,062,000) | (28,814,000) | (91,735,000) | (94,250,000) | |
Time-charter hire expenses | (14,723,000) | (18,893,000) | (44,298,000) | (35,976,000) | |
Depreciation and amortization | (30,166,000) | (25,362,000) | (90,903,000) | (80,524,000) | |
General and administrative | (1,147,000) | (4,162,000) | (8,975,000) | (19,349,000) | |
(Write down) and gain on sale of vessels | 0 | (13,853,000) | |||
Restructuring charge | (205,000) | (157,000) | (205,000) | (292,000) | |
Income from vessel operations | 30,281,000 | 31,149,000 | 98,980,000 | 96,777,000 | |
FSO Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 14,251,000 | 14,234,000 | 42,403,000 | 42,885,000 | |
Voyage expenses | (96,000) | (217,000) | (431,000) | (438,000) | |
Vessel operating expenses | (6,056,000) | (6,511,000) | (17,724,000) | (19,791,000) | |
Time-charter hire expenses | 0 | 0 | 0 | 0 | |
Depreciation and amortization | (2,205,000) | (3,295,000) | (6,586,000) | (9,191,000) | |
General and administrative | (230,000) | (183,000) | (612,000) | (1,213,000) | |
(Write down) and gain on sale of vessels | 0 | 0 | |||
Restructuring charge | 0 | 0 | 0 | 0 | |
Income from vessel operations | 5,664,000 | 4,028,000 | 17,050,000 | 12,252,000 | |
UMS Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 13,395,000 | 11,737,000 | 30,612,000 | 15,423,000 | |
Voyage expenses | 0 | 0 | 0 | 0 | |
Vessel operating expenses | (8,331,000) | (5,976,000) | (25,576,000) | (7,102,000) | |
Time-charter hire expenses | 0 | 0 | 0 | 0 | |
Depreciation and amortization | (1,647,000) | (1,677,000) | (5,037,000) | (2,078,000) | |
General and administrative | (2,640,000) | (2,558,000) | (4,166,000) | (3,704,000) | |
(Write down) and gain on sale of vessels | (43,650,000) | (500,000) | |||
Restructuring charge | 0 | 0 | 0 | 0 | |
Income from vessel operations | 777,000 | 1,526,000 | (47,817,000) | 2,039,000 | |
Towage segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 5,345,000 | 10,808,000 | 28,158,000 | 27,395,000 | |
Voyage expenses | (2,440,000) | (4,340,000) | (10,239,000) | (7,632,000) | |
Vessel operating expenses | (4,206,000) | (4,709,000) | (13,015,000) | (9,157,000) | |
Time-charter hire expenses | 0 | 0 | 0 | (662,000) | |
Depreciation and amortization | (2,961,000) | (2,766,000) | (8,614,000) | (5,488,000) | |
General and administrative | (859,000) | (2,670,000) | (2,350,000) | (3,817,000) | |
(Write down) and gain on sale of vessels | 0 | 0 | |||
Restructuring charge | 0 | 0 | 0 | 0 | |
Income from vessel operations | (5,121,000) | (3,677,000) | (6,060,000) | 639,000 | |
Conventional Tanker [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 3,531,000 | 8,006,000 | 16,999,000 | 24,313,000 | |
Voyage expenses | (61,000) | (765,000) | (1,348,000) | (1,980,000) | |
Vessel operating expenses | 0 | (1,620,000) | (1,439,000) | (4,508,000) | |
Time-charter hire expenses | (4,171,000) | 0 | (8,747,000) | 0 | |
Depreciation and amortization | 0 | (1,676,000) | 0 | (5,025,000) | |
General and administrative | (90,000) | (148,000) | (262,000) | (907,000) | |
(Write down) and gain on sale of vessels | 0 | 0 | |||
Restructuring charge | 0 | 0 | 0 | 0 | |
Income from vessel operations | $ (791,000) | 3,797,000 | 5,203,000 | 11,893,000 | |
Early termination fee received | $ 4,000,000 | ||||
Petrojarl Knarr Fpso [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 0 | $ 69,500,000 | |||
ALP Maritime Services B.V. [Member] | Towage segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Number of vessels | Vessel | 6 | 6 | |||
Affiliated Entity [Member] | Shuttle Tanker [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Number of vessels | Vessel | 2 | 2 | |||
Affiliated Entity [Member] | FSO Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Number of vessels | Vessel | 3 | 3 | |||
Affiliated Entity [Member] | Conventional Tanker [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Number of vessels | Vessel | 1 | ||||
Teekay Corporation [Member] | Affiliated Entity [Member] | Petrojarl Knarr Fpso [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Business Combination, Acquisition Related Costs | $ 9,700,000 | $ 9,700,000 | |||
Teekay Corporation [Member] | Affiliated Entity [Member] | ALP Maritime Services B.V. [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Business Combination, Acquisition Related Costs | 2,200,000 | 2,200,000 | |||
Teekay Corporation [Member] | Affiliated Entity [Member] | Logitel Offshore Holdings As [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Business Combination, Acquisition Related Costs | $ 2,000,000 | $ 2,000,000 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Total Segment Assets to Total Assets Presented in Accompanying Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | ||
Consolidated total assets | $ 5,711,092 | $ 5,744,166 |
Operating Segments [Member] | FPSO Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Consolidated total assets | 2,715,893 | 2,717,193 |
Operating Segments [Member] | Shuttle Tanker [Member] | ||
Segment Reporting Information [Line Items] | ||
Consolidated total assets | 1,677,203 | 1,732,769 |
Operating Segments [Member] | FSO Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Consolidated total assets | 398,658 | 281,776 |
Operating Segments [Member] | UMS Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Consolidated total assets | 224,311 | 267,935 |
Operating Segments [Member] | Towage segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Consolidated total assets | 381,735 | 309,009 |
Operating Segments [Member] | Conventional Tanker [Member] | ||
Segment Reporting Information [Line Items] | ||
Consolidated total assets | 14,336 | 63,900 |
Corporate, Non-Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Cash and cash equivalents and restricted cash | 269,502 | 318,993 |
Other assets | $ 29,454 | $ 52,591 |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Total principal | $ 3,206,468 | $ 3,426,568 |
Less debt issuance costs and other | (57,617) | (62,694) |
Total debt | 3,148,851 | 3,363,874 |
Less current portion | (528,568) | (485,069) |
Long-term portion | 2,620,283 | 2,878,805 |
U.S. Dollar-denominated Revolving Credit Facilities due through 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Total principal | 178,949 | 429,279 |
Norwegian Kroner Bonds due through 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Total principal | 300,578 | 327,941 |
U.S. Dollar-denominated Term Loans due through 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Total principal | 116,967 | 129,133 |
Total debt | 117,000 | |
U.S. Dollar denominated Term Loans due through 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Total principal | 2,135,135 | 2,037,766 |
Total debt | 2,100,000 | |
U.S. Dollar Non-Public Bond due through 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Total principal | 174,839 | 202,449 |
U.S. Dollar Bonds due through 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Total principal | $ 300,000 | $ 300,000 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information - Revolvers (Detail) | 9 Months Ended |
Sep. 30, 2016USD ($)CreditFacilityVessel | |
Debt Instrument [Line Items] | |
Amount reduced under revolving credit facilities, remainder of 2016 | $ 106,100,000 |
Amount reduced under revolving credit facilities, 2017 | 537,100,000 |
Amount reduced under revolving credit facilities, 2018 | 643,700,000 |
Amount reduced under revolving credit facilities, 2019 | $ 781,500,000 |
Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Number of long-term revolving credit facilities | CreditFacility | 5 |
Revolving credit facilities borrowing capacity | $ 354,100,000 |
Line of Credit Facility, Remaining Borrowing Capacity | 175,200,000 |
Amount reduced under revolving credit facilities, remainder of 2016 | 29,000,000 |
Amount reduced under revolving credit facilities, 2017 | 166,700,000 |
Amount reduced under revolving credit facilities, 2018 | 115,400,000 |
Amount reduced under revolving credit facilities, 2019 | 43,000,000 |
Long-term line of credit, noncurrent | $ 15,600,000 |
Revolving Credit Facility [Member] | Equipment [Member] | |
Debt Instrument [Line Items] | |
Number of vessels | Vessel | 21 |
Revolving Credit Facility [Member] | Guaranteed by Partnership and Subsidiaries [Member] | |
Debt Instrument [Line Items] | |
Number of long-term revolving credit facilities | CreditFacility | 4 |
Revolving credit facilities borrowing capacity | $ 338,500,000 |
Minimum level of free cash be maintained as per loan agreements | 75,000,000 |
Long-term line of credit, noncurrent | $ 163,300,000 |
Revolving Credit Facility [Member] | Guaranteed by Partnership and Subsidiaries [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Free liquidity and undrawn revolving credit line as percentage of debt | 5.00% |
Revolving Credit Facility [Member] | Guaranteed by Teekay Corporation [Member] | |
Debt Instrument [Line Items] | |
Number of long-term revolving credit facilities | CreditFacility | 1 |
Minimum level of free cash be maintained as per loan agreements | $ 50,000,000 |
Revolving Credit Facility [Member] | Guaranteed by Teekay Corporation [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Free liquidity and undrawn revolving credit line as percentage of debt | 5.00% |
Long-Term Debt - Additional I42
Long-Term Debt - Additional Information - NOK Bonds (Detail) $ in Thousands, NOK in Millions | Jun. 29, 2016 | Jan. 31, 2016tranche | Jan. 31, 2013NOKtranche | Sep. 30, 2016USD ($) | Sep. 30, 2016NOK | Jun. 30, 2016NOK | Dec. 31, 2015USD ($) | Jan. 31, 2014NOK | Jan. 31, 2012NOK |
Debt Instrument [Line Items] | |||||||||
Long-term debt, gross | $ | $ 3,206,468 | $ 3,426,568 | |||||||
Norwegian Kroner Bond Due In January 2019 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior unsecured bonds issued | $ | $ 125,200 | ||||||||
Norwegian Kroner Bond Due In January 2019 [Member] | NIBOR Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior unsecured bonds issued | NOK 1,000 | ||||||||
Marginal rate added for interest paid | 4.25% | ||||||||
Norwegian Kroner Bonds due through 2019 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, gross | $ | $ 300,578 | $ 327,941 | |||||||
Norwegian Kroner Bonds due through 2019 [Member] | NIBOR Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Reference rate for the variable rate of the debt instrument | NIBOR | ||||||||
Norwegian Kroner Bond issued January 2013 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior unsecured bonds issued | NOK 1,300 | ||||||||
Number of tranches | tranche | 1 | 2 | |||||||
Norwegian Kroner Bond due in January 2016 [Member] | NIBOR Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior unsecured bonds issued | NOK 500 | ||||||||
Realized transaction gain (loss) | $ | 32,600 | ||||||||
Norwegian Kroner Bonds due January 2018 [Member] | NIBOR Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior unsecured bonds issued | NOK 800 | ||||||||
Marginal rate added for interest paid | 4.75% | ||||||||
Norwegian Kroner Bond Due In December 2018 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior unsecured bonds issued | $ | $ 100,200 | ||||||||
Norwegian Kroner Bond Issued January 2012 [Member] | NIBOR Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Marginal rate added for interest paid | 5.75% | ||||||||
Norwegian Kroner Bond due in January 2017 [Member] | NIBOR Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior unsecured bonds issued | NOK 600 | ||||||||
Norwegian Kroner Bond Due In November 2018 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior unsecured bonds issued | $ | $ 75,100 | ||||||||
Interest Rate Swap [Member] | Norwegian Kroner Bond Due In January 2019 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Fixed Interest Rate | 7.45% | 7.45% | |||||||
Debt instrument transfer of principal amount | $ | $ 162,200 | ||||||||
Interest Rate Swap [Member] | Norwegian Kroner Bonds due January 2018 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument transfer of principal amount | $ | $ 28,700 | ||||||||
Interest Rate Swap [Member] | Norwegian Kroner Bond Due In December 2018 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Fixed Interest Rate | 7.58% | 7.58% | |||||||
Debt instrument transfer of principal amount | $ | $ 118,300 | ||||||||
Interest Rate Swap [Member] | Norwegian Kroner Bond Due In October 2016 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument transfer of principal amount | 30,400 | NOK 180 | |||||||
Interest Rate Swap [Member] | Norwegian Kroner Bond Due In October 2017 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument transfer of principal amount | $ 30,400 | NOK 180 | |||||||
Interest Rate Swap [Member] | Norwegian Kroner Bond Due In November 2018 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Fixed Interest Rate | 8.84% | 8.84% | |||||||
Debt instrument transfer of principal amount | $ 41,800 | NOK 247 | |||||||
Cross currency swaps agreements [Member] | NIBOR Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Realized transaction gain (loss) | $ | $ (32,600) | ||||||||
Norwegian Kroner Bond Amendment [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Marginal rate added for interest paid | 5.75% | ||||||||
Norwegian Kroner Bond Amendment [Member] | Norwegian Kroner Bonds due January 2018 [Member] | NIBOR Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior unsecured bonds issued | NOK 160 | ||||||||
Norwegian Kroner Bond Amendment [Member] | Norwegian Kroner Bond Due In December 2018 [Member] | NIBOR Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior unsecured bonds issued | NOK 640 | ||||||||
Long-term debt, gross | 659 | ||||||||
Norwegian Kroner Bond Amendment [Member] | Norwegian Kroner Bond Due In October 2016 [Member] | NIBOR Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior unsecured bonds issued | 180 | ||||||||
Norwegian Kroner Bond Amendment [Member] | Norwegian Kroner Bond Due In October 2017 [Member] | NIBOR Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior unsecured bonds issued | 180 | ||||||||
Norwegian Kroner Bond Amendment [Member] | Norwegian Kroner Bond Due In November 2018 [Member] | NIBOR Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior unsecured bonds issued | NOK 240 | ||||||||
Norwegian Kroner Bond Amendment [Member] | Maximum [Member] | Norwegian Kroner Bond Due In December 2018 [Member] | NIBOR Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayment price, percentage | 103.00% | ||||||||
Norwegian Kroner Bond Amendment [Member] | Maximum [Member] | Norwegian Kroner Bond Due In November 2018 [Member] | NIBOR Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayment price, percentage | 103.00% | ||||||||
Norwegian Kroner Bond Amendment [Member] | Minimum [Member] | Norwegian Kroner Bond Due In December 2018 [Member] | NIBOR Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayment price, percentage | 101.00% | ||||||||
Norwegian Kroner Bond Amendment [Member] | Minimum [Member] | Norwegian Kroner Bond Due In November 2018 [Member] | NIBOR Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayment price, percentage | 101.00% | ||||||||
Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument collateral, description | The revolving credit facilities are collateralized by first-priority mortgages granted on 21 of the Partnership's vessels, together with other related security. | ||||||||
Revolving Credit Facility [Member] | Guaranteed by Partnership and Subsidiaries [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Minimum liquidity required by revolving credit facility covenants descriptions | Four of the revolving credit facilities are guaranteed by the Partnership and certain of its subsidiaries for all outstanding amounts and contain covenants that require the Partnership to maintain the greater of a minimum liquidity (cash, cash equivalents and undrawn committed revolving credit lines with at least six months to maturity) of at least $75.0 million and 5.0% of the Partnership's total consolidated debt. | ||||||||
Revolving Credit Facility [Member] | Guaranteed by Teekay Corporation [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Minimum liquidity required by revolving credit facility covenants descriptions | Two revolving credit facilities are guaranteed by Teekay Corporation and contain covenants that require Teekay Corporation to maintain the greater of a minimum liquidity (cash and cash equivalents) of at least $50.0 million and 5.0% of Teekay Corporation's total consolidated debt which has recourse to Teekay Corporation. |
Long-Term Debt - Additional I43
Long-Term Debt - Additional Information - USD Term Loans (Detail) | 9 Months Ended | ||
Sep. 30, 2016USD ($)Subsidiary | Dec. 31, 2015USD ($) | Feb. 28, 2015USD ($) | |
Debt Instrument [Line Items] | |||
Number of subsidiaries with outstanding term loans guaranteed | Subsidiary | 3 | ||
Partnership's interest owned in subsidiaries | 50.00% | ||
Carrying amount of debt | $ 3,148,851,000 | $ 3,363,874,000 | |
U.S. Dollar-denominated Term Loans due through 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Carrying amount of debt | $ 117,000,000 | ||
Debt instrument collateral, description | These term loans are collateralized by first-priority mortgages on the three shuttle tankers to which the loans relate, together with other related security. | ||
Frequency of paying U.S. Dollar-denominated Term Loans | Quarterly and semi-annual payments | ||
U.S. Dollar-denominated Term Loans due through 2018 [Member] | Guarantee of Indebtedness of Others [Member] | |||
Debt Instrument [Line Items] | |||
Partnership's interest owned in subsidiaries | 50.00% | ||
Guaranteed term loans | $ 26,600,000 | ||
U.S. Dollar-denominated Term Loans due through 2018 [Member] | Guarantee of Indebtedness of Others [Member] | Corporate Joint Venture [Member] | |||
Debt Instrument [Line Items] | |||
Guaranteed term loans | 58,500,000 | ||
U.S. Dollar-denominated Term Loans due through 2018 [Member] | Guarantee of Indebtedness of Others [Member] | Teekay Corporation [Member] | |||
Debt Instrument [Line Items] | |||
Guaranteed term loans | $ 31,900,000 | ||
U.S. Dollar-denominated Term Loans due through 2018 [Member] | Guarantee of Indebtedness of Others [Member] | Partnership [Member] | |||
Debt Instrument [Line Items] | |||
Number of subsidiaries with outstanding term loans guaranteed | Subsidiary | 2 | ||
U.S. Dollar denominated Term Loans due through 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Carrying amount of debt | $ 2,100,000,000 | ||
U.S. Dollar denominated Term Loans due through 2028 [Member] | Guarantee of Indebtedness of Others [Member] | |||
Debt Instrument [Line Items] | |||
Guaranteed term loans | 1,800,000,000 | ||
Term Loans Due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Final bullet payments | 29,000,000 | ||
U.S. Dollar-denominated Term Loans due through 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Final bullet payments | $ 29,100,000 | ||
U.S. Dollar-denominated Term Loans due through 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument collateral, description | These term loans have varying maturities through 2028 and are collateralized by first-priority mortgages on the vessels to which the loans relate, together with other related security. | ||
Frequency of paying U.S. Dollar-denominated Term Loans | Quarterly or semi-annual payments | ||
U.S. Dollar-denominated Term Loans due through 2025 [Member] | Guarantee of Indebtedness of Others [Member] | Teekay Corporation [Member] | |||
Debt Instrument [Line Items] | |||
Guaranteed term loans | $ 316,800,000 | ||
Senior bonds mature in June 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Carrying amount of debt | $ 25,400,000 | ||
Senior bonds issued face amount | $ 30,000,000 | ||
Fixed interest rate of bonds | 4.27% | ||
Debt instrument collateral, description | The bonds are collateralized by first-priority mortgage on the Dampier Spirit FSO unit to which the bonds relate, together with other related security. |
Long-Term Debt - Additional I44
Long-Term Debt - Additional Information - Senior unsecured bonds (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
May 31, 2014USD ($) | Nov. 30, 2013USD ($)Vessel | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 3,148,851 | $ 3,363,874 | ||
US Dollar Bonds Due in 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior unsecured bonds issued | $ 300,000 | 300,000 | ||
Debt instrument, term | 5 years | |||
Fixed interest rate of bonds | 6.00% | |||
Ten Year Senior Unsecured Bonds [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, term | 10 years | |||
Fixed interest rate of bonds | 4.96% | |||
Senior bonds issued face amount | $ 174,200 | |||
Number of vessels | Vessel | 2 | |||
Long-term Debt | $ 149,400 | |||
Debt instrument collateral, description | The bonds are collateralized by first-priority mortgages on the two vessels to which the bonds relate, together with other related security. | |||
Frequency of paying U.S. Dollar-denominated Term Loans | Semi-annual repayments | |||
ALP Maritime Services B.V. [Member] | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate of bonds | 2.93% | |||
Long-term Debt | $ 58,300 |
Long-Term Debt - Additional I45
Long-Term Debt - Additional Information - Other (Detail) $ in Thousands | Sep. 30, 2016USD ($)CreditFacility | Dec. 31, 2015USD ($) |
Debt Instrument [Line Items] | ||
Carrying amount of debt | $ 3,148,851 | $ 3,363,874 |
Weighted-average effective interest rate | 3.10% | 2.90% |
Aggregate principal repayments, remainder of 2016 | $ 106,100 | |
Aggregate principal repayments, 2017 | 537,100 | |
Aggregate principal repayments, 2018 | 643,700 | |
Aggregate principal repayments, 2019 | 781,500 | |
Aggregate principal repayments, 2020 | 273,300 | |
Aggregate principal repayments, thereafter | 864,800 | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Aggregate principal repayments, remainder of 2016 | 29,000 | |
Aggregate principal repayments, 2017 | 166,700 | |
Aggregate principal repayments, 2018 | 115,400 | |
Aggregate principal repayments, 2019 | $ 43,000 | |
Number of credit facilities | CreditFacility | 5 | |
Collateralized Debt Obligations [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Number of credit facilities | CreditFacility | 2 | |
Number of credit facilities undrawn | CreditFacility | 1 | |
Collateralized Debt Obligations [Member] | Term loans [Member] | ||
Debt Instrument [Line Items] | ||
Number of credit facilities | CreditFacility | 5 | |
Collateralized Debt Obligations [Member] | Term loans [Member] | Line of Credit One [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Asset value to outstanding drawn principal balance ratio | 113.00% | |
Vessel values to drawn principal balance ratios | 116.00% | |
Collateralized Debt Obligations [Member] | Term loans [Member] | Line of Credit One [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Asset value to outstanding drawn principal balance ratio | 125.00% | |
Vessel values to drawn principal balance ratios | 352.00% | |
Interest Rate Swap [Member] | ||
Debt Instrument [Line Items] | ||
Lower range of credit facility margin | 0.30% | 0.30% |
Higher range of credit facility margin | 4.00% | 3.25% |
ALP Maritime Services B.V. [Member] | ||
Debt Instrument [Line Items] | ||
Carrying amount of debt | $ 58,300 | |
Fixed Interest Rate | 2.93% |
Restructuring Charge - Addition
Restructuring Charge - Additional Information (Details) - FPSO Segment [Member] $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 0.8 | $ 2.3 |
Expected restructuring cost | 2.6 | 2.6 |
Restructuring reserve | $ 1.4 | $ 1.4 |
Related Party Transactions an47
Related Party Transactions and Balances - Additional Information (Detail) | Jul. 01, 2015USD ($) | Mar. 31, 2016USD ($) | Sep. 30, 2016USD ($)Vessel | Sep. 30, 2015USD ($)Vessel | Sep. 30, 2016USD ($)Vessel | Sep. 30, 2015USD ($)Vessel | May 31, 2016USD ($) | Dec. 31, 2015USD ($) | Aug. 31, 2014 | Aug. 11, 2014 | Mar. 31, 2014 |
Related Party Transaction [Line Items] | |||||||||||
Interest Expense, Related Party | $ 6,927,000 | $ 3,136,000 | $ 15,409,000 | $ 3,359,000 | |||||||
Early termination fee received | $ 4,000,000 | ||||||||||
Due from affiliates | 88,367,000 | 88,367,000 | $ 81,271,000 | ||||||||
Due to affiliates | 312,400,000 | 312,400,000 | $ 304,600,000 | ||||||||
Conventional Tanker [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Early termination fee received | 4,000,000 | ||||||||||
Randgrid shuttle tanker [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Shipbuilding and supervision costs | 11,900,000 | ||||||||||
Affiliated Entity [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Guarantee fee | $ 1,800,000 | $ 1,800,000 | |||||||||
Affiliated Entity [Member] | Shuttle Tanker [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Number of vessels | Vessel | 2 | 2 | |||||||||
Affiliated Entity [Member] | FSO Segment [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Number of vessels | Vessel | 3 | 3 | |||||||||
Affiliated Entity [Member] | Conventional Tanker [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Number of vessels | Vessel | 1 | ||||||||||
Convertible promissory note [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Outstanding principal balance of convertible debt | $ 100,000,000 | ||||||||||
Six Month Loan [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Interest Expense, Related Party | $ 5,000,000 | ||||||||||
Outstanding principal balance of convertible debt | $ 100,000,000 | ||||||||||
Interest rate, percentage | 10.00% | 10.00% | |||||||||
Subordinated promissory note [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Interest Expense, Related Party | $ 5,000,000 | ||||||||||
Due to affiliates | $ 200,000,000 | $ 200,000,000 | |||||||||
Interest rate, percentage | 10.00% | 10.00% | |||||||||
Logitel Offshore Holdings As [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Percentage of ownership in acquired entity after acquisition | 100.00% | 100.00% | |||||||||
Petrojarl Knarr Fpso [Member] | Affiliated Entity [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Percentage of ownership in acquired entity after acquisition | 100.00% | ||||||||||
Entity acquired, purchase price | $ 529,400,000 | ||||||||||
Petrojarl Knarr Fpso [Member] | Convertible promissory note [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Interest Expense, Related Party | $ 3,200,000 | ||||||||||
Outstanding principal balance of convertible debt | $ 0 | $ 0 | |||||||||
Interest rate, percentage | 6.50% | 6.50% | |||||||||
ALP Maritime Services B.V. [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Percentage of ownership in acquired entity after acquisition | 100.00% | ||||||||||
ALP Maritime Services B.V. [Member] | Towage segment [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Number of vessels | Vessel | 6 | 6 | |||||||||
Cash [Member] | Subordinated promissory note [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Interest rate, percentage | 5.00% | 5.00% | |||||||||
Cash Equivalents [Member] | Subordinated promissory note [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Interest rate, percentage | 5.00% | 5.00% | |||||||||
Financial Guarantee [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Maximum exposure | $ 495,000,000 | $ 495,000,000 |
Related Party Transactions an48
Related Party Transactions and Balances - Revenues (Expenses) from Related Party Transactions (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | May 31, 2016 | |
Related Party Transaction [Line Items] | |||||
Revenues | $ 13,733,000 | $ 17,591,000 | $ 38,651,000 | $ 52,410,000 | |
Vessel operating expenses | (8,889,000) | (9,821,000) | (26,951,000) | (29,671,000) | |
General and administrative | (7,469,000) | (22,928,000) | (22,817,000) | (38,990,000) | |
Interest expense | $ (6,927,000) | $ (3,136,000) | (15,409,000) | $ (3,359,000) | |
Convertible promissory note [Member] | |||||
Related Party Transaction [Line Items] | |||||
Outstanding principal balance of convertible debt | $ 100,000,000 | ||||
Convertible promissory note [Member] | Petrojarl Knarr Fpso [Member] | |||||
Related Party Transaction [Line Items] | |||||
Interest expense | $ (3,200,000) | ||||
Interest rate, percentage | 6.50% | 6.50% | |||
Outstanding principal balance of convertible debt | $ 0 | $ 0 | |||
Six Month Loan [Member] | |||||
Related Party Transaction [Line Items] | |||||
Interest expense | (5,000,000) | ||||
Related parties, note payable | $ 0 | $ 0 | |||
Interest rate, percentage | 10.00% | 10.00% | |||
Outstanding principal balance of convertible debt | $ 100,000,000 |
Derivative Instruments and He49
Derivative Instruments and Hedging Activities - Foreign Currency Forward Contracts (Detail) - Foreign currency forward contracts [Member] $ in Thousands | Sep. 30, 2016USD ($) | Sep. 30, 2016NOK | Sep. 30, 2016SGD | Sep. 30, 2016EUR (€) |
Derivative [Line Items] | ||||
Fair Value / Carrying Amount of Asset (Liability) Non-hedge | $ 1,429 | |||
Expected Maturity Next Fiscal Year | 25,683 | |||
Expected Maturity Fiscal Year Two | 32,214 | |||
Norwegian Kroner [Member] | ||||
Derivative [Line Items] | ||||
Contract Amount in Foreign Currency | NOK | NOK 371,000,000 | |||
Fair Value / Carrying Amount of Asset (Liability) Non-hedge | $ 1,412 | |||
Average Forward Rate | 8.23 | 8.23 | 8.23 | 8.23 |
Expected Maturity Next Fiscal Year | $ 12,875 | |||
Expected Maturity Fiscal Year Two | 32,214 | |||
Euro [Member] | ||||
Derivative [Line Items] | ||||
Contract Amount in Foreign Currency | € | € 2,250,000 | |||
Fair Value / Carrying Amount of Asset (Liability) Non-hedge | $ 85 | |||
Average Forward Rate | 0.92 | 0.92 | 0.92 | 0.92 |
Expected Maturity Next Fiscal Year | $ 2,447 | |||
Singapore Dollars [Member] | ||||
Derivative [Line Items] | ||||
Contract Amount in Foreign Currency | SGD | SGD 14,026,000 | |||
Fair Value / Carrying Amount of Asset (Liability) Non-hedge | $ (68) | |||
Average Forward Rate | 1.35 | 1.35 | 1.35 | 1.35 |
Expected Maturity Next Fiscal Year | $ 10,361 |
Derivative Instruments and He50
Derivative Instruments and Hedging Activities - Summary of Cross Currency Swaps (Detail) NOK in Thousands | 9 Months Ended | |
Sep. 30, 2016USD ($) | Sep. 30, 2016NOK | |
Cross currency swaps agreements [Member] | ||
Derivative [Line Items] | ||
Fair Value / Carrying Amount of Asset (Liability) | $ (125,258,000) | |
Cross currency swaps agreements [Member] | Maturing In January Two Thousand Seventeen [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 101,351,000 | NOK 600,000 |
Floating Rate Receivable Reference Rate | NIBOR | |
Floating Rate Receivable Reference Margin | 5.75% | 5.75% |
Fixed Interest Rate | 8.84% | 8.84% |
Fair Value / Carrying Amount of Asset (Liability) | $ (30,393,000) | |
Remaining Term (years) | 2 years 2 months | |
Cross currency swaps agreements [Member] | Maturing In January Two Thousand Sixteen [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 143,536,000 | NOK 800,000 |
Floating Rate Receivable Reference Rate | NIBOR | |
Floating Rate Receivable Reference Margin | 5.75% | 5.75% |
Fixed Interest Rate | 7.58% | 7.58% |
Fair Value / Carrying Amount of Asset (Liability) | $ (48,454,000) | |
Remaining Term (years) | 2 years 3 months | |
Cross currency swaps agreements [Member] | Maturing In January Two Thousand Nineteen [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 162,200,000 | NOK 1,000,000 |
Floating Rate Receivable Reference Rate | NIBOR | |
Floating Rate Receivable Reference Margin | 4.25% | 4.25% |
Fixed Interest Rate | 7.45% | 7.45% |
Fair Value / Carrying Amount of Asset (Liability) | $ (46,411,000) | |
Remaining Term (years) | 2 years 3 months | |
Foreign currency contracts [Member] | Maturing In January Two Thousand Seventeen [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 1,200,000 | NOK 7,200 |
Debt instrument, premium, percent | 3.00% | 3.00% |
Foreign currency contracts [Member] | Maturing In January Two Thousand Sixteen [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 3,400,000 | NOK 19,200 |
Debt instrument, premium, percent | 3.00% | 3.00% |
Derivative Instruments and He51
Derivative Instruments and Hedging Activities - Interest Rate Swap Agreements (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 2,196,849,000 | |
Fair Value / Carrying Amount of Assets (Liability) | $ (309,003,000) | |
Lower range of credit facility margin | 0.30% | 0.30% |
Higher range of credit facility margin | 4.00% | 3.25% |
Interest Rate Swap Agreements One [Member] | ||
Derivative [Line Items] | ||
Interest Rate Index | LIBOR | |
Notional Amount | $ 950,000,000 | |
Fair Value / Carrying Amount of Assets (Liability) | $ (210,365,000) | |
Weighted-Average Remaining Term (years) | 5 years 2 months | |
Fixed Interest Rate | 4.00% | |
Interest Rate Swap Agreements Two [Member] | ||
Derivative [Line Items] | ||
Interest Rate Index | LIBOR | |
Notional Amount | $ 1,246,849,000 | |
Fair Value / Carrying Amount of Assets (Liability) | $ (98,638,000) | |
Weighted-Average Remaining Term (years) | 5 years 1 month | |
Fixed Interest Rate | 2.70% |
Derivative Instruments and He52
Derivative Instruments and Hedging Activities - Effective Portion of Gains (Losses) on Interest Rate Swap Agreements (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative [Line Items] | ||||
Effective Portion Recognized in AOCI | $ 640 | $ (1,085) | $ (3,870) | $ (1,085) |
Effective Portion Reclassified from AOCI | 0 | 0 | 0 | 0 |
Ineffective Portion | 126 | (1,058) | 984 | (1,058) |
Interest Expense [Member] | ||||
Derivative [Line Items] | ||||
Effective Portion Recognized in AOCI | 640 | (1,085) | (3,870) | (1,085) |
Effective Portion Reclassified from AOCI | 0 | 0 | 0 | 0 |
Ineffective Portion | $ 126 | $ (1,058) | $ 984 | $ (1,058) |
Derivative Instruments and He53
Derivative Instruments and Hedging Activities - Additional Information (Detail) - Interest rate swaps and cross currency swaps [Member] - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 1,900,000 | $ 0 |
Aggregate fair value liability | 235,700,000 | 360,600,000 |
Restricted cash | $ 21,900,000 | $ 60,500,000 |
Derivative Instruments and He54
Derivative Instruments and Hedging Activities - Location and Fair Value Amounts of Assets (Liabilities) of Partnership's Derivative Instruments (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Other Current Assets | $ 22,377 | $ 20,490 |
Other Assets | 92,568 | 82,341 |
Accrued Liabilities | (155,434) | (91,065) |
Current Portion of Derivative Liabilities | (50,839) | (201,456) |
Derivative Liabilities | (371,216) | (221,329) |
Derivative Financial Instruments, Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Accrued Liabilities | (12,794) | (10,023) |
Current Portion of Derivative Liabilities | (50,839) | (201,456) |
Derivative Liabilities | (371,216) | (221,329) |
Derivative Financial Instruments, Liabilities [Member] | Foreign currency contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Current Portion of Derivative Liabilities | (488) | (10,266) |
Derivative Liabilities | 0 | (1,323) |
Derivative Financial Instruments, Liabilities [Member] | Cross currency swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Accrued Liabilities | (2,403) | (2,196) |
Current Portion of Derivative Liabilities | (17,747) | (42,878) |
Derivative Liabilities | (105,108) | (138,253) |
Derivative Financial Instruments, Liabilities [Member] | Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Accrued Liabilities | (10,391) | (7,827) |
Current Portion of Derivative Liabilities | (32,604) | (148,312) |
Derivative Liabilities | (266,108) | (81,753) |
Derivative Financial Instruments, Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Other Current Assets | 1,661 | 80 |
Other Assets | 356 | 1,894 |
Derivative Financial Instruments, Assets [Member] | Foreign currency contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Other Current Assets | 1,661 | 80 |
Other Assets | 256 | |
Derivative Financial Instruments, Assets [Member] | Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Other Assets | $ 100 | $ 1,894 |
Derivative Instruments and He55
Derivative Instruments and Hedging Activities - Effect of Losses on Derivatives (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Realized (losses) gains relating to: | ||||
Unrealized Gain (Loss) on Derivatives | $ 4,353 | $ (77,421) | ||
Unrealized gains (losses) relating to: | ||||
Total realized and unrealized gains (losses) on derivative instruments | $ 20,247 | $ (77,102) | (102,280) | (90,182) |
Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Sale of Derivatives | (15,271) | (30,797) | (47,373) | (66,144) |
Realized (losses) gains relating to: | ||||
Unrealized Gain (Loss) on Derivatives | 35,518 | (46,305) | (54,907) | (24,038) |
Unrealized gains (losses) relating to: | ||||
Total realized and unrealized gains (losses) on derivative instruments | 20,247 | (77,102) | (102,280) | (90,182) |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Sale of Derivatives | (13,507) | (15,857) | (40,989) | (45,378) |
Realized (losses) gains relating to: | ||||
Unrealized Gain (Loss) on Derivatives | 31,894 | (43,453) | (67,845) | (22,303) |
Not Designated as Hedging Instrument [Member] | Foreign currency forward contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Sale of Derivatives | (1,764) | (4,064) | (6,384) | (9,890) |
Realized (losses) gains relating to: | ||||
Unrealized Gain (Loss) on Derivatives | $ 3,624 | (2,852) | 12,938 | $ (1,735) |
Termination of interest rate swap [Member] | Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Sale of Derivatives | $ (10,876) | $ (10,876) |
Derivative Instruments and He56
Derivative Instruments and Hedging Activities - Effect of Gain (Loss) on Cross Currency Swaps on Consolidated Statements of Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total realized and unrealized gains (losses) on derivative instruments | $ 20,247 | $ (77,102) | $ (102,280) | $ (90,182) |
Foreign Exchange and Other Derivative Financial Instruments [Member] | Cross currency swaps agreements [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized losses | (3,330) | (2,840) | (41,276) | (7,173) |
Unrealized gains (losses) | 19,803 | (32,649) | 58,276 | (52,325) |
Total realized and unrealized gains (losses) on derivative instruments | $ 16,473 | $ (35,489) | $ 17,000 | $ (59,498) |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Current | $ (2,180) | $ (119) | $ (3,342) | $ (745) |
Deferred | 577 | 5,584 | 6,013 | 6,399 |
Income tax expense | $ (1,603) | $ 5,465 | $ 2,671 | $ 5,654 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information - Randgrid (Detail) | Sep. 30, 2016 |
Randgrid shuttle tanker [Member] | |
Loss Contingencies [Line Items] | |
Percentage of ownership by non-controlling owners | 33.00% |
Commitments and Contingencies59
Commitments and Contingencies - Additional Information - Statoil (Detail) - Randgrid shuttle tanker [Member] $ in Millions | 1 Months Ended | 9 Months Ended | |
May 31, 2013USD ($)ExtensionOptions | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) | |
Loss Contingencies [Line Items] | |||
Percentage of currently owned interest | 67.00% | ||
Estimated cost of project | $ 305 | ||
Prepaid Expense | $ 223.6 | ||
Operating lease arrangement period, lessor | 3 years | ||
Additional term of contract | 1 year | ||
Number of extension options | ExtensionOptions | 12 | ||
Payments due in the remainder of 2015 | $ 44.4 | ||
Payments due in the year 2016 | 37 | ||
Long-term Debt Financing Secured in December 2015 [Member] | |||
Loss Contingencies [Line Items] | |||
Loan facility | $ 230 | ||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 65.5 |
Commitments and Contingencies60
Commitments and Contingencies - Additional Information - ALP (Detail) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($) | Mar. 31, 2014USD ($)Vessel | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | |
Loss Contingencies [Line Items] | ||||
Payments to Acquire Property, Plant, and Equipment | $ 238,349 | $ 563,260 | ||
ALP Maritime Services B.V. [Member] | ||||
Loss Contingencies [Line Items] | ||||
Percentage of noncontrolling interest acquired | 100.00% | |||
Expected cost of new buildings | $ 220,000 | |||
Prepaid Expense | $ 170,200 | 170,200 | ||
Payments due in the remainder of 2015 | 600 | 600 | ||
Payments due in the year 2016 | 48,900 | 48,900 | ||
ALP Maritime Services B.V. [Member] | Newbuildings [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of vessels | Vessel | 4 | |||
Payments to Acquire Property, Plant, and Equipment | 17,100 | |||
Secured long-term debt financing | 185,000 | 185,000 | ||
Debt Instrument, Unused Borrowing Capacity, Amount | 68,300 | $ 68,300 | ||
Reimbursements [Member] | ALP Maritime Services B.V. [Member] | Newbuildings [Member] | ||||
Loss Contingencies [Line Items] | ||||
Payments to Acquire Property, Plant, and Equipment | $ 7,000 |
Commitments and Contingencies61
Commitments and Contingencies - Additional Information - Logitel (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2016USD ($) | Aug. 31, 2014MaintenanceAndSafety | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Aug. 11, 2014 | Nov. 30, 2013USD ($)hull | |
Loss Contingencies [Line Items] | ||||||||||
Total principal | $ 3,206,468 | $ 3,206,468 | $ 3,206,468 | $ 3,426,568 | ||||||
(Write down) and gain on sale of vessels (note 14) | 0 | $ 0 | (43,650) | $ (14,353) | ||||||
Reversed contingent liabilities | 0 | 3,303 | ||||||||
Loss Contingency Accrual | 61,100 | 61,100 | 61,100 | |||||||
UMS Segment [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
(Write down) and gain on sale of vessels (note 14) | (43,650) | $ (500) | ||||||||
Reversed contingent liabilities | $ 14,500 | |||||||||
Logitel Offshore Holdings As [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Percentage of noncontrolling interest acquired | 100.00% | 100.00% | ||||||||
Number of units for maintenance safety | MaintenanceAndSafety | 3 | |||||||||
Sevan Marine ASA [Member] | Logitel Offshore Holdings As [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of hulls to be converted | hull | 2 | |||||||||
Total principal | $ 60,000 | |||||||||
Loan facility | 50,000 | 50,000 | 50,000 | |||||||
Estimated claim | 10,000 | |||||||||
CeFront Technology AS [Member] | Logitel Offshore Holdings As [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Estimated claim | 2,700 | |||||||||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | 3,700 | 3,700 | 3,700 | |||||||
CeFront Technology AS [Member] | Logitel Offshore Holdings As [Member] | Arendal Spirit Ums [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Estimated claim | 3,300 | |||||||||
CeFront Technology AS [Member] | Logitel Offshore Holdings As [Member] | Nantong Spirit [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Estimated claim | 20,200 | |||||||||
Vendor Credit Loan [Member] | Sevan Marine ASA [Member] | Logitel Offshore Holdings As [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loan facility | 41,000 | |||||||||
Cash Loan [Member] | Sevan Marine ASA [Member] | Logitel Offshore Holdings As [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loan facility | $ 19,000 | |||||||||
Stavanger Spirit [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Estimate of damages, maximum | 170,000 | 170,000 | 170,000 | |||||||
Nantong Spirit [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Estimate of damages, maximum | 40,000 | 40,000 | 40,000 | |||||||
Estimate of damages, minimum | $ 10,000 | $ 10,000 | $ 10,000 |
Commitments and Contingencies62
Commitments and Contingencies - Additional Information - Odebrecht (Detail) - Odebrecht Oil And Gas Sa [Member] - USD ($) $ in Millions | 1 Months Ended | ||
Oct. 31, 2014 | Sep. 30, 2016 | Jul. 31, 2015 | |
Loss Contingencies [Line Items] | |||
Percentage of interest in joint venture arrangement | 50.00% | ||
Operating lease arrangement period, lessor | 12 years | ||
Estimated cost of project | $ 1,000 | ||
Prepaid Expense | $ 596.9 | ||
Purchase obligation due (remainder of 2015) | 117.7 | ||
Payments due in the year 2016 | 290 | ||
Secured long-term debt financing | 440.4 | $ 804 | |
Debt Instrument, Unused Borrowing Capacity, Amount | $ 363.3 |
Commitments and Contingencies63
Commitments and Contingencies - Additional Information - Petrojarl I (Detail) - Petrojarl I FPSO [Member] - USD ($) $ in Millions | 1 Months Ended | |
Dec. 31, 2014 | Sep. 30, 2016 | |
Loss Contingencies [Line Items] | ||
Business acquisition, purchase price | $ 57 | |
Estimated cost of project | $ 350 | |
Operating lease arrangement period, lessor | 5 years | |
Prepaid Expense | $ 237.8 | |
Purchase obligation due (remainder of 2015) | 5 | |
Secured long-term loan | $ 171.2 |
Commitments and Contingencies64
Commitments and Contingencies - Additional Information - Shuttle Tankers (Detail) - Shuttle Tanker [Member] $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended |
Jun. 30, 2015Vessel | Sep. 30, 2015Vessel | Sep. 30, 2016USD ($)Vessel | |
Loss Contingencies [Line Items] | |||
Operating lease arrangement period, lessor | 15 years | ||
Number of vessels | Vessel | 3 | 1 | |
Estimated cost of project | $ 372 | ||
Payments made towards commitments | 59.9 | ||
Purchase obligation due (remainder of 2015) | 20.7 | ||
Purchase obligation due in 2016 | 221.2 | ||
Purchase obligation due in 2017 | 70.6 | ||
Purchase obligation due in 2018 | 250 | ||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 209.3 | ||
Newbuildings [Member] | |||
Loss Contingencies [Line Items] | |||
Number of vessels | Vessel | 3 |
Commitments and Contingencies65
Commitments and Contingencies - Additional Information - Petrobras (Details) - FPSO Segment [Member] - Petrobras [Member] $ in Millions | 1 Months Ended |
Mar. 31, 2016USD ($) | |
Loss Contingencies [Line Items] | |
Percentage of rate reduction claim | 2.00% |
Estimated claim | $ 7.5 |
Return of 2% of Charter Hire Charter Hire Previously Paid [Member] | |
Loss Contingencies [Line Items] | |
Estimated claim | 5.3 |
2% Reduction of Future Charter Hire [Member] | |
Loss Contingencies [Line Items] | |
Estimated claim | $ 2.2 |
Total Capital and Net Income 66
Total Capital and Net Income (Loss) Per Common Unit - Additional Information (Detail) - USD ($) $ in Thousands, shares in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Aug. 31, 2016 | Jun. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2016 | |
Limited Partners' Capital Account [Line Items] | ||||
Percentage of limited partner units outstanding held by public | 72.60% | 72.60% | ||
General partner's interest (percent) | 2.00% | |||
Partners' Capital Account, Units, Sold in Public Offering | 3.7 | 3.7 | ||
Proceeds from issuance of common limited partners units | $ 99,500 | $ 21,400 | $ 21,400 | |
Offering Costs, Partnership Interests | $ 300 | 300 | ||
Stock Issued During Period, Shares, Dividend Reinvestment Plan | 2 | |||
Dividends, Paid-in-kind | $ 10,400 | $ 5,728 | ||
Series D Preferred Stock [Member] | ||||
Limited Partners' Capital Account [Line Items] | ||||
Preferred units dividend rate | 10.50% | |||
Series D Preferred Stock [Member] | Teekay Corporation [Member] | ||||
Limited Partners' Capital Account [Line Items] | ||||
Percentage of units owned | 26.00% | 26.00% | ||
General Partner [Member] | ||||
Limited Partners' Capital Account [Line Items] | ||||
Partners' Capital Account, Units, Sold in Public Offering | 0.4 | 0.4 | ||
Dividends, Paid-in-kind | $ 200 | $ (309) | ||
Maximum [Member] | ||||
Limited Partners' Capital Account [Line Items] | ||||
Proceeds from issuance of common limited partners units | $ 100,000 |
Total Capital and Net Income 67
Total Capital and Net Income (Loss) Per Common Unit - Additional Information - Common Units (Details) - USD ($) shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended |
Jun. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2016 | |
Limited Partners' Capital Account [Line Items] | |||
Partners' Capital Account, Units, Sold in Public Offering | 3.7 | 3.7 | |
Proceeds from issuance of common limited partners units | $ 99.5 | $ 21.4 | $ 21.4 |
General partner's interest (percent) | 2.00% | ||
Offering Costs, Partnership Interests | $ 0.3 | $ 0.3 | |
Common Units [Member] | |||
Limited Partners' Capital Account [Line Items] | |||
Proceeds from equity offerings, net of offering costs (note 12), units | 22 | ||
General Partner [Member] | |||
Limited Partners' Capital Account [Line Items] | |||
Partners' Capital Account, Units, Sold in Public Offering | 0.4 | 0.4 |
Total Capital and Net Income 68
Total Capital and Net Income (Loss) Per Common Unit - Additional Information - Series C Preferred Units and Series C-1 Preferred Units (Details) - USD ($) | Jul. 31, 2015 | Jun. 30, 2016 | Jul. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 |
Limited Partners' Capital Account [Line Items] | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 12,600,000 | 9,700,000 | 39,000,000 | 3,300,000 | |||
Convertible Preferred Stock, Terms of Conversion, Optional Conversion to Common Units, Volume Weighted Average Price of Common Units, Dollar value | $ 35.925 | ||||||
Exchange of Convertible Preferred Units (note 12) | $ 20,644,000 | ||||||
Common Units [Member] | |||||||
Limited Partners' Capital Account [Line Items] | |||||||
Public offering made by Partnership, units | 22,000,000 | ||||||
Conversion of Convertible Preferred Units, units | 1,900,000 | ||||||
Inducement Premium on Series C Preferred Units Conversion [Member] | |||||||
Limited Partners' Capital Account [Line Items] | |||||||
Conversion of Convertible Preferred Units, units | 6,400,000 | ||||||
Conversion of convertible preferred units | $ 37,700,000 | ||||||
Limited Partner [Member] | |||||||
Limited Partners' Capital Account [Line Items] | |||||||
Conversion of convertible preferred units | $ 0 | $ 0 | $ (36,961,000) | $ 0 | |||
Limited Partner [Member] | Common Units [Member] | |||||||
Limited Partners' Capital Account [Line Items] | |||||||
Public offering made by Partnership, units | 25,648,000 | ||||||
Conversion of Convertible Preferred Units, units | 8,324,000 | ||||||
Series C Preferred Stock [Member] | |||||||
Limited Partners' Capital Account [Line Items] | |||||||
Public offering made by Partnership, units | 10,400,000 | ||||||
Preferred units dividend rate | 8.60% | ||||||
Contributed capital | $ 249,800,000 | $ 249,800,000 | |||||
Conversion period | 18 months | ||||||
Shares issued upon conversion | 1 | 1 | |||||
Period for optional conversion to common units | 3 years | ||||||
Series C Preferred Stock [Member] | Induced Exchange of Series C Preferred Units [Member] | |||||||
Limited Partners' Capital Account [Line Items] | |||||||
Shares converted | 1,900,000 | ||||||
Series C Preferred Stock [Member] | Extinguishment of Series C Preferred Units [Member] | |||||||
Limited Partners' Capital Account [Line Items] | |||||||
Shares converted | 8,500,000 | ||||||
Series C-1 Preferred Units [Member] | |||||||
Limited Partners' Capital Account [Line Items] | |||||||
Shares issued upon conversion | 1.474 | 1.474 | |||||
Period for optional conversion to common units | 3 years | ||||||
Conversion of Convertible Preferred Units, units | 8,500,000 | ||||||
Volume weighted average price of common units, percent of issuance price | 150.00% | ||||||
Issuance price (usd per share) | $ 16.25 | ||||||
Dividend payment terms, discount on 10 days trading volume weighted average price, percent | 2.00% | ||||||
Warrant [Member] | |||||||
Limited Partners' Capital Account [Line Items] | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,300,000 | 6,800,000 |
Total Capital and Net Income 69
Total Capital and Net Income (Loss) Per Common Unit - Additional Information - Series D Preferred Units and Detachable Warrants (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 29, 2016 | Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 |
Limited Partners' Capital Account [Line Items] | |||||
Warrants outstanding | 6,750,000 | 6,750,000 | 0 | ||
Proceeds from issuance or sale of equity | $ 100,000 | ||||
Proceeds from issuance or sale of equity, net of offering costs | 97,200 | ||||
Stock issuance costs | $ 2,800 | $ 5,911 | $ 4,469 | ||
Accretion Expense | $ 800 | $ 826 | |||
The Warrants [Member] | |||||
Limited Partners' Capital Account [Line Items] | |||||
Warrants, term | 7 years | ||||
Period after which warrants are exercisable | 6 months | ||||
The $4.55 Warrants [Member] | |||||
Limited Partners' Capital Account [Line Items] | |||||
Warrants outstanding | 4,500,000 | ||||
Exercise price of warrants (usd per share) | $ 4.55 | ||||
Proceeds from issuance or sale of equity, net of offering costs | $ 9,500 | ||||
The $6.05 Warrants [Member] | |||||
Limited Partners' Capital Account [Line Items] | |||||
Warrants outstanding | 2,250,000 | ||||
Exercise price of warrants (usd per share) | $ 6.05 | ||||
Exercise premium (percent) | 33.00% | ||||
Proceeds from issuance or sale of equity, net of offering costs | $ 4,300 | ||||
Series D Preferred Stock [Member] | |||||
Limited Partners' Capital Account [Line Items] | |||||
Proceeds from equity offerings, net of offering costs (note 12), units | 4,000,000 | ||||
Preferred units dividend rate | 10.50% | ||||
Proceeds from issuance or sale of equity, net of offering costs | $ 83,500 | ||||
Dividend payment terms, discount on 10 days trading volume weighted average price, percent | 4.00% | ||||
Liquidation preference per share (usd per share) | $ 25 | ||||
Premium to liquidation value in redemption period one, percent | 10.00% | ||||
Premium to liquidation value in redemption period two, percent | 5.00% | ||||
Redemption price per share | $ 4 | ||||
Change of control premium to liquidation preference in year one, percent | 25.00% | ||||
Annual decrease to change of control premium to liquidation preference, percent | 5.00% | ||||
Change of control premium to liquidation preference in year five and thereafter, percent | 5.00% | ||||
Preferred stock redemption discount | $ 16,500 | ||||
Redemption period | 5 years | ||||
Series D Preferred Stock [Member] | Minimum [Member] | |||||
Limited Partners' Capital Account [Line Items] | |||||
Percent of common units purchased to trigger a change of control event | 90.00% |
Total Capital and Net Income 70
Total Capital and Net Income (Loss) Per Common Unit - Additional Information - Net (Loss) Income Per Common Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earning Per Share [Line Items] | ||||
Limited partners' interest in net income (loss) | $ 34,608 | $ (70,826) | $ (90,928) | $ (1,254) |
Preferred units - periodic accretion | (800) | (826) | ||
Deemed contribution on exchange of Series C Preferred Units | (20,644) | |||
Limited partners' interest in net income (loss) for basic net income (loss) per common unit | $ 33,782 | $ (70,826) | $ (108,484) | $ (1,254) |
Weighted average number of common units | 139,057,659 | 102,009,737 | 118,046,087 | 95,640,284 |
Dilutive effect of unit based compensation, Series D Preferred Units and Warrants | 18,856,618 | 0 | 0 | 0 |
Common units and common unit equivalents | 157,914,277 | 102,009,737 | 118,046,087 | 95,640,284 |
Limited partner's interest in net income (loss) per common unit | ||||
- basic (usd per share) | $ 0.24 | $ (0.69) | $ (0.92) | $ (0.01) |
- diluted (usd per share) | $ 0.24 | $ (0.69) | $ (0.92) | $ (0.01) |
Distributions payable and paid on the preferred units | $ 12,400 | $ 10,300 | $ 33,400 | $ 17,900 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 12,600,000 | 9,700,000 | 39,000,000 | 3,300,000 |
Below cash distribution per unit | $ 0.35 | $ 0.35 | ||
Exceeded cash distributions per unit | $ 0.4025 | $ 0.4025 | ||
Limited Partner [Member] | ||||
Earning Per Share [Line Items] | ||||
Limited partners' interest in net income (loss) | $ 34,608 | $ (70,826) | $ (90,928) | $ (1,254) |
Preferred units - periodic accretion | (826) | 0 | (826) | 0 |
Additional consideration for induced conversion of Series C Preferred Units | 0 | 0 | (36,961) | 0 |
Limited partners' interest in net income (loss) for basic net income (loss) per common unit | 33,782 | (70,826) | (108,484) | (1,254) |
Limited partners' interest in diluted net income (loss) | 37,181 | (70,826) | (108,484) | (1,254) |
Series D Preferred Stock [Member] | Limited Partner [Member] | ||||
Earning Per Share [Line Items] | ||||
Preferred units - periodic accretion | (826) | 0 | 0 | 0 |
Series D Preferred Units - cash distributions | $ 2,573 | 0 | $ 0 | 0 |
Warrant [Member] | ||||
Limited partner's interest in net income (loss) per common unit | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,300,000 | 6,800,000 | ||
Common Stock Including Additional Paid in Capital [Member] | Limited Partner [Member] | ||||
Earning Per Share [Line Items] | ||||
Deemed contribution on exchange of Series C Preferred Units | $ 0 | $ 0 | $ (20,231) | $ 0 |
Unit Based Compensation - Addit
Unit Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2016 | Mar. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Cash settled restricted unit-based compensation awards | $ 155,434 | $ 155,434 | $ 91,065 | ||||
Director [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common units, granted | 76,084 | ||||||
Common units aggregate value, granted | $ 300 | ||||||
Restricted Unit-based Compensation Awards [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common units aggregate value, granted | $ 2,400 | $ 2,100 | |||||
Common units, granted | 601,368 | 102,834 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Description | Each award represents the specified number of the Partnership’s common units plus reinvested distributions from the grant date to the vesting date. | ||||||
Vesting period from grant date | 3 years | ||||||
Common units, vested | 76,637 | 48,488 | |||||
Common units, value | $ 2,000 | $ 1,500 | |||||
Common units issued to grantees | 25,286 | 12,612 | |||||
Amount paid to grantees in cash | $ 200 | $ 500 | |||||
Restricted stock or unit expense | 300 | $ (100) | 1,900 | $ 1,200 | |||
Cash settled restricted unit-based compensation awards | 1,200 | 1,200 | $ 400 | ||||
Non-vested awards not yet recognized | $ 1,700 | $ 1,700 | |||||
Expected weighted average period of non-vested awards not yet recognized | 1 year 2 months |
(Write-down) and Gain on Sale72
(Write-down) and Gain on Sale of Vessels - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2016USD ($) | Sep. 30, 2016USD ($)Vessel | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($)Vessel | Dec. 31, 2015USD ($) | |
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, net | $ 4,168,926,000 | $ 4,168,926,000 | $ 4,348,535,000 | |||
(Write down) and gain on sale of vessels (note 14) | $ 0 | $ 0 | (43,650,000) | $ (14,353,000) | ||
Early termination fee received | $ 4,000,000 | |||||
Proceeds from sale of vessels | 55,450,000 | 8,918,000 | ||||
Charter contract period | 3 years | |||||
Charter contract extension, period | 1 year | |||||
UMS Segment [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
(Write down) and gain on sale of vessels (note 14) | (43,650,000) | (500,000) | ||||
UMS Segment [Member] | Impaired Asset [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Number of vessels | Vessel | 2 | |||||
Property, plant and equipment, net | $ 0 | 0 | ||||
Shuttle Tanker [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
(Write down) and gain on sale of vessels (note 14) | 0 | $ (13,853,000) | ||||
1992-built shuttle tankers [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Proceeds from sale of vessels | $ 5,000,000 | |||||
2004-built conventional tanker [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Proceeds from sale of vessels | $ 26,700,000 | |||||
2003-built conventional tanker [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Proceeds from sale of vessels | $ 23,700,000 | |||||
One Vessel [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Charter contract period | 2 years | |||||
1999-built shuttle tankers [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Write down and sale of vessels, description | During the nine months ended September 30, 2015, the carrying value of one of the Partnership’s 1999-built shuttle tankers was written down to its estimated fair value, using an appraised value. The write down was a result of a recent change in the operating plan of the vessel. | |||||
1999-built shuttle tankers [Member] | Shuttle Tanker [Member] | Impaired Asset [Member] | Teekay Offshore [Member] | Cost Approach Valuation Technique [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Number of vessels | Vessel | 1 | |||||
1997-built shuttle tankers [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
(Write down) and gain on sale of vessels (note 14) | $ 1,600,000 | |||||
Proceeds from sale of vessels | 8,600,000 | |||||
1992-built shuttle tankers [Member] | 1992-built shuttle tankers [Member] | Shuttle Tanker Fso And Offshore Support Segment [Member] | Teekay Offshore [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
(Write down) and gain on sale of vessels (note 14) | (1,700,000) | |||||
1999-built shuttle tankers [Member] | 1999-built shuttle tankers [Member] | Shuttle Tanker Fso And Offshore Support Segment [Member] | Teekay Offshore [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
(Write down) and gain on sale of vessels (note 14) | $ (13,800,000) |
Investment in Equity Accounte73
Investment in Equity Accounted Joint Ventures and Advances to Joint Venture - Additional Information (Detail) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2013 | Sep. 30, 2016 | Dec. 31, 2015 | Jul. 31, 2015 | Dec. 31, 2014 | Oct. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Investment in equity accounted joint ventures | $ 126,835,000 | $ 77,647,000 | ||||
OOG-TKP FPSO GmbH & Co KG [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Debt instrument, term | 8 years | |||||
Secured long-term debt financing | 198,000,000 | |||||
Interest Rate Swap [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Notional Amount | $ 2,196,849,000 | |||||
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Libra JV [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Derivative, term of contract | 10 years | |||||
Notional Amount | $ 301,000,000 | |||||
Fixed Interest Rate | 2.49% | |||||
Cash Flow Hedging [Member] | Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | OOG-TKP FPSO GmbH & Co KG [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Derivative, term of contract | 10 years | |||||
Notional Amount | $ 88,000,000 | |||||
Fixed Interest Rate | 2.63% | |||||
Libra JV [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Loan facility | $ 804,000,000 | |||||
Loan facility, maturity date | Oct. 29, 2027 | |||||
Percentage guaranteed, loan facility | 50.00% | |||||
Advances to joint venture | $ 5,200,000 | |||||
Minimum [Member] | OOG-TKP FPSO GmbH & Co KG [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Marginal rate added for interest paid | 2.15% | |||||
Minimum [Member] | Libra JV [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Marginal rate added for interest paid | 2.50% | |||||
Maximum [Member] | OOG-TKP FPSO GmbH & Co KG [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Marginal rate added for interest paid | 2.45% | |||||
Maximum [Member] | Libra JV [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Marginal rate added for interest paid | 2.65% | |||||
Odebrecht Oil And Gas Sa [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percentage of interest in joint venture | 50.00% | |||||
Secured long-term debt financing | $ 440,400,000 | $ 804,000,000 | ||||
Odebrecht Oil And Gas Sa [Member] | Teekay Corporation [Member] | FPSO Units [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percentage of interest in joint venture | 50.00% | |||||
Odebrecht Oil And Gas Sa [Member] | Minimum [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Debt instrument, term | 10 years |