Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document And Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | FY |
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 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 410,314,977 |
Consolidated Statements of (Los
Consolidated Statements of (Loss) Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Revenues (notes 2, 5, and 11) | $ 1,416,424 | $ 1,110,284 | $ 1,152,390 |
Voyage expenses (note 2) | (151,808) | (99,444) | (80,750) |
Vessel operating expenses (notes 2 and 11) | (437,671) | (353,564) | (364,441) |
Time-charter hire expenses | (52,616) | (80,315) | (75,485) |
Depreciation and amortization (notes 1 and 2) | (372,290) | (309,975) | (300,011) |
General and administrative (notes 11 and 17) | (65,427) | (62,249) | (56,122) |
(Write down) and gain (loss) on sale of vessels (note 18) | (223,355) | (318,078) | (40,079) |
Restructuring charge (note 10) | 1,520 | 2,664 | 4,649 |
Income (loss) from vessel operations | 111,737 | (116,005) | 230,853 |
Interest expense (notes 8, 11 and 12) | (199,395) | (154,890) | (140,611) |
Interest income | 3,598 | 2,707 | 1,257 |
Realized and unrealized gain (loss) on derivative instruments (note 12) | 12,808 | (42,853) | (20,313) |
Equity income (notes 2 and 19) | 39,458 | 14,442 | 17,933 |
Foreign currency exchange loss (note 12) | (9,413) | (14,006) | (14,805) |
Losses on debt repurchases (notes 8 and 11h) | (55,479) | (3,102) | 0 |
Other (expense) income - net (notes 3 and 14b) | (4,602) | 14,167 | (21,031) |
(Loss) income before income tax (expense) recovery | (101,288) | (299,540) | 53,283 |
Income tax (expense) recovery (notes 2 and 13) | (22,657) | 98 | (8,808) |
Net (loss) income | (123,945) | (299,442) | 44,475 |
Non-controlling interests in net (loss) income | (7,161) | 3,764 | 11,858 |
Preferred unitholders' interest in net (loss) income (note 16) | 31,485 | 42,065 | 45,836 |
General Partner’s interest in net (loss) income | (1,128) | (5,770) | (267) |
Limited partners' interest in net (loss) income | (147,141) | (339,501) | (12,952) |
Limited partners' interest in net (loss) income for basic net (loss) income per common unit (note 16) | $ (147,141) | $ (320,749) | $ (31,326) |
Limited partners' interest in net (loss) income per common unit: | |||
- basic (USD per unit) | $ (0.36) | $ (1.45) | $ (0.25) |
- diluted (USD per unit) | $ (0.36) | $ (1.46) | $ (0.25) |
Weighted-average number of common units outstanding: | |||
- basic (in units) | 410,261,239 | 220,755,937 | 124,747,207 |
- diluted (in units) | 410,261,239 | 229,940,120 | 124,747,207 |
Cash distributions declared per unit (USD per unit) | $ 0.04 | $ 0.24 | $ 0.44 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (123,945) | $ (299,442) | $ 44,475 |
Other comprehensive income (loss): | |||
Unrealized gain (loss) on qualifying cash flow hedging instruments (note 12) | 6,017 | (905) | (1,564) |
Pension adjustments, net of taxes | 1,096 | 0 | 0 |
Realized (gain) loss on qualifying cash flow hedging instruments (note 12) | (102) | 1,186 | 64 |
Realized loss on qualifying cash flow hedging instruments | 873 | 0 | 0 |
Other comprehensive income (loss) | 7,884 | 281 | (1,500) |
Comprehensive (loss) income | (116,061) | (299,161) | 42,975 |
Non-controlling interests in comprehensive (loss) income | (7,161) | 3,764 | 11,858 |
Preferred unitholders' interest in comprehensive (loss) income | 31,485 | 42,065 | 45,836 |
General and limited partners' interest in comprehensive (loss) income | $ (140,385) | $ (344,990) | $ (14,719) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current | ||
Cash and cash equivalents | $ 225,040 | $ 221,934 |
Restricted cash (notes 3, 12 and 15) | 8,540 | 28,360 |
Accounts receivable, including non-trade of $8,183 (December 31, 2017 - $32,387) (note 2) | 141,903 | 162,691 |
Vessels held for sale (note 18) | 12,528 | 0 |
Prepaid expenses | 32,199 | 30,336 |
Due from affiliates (note 11l) | 58,885 | 37,376 |
Other current assets (notes 2, 3b, 5 and 12) | 11,879 | 29,249 |
Total current assets | 490,974 | 509,946 |
Vessels and equipment | ||
At cost, less accumulated depreciation of $1,634,394 (December 31, 2017 - $1,562,172) | 4,196,909 | 4,398,836 |
Advances on newbuilding contracts and conversion costs (notes 14c and 14e) | 73,713 | 288,658 |
Investments in equity accounted joint ventures (notes 2 and 19) | 212,202 | 169,875 |
Deferred tax asset (notes 2 and 13) | 9,168 | 28,110 |
Due from affiliates (note 11l) | 949 | 0 |
Other assets (notes 2, 3b, 5 and 12) | 198,992 | 113,225 |
Goodwill (note 6a) | 129,145 | 129,145 |
Total assets | 5,312,052 | 5,637,795 |
Current | ||
Accounts payable | 16,423 | 43,317 |
Accrued liabilities (notes 7, 10, 12, 14, and 17) | 129,896 | 187,687 |
Deferred revenues | 55,750 | 69,668 |
Due to affiliates (notes 11h and 11l) | 183,795 | 108,483 |
Current portion of derivative instruments (note 12) | 23,290 | 42,515 |
Current portion of long-term debt (note 8) | 554,336 | 589,767 |
Other current liabilities (note 5) | 15,062 | 9,056 |
Total current liabilities | 978,552 | 1,050,493 |
Long-term debt (note 8) | 2,543,406 | 2,533,961 |
Derivatives instruments (note 12) | 94,354 | 167,469 |
Due to affiliates (notes 11f and 11l) | 0 | 163,037 |
Other long-term liabilities (notes 5, 13 and 14) | 236,616 | 249,336 |
Total liabilities | 3,852,928 | 4,164,296 |
Commitments and contingencies (notes 8, 9, 12 and 14) | ||
Redeemable non-controlling interest | 0 | (29) |
Equity | ||
Limited partners - common units (410.3 million and 410.0 million units issued and outstanding at December 31, 2018 and December 31, 2017, respectively) (notes 2, 16 and 17) | 883,090 | 1,004,077 |
Limited partners - preferred units (15.8 million and 11.0 million units issued and outstanding at December 31, 2018 and December 31, 2017, respectively) (note 16) | 384,274 | 266,925 |
General Partner | 15,055 | 15,996 |
Warrants (note 16) | 132,225 | 132,225 |
Accumulated other comprehensive income (loss) | 7,361 | (523) |
Non-controlling interests | 37,119 | 54,828 |
Total equity | 1,459,124 | 1,473,528 |
Total liabilities and equity | $ 5,312,052 | $ 5,637,795 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts receivable, non-trade | $ 8,183 | $ 32,387 |
Accumulated depreciation | $ 1,634,394 | $ 1,562,172 |
Convertible Preferred Units | ||
Convertible Preferred Units, units issued | 0 | 0 |
Convertible Preferred Units, units outstanding | 0 | 0 |
Common Units | ||
Limited partners, units issued | 410,300,000 | 410,000,000 |
Limited partners, units outstanding | 410,300,000 | 410,000,000 |
Preferred Units | ||
Limited partners, units issued | 15,800,000 | 11,000,000 |
Limited partners, units outstanding | 15,800,000 | 11,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
OPERATING ACTIVITIES | |||
Net (loss) income | $ (123,945) | $ (299,442) | $ 44,475 |
Non-cash items: | |||
Unrealized gain on derivative instruments (note 12) | (53,419) | (59,702) | (44,128) |
Equity income, net of dividends received of $6,200 (2017 - $11,600, 2016 - $7,206) | (33,258) | (2,842) | (10,727) |
Depreciation and amortization | 372,290 | 309,975 | 300,011 |
Write down and (gain) loss on sale of vessels (note 18) | 223,355 | 318,078 | 40,079 |
Deferred income tax expense (recovery) (note 13) | 18,606 | (1,870) | 4,854 |
Amortization of in-process revenue contracts (note 6b) | (35,219) | (12,745) | (12,779) |
Other | 16,871 | 37,511 | 26,812 |
Change in non-cash working capital items related to operating activities (note 15b) | (83,227) | 33,506 | 74,218 |
Expenditures for dry docking (note 1) | (21,411) | (17,269) | (26,342) |
Net operating cash flow | 280,643 | 305,200 | 396,473 |
FINANCING ACTIVITIES | |||
Proceeds from long-term debt (note 8) | 734,698 | 1,205,477 | 456,697 |
Scheduled repayments of long-term debt and settlement of related swaps (notes 8 and 12) | (567,298) | (652,898) | (476,908) |
Prepayments of long-term debt and settlement of related swaps (notes 8 and 12) | (457,426) | (702,115) | (197,776) |
Debt issuance costs | (14,128) | (17,268) | (12,095) |
Equity contribution from joint venture partners | 0 | 6,000 | 750 |
Proceeds from issuance of common units and warrants (note 16) | 0 | 640,595 | 135,246 |
Proceeds from issuance of preferred units and warrants (note 16) | 120,000 | 0 | 100,000 |
Repurchase of preferred units (note 16) | 0 | (250,022) | 0 |
Expenses relating to equity offerings | (3,997) | (12,155) | (6,395) |
Cash distributions paid by the Partnership | (46,675) | (60,593) | (78,634) |
Cash distributions paid by subsidiaries to non-controlling interests | (12,048) | (9,891) | (14,210) |
Cash contribution paid from non-controlling interest to subsidiaries | 1,500 | 0 | 0 |
Proceeds from credit facility due to affiliates (note 11h) | 125,000 | 0 | 0 |
Other | (964) | (4,183) | (90) |
Net financing cash flow | (121,338) | 142,947 | (93,415) |
INVESTING ACTIVITIES | |||
Net payments for vessels and equipment, including advances on newbuilding contracts and conversion costs | (233,736) | (533,260) | (294,581) |
Proceeds from sale of vessels and equipment (note 18) | 30,049 | 13,100 | 69,805 |
Investments in equity accounted joint ventures | (3,000) | (25,824) | (54,873) |
Direct financing lease payments received (investments) | 5,414 | 5,844 | (115) |
Acquisition of companies from Teekay Corporation (net of cash acquired of $26.6m) (note 11k) | 25,254 | 0 | 0 |
Net investing cash flow | (176,019) | (540,140) | (279,764) |
(Decrease) increase in cash, cash equivalents and restricted cash | (16,714) | (91,993) | 23,294 |
Cash, cash equivalents and restricted cash, beginning of the year | 250,294 | 342,287 | 318,993 |
Cash, cash equivalents and restricted cash, end of the year | $ 233,580 | $ 250,294 | $ 342,287 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Cash Flows [Abstract] | |||
Dividends received | $ 6,200 | $ 11,600 | $ 7,206 |
Teekay Knarr AS and Knarr L.L.C | |||
Net cash acquired on business acquisition | $ 26,600 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Total Equity - USD ($) $ in Thousands | Total | Convertible Preferred Units | Limited Partner | General Partner | Common UnitsLimited Partner | Common Units and Additional Paid-in CapitalLimited Partner | Preferred UnitsPreferred Partner | Warrants | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interests | Redeemable Non-controlling Interest |
Beginning balance at Dec. 31, 2015 | $ 967,848 | $ 252,498 | $ 17,608 | $ 629,264 | $ 266,925 | $ 696 | $ 53,355 | $ 3,173 | |||
Beginning balance (in units) at Dec. 31, 2015 | 10,438,000 | 107,027,000 | 11,000,000 | ||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||||
Net income (loss) | 17,750 | $ 24,336 | (267) | (12,952) | $ 21,500 | 9,469 | 2,389 | ||||
Other comprehensive income (loss) | (1,500) | (1,500) | |||||||||
Other comprehensive income (note 12) | (77,494) | (10,750) | (480) | (45,904) | (21,500) | (9,610) | (4,600) | ||||
Payment-in-kind distributions (note 16) | 15,239 | 12,739 | 630 | 15,869 | |||||||
Payment-in-kind distributions (note 16) (in units) | 4,558,624 | 4,558,000 | |||||||||
Distribution of capital to joint venture partner | 750 | 750 | |||||||||
Contribution from non-controlling interests | 3,665 | 73 | 3,592 | ||||||||
Distribution of capital to joint venture partner | 144,812 | 83,453 | 3,058 | 127,957 | $ 13,797 | ||||||
Conversion of Convertible Preferred Units (note 16) | 47,171 | $ (46,429) | 889 | 46,282 | |||||||
Conversion of Convertible Preferred Units (note 16) (in units) | (1,921,000) | 8,324,000 | |||||||||
Proceeds from equity offerings, net of offering costs (note 16) (in units) | 4,000,000 | 27,504,000 | |||||||||
Repurchase of Convertible Preferred Units (note 16) | 20,644 | $ (20,644) | 413 | 20,231 | |||||||
Proceeds from equity offerings, net of offering costs (note 16) | $ 0 | ||||||||||
Equity based compensation and other (note 17) | (289) | 1,512 | (6) | (283) | |||||||
Equity based compensation and other (note 17) (in units) | 101,000 | ||||||||||
Ending balance at Dec. 31, 2016 | 1,138,596 | $ 271,237 | 20,658 | 784,056 | $ 266,925 | 13,797 | (804) | 53,964 | 962 | ||
Ending balance (in units) at Dec. 31, 2016 | 12,517,000 | 147,514,000 | 11,000,000 | ||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||||
Net income (loss) | (320,060) | $ 20,565 | (5,770) | (339,501) | $ 21,500 | 3,711 | 53 | ||||
Other comprehensive income (loss) | 281 | 281 | |||||||||
Other comprehensive income (note 12) | (59,235) | (10,205) | (31) | (28,857) | (21,500) | (8,847) | (1,044) | ||||
Payment-in-kind distributions (note 16) | 18,988 | 14,022 | (699) | 19,687 | |||||||
Payment-in-kind distributions (note 16) (in units) | 6,391,087 | ||||||||||
Distribution of capital to joint venture partner | 6,000 | 6,000 | |||||||||
Contribution from non-controlling interests | 45,315 | 873 | 44,442 | ||||||||
Distribution of capital to joint venture partner | 625,387 | 588 | 504,851 | 119,948 | |||||||
Proceeds from equity offerings, net of offering costs (note 16) (in units) | 256,000,000 | ||||||||||
Proceeds from equity offerings, net of offering costs (note 16) | 19,971 | $ 269,993 | 19,637 | 383 | 19,588 | ||||||
Repurchase of Convertible Preferred Units (note 16) (in units) | (12,517,000) | ||||||||||
Equity based compensation and other (note 17) | (1,715) | $ 2,418 | (6) | (189) | (1,520) | ||||||
Equity based compensation and other (note 17) (in units) | 140,000 | ||||||||||
Ending balance at Dec. 31, 2017 | 1,473,528 | $ 0 | 15,996 | 1,004,077 | $ 266,925 | 132,225 | (523) | 54,828 | (29) | ||
Ending balance (in units) at Dec. 31, 2017 | 0 | 410,045,000 | 11,000,000 | ||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||||
Net income (loss) | (123,945) | (1,128) | (147,141) | $ 31,485 | (7,161) | ||||||
Other comprehensive income (loss) | 7,884 | 7,884 | |||||||||
Other comprehensive income (note 12) | (58,723) | (126) | (16,410) | (30,139) | (12,048) | ||||||
Distribution of capital to joint venture partner | 1,500 | 1,500 | |||||||||
Distribution of capital to joint venture partner | 116,003 | $ 116,003 | |||||||||
Proceeds from equity offerings, net of offering costs (note 16) (in units) | 4,800,000 | ||||||||||
Proceeds from equity offerings, net of offering costs (note 16) | $ 0 | ||||||||||
Equity based compensation and other (note 17) | 1,180 | (3) | 1,183 | 29 | |||||||
Equity based compensation and other (note 17) (in units) | 270,000 | ||||||||||
Ending balance at Dec. 31, 2018 | $ 1,459,124 | $ 0 | $ 15,055 | $ 883,090 | $ 384,274 | $ 132,225 | $ 7,361 | $ 37,119 | $ 0 | ||
Ending balance (in units) at Dec. 31, 2018 | 0 | 410,315,000 | 15,800,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of presentation The consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (or GAAP ). These financial statements include the accounts of Teekay Offshore Partners L.P., which is a limited partnership organized under the laws of the Republic of the Marshall Islands, and its wholly owned or controlled subsidiaries (collectively, the Partnership ). Unless the context otherwise requires, the terms "we," "us," or "our," as used herein, refer to 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 may differ from those estimates. Foreign currency The consolidated financial statements are stated in U.S. Dollars and the functional currency of the Partnership is the U.S. Dollar. Transactions involving other currencies during the year are converted into U.S. Dollars using the exchange rates in effect at the time of the transactions. At the balance sheet dates, monetary assets and liabilities that are denominated in currencies other than the U.S. Dollar are translated to reflect the year-end exchange rates. Resulting gains or losses are reflected separately in the accompanying consolidated statements of (loss) income . Revenues Each vessel charter may, depending on its terms, contain a lease component, a non-lease component or both. Revenues that are fixed on or prior to the commencement of the contract are recognized by the Partnership on a straight-line basis daily over the term of the contract. Where the term of the contract is based on the duration of a single voyage, the Partnership uses a discharge-to-discharge basis in determining proportionate performance for all tanker spot voyages that contain a lease and a load-to-discharge basis in determining proportionate performance for all tanker spot voyages that do not contain a lease. Consequently, the Partnership does not begin recognizing revenue until a voyage charter has been agreed to by the customer and the Partnership, even if the vessel has discharged its prior cargo and is sailing to the anticipated load location for its next voyage. For towage voyages, proportionate performance is determined based on commencement of the tow to completion of the tow. Reimbursements of vessel operating expenditures incurred to provide the contracted services to the charterer are recognized when the expenses entitling the Partnership to reimbursement are incurred. Revenue or penalties from performance-based metrics, such as production tariffs and other operational performance measures, are recognized as earned or incurred unless such performance-based revenue is based on a multi-period performance-based metric that is allocable to non-lease services provided. In such a case, the Partnership will estimate the amount of variable consideration, to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved and recognize such estimate of revenue over the performance period. The consolidated balance sheets reflect in other current assets the accrued portion of revenues for those voyages that commence prior to balance sheet date and complete after the balance sheet date and reflect in deferred revenues or other long-term liabilities the deferred portion of revenues which will be earned in subsequent periods. Operating expenses Voyage expenses are all expenses unique to a particular voyage, including bunker fuel expenses, port fees, cargo loading and unloading expenses, canal tolls, agency fees and commissions. Vessel operating expenses include crewing, ship management services, repairs and maintenance, insurance, stores, lube oils and communication expenses. Voyage expenses and vessel operating expenses are recognized when incurred except when the Partnership incurs pre-operational costs related to the repositioning of a vessel or offshore unit that relates directly to a specific customer contract, that generates or enhances resources of the Partnership that will be used in satisfying performance obligations in the future, and where such costs are expected to be recovered via the customer contract. In this case, such costs are deferred and amortized over the duration of the customer contract. The Partnership recognizes the expense from vessels time-chartered from other owners, which is included in time-charter hire expenses in the accompanying consolidated statements of (loss) income , on a straight-line basis over the firm period of the charters. Cash and cash equivalents The Partnership classifies all highly-liquid investments with a maturity date of three months or less when purchased as cash and cash equivalents. Accounts receivable and allowance for doubtful accounts Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Partnership’s best estimate of the amount of probable credit losses in existing accounts receivable. The Partnership determines the allowance based on historical write-off experience and customer economic data. The Partnership reviews the allowance for doubtful accounts regularly and past due balances are reviewed for collectability. Account balances are charged against the allowance when the Partnership believes that the receivable will not be recovered. There is no allowance for doubtful accounts recorded as at December 31, 2018 and 2017. Investments in equity accounted joint ventures The Partnership’s investments in equity accounted joint ventures are accounted for using the equity method of accounting. Under the equity method of accounting, the initial cost of the investment is adjusted for subsequent additional investments and the Partnership’s proportionate share of earnings or losses and distributions. The Partnership evaluates its investments in joint ventures for impairment when events or circumstances indicate that the carrying value of such investments may have experienced an other-than-temporary decline in value below carrying value. If the estimated fair value is less than the carrying value, the carrying value is written down to its estimated fair value and the resulting impairment is recorded in the Partnership’s consolidated statements of (loss) income . Vessels and equipment All pre-delivery costs incurred during the construction of newbuildings and conversions, including interest, supervision and technical costs, are capitalized. The acquisition cost and all costs incurred to restore used vessels purchased by the Partnership to the standards required to properly service the Partnership’s customers are capitalized. Vessel capital modifications include the addition of new equipment or can encompass various modifications to the vessel which are aimed at improving and/or increasing the operational efficiency and functionality of the asset. This type of expenditure is amortized over the estimated useful life of the modification. Expenditures covering recurring routine repairs or maintenance are expensed as incurred. The Partnership's shuttle tankers are comprised of two components: i) a conventional tanker (or the tanker component ) 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 Partnership assessed the useful life of the tanker component as being 25 years and the shuttle component as being 20 years . During the year ended December 31, 2018 , the Partnership considered challenges associated with shuttle tankers approaching 20 years of age in recent years and reassessed the useful life of the tanker component to 20 years . This change in estimate, which commenced as of January 1, 2018, affected 21 vessels in the Partnership's shuttle tanker fleet. The effect of this change in estimate was an increase in depreciation and amortization expense and net loss of $15.7 million , or $0.04 per basic and diluted common unit, for the year ended December 31, 2018 . Depreciation is calculated on a straight-line basis over a vessel’s estimated useful life to an estimated residual value. F loating production storage and offloading (or FPSO ) units are depreciated using an estimated useful life of 20 to 25 years commencing the date the unit is installed at the oil field and is in a condition that is ready to operate. Some of the Partnership’s FPSO units have oil field specific equipment, which is depreciated over the expected life of the oil field. Floating storage and off take (or FSO ) units are depreciated over the estimated contract term or the estimated useful life of the specific unit. The unit for maintenance and safety (or UMS ) is depreciated over an estimated useful life of 35 years commencing the date it arrived at the oil field and was in a condition that was ready to operate. Towage and offshore installation vessels are depreciated over an estimated useful life of 25 years commencing the date the vessel is delivered from the shipyard. Depreciation of vessels and equipment for the years ended December 31, 2018 , 2017 and 2016 , totaled $348.4 million , $286.1 million , and $281.2 million , respectively. Depreciation and amortization includes depreciation on all owned vessels. Interest costs capitalized to vessels and equipment for the years ended December 31, 2018 , 2017 and 2016 totaled $11.1 million , $29.6 million and $27.1 million , respectively. Generally, the Partnership dry docks each shuttle tanker and towage vessel every two and a half to five years . UMS, FSO and FPSO units are generally not dry docked. The Partnership capitalizes a portion of the costs incurred during dry docking and amortizes those costs on a straight-line basis from the completion of a dry docking over the estimated useful life of the dry dock. Included in capitalized dry docking are costs incurred as part of the dry docking to meet regulatory requirements, or expenditures that either add economic life to the vessel, increase the vessel’s earning capacity or improve the vessel’s operating efficiency. The Partnership expenses costs related to routine repairs and maintenance performed during dry docking that do not improve operating efficiency or extend the useful lives of the assets. Dry-docking activity for the three years ended December 31, 2018 , 2017 and 2016 is summarized as follows: Year Ended Year Ended Year Ended December 31, December 31, December 31, 2018 2017 2016 $ $ $ Balance at beginning of the year 42,829 49,238 42,822 Cost incurred for dry-docking 23,602 17,183 25,043 Dry-docking amortization (23,893 ) (22,870 ) (18,627 ) Write down / sale of vessels with capitalized dry-dock expenditure — (722 ) — Balance at end of the year 42,538 42,829 49,238 Vessels and equipment that are “held and used” are assessed for impairment when events or circumstances indicate the carrying amount of the asset may not be recoverable. If the asset’s net carrying value exceeds the net undiscounted cash flows expected to be generated over its remaining useful life, the carrying amount of the asset is reduced to its estimated fair value. The estimated fair value for the Partnership’s impaired vessels is determined using discounted cash flows or appraised values. In cases where an active second hand sale and purchase market does not exist, the Partnership uses a discounted cash flow approach to estimate the fair value of an impaired vessel. In cases where an active second hand sale and purchase market exists, an appraised value is used to estimate the fair value of an impaired vessel. An appraised value is generally the amount the Partnership would expect to receive if it were to sell the vessel. Such appraisal is normally completed by the Partnership. When an asset impairment occurs, the Partnership adjusts the carrying value of the asset to its new cost base and writes off the asset's accumulated depreciation. Asset retirement obligation The Partnership has an asset retirement obligation (or ARO ) relating to the sub-sea mooring and riser system associated with the Randgrid FSO unit. 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 operates, which is currently estimated to be May 2024. 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 liability and asset. As at December 31, 2018 , the ARO and associated receivable, which are recorded in other long-term liabilities and other non-current assets, respectively, were both $24.7 million (2017 - $23.1 million ). Debt issuance costs Debt issuance costs related to a recognized debt liability, including bank fees, commissions and legal expenses, are capitalized and amortized over the term of the relevant loan facility to interest expense using an effective interest rate method. Debt issuance costs are presented as a reduction from the carrying amount of that debt liability, unless no amounts have been drawn under the debt liability or the debt issuance costs exceed the carrying value of the related debt liability, in which case the debt issuance costs are presented as other non-current assets. Fees paid to amend a non-revolving credit facility are associated with the extinguishment of the old debt instrument and included in determining the debt extinguishment gain or loss to be recognized. Any unamortized debt issuance costs would be written off. If a debt amendment is considered not to be a substantial amendment, then the fees would be associated with the replacement or modified debt instrument and, along with any existing unamortized debt issuance costs and premium or discount, would be amortized as an adjustment of interest expense over the remaining term of the replacement or modified debt instrument using the effective interest method. Other related costs incurred with third parties directly related to the modification, other than the loan amendment fee, are expensed as incurred. Fees paid to amend revolving credit facilities are deferred and amortized over the term of the modified credit facility. If the borrowing capacity is increased as a result of the amendment, unamortized loan costs of the original facility would be deferred and amortized over the term of the modified credit facility. If the borrowing capacity is decreased as a result of the amendment, a proportionate amount, based on the reduction in borrowing capacity, of the unamortized debt issuance costs of the original facility would be written off and the remaining amount would be deferred and amortized over the term of the modified credit facility. Goodwill Goodwill is not amortized, but reviewed for impairment at the reporting unit level on an annual basis or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. When goodwill is reviewed for impairment, the Partnership will measure the amount by which a reporting unit’s carrying value exceeds its fair value, with the maximum impairment not to exceed the carrying value of goodwill. Derivative instruments All derivative instruments are initially recorded at fair value as either assets or liabilities in the accompanying consolidated balance sheets and subsequently remeasured to fair value, regardless of the purpose or intent for holding the derivative. The method of recognizing the resulting gain or loss is dependent on whether the derivative contract is designed to hedge a specific risk and also qualifies and is designated for hedge accounting. During the years ended December 31, 2018 and 2017, certain of the Partnership's interest rate swaps were designated in qualifying hedging relationships and hedge accounting was applied in the consolidated financial statements or within the Partnership's equity-accounted joint ventures (see note 12 ). When a derivative is designated in a cash flow hedge, the Partnership formally documents the relationship between the derivative and the hedged item. This documentation includes the strategy and risk management objective for undertaking the hedge and the method that will be used to assess the effectiveness of the hedge. Any hedge ineffectiveness is recognized immediately in earnings, as are any gains and losses on the derivative that are excluded from the assessment of hedge effectiveness. The Partnership does not apply hedge accounting if it is determined that the hedge was not effective or will no longer be effective, the derivative was sold or exercised, or the hedged item was sold, repaid or is no longer probable of occurring. As at December 31, 2018, the Partnership has de-designated all hedging relationships and does not apply hedge accounting to any of its derivative instruments. For derivative financial instruments designated in qualifying cash flow hedges, changes in the fair value of the effective portion of the derivative financial instruments are initially recorded as a component of accumulated other comprehensive income in equity. In the periods when the hedged items affect earnings, the associated fair value changes on the hedging derivatives are transferred from equity to the corresponding earnings line item in the consolidated statements of (loss) income . The ineffective portion of the change in fair value of the derivative financial instruments is immediately recognized in the interest expense line of the consolidated statements of (loss) income . A portion of the ineffectiveness of the fair value of derivative instruments is recognized in the equity accounted joint ventures line of the consolidated balance sheets. If a cash flow hedge is de-desiganted and the originally hedged item is still considered probable of occurring, the gains and losses initially recognized in equity remain there until the hedged item impacts earnings, at which point they are transferred to the corresponding earnings line item in the consolidated statements of (loss) income . If the hedged item is no longer probable of occurring, amounts recognized in equity are immediately transferred to the relevant earnings line item in the consolidated statements of (loss) income . For derivative financial instruments that are not designated as accounting hedges, the changes in the fair value of the derivative financial instruments are recognized in earnings. Gains and losses from the Partnership’s non-designated foreign currency forward contracts and interest rate swaps are recorded in realized and unrealized loss on derivative instruments in the consolidated statements of (loss) income . Gains and losses from the Partnership’s non-designated cross currency swaps are recorded in foreign currency exchange loss in the consolidated statements of (loss) income . Unit-based compensation The Partnership grants restricted unit-based compensation awards as incentive-based compensation to certain employees of the Partnership and Teekay Corporation’s subsidiaries that provide services to the Partnership (see note 17 ). The Partnership measures the cost of such awards using an option pricing model to determine the grant date fair value of the award and recognizes that cost, net of estimated forfeitures, over the requisite service period. The requisite service period consists of the period from the grant date of the award to the earlier of the date of vesting or the date the recipient becomes eligible for retirement. For unit-based compensation awards subject to graded vesting, the Partnership calculates the value of the award as if it was one single award with one expected life and amortizes the calculated expense for the entire award on a straight-line basis over the requisite service period. Certain of these awards are cash settled. For cash settled awards, the fair value of such awards is remeasured at each reporting date, based on the fair market value of the Partnership's common units at that date, with the change in fair value recognized as compensation expense. Unit-based compensation expenses are recorded under general and administrative expenses in the Partnership’s consolidated statements of (loss) income . Income taxes The Partnership is subject to income taxes relating to its subsidiaries in Norway, Australia, Brazil, the United Kingdom, Singapore, Qatar, Canada, Luxembourg and the Netherlands. The Partnership accounts for such taxes using the liability method. Under the liability method, deferred tax assets and liabilities are recognized for the anticipated future tax effects of temporary differences between the financial statement basis and the tax basis of the Partnership’s assets and liabilities using the applicable jurisdictional tax rates. A valuation allowance for deferred tax assets is recorded when it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized. Recognition of uncertain tax positions is dependent upon whether it is more-likely-than-not that a tax position taken or expected to be taken in a tax return will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. If a tax position meets the more-likely-than-not recognition threshold, it is measured to determine the amount of benefit to recognize in the consolidated financial statements based on guidance in the interpretation. The Partnership recognizes interest and penalties related to uncertain tax positions in income tax recovery (expense) in the Partnership’s consolidated statements of (loss) income . Employee pension plans On January 1, 2018, the Partnership acquired a 100% ownership interest in seven subsidiaries of Teekay Corporation. These subsidiaries provide ship management, commercial, technical, strategic, business development and administrative services to the Partnership, primarily related to the Partnership's FPSO units, shuttle tankers and FSO units (see note 11j). Employees of these companies are generally eligible to participate in pension plans. The Partnership has defined contribution pension plans covering the majority of its employees. Pension costs associated with the Partnership’s required contributions under its defined contribution pension plans are based on a percentage of employees’ salaries and are charged to earnings in the year incurred. With the exception of certain of the Partnership’s employees in Norway, the Partnership’s employees are generally eligible to participate in defined contribution plans. These plans allow for the employees to contribute a certain percentage of their base salaries into the plans. The Partnership matches all or a portion of the employees’ contributions, depending on how much each employee contributes. During the year ended December 31, 2018, the amount of cost recognized for the Partnership’s defined contribution pension plans was $4.5 million (December 31, 2017 and 2016 - nil ). The Partnership also has defined benefit pension plans covering 443 active and retired employees in Norway. The Partnership accrues the costs and related obligations associated with its defined benefit pension plans based on actuarial computations using the projected benefits obligation method and management’s best estimates of expected plan investment performance, salary escalation, and other relevant factors. For the purpose of calculating the expected return on plan assets, those assets are valued at fair value. The overfunded or underfunded status of the defined benefit pension plans is recognized as assets or liabilities in the consolidated balance sheets. The Partnership recognizes as a component of other comprehensive loss, the gains or losses that arise during a period but that are not recognized as part of net periodic benefit costs. The pension assets have been guaranteed a minimum rate of return by the provider, thus reducing potential exposure to the Partnership to the extent the provider honors its obligations. The Partnership's funded status deficiency relating to its defined benefit pension plans was $1.5 million as at December 31, 2018 (December 31, 2017 - nil ). |
Accounting Pronouncements
Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Pronouncements | Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (or FASB ) issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (or ASU 2014-09 ). ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update creates a five-step model that requires entities to exercise judgment when considering the terms of the contract(s) which include (i) identifying the contract(s) with the customer, (ii) identifying the separate performance obligations in the contract, (iii) determining the transaction price, (iv) allocating the transaction price to the separate performance obligations, and (v) recognizing revenue as each performance obligation is satisfied. ASU 2014-09 was adopted by the Partnership January 1, 2018, and has been applied, at the Partnership’s option, as a cumulative-effect adjustment as of the date of adoption. The Partnership has elected to apply ASC 2014-09 only to those contracts that were not completed as of January 1, 2018 . The Partnership identified the following differences: • Voyage revenues from towage and offshore installation vessels are recognized over the period where the tow is being performed instead of the period of the tow and the mobilization and demobilization of the towage vessel. The cumulative-effect adjustment on January 1, 2018 and the impact for the year ended December 31, 2018 was insignificant. • Revenue from time-charter contracts with fixed annual increases in the daily hire rate during the firm period of the charter to compensate for expected inflationary cost increases are recognized on a smoothed basis over the term of the time-charter, instead of recognized when due under the contract. For time-charters with a termination fee owing if the contract is not extended past the contract term, the non-lease portion of such termination fee is recognized over the contract term, instead of recognized when the termination fee is incurred. These changes had the impact of increasing revenue by $2.9 million for the year ended December 31, 2018 , as well as increasing other assets by $11.4 million , decreasing deferred tax assets by $0.9 million and increasing equity by $10.5 million as at December 31, 2018 . The cumulative-effect adjustment on January 1, 2018 was an increase to equity of $7.7 million . • In certain cases, the Partnership incurs pre-operational costs that relate directly to a specific customer contract, that generate or enhance resources of the Partnership that will be used in satisfying performance obligations in the future, whereby such costs are expected to be recovered via the customer contract. Such costs are deferred and amortized over the duration of the customer contract. The Partnership previously expensed such costs as incurred unless the costs were directly reimbursable by the contract or if they were related to the mobilization of offshore assets to an oil field. This change had the impact of decreasing (increasing) voyage expenses by $1.8 million , vessel operating expenses by $(2.6) million , depreciation and amortization by $1.1 million and equity income by $0.6 million for the year ended December 31, 2018 , as well as increasing other assets by $27.8 million , investments in equity accounted joint ventures by $1.2 million , and equity by $29.0 million as at December 31, 2018 . The cumulative increase to opening equity as at January 1, 2018 was $29.4 million . • The Partnership manages FPSO units owned by Teekay Corporation and other vessels. Upon the adoption of ASU 2014-09, costs incurred by the Partnership for its onshore staff and seafarers are presented as vessel operating expenses and the reimbursement of such expenses are presented as revenue, instead of such amounts being presented on a net basis. This had the impact of increasing revenues and vessel operating expenses by $41.2 million for the year ended December 31, 2018 . There was no cumulative impact to opening equity as at January 1, 2018. • Operating costs for the Partnership's Volatile Organic Compounds (or VOC ) plants on certain shuttle tankers are presented as vessel operating expenses and the reimbursement of such expenses are presented as revenue instead of such amounts being presented on a net basis. This had the impact of increasing revenues and vessel operating expenses by $8.3 million for the year ended December 31, 2018 . There was no cumulative impact to opening equity as at January 1, 2018. • The Partnership previously presented the net allocation for its vessels participating in revenue sharing arrangements as revenues. The Partnership has determined that it is the principal in voyages its vessels perform that are included in the revenue sharing arrangements. As such, the revenue from those voyages is presented in voyage revenues and the difference between this amount and the Partnership's net allocation from the revenue sharing arrangement is presented as voyage expenses. This had the impact of increasing revenues and voyage expenses by $13.1 million for the year ended December 31, 2018 . There was no cumulative impact to opening equity as at January 1, 2018. • The Partnership previously presented all accrued revenue as a component of accounts receivable. The Partnership has determined that if the right to such consideration is conditional upon something other than the passage of time before payment of that consideration is due, such accrued revenue should be presented apart from accounts receivable. This had the impact of increasing other current assets and decreasing accounts receivable by $5.7 million at December 31, 2018 . There was no cumulative impact to opening equity as at January 1, 2018. • Deferred costs have presented solely as a long-term asset if the remaining charter contract is more than one year or presented solely as a short-term asset if the charter contract is less than one year. This had the impact of decreasing other current assets and increasing long term assets by $14.5 million as at December 31, 2018 . There was no cumulative impact to opening equity as at January 1, 2018. In August 2016, the FASB issued Accounting Standards Update 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (or ASU 2016-15 ), which, among other things, provides guidance on two acceptable approaches of classifying distributions received from equity method investees in the statements of cash flows and application of the predominance principle on the cash flow statement classification of cash receipts and payments that have aspects of more than one class of cash flows. ASU 2016-15 became effective for the Partnership January 1, 2018, with a retrospective approach required on adoption. The Partnership has elected to classify distributions received from equity method investees in the statement of cash flows based on the nature of the distribution. In addition, the adoption of ASU 2016-15 resulted in $37.3 million of cross currency swap payments that were related to the principal prepayment or repayment of long-term debt for the year ended December 31, 2018 ( December 31, 2017 - $66.7 million and December 31, 2016 - $42.3 million ), being reclassified from a net operating cash outflow to a prepayment or repayment of long-term debt in net financing cash flow as the amounts related entirely or predominantly to the termination or final settlement of the cross currency swaps. In November 2016, the FASB issued Accounting Standards Update 2016-18, Statement of Cash Flows: Restricted Cash (or ASU 2016-18 ). ASU 2016-18 requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Entities are also required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. ASU 2016-18 became effective for the Partnership January 1, 2018. Adoption of ASU 2016-18 resulted in the Partnership including in its statement of cash flows changes in cash, cash equivalents and restricted cash. In August 2018, the FASB issued Accounting Standards Update 2018-15, Intangibles-Goodwill and Other-Internal Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract , (or ASU 2018-15 ). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. ASU 2018-15 is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. This update was adopted by the Partnership on October 1, 2018. There was no impact on transition from the adoption of this update. In October 2017, the FASB issued Accounting Standards Update 2017-04, Simplifying the Test for Goodwill Impairment . Pursuant to this update, goodwill impairment will now be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill. This update eliminates existing guidance that required an entity to determine goodwill impairment by calculating the implied fair value of goodwill by hypothetically assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. This update was adopted by the Partnership on October 1, 2018. There was no impact on transition from the adoption of this update. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (or ASU 2016-02). ASU 2016-02 establishes a right-of- use model that requires a lessee to record a right of use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. For lessees, leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 requires lessors to classify leases as a sales-type, direct financing, or operating lease. A lease is a sales-type lease if any one of five criteria are met, each of which indicate that the lease, in effect, transfers control of the underlying asset to the lessee. If none of those five criteria are met, but two additional criteria are both met, indicating that the lessor has transferred substantially all of the risks and benefits of the underlying asset to the lessee and a third party, the lease is a direct financing lease. All leases that are not sales-type leases or direct financing leases are operating leases. ASU 2016-02 is effective January 1, 2019, with early adoption permitted. FASB issued an additional accounting standards update in July 2018 that made further amendments to accounting for leases, including allowing the use of a transition approach whereby a cumulative effect adjustment is made as of the effective date, with no retrospective effect. The Partnership has elected to use this new optional transition approach. The Partnership will adopt ASU 2016-02 on January 1, 2019. To determine the cumulative effect adjustment, the Partnership will not reassess whether any expired or existing contracts are, or contain leases, will not reassess lease classification, and will not reassess initial direct costs for any existing leases. The adoption of ASU 2016-02 will result in a change in the accounting method for the lease portion of the daily charter hire for the Partnership's chartered-in vessels accounted for as operating leases with firm periods of greater than one year. As of December 31, 2018 , the Partnership had four in-chartered vessels in its fleet, the accounting for three of which vessels will be impacted by the adoption of ASU 2016-02 as well as a small number of office leases. Under ASU 2016-02, the Partnership will recognize a right-of-use asset and a lease liability on the balance sheet for these charters and office leases based on the present value of future minimum lease payments, whereas currently no right-of-use asset or lease liability is recognized. The right of use asset and lease liability to be recognized on January 1, 2019 is $19.4 million . The pattern of expense recognition of chartered-in vessels is expected to remain substantially unchanged, unless the right of use asset becomes impaired. In addition, direct financing lease payments received will be presented as an operating cash inflow instead of an investing cash inflow in the statement of cash flows. In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (or ASU 2016-13 ). ASU 2016-13 replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This update is effective for the Partnership January 1, 2020, with a modified-retrospective approach. The Partnership is currently evaluating the effect of adopting this new guidance. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments a) Fair value measurements The following methods and assumptions were used to estimate the fair value of each class of financial instrument: Cash and cash equivalents and restricted cash - The fair values of the Partnership’s cash and cash equivalents and restricted cash approximate their carrying amounts reported in the accompanying consolidated balance sheets. 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 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. For a description of the performance criteria, please refer to the Partnership's Annual Report on Form 20-F for the year ended December 31, 2015. The Arendal Spirit UMS was delivered to the Partnership on February 16, 2015. During the second quarter of 2016, the Partnership canceled the UMS construction contracts for its two remaining UMS newbuildings. This was expected to eliminate any future purchase price contingent consideration payments. Consequently, the contingent liability associated with the UMS newbuildings 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 statement of income for the year ended December 31, 2016 . In September 2017, CeFront and subsidiaries of the Partnership entered into a settlement agreement relating to this contingent liability (see note 14b). 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 years ended December 31, 2018 , 2017 and 2016 , are as follows: Year Ended Year Ended Year Ended Balance at beginning of period — — (14,830 ) Acquisition of Logitel — — — Settlement of liability — — — Gain included in Other income (expense) - net — — 14,830 Balance at end of period — — — Derivative instruments – The fair value of the Partnership’s derivative instruments is the estimated amount that the Partnership would receive or pay to terminate the agreements at the reporting date, taking into account current interest rates, foreign exchange rates and the current credit worthiness of both the Partnership and the derivative counterparties. The estimated amount is the present value of future cash flows. The Partnership transacts all of its derivative instruments through investment-grade rated financial institutions at the time of the transaction. The Partnership’s interest rate swap agreements and foreign currency forward contracts require no collateral from these institutions; however, collateral is required by these institutions on some of the Partnership’s cross currency swap agreements and as at December 31, 2018 the Partnership had pledged $1.2 million of cash as collateral ( 2017 - $4.1 million ), which has been recorded as restricted cash on the Partnership's consolidated balance sheets. Long-term debt – The fair value of the Partnership’s fixed-rate and variable-rate long-term debt is either based on quoted market prices or estimated using discounted cash flow analysis based on rates currently available for debt with similar terms and remaining maturities and the current credit worthiness of the Partnership. The Partnership categorizes its fair value estimates using a fair value hierarchy based on the inputs used to measure fair value. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value as follows: Level 1. Observable inputs such as quoted prices in active markets; Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The following table includes the estimated fair value and carrying value of those assets and liabilities that are measured at fair value on a recurring and non-recurring basis, as well as the estimated fair value of the Partnership’s financial instruments that are not accounted for at fair value on a recurring basis: December 31, 2018 December 31, 2017 Fair Value Hierarchy Level Carrying Amount Asset (Liability) $ Fair Value Asset (Liability) $ Carrying Amount Asset (Liability) $ Fair Value Asset (Liability) $ Recurring: Cash and cash equivalents and restricted cash Level 1 233,580 233,580 250,294 250,294 Derivatives instruments (note 12) Interest rate swap agreements Level 2 (107,074 ) (107,074 ) (168,247 ) (168,247 ) Cross currency swap agreement Level 2 (4,538 ) (4,538 ) (44,006 ) (44,006 ) Foreign currency forward contracts Level 2 (4,650 ) (4,650 ) (357 ) (357 ) Other: Long-term debt - public (note 8) Level 1 (1,027,696 ) (977,917 ) (666,427 ) (671,635 ) Long-term debt - non-public (note 8) Level 2 (2,070,046 ) (2,082,316 ) (2,457,301 ) (2,475,946 ) Due to affiliates - current (note 11h) Level 2 (125,000 ) (123,025 ) — — Due to affiliates - long term (note 11f) Level 2 — — (163,037 ) (210,089 ) 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 Year Ended Year Ended Direct financing leases Payment activity Performing 4,793 17,207 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Partnership is engaged in the international marine transportation of crude oil, the offshore processing and storage of crude oil, long-distance ocean towage and offshore installation services, and maintenance and safety services through the operation of its shuttle and conventional tankers, FSO units, FPSO units, towage and offshore installation vessels and UMS. The Partnership’s revenues are earned in international markets. The Partnership has six reportable segments: its FPSO segment; its shuttle tanker segment; its FSO segment; its UMS segment; its towage and offshore installation vessels (or towage ) segment; and its conventional tanker segment. The Partnership’s FPSO segment consists of its FPSO units to service its FPSO contracts. The Partnership’s shuttle tanker segment consists of shuttle tankers operating primarily on fixed-rate contracts of affreightment, time-charter contracts or bareboat charter contracts. The Partnership’s FSO segment consists of its FSO units subject to fixed-rate, time-charter contracts or bareboat charter contracts. The Partnership’s UMS segment consists of one unit currently in lay-up. The Partnership’s towage and offshore installation vessels segment consists of long-distance towage and offshore installation vessels which operate on time-charter or voyage charter contracts. The Partnership’s conventional tanker segment consists of two in-chartered conventional tankers, which are currently operating in the spot conventional tanker market. Segment results are evaluated based on income from vessel operations. The accounting policies applied to the reportable segments are the same as those used in the preparation of the Partnership’s consolidated financial statements. The following table presents revenues and percentage of consolidated revenues for customers that accounted for more than 10% of the Partnership’s consolidated revenues during the periods presented. (U.S. Dollars in millions) Year Ended Year Ended Year Ended Royal Dutch Shell Plc (1)(2) $327.6 or 23% $338.2 or 31% $349.0 or 30% Petroleo Brasileiro S.A. (1) $254.8 or 18% $190.7 or 17% $222.0 or 19% Equinor ASA (formerly Statoil ASA) (3) $182.1 or 13% $114.5 or 10% — (4) Premier Oil (5)(6) — (4) $113.5 or 10% $113.5 or 10% (1) Shuttle tanker and FPSO segments. (2) In February 2016, Royal Dutch Shell Plc acquired BG Group Plc; therefore the amount in the table for 2016 includes revenues from both Royal Dutch Shell Plc and BG Group Plc. (3) Shuttle tanker segment and FSO segment. (4) Percentage of consolidated revenue was less than 10% . (5) In April 2016, Premier Oil acquired E.ON Ruhgras UK GP Limited's (or E.ON) UK North Sea assets where the Voyageur Spirit FPSO unit operates. Revenues up to April 2016 are attributable to E.ON. (6) FPSO segment. The following tables include results for the Partnership’s FPSO unit segment; shuttle tanker segment; FSO unit segment; UMS segment; towage and offshore installation vessels segment; and conventional tanker segment for the periods presented in these consolidated financial statements. Year ended December 31, 2018 FPSO Segment Shuttle Tanker Segment FSO Segment UMS Segment Towage Segment Conventional Tanker Segment Eliminations (3) Total Revenues (1) 533,186 636,413 136,557 36,536 53,327 21,325 (920 ) 1,416,424 Voyage expenses — (109,796 ) (769 ) (47 ) (28,925 ) (12,453 ) 182 (151,808 ) Vessel operating expenses (214,623 ) (149,226 ) (42,913 ) (3,679 ) (27,346 ) — 116 (437,671 ) Time-charter hire expenses — (36,421 ) — — — (16,195 ) — (52,616 ) Depreciation and amortization (145,451 ) (155,932 ) (44,077 ) (6,611 ) (20,323 ) — 104 (372,290 ) General and administrative (2) (34,052 ) (21,763 ) (2,174 ) (3,547 ) (3,531 ) (360 ) — (65,427 ) (Write-down) and gain on sale of vessels (180,200 ) (43,155 ) — — — — — (223,355 ) Restructuring charge (1,520 ) — — — — — — (1,520 ) (Loss) income from vessel operations (42,660 ) 120,120 46,624 22,652 (26,798 ) (7,683 ) (518 ) 111,737 Equity income 39,458 — — — — — — 39,458 Investment in joint ventures 212,202 — — — — — — 212,202 Expenditures for vessels and equipment, including advances on newbuilding contracts and conversion costs 54,371 147,540 6,987 — 24,838 — — 233,736 Expenditures for dry docking — 22,135 — — 1,467 — — 23,602 Year ended December 31, 2017 FPSO Segment Shuttle Tanker Segment FSO Segment UMS Segment Towage Segment Conventional Tanker Segment Eliminations (3) Total Revenues 458,388 536,852 66,901 4,236 38,771 14,022 (8,886 ) 1,110,284 Voyage expenses — (80,964 ) (1,172 ) (1,152 ) (17,727 ) (359 ) 1,930 (99,444 ) Vessel operating (expenses) recoveries (149,153 ) (129,517 ) (25,241 ) (33,656 ) (21,074 ) 10 5,067 (353,564 ) Time-charter hire expenses — (62,899 ) — — (925 ) (16,491 ) — (80,315 ) Depreciation and amortization (143,559 ) (125,648 ) (19,406 ) (6,566 ) (15,578 ) — 782 (309,975 ) General and administrative (2) (33,046 ) (17,425 ) (1,864 ) (5,068 ) (4,486 ) (360 ) — (62,249 ) (Write-down) and gain (loss) on sale of vessels (265,229 ) (51,741 ) (1,108 ) — — — — (318,078 ) Restructuring charge (450 ) (210 ) — (2,004 ) — — — (2,664 ) (Loss) income from vessel operations (133,049 ) 68,448 18,110 (44,210 ) (21,019 ) (3,178 ) (1,107 ) (116,005 ) Equity income 14,442 — — — — — — 14,442 Investment in joint ventures 169,875 — — — — — — 169,875 Expenditures for vessels and equipment, including advances on newbuilding contracts and conversion costs 193,817 216,157 88,039 3,931 31,316 — — 533,260 Expenditures for dry docking — 16,323 199 — 661 — — 17,183 Year ended December 31, 2016 FPSO Segment Shuttle Tanker Segment FSO Segment UMS Segment Towage Segment Conventional Tanker Segment Eliminations Total Revenues 495,223 509,596 54,440 34,433 37,952 20,746 — 1,152,390 Voyage expenses — (62,846 ) (1,517 ) — (15,024 ) (1,363 ) — (80,750 ) Vessel operating expenses (165,346 ) (123,950 ) (23,167 ) (32,888 ) (17,524 ) (1,566 ) — (364,441 ) Time-charter hire expenses — (62,511 ) — — — (12,974 ) — (75,485 ) Depreciation and amortization (149,198 ) (122,822 ) (9,311 ) (6,660 ) (12,020 ) — — (300,011 ) General and administrative (2) (35,971 ) (10,160 ) (836 ) (5,495 ) (3,307 ) (353 ) — (56,122 ) Gain on sale and (write down) of vessels — 4,554 (983 ) (43,650 ) — — — (40,079 ) Restructuring charge (4,444 ) (205 ) — — — — — (4,649 ) Income (loss) from vessel operations 140,264 131,656 18,626 (54,260 ) (9,923 ) 4,490 — 230,853 Equity income 17,933 — — — — — — 17,933 Investment in joint ventures 141,819 — — — — — — 141,819 Expenditures for vessels and equipment, including advances on newbuilding contracts and conversion costs 66,234 40,584 101,347 9,742 76,674 — — 294,581 Expenditures for dry docking — 19,105 5,139 — 799 — — 25,043 (1) Includes revenues of $55.0 million and $36.5 million in the shuttle tanker and UMS segments, respectively, during the year ended December 31, 2018 related to a settlement agreement with Petrobras and Petroleo Netherlands B.V. - PNBV S.A. (or Petrobras ) in relation to the previously-terminated charter contracts of the HiLoad DP unit and Arendal Spirit UMS (see note 5). (2) Includes direct general and administrative expenses and indirect general and administrative expenses (allocated to each segment based on estimated use of corporate resources). (3) Includes revenue and expenses earned and incurred between segments of the Partnership, during the years ended December 31, 2018 and December 31, 2017 . A reconciliation of total segment assets to total assets presented in the accompanying consolidated balance sheets is as follows: December 31, 2018 December 31, 2017 FPSO segment 2,279,277 2,506,660 Shuttle tanker segment 1,684,887 1,765,664 FSO segment 463,647 516,567 UMS segment 220,509 190,440 Towage segment 419,000 398,610 Conventional tanker segment 4,259 3,360 Unallocated: Cash and cash equivalents and restricted cash 233,580 250,294 Other assets 6,893 6,200 Consolidated total assets 5,312,052 5,637,795 |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenue The Partnership’s primary source of revenues is chartering its vessels and offshore units to its customers. The Partnership utilizes five primary forms of contracts, consisting of FPSO contracts, CoAs, time-charter contracts, bareboat charter contracts and voyage charter contracts. During the year ended December 31, 2018 , the Partnership also generated revenues from the operation of VOC systems on 13 of the Partnership’s shuttle tankers, and the management of three FPSO units, one FSO unit and two shuttle tankers on behalf of related parties who are the disponent owners or charterers of these assets. FPSO Contracts Pursuant to an FPSO contract, the Partnership charters an FPSO unit to a customer for a fixed period of time, generally more than one year. The performance obligations within an FPSO contract, which include the lease of the FPSO unit to the charterer as well as the operation of the FPSO unit, are satisfied as services are rendered over the duration of such contract, as measured using the time that has elapsed from commencement of performance. Fees relating to the lease and operation of the FPSO (or hire ) are typically invoiced monthly in arrears, based on a fixed daily hire amount. In certain FPSO contracts, the Partnership is entitled to a lump sum amount due upon commencement of the contract and may also be entitled to termination fees if the contract is canceled early. While the fixed daily hire amount may be the same over the term of the FPSO contract, in certain cases, the daily hire amount declines over the duration of the FPSO contract. As a result of the Partnership accounting for compensation from such charters on a straight-line basis over the duration of the charter, FPSO contracts where revenues are recognized before the Partnership is entitled to such amounts under the FPSO contracts will result in the Partnership recognizing a contract asset and FPSO contracts where revenues are recognized after the Partnership is entitled to such amounts under the FPSO contracts will result in the Partnership recognizing a contract liability. Some FPSO contracts include variable consideration components in the form of expense adjustments or reimbursements, incentive compensation and penalties. For example, some FPSO contracts contain provisions that allow the Partnership to be compensated for increases in the Partnership's costs to operate the unit during the term of the contract. Such provisions may be in the form of annual hire rate adjustments for changes in inflation indices or foreign currency rates, or in the form of cost reimbursements for vessel operating expenditures incurred. The Partnership may also earn additional compensation from periodic production tariffs, which are based on the volume of oil produced, the price of oil, as well as other monthly or annual operational performance measures. During periods in which production on the FPSO unit is interrupted, penalties may be imposed. Variable consideration under the Partnership’s contracts is typically recognized as incurred as either such revenues are allocated and accounted for under lease accounting requirements or alternatively such consideration is allocated to the distinct period in which such variable consideration was earned. The Partnership does not engage in any specific tactics to minimize residual value risk. Given the uncertainty involved in oil field production estimates and the resulting impact on oil field life, FPSO contracts typically will include extension options or options to terminate early. Contracts of Affreightment Voyages performed pursuant to a CoA for the Partnership’s shuttle tankers are priced based on the pre-agreed terms in the CoA. The performance obligations within a voyage performed pursuant to a CoA, which will typically include the lease of the vessel to the charterer as well as the operation of the vessel, are satisfied as services are rendered over the duration of the voyage, as measured using the time that has elapsed from commencement of performance. In addition, any expenses that are unique to a particular voyage, including any bunker fuel expenses, port fees, cargo loading and unloading expenses, canal tolls, agency fees and commissions, are the responsibility of the vessel owner. Consideration for such voyages consists of a fixed daily hire rate for the duration of the voyage, the reimbursement of costs incurred from fuel consumed during the voyage, as well as a fixed lump sum intended to compensate for time necessary for the vessel to return to the field following completion of the voyage. While such consideration is generally fixed, certain sources of variability exist, including variability in the duration of the voyage and the actual quantity of fuel consumed during the voyage. Payment for the voyage is not due until the voyage is completed. The duration of a single voyage will typically be less than two weeks. The Partnership does not engage in any specific tactics to minimize residual value risk due to the short-term nature of the contracts. Time Charter Contracts Pursuant to a time charter contract, the Partnership charters a vessel or FSO unit to a customer for a fixed period of time, generally one year or more. The performance obligations within a time-charter contract, which will include the lease of the vessel to the charterer as well as the operation of the vessel, are satisfied as services are rendered over the duration of such contract, as measured using the time that has elapsed from commencement of performance. In addition, any expenses that are unique to a particular voyage, including any bunker fuel expenses, port fees, cargo loading and unloading expenses, canal tolls, agency fees and commissions, are the responsibility of the customer, as long as the vessel is not off-hire. Hire is typically invoiced monthly in advance for time-charter contracts, based on a fixed daily hire amount. In certain long-term time-charters, the fixed daily hire amount will increase on an annual basis by a fixed amount to offset expected increases in operating costs. As a result of the Partnership accounting for compensation from such charters on a straight-line basis over the duration of the charter, such fixed increases in rate will result in revenues being accrued in the first half of the charter and such amount drawn down in the last half of the charter. Some time charters include variable consideration components in the form of expense adjustments or reimbursements, incentive compensation and penalties. For example, certain time charters contain provisions that allow the Partnership to be compensated for increases in the Partnership's costs during the term of the charter. Such provisions may be in the form of annual hire rate adjustments for changes in inflation indices or in the form of cost reimbursements for vessel operating expenditures or drydocking expenditures. During periods in which the vessels are off-hire or minimum speed and performance metrics are not met, penalties may be imposed. Variable consideration under the Partnership’s contracts is typically recognized as incurred as either such revenues are allocated and accounted for under lease accounting requirements or alternatively such consideration is allocated to the distinct period in which such variable consideration was earned. The Partnership does not engage in any specific tactics to minimize residual value risk. The time charters for the three shuttle tankers servicing the East Coast Canada project can be canceled upon two years' notice. The time charters for four shuttle tankers in Brazil can be extended by up to ten years , at the election of the charterer. The time charters for the vessels servicing the Equinor North Sea requirements under the terms of a master agreement are one year in length and may be renewed for subsequent one -year periods. The number of vessels required under the terms of the master agreement may be adjusted annually based on the requirements of the fields serviced. The time charter contracts for three FSO units can be extended for periods between five and 12 years or terminated early. Bareboat Charter Contracts Pursuant to a bareboat charter contract, the Partnership charters a vessel or FSO unit to a customer for a fixed period of time, generally one year or more, at rates that are generally fixed. However, the customer is responsible for operation and maintenance of the vessel with their own crew as well as any expenses that are unique to a particular voyage, including any bunker fuel expenses, port fees, cargo loading and unloading expenses, canal tolls, agency fees and commissions. If the vessel goes off-hire due to a mechanical issue or any other reason, the monthly hire received by the vessel owner is normally not impacted by such events. The performance obligations within a bareboat charter, which will include the lease of the vessel to the charterer, are satisfied as over the duration of such contract, as measured using the time that has elapsed from commencement of the lease. Hire is typically invoiced monthly in advance for bareboat charters, based on a fixed daily hire amount. Voyage Charters Voyage charters are charters for a specific voyage. Voyage charters for the Partnership’s shuttle tankers, conventional tankers and towage and offshore installation vessels are priced on a current or “spot” market rate. The performance obligations within a voyage charter contract, which will typically include the lease of the vessel to the charterer as well as the operation of the vessel, are satisfied as services are rendered over the duration of the voyage, as measured using the time that has elapsed from commencement of performance. In addition, expenses that are unique to a particular voyage, including any bunker fuel expenses, port fees, cargo loading and unloading expenses, canal tolls, agency fees and commissions, are the responsibility of the vessel owner. The Partnership’s voyage charters for shuttle tankers and conventional tankers will normally contain a lease, whereas for towage and offshore installation vessels such contracts will not normally contain a lease. Such determination involves judgment about the decision-making rights the charterer has within the contract. Consideration for such contracts is generally fixed; however, certain sources of variability exist. Delays caused by the charterer result in additional consideration. Payment for the voyage is not due until the voyage is completed. The duration of a single voyage will typically be less than three months. The Partnership does not engage in any specific tactics to minimize residual value risk due to the short-term nature of the contracts. Management Fees and Other During the year ended December 31, 2018 , the Partnership also generated revenues from the operation of VOC systems on 13 of the Partnership’s shuttle tankers, and the management of three FPSO units, one FSO unit and two shuttle tankers on behalf of related parties who are the disponent owners or charterers of these assets. Such services include the arrangement of third-party goods and services for the asset’s disponent owner or charterer. The performance obligations within these contracts will typically consist of crewing, technical management, insurance and, potentially, commercial management. The performance obligations are satisfied concurrently and consecutively rendered over the duration of the management contract, as measured using the time that has elapsed from commencement of performance. Consideration for such contracts will generally consist of a fixed monthly management fee, plus the reimbursement of crewing costs for vessels being managed and all operational costs for the VOC systems. Management fees are typically invoiced monthly. Revenue Table The following tables contain the Partnership’s revenue for the years ended December 31, 2018 , 2017 and 2016 , by contract type and by segment: Year ended December 31, 2018 FPSO Segment Shuttle Tanker Segment FSO Segment UMS Segment Towage Segment Conventional Tanker Segment Eliminations (1) Total FPSO contracts 481,700 — — — — — — 481,700 Contracts of affreightment — 198,448 — — — — — 198,448 Time charters — 294,112 116,125 — — — — 410,237 Bareboat charters — 44,759 17,383 — — — — 62,142 Voyage charters — 28,027 — — 53,327 21,325 (920 ) 101,759 Management fees and other (2) 51,486 71,067 3,049 36,536 — — — 162,138 533,186 636,413 136,557 36,536 53,327 21,325 (920 ) 1,416,424 Year ended December 31, 2017 FPSO Segment Shuttle Tanker Segment FSO Segment UMS Segment Towage Segment Conventional Tanker Segment Eliminations (1) Total FPSO contracts 458,388 — — — — — — 458,388 Contracts of affreightment — 170,703 — — — — — 170,703 Time charters — 284,281 47,605 4,236 — 9,132 — 345,254 Bareboat charters — 69,568 19,296 — — — — 88,864 Voyage charters — 12,300 — — 38,771 4,890 (8,886 ) 47,075 458,388 536,852 66,901 4,236 38,771 14,022 (8,886 ) 1,110,284 Year ended December 31, 2016 FPSO Segment Shuttle Tanker Segment FSO Segment UMS Segment Towage Segment Conventional Tanker Segment Eliminations Total FPSO contracts 495,223 — — — — — — 495,223 Contracts of affreightment — 148,367 — — — — — 148,367 Time charters — 251,217 38,600 34,433 — 12,271 — 336,521 Bareboat charters — 91,994 15,840 — — — 107,834 Voyage charters — 18,018 — — 37,952 8,475 — 64,445 495,223 509,596 54,440 34,433 37,952 20,746 — 1,152,390 (1) Includes revenues earned between segments of the Partnership, during the years ended December 31, 2018 and December 31, 2017 . (2) Includes revenues of $55.0 million and $36.5 million in the shuttle tanker and UMS segments, respectively, related to a settlement agreement with Petrobras in relation to the previously-terminated charter contracts of the HiLoad DP unit and Arendal Spirit UMS. As part of the settlement agreement, Petrobras has agreed to pay a total amount of $96.0 million to the Partnership, which includes $55.0 million that was paid November 2018, and amounts of $22.0 million payable in late-2020 and $19.0 million payable in late-2021, which are available to be reduced by 40% of the revenues paid prior to the end of 2021 by Petrobras under any new contracts entered into subsequent to October 25, 2018 relating specifically to the Arendal Spirit UMS and the Cidade de Rio das Ostras and Piranema Spirit FPSO units. The following table contains the Partnership’s revenue from contracts that do not contain a lease element and the non-lease element of time-charters accounted for as direct financing leases for the years ended December 31, 2018 , 2017 and 2016 : Year ended December 31, 2018 2017 2016 $ $ $ Non-lease revenue - related to sales type or direct financing leases 4,547 5,813 6,203 Voyage charters - towage 53,327 38,771 37,952 Management fees and other 162,138 — — Total 220,012 44,584 44,155 Contract Assets and Liabilities Certain customer contracts that the Partnership enters into will result in situations where the customer will pay consideration for performance to be provided in the following month or months. These receipts are a contract liability and are presented as deferred revenue until performance is provided. In other cases, the Partnership will provide performance in the month or months prior to it being entitled to invoice for such performance. This results in such receipts being reflected as a contract asset that is presented within other current assets. In addition to these short-term timing differences between the timing of revenue recognition and when the entity’s right to consideration in exchange for goods or services is unconditional, the Partnership has long-term charter arrangements whereby it has received payments that are larger in the early periods of the arrangements and long-term charter arrangements whereby it will receive payments that are larger in the latter periods of the arrangements. The following table presents the contract assets and contract liabilities on the Partnership’s consolidated balance sheets associated with these long-term charter arrangements from contracts with customers. December 31, 2018 January 1, 2018 $ $ Contract Assets Current 7,926 3,866 Non-Current 62,295 54,919 70,221 58,785 Contract Liabilities Current 55,750 69,668 Non-Current 145,852 176,755 201,602 246,423 During the year ended December 31, 2018 the Partnership recognized revenue of $38.4 million , that was included in the contract liability on January 1, 2018. Contract Costs In certain cases, the Partnership incurs pre-operational costs that relate directly to a specific customer contract, that generate or enhance resources of the Partnership that will be used in satisfying performance obligations in the future, whereby such costs are expected to be recovered via the customer contract. These costs include costs incurred to mobilize an offshore asset to an oil field, pre-operational costs incurred to prepare for commencement of operations of an offshore asset or costs incurred to reposition a vessel to a location where a charterer will take delivery of the vessel. In certain cases, the Partnership will need to make judgments about whether costs relate directly to a specific customer contract and whether costs were factored into the pricing of a customer contract and thus expected to be recovered. Such deferred costs are amortized into vessel operating expenses over the duration of the customer contract. Amortization of such costs for the Partnership for the year ended December 31, 2018 , 2017 and 2016 was $19.7 million , $24.1 million and $18.9 million , respectively. The balances of assets recognized from the costs to fulfill a contract with a customer classified as other assets, split between current and non-current portions, on the Partnership's balance sheet, by main category, excluding balances in the Partnership’s equity accounted joint ventures, are as follows: Year ended December 31, 2018 2017 2016 $ $ $ Pre-operational costs 24,031 4,522 2,855 Offshore asset mobilization costs 51,302 57,818 65,360 Vessel repositioning costs 15,188 — — 90,521 62,340 68,215 |
Goodwill and In-Process Revenue
Goodwill and In-Process Revenue Contracts | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and In-Process Revenue Contracts | Goodwill and In-Process Revenue Contracts a) Goodwill The carrying amount of goodwill for the shuttle tanker segment was $127.1 million as at December 31, 2018 and 2017 . In 2018 , 2017 and 2016 , the Partnership conducted its annual goodwill impairment review of its shuttle tanker segment and concluded that no impairment had occurred. The carrying amount of goodwill for the towage and offshore installation vessels segment was $2.0 million as at December 31, 2018 and 2017 . In 2018 , 2017 and 2016 , the Partnership conducted its annual goodwill impairment review of its towage and offshore installation vessels segment and concluded that no impairment had occurred. b) In-Process Revenue Contracts As part of the Partnership’s acquisition of the Piranema Spirit FPSO unit on November 30, 2011, the Partnership assumed an FPSO contract with terms that were less favorable than the then prevailing market terms. As at December 31, 2018 , the Partnership had a liability based on the estimated fair value of the contract. The Partnership is amortizing this liability over the estimated remaining term of the contract on a weighted basis based on the projected revenue to be earned under the contract. Amortization of in-process revenue contracts for the year ended December 31, 2018 was $35.2 million ( 2017 - $12.7 million , 2016 - $12.8 million ), which is included in revenues on the consolidated statements of (loss) income . Amortization subsequent to December 31, 2018 is expected to be $15.1 million ( 2019 ). |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities December 31, 2018 December 31, 2017 Interest including interest rate swaps 44,887 26,111 Payroll and benefits 34,828 10,378 Voyage and vessel expenses 25,475 38,921 Audit, legal, contingency and other general expenses 21,626 101,130 Income and other tax payable 3,080 11,147 129,896 187,687 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt December 31, 2018 December 31, 2017 U.S. Dollar-denominated Revolving Credit Facilities due through 2022 523,125 629,667 U.S. Dollar-denominated Term Loans due through 2030 1,388,107 1,623,440 U.S. Dollar-denominated Term Loan due through 2021 55,018 85,574 U.S. Dollar Bonds due through 2023 1,024,816 550,000 U.S. Dollar Non-Public Bonds due through 2024 141,158 162,659 Norwegian Krone Bonds due through 2019 9,953 121,889 Total principal 3,142,177 3,173,229 Less debt issuance costs and other (44,435 ) (49,501 ) Total debt 3,097,742 3,123,728 Less current portion (554,336 ) (589,767 ) Long-term portion 2,543,406 2,533,961 As at December 31, 2018 , the Partnership had two revolving credit facilities ( December 31, 2017 - three ), which, as at such date, provided for total borrowings of up to $523.1 million ( December 31, 2017 - $629.7 million ) and were fully drawn ( December 31, 2017 - fully drawn). The total amount available under the revolving credit facilities reduces by $148.1 million ( 2019 ), $100.0 million ( 2020 ), $100.0 million ( 2021 ) and $175.0 million ( 2022 ). One revolving credit facility is guaranteed by the Partnership for all outstanding amounts and contains covenants that require the Partnership to maintain a minimum liquidity (cash, cash equivalents and undrawn committed revolving credit lines with at least six months to maturity) in an amount equal to the greater of $75.0 million and 5.0% of the Partnership’s total consolidated debt. The other revolving credit facility is guaranteed by subsidiaries of the Partnership, and contains covenants that require Teekay Shuttle Tankers L.L.C. (a wholly-owned subsidiary of the Partnership which was formed during 2017 to hold the Partnership’s shuttle tanker fleet) to maintain a minimum liquidity (cash, cash equivalents and undrawn committed revolving credit lines with at least six months to maturity) in an amount equal to the greater of $35.0 million and 5.0% of Teekay Shuttle Tankers L.L.C.'s total consolidated debt, a minimum ratio of 12 months' historical EBITDA relative to total interest expense and installments of 1.20 times and a net debt to total capitalization ratio no greater than 75.0% . The revolving credit facilities are collateralized by first-priority mortgages granted on 19 of the Partnership’s vessels, together with other related security. As at December 31, 2018 , the Partnership had term loans outstanding secured by three shuttle tankers, two FSO units, three FPSO units, ten towage and offshore installation vessels, four shuttle tanker newbuildings, and for the Arendal Spirit UMS, which totaled $1.4 billion in the aggregate. The term loans reduce over time with quarterly or semi-annual payments and have varying maturities through 2030. As at December 31, 2018 , the Partnership or a subsidiary of the Partnership had guaranteed all of these term loans. As at December 31, 2018 , two of the Partnership’s 50% -owned subsidiaries had one outstanding term loan ( December 31, 2017 - three ), which totaled $55.0 million ( December 31, 2017 - $85.6 million ). The term loan reduces over time with quarterly payments and matures in 2021. The term loan is collateralized by first-priority mortgages on the two shuttle tankers to which the loan relates, together with other related security. As at December 31, 2018 , a subsidiary of the Partnership guaranteed $27.5 million of the term loan, which represents its 50% share of the outstanding term loan, and the other owner had guaranteed the remaining $27.5 million of the term loan. Interest payments on the revolving credit facilities and the term loans are based on LIBOR plus margins, except for $79.9 million of one tranche of the term loan for the newbuilding towage and offshore installation vessels, which is fixed at 2.93% . At December 31, 2018 , the margins ranged between 0.90% and 4.30% , ( December 31, 2017 , 0.90% and 3.75% ). The weighted-average interest rate on the Partnership’s U.S. Dollar variable rate long-term debt as at December 31, 2018 was 5.1% ( December 31, 2017 – 4.1% ). This rate does not include the effect of the Partnership’s interest rate swaps (see note 12 ) or fixed rate facilities. In July 2018, the Partnership issued, in a U.S. private placement, $700.0 million of five -year senior unsecured bonds that mature in July 2023. The interest payments on the bonds are fixed at a rate of 8.50% . The bonds contain certain incurrence-based covenants. As at December 31, 2018 , the carrying amount of the bonds was $700.0 million . Brookfield Business Partners L.P. and its institutional investors (or Brookfield ) purchased $500.0 million of these bonds and as at December 31, 2018 held $475.0 million of these bonds (see note 11i). In August 2017, the Partnership's wholly-owned subsidiary Teekay Shuttle Tankers L.L.C. issued $250.0 million in senior unsecured bonds in the Norwegian bond market that mature in August 2022. These bonds are listed on the Oslo Stock Exchange. As at December 31, 2018 , the carrying amount of the bonds was $250.0 million . The interest payments on the bonds are fixed at a rate of 7.125% . In May 2014, the Partnership issued $300.0 million in five -year senior unsecured bonds that mature in July 2019 in the U.S. bond market. In July 2018, the Partnership completed a tender offer for these bonds, in which an aggregate principal amount of $225.2 million was repurchased by the Partnership for an aggregate purchase price of $230.8 million . As at December 31, 2018 , the carrying amount of the remaining bonds was $74.8 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% . In February 2015, the Partnership issued $30.0 million in senior bonds that mature in July 2024 in a U.S. private placement. 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 subsidiaries of the Partnership. The Partnership makes semi-annual repayments on the bonds and as at December 31, 2018 , the carrying amount of the bonds was $17.2 million . 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 January 2024, 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, and are guaranteed by subsidiaries of the Partnership. The Partnership makes semi-annual repayments on the bonds and as at December 31, 2018 , the carrying amount of the bonds was $123.9 million . As at December 31, 2018 , the Partnership had Norwegian Krone (or NOK ) 86 million ( December 31, 2017 - NOK 1,000 million ) outstanding in senior unsecured bonds that mature in January 2019 and that are listed on the Oslo Stock Exchange. In July 2018, the Partnership completed a tender offer for these bonds, in which an aggregate principal amount of NOK 914 million was repurchased by the Partnership for an aggregate purchase price of NOK 932.2 million ( $113.8 million ). As at December 31, 2018 , the carrying amount of the remaining bonds was $10.0 million . The interest payments on the bonds are based on NIBOR plus a margin of 4.25% . The Partnership has entered into cross currency swaps to swap 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 $15.4 million upon maturity in exchange for NOK 95 million (see note 12 ). In connection with the repurchases of $225.2 million of five -year senior unsecured bonds and NOK 914 million of senior unsecured bonds, as well as the repayment of a promissory note (or the Brookfield Promissory Note ) to Brookfield (see note 11(f)), the Partnership recognized losses on debt repurchases of $55.5 million during the year ended December 31, 2018 . The losses on debt repurchases are comprised of an acceleration of non-cash accretion expense of $31.5 million resulting from the difference between the $200.0 million settlement amount of the Brookfield Promissory Note at its par value and its carrying value of $168.5 million and an associated early termination fee of $12.0 million paid to Brookfield, as well as 2.0% - 2.5% premiums on the repurchases of the bonds and the write-off of capitalized loan costs. The aggregate annual long-term debt principal repayments required to be made subsequent to December 31, 2018 , are $556.4 million ( 2019 ), $349.0 million ( 2020 ), $303.0 million ( 2021 ), $596.3 million ( 2022 ), $974.8 million ( 2023 ), and $362.7 million (thereafter). Certain of the Partnership’s revolving credit facilities, term loans and bonds contain covenants, debt-service coverage ratio (or DSCR ) requirements and other restrictions typical of debt financing secured by vessels that restrict the ship-owning subsidiaries from, among other things: incurring or guaranteeing indebtedness; changing ownership or structure, including mergers, consolidations, liquidations and dissolutions; paying dividends or distributions if the Partnership is in default or does not meet minimum DSCR requirements; making capital expenditures in excess of specified levels; making certain negative pledges and granting certain liens; selling, transferring, assigning or conveying assets; making certain loans and investments; or entering into a new line of business. 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 one revolving credit facility and seven term loans that require the Partnership to maintain vessel values to drawn principal balance ratios of a minimum range of 100% to 125% . Such requirement is assessed either on a semi-annual or annual basis, with reference to vessel valuations compiled 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 December 31, 2018 , these hull covenant ratios were estimated to range from 122% to 414% and the Partnership was in compliance with the minimum ratios required. The vessel values used in calculating these ratios are the appraised values provided by third parties where available, or prepared by the Partnership based on second-hand sale and purchase market data. Changes in the shuttle tanker, towage and offshore installation, UMS, or FPSO markets could negatively affect these ratios. As at December 31, 2018 , the Partnership was in compliance with all covenants related to the credit facilities and consolidated long-term debt. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Leases | Leases Charters-out The cost, accumulated depreciation and carrying amount of the Partnership's vessels with charter-out contracts accounted for as operating leases at December 31, 2018 were $4.3 billion , $1.1 billion and $3.2 billion , respectively ( 2017 - $4.4 billion , $1.0 billion and $3.4 billion , respectively). As at December 31, 2018 , minimum scheduled future rentals under these then-in-place time charters and bareboat charters to be received by the Partnership, were approximately $3.5 billion , comprised of $763.0 million ( 2019 ), $661.6 million ( 2020 ), $576.4 million ( 2021 ), $537.4 million ( 2022 ), $277.4 million ( 2023 ) and $727.9 million (thereafter). The minimum scheduled future revenues should not be construed to reflect total charter hire revenues for any of the years. Minimum scheduled future revenues do not include revenue generated from new contracts entered into after December 31, 2018 , revenue from unexercised option periods of contracts that existed on December 31, 2018 , or variable or contingent revenues. The amounts may vary given unscheduled future events such as vessel maintenance. Direct Financing Lease Leasing of certain VOC equipment is accounted for as a direct financing lease. As at December 31, 2018 , the minimum lease payments receivable under the direct financing lease approximated $5.9 million ( 2017 - $ 7.6 million ), including unearned income of $1.1 million ( 2017 - $1.9 million ). As at December 31, 2018 , future scheduled payments under the direct financing leases to be received by the Partnership, were approximately $5.9 million , comprised of $1.3 million ( 2019 ), $1.3 million ( 2020 ), $1.3 million ( 2021 ), $1.3 million ( 2022 ) and $0.6 million ( 2023 ). Charters-in As at December 31, 2018 , minimum commitments owing by the Partnership under vessel operating leases by which the Partnership charters-in vessels were approximately $34.3 million ( 2019 ) and $2.2 million ( 2020 ). The Partnership recognizes the expense from these charters, which is included in time-charter hire expense, on a straight-line basis over the firm period of the charters. |
Restructuring Charge
Restructuring Charge | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charge | Restructuring Charge During the year ended December 31, 2018 , the Partnership recognized a restructuring charge of $1.5 million , mainly relating to severance costs from crew reduction on the Petrojarl Varg FPSO unit, which is currently in lay-up. The Partnership incurred a total of $1.5 million of restructuring charges under this plan. During the year ended December 31, 2017 , the Partnership recognized a restructuring charge of $2.7 million , mainly relating to severance costs from the termination of the charter contract for the Arendal Spirit UMS and the resulting decommissioning of the unit. The Partnership incurred a total of $2.7 million of restructuring charges under this plan. During the year ended December 31, 2016, the Partnership recognized a restructuring charge of $4.6 million , 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 incurred a total of $4.7 million of restructuring charges under this plan. As of December 31, 2018 and December 31, 2017 , restructuring liabilities of $1.5 million and $0.4 million , respectively, were recorded in accrued liabilities on the consolidated balance sheet. |
Related Party Transactions and
Related Party Transactions and Balances | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions and Balances | Related Party Transactions and Balances a) In May 2013, the Partnership entered into an agreement with Equinor ASA (or Equinor ), 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 has been serviced since early-October 2017 by a new FSO unit that was converted from the Randgrid shuttle tanker, which conversion commenced during the second quarter of 2015 (see note 14 a). The Partnership received project management and engineering services from certain subsidiaries of Teekay Corporation relating to this FSO unit conversion. The costs for these services were capitalized and included as part of vessels and equipment. Cumulative project management and engineering costs paid to Teekay Corporation subsidiaries up to completion of the project in 2017 were $18.0 million . b) In December 2014, the Partnership entered into an agreement with a consortium led by Queiroz Galvão Exploração e Produção SA (or QGEP ) to provide an FPSO unit for the Atlanta field located in the Santos Basin offshore Brazil. In connection with the contract with QGEP, the Partnership acquired the Petrojarl I FPSO unit from Teekay Corporation for a purchase price of $57 million (see note 14c ). The Partnership has received project management and engineering services from certain subsidiaries of Teekay Corporation relating to this FPSO unit upgrade. The costs for these services have been capitalized and included as part of vessels and equipment. Cumulative project management and engineering costs paid to Teekay Corporation subsidiaries up to completion of the project in 2018 were $4.5 million . c) 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. The Partnership entered into contracts to have three Suezmax DP2 shuttle tanker newbuildings constructed. These vessels replaced the existing vessels servicing the East Coast of Canada. Two of the three newbuildings delivered in October and November 2017, respectively and the third vessel delivered in March 2018. The Partnership has received project management and engineering services from certain subsidiaries of Teekay Corporation relating to the construction of these shuttle tankers. The costs for these services have been capitalized and included as part of vessels and equipment. Project management and engineering costs paid to Teekay Corporation subsidiaries up to delivery of the final vessel in 2018 were $4.1 million . d) During the year ended December 31, 2018 , three shuttle tankers and three FSO units ( December 31, 2017 - two shuttle tankers and three FSO units, December 31, 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. e) Effective July 1, 2016, the Partnership issued a $200.0 million promissory note to a subsidiary of Teekay Corporation (or the 2016 Teekay Corporation Promissory Note ) to re-finance existing promissory notes issued to Teekay Corporation. The 2016 Teekay Corporation Promissory Note bore interest at an annual rate of 10.00% on the outstanding principal balance, which was payable quarterly, and of which (a) 5.00% was payable in cash and (b) 5.00% was payable in common units of the Partnership, or in cash, at the election of Teekay Corporation. If the Partnership paid cash for the second 5.00% of interest, the Partnership was required to raise at least an equal amount of cash proceeds from the issuance of common units in advance of or within six months following the applicable interest payment date. The outstanding principal balance of the 2016 Teekay Corporation Promissory Note, together with accrued interest, was payable in full on January 1, 2019. On September 25, 2017, the Partnership, Teekay Corporation and Brookfield entered into an agreement to amend and restate this promissory note (see note 11f ). During the year ended December 31, 2017 , the Partnership incurred $14.6 million of interest expense on the 2016 Teekay Corporation Promissory Note (December 31, 2016 - $10.0 million ) , of which $9.6 million was paid in cash (December 31, 2016 - $7.5 million ) and the remainder was settled through the issuance of 1.7 million common units of the Partnership (December 31, 2016 - 0.5 million common units) under the terms of the 2016 Teekay Corporation Promissory Note. f) Effective September 25, 2017, the Partnership, Teekay Corporation and Brookfield amended and restated the 2016 Teekay Corporation Promissory Note to create the Brookfield Promissory Note, concurrently with Brookfield’s acquisition of the 2016 Teekay Corporation Promissory Note from a subsidiary of Teekay Corporation. The Brookfield Promissory Note of $200.0 million bore interest at an annual rate of 10.00% on the outstanding principal balance, which was payable quarterly. The outstanding principal balance of the Brookfield Promissory Note, together with accrued interest, was payable in full on January 1, 2022. The Brookfield Promissory Note was recorded at its relative fair value of $163.6 million based on the allocation of net proceeds invested by Brookfield, as at September 25, 2017 (see note 16). On July 2, 2018, the Partnership repurchased the Brookfield Promissory Note (see note 11i). During the year ended December 31, 2018 , the Partnership incurred $10.0 million ( December 31, 2017 - $5.3 million ) of interest expense under the terms of the Brookfield Promissory Note. 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, and for certain of the Partnership's interest rate swaps and cross currency swaps until early-2019. The guarantees covered liabilities totaling up to a maximum amount of $495.0 million . Effective September 25, 2017, the Partnership secured the release, for fees to the applicable counterparties, of all of these financial guarantees provided by Teekay Corporation relating to the Partnership's interest rate swap, cross currency swap agreements and East Coast of Canada financing. During the year ended December 31, 2017 , a guarantee fee of $5.8 million ( December 31, 2016 - $3.7 million ) was recognized in interest expense on the Partnership's consolidated statements of (loss) income , 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 had provided such financial guarantees at no cost to the Partnership. h) On March 31, 2018, the Partnership entered into a credit agreement for an unsecured revolving credit facility provided by Teekay Corporation and Brookfield, which provides for borrowings of up to $125.0 million ( $25.0 million by Teekay Corporation and $100.0 million by Brookfield) and as at December 31, 2018 , the credit facility was fully drawn. The revolving credit facility matures on October 1, 2019. The interest payments on the revolving credit facility are based on LIBOR plus a margin of 5.00% per annum until March 31, 2019 and LIBOR plus a margin of 7.00% per annum for balances outstanding after March 31, 2019, with interest payable monthly. Any outstanding principal balances are due on the maturity date. The revolving credit facility contains covenants that require the Partnership to maintain a minimum liquidity (cash, cash equivalents and undrawn committed revolving credit lines with at least six months to maturity) in an amount equal to the greater of $75.0 million and 5.0% of the Partnership’s total consolidated debt. As at December 31, 2018, the Partnership was in compliance with these covenants. i) On July 2, 2018, the Partnership issued, in a U.S. private placement, a total of $700.0 million of five -year senior unsecured bonds that mature in July 2023. The interest payments on the bonds are fixed at a rate 8.50% (see note 8). Brookfield purchased $500.0 million of these bonds, which included an exchange of the Brookfield Promissory Note at its par value of $200.0 million and additionally, the Partnership paid an associated $12.0 million early termination fee to Brookfield. As at December 31, 2018 , Brookfield held $475.0 million of these bonds, which is included in long-term debt on the Partnership's balance sheet. The loss on the exchange of the Brookfield Promissory Note is included in losses on debt repurchases on the Partnership's consolidated statements of (loss) income. j) As a condition of Brookfield's acquisition of 60% of the common units of the Partnership in September 2017, on January 1, 2018, the Partnership acquired a 100% ownership interest in seven subsidiaries of Teekay Corporation for cash consideration of $1.4 million . These subsidiaries provide ship management, commercial, technical, strategic, business development and administrative services to the Partnership, primarily related to the Partnership's FPSO units, shuttle tankers and FSO units. k) Until December 31, 2017, Teekay Corporation and its wholly-owned subsidiaries directly and indirectly provided to the Partnership a majority of its commercial, technical, crew training, strategic, business development and administrative service needs. As described in note 11j, the majority of these services was assumed by the Partnership through the acquisition, on January 1, 2018, of certain management companies from Teekay Corporation that provide the bulk of their services to the Partnership's assets. 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. As at December 31, 2018, Brookfield and Teekay Corporation owned 51% and 49% , respectively, of the general partner ownership interests. The Partnership's related party transactions recognized in the consolidated statements of (loss) income were as follows for the periods indicated: Year Ended December 31, 2018 2017 2016 Revenues (1) 117,764 49,509 49,228 Vessel operating expenses (2) (6,298 ) (32,346 ) (34,629 ) General and administrative (3) (18,162 ) (31,340 ) (29,944 ) Interest expense (4)(5)(6)(7)(8)(9)(10) (38,695 ) (25,882 ) (22,400 ) Losses on debt repurchases (11) (46,041 ) — — (1) Includes revenue from time-charter-out or bareboat contracts with subsidiaries of Teekay Corporation, including management fees from ship management services provided by the Partnership to a subsidiary of Teekay Corporation. The year ended December 31, 2016 includes an early termination fee received by the Partnership from Teekay Corporation of $4.0 million . (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 interest expense of $10.0 million for the year ended December 31, 2018 (December 31, 2017 and 2016 - $5.3 million and $ nil , respectively), and accretion expense of $2.7 million for the year ended December 31, 2018 (December 31, 2017 and 2016 - $2.2 million and $ nil , respectively), incurred on the Brookfield Promissory Note (see note 11f). The Brookfield Promissory Note was recorded at its relative fair value at its acquisition date of $163.6 million and is recorded net of debt issuance costs on the Partnership's consolidated balance sheet as at December 31, 2017. On July 2, 2018, the Partnership repurchased the Brookfield Promissory Note (see note 11i). (5) Includes interest expense of $5.0 million for the year ended December 31, 2018 (December 31, 2017 and 2016 - $ nil and $ nil , respectively), incurred on the unsecured revolving credit facility provided by Teekay Corporation and Brookfield, which the Partnership entered into on March 31, 2018 (see note 11h). (6) Includes interest expense of $21.0 million for the year ended December 31, 2018 (December 31, 2017 and 2016 - $ nil and $ nil , respectively), incurred on the portion of five-year senior unsecured bonds held by Brookfield (see note 11i). (7) Includes interest expense of $14.6 million for the year ended December 31, 2017 (December 31, 2016 - $10.0 million ), incurred on the 2016 Teekay Corporation Promissory Note (see note 11e). (8) Includes a guarantee fee related to the final bullet payment of the Piranema Spirit FPSO unit debt facility, which was repaid in March 2017, and a guarantee fee related to 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 Partnership's interest rate swaps and cross currency swaps until September 25, 2017 (see notes 11g and 12). (9) Includes interest expense of $5.0 million for the year ended December 31, 2016, incurred on a $100.0 million six-month loan made by Teekay Corporation to the Partnership on January 1, 2016, which bore interest at an annual rate of 10.00% on the outstanding principal balance. The loan was refinanced on July 1, 2016 under the 2016 Teekay Corporation Promissory Note. (10) Includes interest expense of $3.2 million for the year ended December 31, 2016, incurred on a $100 million convertible promissory note issued to Teekay Corporation, which bore interest at an annual rate of 6.50% on the outstanding principal balance. The convertible promissory note was refinanced on July 1, 2016 under the 2016 Teekay Corporation Promissory Note. (11) Includes the loss on the Partnership's prepayment of the Brookfield Promissory Note, which includes the acceleration of non-cash accretion expense of $31.5 million resulting from the difference between the $200.0 million settlement amount at its par value and its carrying value of $168.5 million , an associated early termination fee of $12.0 million paid to Brookfield and the write-off of capitalized loan costs (see note 11i). l) At December 31, 2018 , the carrying value of amounts due from affiliates totaled $59.8 million ( December 31, 2017 - $37.4 million ) and the carrying value of amounts due to affiliates totaled $183.8 million ( December 31, 2017 - $271.5 million ). Amounts due to and from affiliates, other than the Brookfield Promissory Note, the unsecured revolving credit facility provided by Teekay Corporation and Brookfield, and one term loan provided to a subsidiary of Teekay Corporation are non-interest bearing and unsecured, and all due to and from affiliates balances classified as current are expected to be settled within the next fiscal year in the normal course of operations or from financings. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The Partnership uses derivative instruments 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 years ended December 31, 2018 and 2017 , as cash flow hedges. As at December 31, 2018 , the Partnership was committed to the following foreign currency forward contracts: Contract Amount Fair Value / Carrying Average Forward Rate (1) Expected Maturity 2019 2020 (in thousands of U.S. Dollars) Norwegian Krone 425,000 (4,588 ) 7.96 47,809 5,567 Euro 12,000 (62 ) 0.86 13,977 — (4,650 ) 61,786 5,567 (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 amount in NOK on the repayment and maturity dates, in exchange for payments of a fixed U.S. Dollar amount. In addition, the cross currency swaps exchange a receipt of floating interest in NOK based on NIBOR plus a margin for a payment of U.S. Dollar fixed interest. The purpose of the cross currency swaps is to economically hedge the foreign currency exposure on the payment of interest and repayments of principal amounts of the Partnership’s NOK bonds due through 2019 (see note 8 ). I n 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. During 2018 and 2017, the Partnership settled certain of these cross currency swaps and incurred realized losses during the years ended December 31, 2018 and 2017, which is included in foreign currency exchange loss in the consolidated statements of (loss) income . As at December 31, 2018 , the Partnership was committed to the following cross currency swaps: Principal Principal Floating Rate Receivable Fixed Rate Fair Value / Remaining Reference Margin 95,000 15,409 NIBOR 4.25 % 7.45 % (4,538 ) 0.1 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. During the years ended December 31, 2018 and 2017, certain of these interest rate swaps were designated in qualifying hedging relationships and hedge accounting was applied in the consolidated financial statements or within our equity-accounted for investments. During 2018, the Partnership de-designated, for accounting purposes, certain interest rate swaps and as at December 31, 2018, has not designated, for accounting purposes, any of its interest rate swaps as hedges of variable rate debt. Certain of the Partnership's interest rate swaps are secured by vessels. As at December 31, 2018 , the Partnership and its consolidated subsidiaries were committed to the following interest rate swap agreements: Fair Value / Carrying Weighted- Amount of Average Fixed Interest Notional Assets Remaining Interest Rate Amount (Liability) Term Rate Index $ $ (years) (%) (1) U.S. Dollar-denominated interest rate swaps (2) LIBOR 700,000 (83,965 ) 6.5 4.1 % U.S. Dollar-denominated interest rate swaps (3) LIBOR 766,145 (23,109 ) 3.6 3.2 % 1,466,145 (107,074 ) (1) Excludes the margin the Partnership pays on its variable-rate debt, which as at December 31, 2018 , ranged from 0.90% to 4.30% . (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 tables present the effective and ineffective portion of the gain (loss) on interest rate swap agreements designated and qualifying as cash flow hedges. The following tables exclude any interest rate swap agreements designated and qualifying as cash flow hedges in the Partnership’s equity accounted joint ventures. Year Ended December 31, 2018 Year Ended December 31, 2017 Effective Portion Recognized in AOCI (1) Effective Portion Reclassified from AOCI (2) Ineffective Portion (3) Effective Portion Recognized in AOCI (1) Effective Portion Reclassified from AOCI (2) Ineffective Portion (3) (2,495 ) 102 — Interest expense (19 ) (1,186 ) (7 ) Interest expense (2,495 ) 102 — (19 ) (1,186 ) (7 ) Year Ended December 31, 2016 Effective Portion Recognized in AOCI (1) Effective Portion Reclassified from AOCI (2) Ineffective Portion (3) 101 (64 ) 681 Interest expense 101 (64 ) 681 (1) Effective portion of designated and qualifying cash flow hedges recognized in accumulated other comprehensive income (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 December 31, 2018 , the Partnership had multiple interest rate swaps, cross currency swaps and foreign currency forward contracts governed by certain master agreements. Each of the 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 December 31, 2018 , these derivatives had an aggregate fair value asset amount of nil and an aggregate fair value liability amount of $91.1 million ( December 31, 2017 - an aggregate fair value asset amount of $0.3 million and an aggregate fair value liability amount of $157.4 million ). As at December 31, 2018 , the Partnership had $1.2 million ( December 31, 2017 - $4.1 million ) on deposit with the relevant counterparties as security for cross currency swap liabilities under certain master agreements. The deposit is presented in restricted cash on the consolidated balance sheet. 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 Other Accrued Current Derivative As at December 31, 2018 Foreign currency contracts — — — (4,225 ) (425 ) Cross currency swaps — — (96 ) (4,442 ) — Interest rate swaps 1,028 2,075 (1,625 ) (14,623 ) (93,929 ) 1,028 2,075 (1,721 ) (23,290 ) (94,354 ) As at December 31, 2017 Foreign currency contracts 347 28 — (665 ) (67 ) Cross currency swaps — — (916 ) (4,412 ) (38,678 ) Interest rate swaps 233 1,565 (3,883 ) (37,438 ) (128,724 ) 580 1,593 (4,799 ) (42,515 ) (167,469 ) Total realized and unrealized gain (loss) of 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 gain (loss) on derivative instruments in the consolidated statements of (loss) income for the years ended December 31, 2018 , 2017 and 2016 as follows: Year Ended Year Ended Year Ended Realized (loss) gain on derivative instruments Interest rate swaps (38,011 ) (78,296 ) (52,819 ) Foreign currency forward contracts (1,228 ) 900 (7,153 ) (39,239 ) (77,396 ) (59,972 ) Unrealized gain (loss) on derivative instruments Interest rate swaps 56,420 33,114 29,937 Foreign currency forward contracts (4,373 ) 1,429 9,722 52,047 34,543 39,659 Total realized and unrealized gain (loss) on derivative instruments 12,808 (42,853 ) (20,313 ) Realized and unrealized (loss) gain of cross currency swaps are recognized in earnings and reported in foreign currency exchange loss in the consolidated statements of (loss) income for the years ended December 31, 2018 , 2017 and 2016 as follows: Year Ended Year Ended Year Ended Realized loss (39,647 ) (84,205 ) (53,497 ) Unrealized gain 38,648 91,914 46,127 Total realized and unrealized (loss) gain on cross currency swaps (999 ) 7,709 (7,370 ) 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, to the extent possible and practical, interest rate swaps are entered into with different counterparties to reduce concentration risk. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The significant components of the Partnership’s deferred tax assets and liabilities are as follows: December 31, December 31, Deferred tax assets: Tax losses carried forward (1) 251,240 120,789 Other 2,887 6,204 Total deferred tax assets 254,127 126,993 Deferred tax liabilities: Vessels and equipment 17,018 14,046 Other 5,531 985 Total deferred tax liabilities 22,549 15,031 Net deferred tax assets 231,578 111,962 Valuation allowance (224,593 ) (85,560 ) Net deferred tax assets 6,985 26,402 Disclosed in: Deferred tax asset 9,168 28,110 Other long-term liabilities 2,183 1,708 Net deferred tax assets 6,985 26,402 (1) As at December 31, 2018 , the income tax losses carried forward of $1,040.4 million ( December 31, 2017 - $509.8 million ) are available to offset future taxable income in the applicable jurisdictions, of which $651.9 million can be carried forward indefinitely, $0.4 million will expire in 2019, $0.5 million will expire in 2020, $0.4 million will expire in 2021, $0.5 million will expire in 2022, $2.2 million will expire in 2023, $0.3 million will expire in 2024, $0.6 million will expire in 2025, $0.1 million will expire in 2026 and $383.3 million will expire in 2034. The components of the provision for income taxes are as follows: Year Ended Year Ended Year Ended Current (4,051 ) (1,772 ) (3,954 ) Deferred (18,606 ) 1,870 (4,854 ) Income tax (expense) recovery (22,657 ) 98 (8,808 ) The Partnership operates in countries that have differing tax laws and rates. Consequently, a consolidated weighted average tax rate will vary from year to year according to the source of earnings or losses by country and the change in applicable tax rates. Reconciliations of the tax charge related to the current year at the applicable statutory income tax rates and the actual tax charge related to the current year are as follows: Year Ended Year Ended Year Ended Net (loss) income before taxes (101,288 ) (299,540 ) 53,283 Net (loss) income not subject to taxes (253,605 ) (244,045 ) (19,706 ) Net income (loss) subject to taxes 152,317 (55,495 ) 72,989 At applicable statutory tax rates 28,437 (15,784 ) 12,972 Permanent differences (23,179 ) 2,424 (13,277 ) Adjustments related to currency differences (338 ) 5,847 (1,869 ) Valuation allowance 17,737 7,415 10,982 Tax expense (recovery) related to current year 22,657 (98 ) 8,808 The following is a tabular reconciliation of the Partnership’s total amount of unrecognized tax benefits at the beginning and end of 2018 , 2017 and 2016 : Year Ended Year Ended Year Ended Balance of unrecognized tax benefits as at beginning of the year 1,410 2,174 4,047 Decreases for positions related to prior years (189 ) (930 ) (3,376 ) Increases for positions related to the current year 375 166 1,503 Balance of unrecognized tax benefits as at end of the year 1,596 1,410 2,174 The Partnership does not presently anticipate such uncertain tax positions will significantly increase or decrease in the next 12 months; however, actual developments could differ from those currently expected. The tax years 2010 through 2018 remain open to examination by some of the taxing jurisdictions in which the Partnership is subject to tax. The interest and penalties on unrecognized tax benefits included in the tabular reconciliation above are not material. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies a) In May 2013, the Partnership entered into an agreement with Equinor, 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. A new FSO unit was converted from the Randgrid shuttle tanker to service the contract with Equinor and commenced operations in late-2017. In November 2017, the Partnership received a statement of claim from Sembcorp Marine Ltd. (or Sembcorp ), the shipyard which completed the conversion of the FSO unit, relating to disputed variation orders in the amount of approximately $100 million . During the year ended December 31, 2018 , the Partnership filed its defense relating to this claim. As at December 31, 2018 , the Partnership has accrued its best estimate for the potential liability related to these disputes to the cost of the FSO unit conversion. The Partnership estimates that the range of possible losses, in addition to what has already been accrued as of December 31, 2018 , is between nil and $14 million . b) In August 2014, the Partnership acquired 100% of the outstanding shares of Logitel, a Norway-based company focused on high-end UMS. At the time of the transaction, affiliates of Logitel were parties to construction contracts for three UMS newbuildings ordered from the COSCO (Nantong) Shipyard (or COSCO ) in China. The Partnership took delivery of one of the UMS newbuildings, the Arendal Spirit UMS , 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 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 3 and 18). An estimate of the potential damages for the cancellation of the Stavanger Spirit newbuilding contract is based on the amount due for the final yard installment 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. During December 2017, Logitel Offshore Rig II Pte Ltd., the single-purpose subsidiary relating to the Stavanger Spirit, received a notice of arbitration from COSCO to arbitrate all disputes arising from the cancellation of the construction contract of the Stavanger Spirit UMS and during March 2018, COSCO commenced arbitration against Logitel Offshore Rig II Pte Ltd. and Logitel Offshore Pte. Ltd. claiming $186.2 million plus interest, damages and costs. Pursuant to the Stavanger Spirit newbuilding contract and related agreements, COSCO only has recourse to the single-purpose subsidiary that was a party to the Stavanger Spirit newbuilding contract and its immediate parent company, Logitel Offshore Pte. Ltd., for damages incurred. Logitel Offshore Rig II Pte Ltd. and Logitel Offshore Pte. Ltd. are disputing this claim. The Partnership's estimate of potential damages for the cancellation of the Nantong Spirit newbuilding contract is based upon estimates of a number of factors, 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 faced by it in relation 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 was a party to the Nantong Spirit newbuilding contract, and subject to the pre-action disclosure proceedings referred to above. During June 2017, Logitel Offshore Rig III LLC, the single-purpose subsidiary relating to the Nantong Spirit , received a claim from COSCO for $51.9 million for the unpaid balance for work completed, cancellation costs and damages, and during the third quarter of 2017, COSCO commenced arbitration against Logitel Offshore Rig III LLC. Logitel Offshore Rig III LLC is disputing this claim. As at December 31, 2018 , the Partnership's subsidiaries have accrued $43 million in the aggregate related to the above claims. c) In December 2014, the Partnership acquired the Petrojarl I FPSO unit from Teekay Corporation for $57 million . T he Petrojarl I underwent upgrades at the Damen Shipyard Group’s DSR Schiedam Shipyard (or Damen ) in the Netherlands prior to being moved to the Aibel AS shipyard (or Aibel ) in Norway where its upgrades were completed. The FPSO unit commenced operations in May 2018 under a five -year charter contract with Atlanta Field B.V. and a service agreement with QGEP . During 2017, Damen commenced a formal arbitration with Petrojarl I L.L.C. (a wholly-owned subsidiary of the Partnership) as to the settlement of shipyard costs. During May 2018, the Partnership received a statement of case from Damen claiming $150 million for additional costs allegedly incurred by Damen in respect of the work and interest thereon. The Partnership served its defense to these claims on October 31, 2018 disputing the claims brought by Damen and bringing counterclaims against Damen (including a claim for abatement of the contract price) in excess of $100 million . As of December 31, 2018 , the Partnership had not accrued for any potential liability relating to these claims as the Partnership's best estimate is that the arbitration will not result in a net award, which would require an amount to be paid to Damen in excess of amounts already paid as at December 31, 2018 . d) In October 2016, the Partnership received a claim from Royal Dutch Shell Plc (or Shell ) for liquidated damages of $23.6 million based on Shell's allegation that the Petrojarl Knarr FPSO unit did not meet the completion milestone on time. In August 2017, Shell served the Partnership with a notice of arbitration. Shell is also claiming that the Partnership's inability to meet the completion milestone within the specified grace period in effect triggered a 20% reduction in the price for which Shell may purchase the Petrojarl Knarr FPSO unit from the Partnership pursuant to a purchase option agreement. In a counterclaim, the Partnership has alleged that the completion milestone was met within the grace period and that Shell caused delays due to certain defaults in Shell’s specifications, as well as other events. The Partnership claims that, due to delays caused by Shell, the Partnership is entitled to the daily lease rate under the contract for the unit commencing prior to when Shell actually started paying such rate and that Shell is not entitled to a reduction in the purchase option price. The duration of the period that the Partnership claims to be entitled to receive additional daily lease payments is in dispute. Uncertainty exists as to the resolution of the various claims. The Partnership has commenced arbitration proceedings with Shell and initial claim and defense submissions have been filed. The Partnership's claims submitted in the arbitration exceed Shell's claim for liquidated damages of $23.6 million , which the Partnership estimates to be the maximum possible loss. As of December 31, 2018 , the Partnership had not accrued for any potential liability relating to these claims as the Partnership's best estimate is that the arbitration will not result in awards which would require a net amount to be paid in favor of Shell . e) In 2017, the Partnership entered into shipbuilding contracts with Samsung Heavy Industries Co., Ltd. to construct four Suezmax Dynamic Positioning 2 (or DP2) shuttle tanker newbuildings, for an aggregate fully built-up cost of approximately $602 million . These newbuilding vessels are being constructed based on the Partnership's new Shuttle Spirit design which incorporates technologies intended to increase fuel efficiency and reduce emissions, including liquefied natural gas (or LNG ) propulsion technology. Upon expected delivery in late-2019 through 2020, these vessels are to provide shuttle tanker services in the North Sea, with two to operate under the Partnership’s existing master agreement with Equinor, and two to operate directly within the North Sea CoA fleet. As at December 31, 2018 , payments made towards these commitments were $72.9 million and the remaining payments required to be made are estimated to be $248.9 million ( 2019 ) and $279.7 million ( 2020 ). In 2018, the Partnership secured a debt facility, which as at December 31, 2018 , provided total borrowings of up to $60.5 million for the newbuilding payments, of which $40.4 million was undrawn. The Partnership expects to secure additional long-term financing related to these shuttle tanker newbuildings. In July 2018, the Partnership entered into shipbuilding contracts with Samsung Heavy Industries Co. Ltd., to construct two Aframax DP 2 shuttle tanker newbuildings, for an estimated aggregate fully built-up cost of $270 million . These newbuildings are also being constructed based on the Partnership's new Shuttle Spirit design. Upon delivery in late-2020 through early-2021, these vessels will join the Partnership's CoA portfolio in the North Sea. As at December 31, 2018, payments made towards these commitments were $12.3 million and the remaining payments required to be made are estimated to be $57.7 million (2019), $122.3 million (2020) and $77.5 million (2021). The Partnership expects to secure long-term financing related to these shuttle tanker newbuildings. f) Despite generating $281 million of cash flows from operating activities during 2018, the Partnership had a working capital deficit of $488 million as at December 31, 2018. This working capital deficit primarily relates to the scheduled maturities and repayments of $554 million of outstanding debt during the 12 months ending December 31, 2019, which amount was classified as current as at December 31, 2018 . The Partnership also anticipates making payments related to commitments to fund vessels under construction during 2019 through 2021 of approximately $776 million (see note 14e). Based on these factors, during the one-year period following the issuance of these consolidated financial statements, the Partnership will need to obtain additional sources of financing, in addition to amounts generated from operations, to meet its obligations and commitments and minimum liquidity requirements under its financial covenants. Additional potential sources of financing include refinancing debt facilities, increasing amounts available under existing debt facilities, entering into new debt facilities, including additional long-term debt financing related to the six shuttle tanker newbuildings ordered, and extensions and redeployments of existing assets. The Partnership is actively pursuing the funding alternatives described above, which it considers probable of completion based on the Partnership’s history of being able to raise debt and refinance loan facilities for similar types of vessels. The Partnership is in various stages of completion on these matters. Based on the Partnership’s liquidity at the date these consolidated financial statements were issued, the liquidity it expects to generate from operations over the following year, and by incorporating the Partnership’s plans to raise additional liquidity that it considers probable of completion, the Partnership expects that it will have sufficient liquidity to enable the Partnership to continue as a going concern for at least the one-year period following the issuance of these consolidated financial statements. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information a) The following is a tabular reconciliation of the Partnership's cash, cash equivalents and restricted cash balances for the periods presented in these consolidated financial statements: As at As at As at 2018 2017 2016 $ $ $ Cash and cash equivalents 225,040 221,934 227,378 Restricted cash (1) 8,540 28,360 92,265 Restricted cash - long-term (1) — — 22,644 233,580 250,294 342,287 (1) Restricted cash as at December 31, 2018 includes amounts held in escrow as collateral on the Partnership's cross currency swaps, funds for a scheduled loan facility repayment, withholding taxes and office lease prepayments. Restricted cash as at December 31, 2017 includes amounts held in escrow as collateral on the Partnership’s cross currency swaps and funds for certain vessel upgrade costs. Restricted cash as at December 31, 2016 includes amounts held in escrow as collateral on the Partnership’s cross currency swaps, funds for certain vessel upgrade and dry dock costs and a performance bond relating to the Petrojarl Knarr FPSO unit. b) The changes in non-cash working capital items related to operating activities for the years ended December 31, 2018 , 2017 and 2016 are as follows: Year Ended Year Ended Year Ended Accounts receivable 22,320 (54,830 ) 34,669 Prepaid expenses and other assets (2,104 ) (6,618 ) 5,983 Accounts payable and accrued liabilities (32,800 ) 43,113 38,627 Advances (to) from affiliate (70,643 ) 51,841 (5,061 ) (83,227 ) 33,506 74,218 c) Cash interest paid (including realized losses on interest rate swaps) during the years ended December 31, 2018 , 2017 and 2016 totaled $204.5 million , $205.0 million , and $180.9 million , respectively. d) Income taxes paid during the years ended December 31, 2018 , 2017 and 2016 totaled $2.1 million , $2.2 million and $1.5 million , respectively. |
Total Capital and Net Income Pe
Total Capital and Net Income Per Common Unit | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Total Capital and Net Income Per Common Unit | Total Capital and Net Income Per Common Unit At December 31, 2018 , a total of 26.7% of the Partnership’s common units outstanding were held by the public. Brookfield held a total of 59.5% of the common units of the Partnership and 51% of the general partner interest. The remaining 13.8% of the common units, as well as 49% of the general partner interest, were held by subsidiaries of Teekay Corporation. At December 31, 2018 , all of the Partnership’s outstanding Series A Cumulative Redeemable Preferred Units (or the Series A Preferred Units ), Series B Cumulative Redeemable Preferred Units (or the Series B Preferred Units ) and Series E Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (or the Series E Preferred Units) were held by entities other than Teekay Corporation, Brookfield and their affiliates. Limited Partners’ Rights Significant rights of the limited partners include the following: • Right of common unitholders to receive distributions of Available Cash (after deducting expenses, including estimated maintenance capital expenditures and reserves, including reserves for future capital expenditures and for anticipated future credit needs of the Partnership) within approximately 45 days after the end of each quarter. • No limited partner shall have any management power over the Partnership’s business and affairs; the general partner shall conduct, direct and manage our activities. • The general partner may be removed if such removal is approved by common unitholders holding at least 66.66% of the outstanding units voting as a single class, including units held by the general partner and its affiliates. Incentive Distribution Rights The general partner is entitled to incentive distributions if the amount the Partnership distributes to common unitholders with respect to any quarter exceeds specified target levels shown below: Quarterly Distribution Target Amount (per unit) Unitholders General Partner Minimum quarterly distribution of $0.35 99.24 % 0.76 % Up to $0.4025 99.24 % 0.76 % Above $0.4025 up to $0.4375 86.24 % 13.76 % Above $0.4375 up to $0.525 76.24 % 23.76 % Above $0.525 51.24 % 48.76 % During 2018 , 2017 and 2016 cash distributions were below $0.35 per common unit. Consequently, the increasing percentages were not 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 year ended December 31, 2018 , 2017 and 2016 . In the event of a liquidation, all property and cash in excess of that required to discharge all liabilities and liquidation amounts on the Series A, Series B and Series E Preferred Units will be distributed to the common unitholders and the general partner in proportion to their capital account balances, as adjusted to reflect any gain or loss upon the sale or other disposition of the Partnership’s assets in liquidation in accordance with the partnership agreement. Series E Preferred Units In January 2018, the Partnership issued 4.8 million 8.875% Series E Preferred Units in a public offering for net proceeds of $116.0 million . Pursuant to the partnership agreement, distributions on the Series E Preferred Units to preferred unitholders are cumulative from the date of original issue, payable quarterly in arrears, when, as and if declared by the board of directors of the general partner. Distributions are payable on the Series E Preferred Units (i) from and including the original issue date to, but excluding, February 15, 2025 at a fixed rate equal to 8.875% per annum of the stated liquidation preference of $25.00 per unit and (ii) from and including February 15, 2025, at a floating rate equal to three-month LIBOR plus 6.407% . These units are listed on the New York Stock Exchange. Series C-1 and Series D Preferred Units In September 2017, the Partnership entered into a strategic partnership (the Brookfield Transaction ) with Brookfield. As part of this transaction, the Partnership repurchased and subsequently canceled all of its outstanding Series C-1 Cumulative Convertible Perpetual Preferred Units (or the Series C-1 Preferred Units ) and Series D Cumulative Convertible Perpetual Preferred (or the Series D Preferred Units ) from existing unitholders. The Series C-1 and Series D Preferred Units, similar to the Partnership’s previously outstanding Series C Preferred Units, were convertible into common units in accordance with their terms. The Series C-1 Preferred Units were repurchased for $18.20 per unit and Series D Preferred Units for $23.75 per unit, for a total cash payment of $260.2 million , which included $10.2 million of accrued and unpaid quarterly distributions, and resulted in a net accounting gain on repurchase of approximately $20.0 million , which was reflected as an equity contribution. Consideration for the repurchase of the Series D Preferred Units also included a reduction in the exercise price, from $6.05 to $4.55 per unit, of 2,250,000 of one of two tranches of warrants issued in conjunction with the Series D Preferred Units in June 2016. As at December 31, 2018 and 2017, 6,750,000 warrants originally issued in connection with the Series D Preferred Units with an exercise price of $4.55 remained outstanding. The Series C-1 and Series D Preferred Units were originally issued in 2016. For a description of these units and attached terms and conditions, see Item 18: Financial Statements: Note 16 in the Partnership's audited consolidated financial statements filed with its Annual Report on Form 20-F for the year ended December 31, 2016. Series D Detachable Warrants and Brookfield Transaction Warrants Series D Detachable Warrants In June 2016, the Partnership issued a total of 4.0 million of its 10.5% 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 of $4.55 per unit (the $4.55 Warrants ) and an aggregate of 2,250,000 warrants with an exercise price of $6.05 per unit (the $6.05 Warrants ) (collectively, the Warrants ). In September 2017, the exercise price of the $6.05 warrants was reduced to $4.55 per unit, as described above. The Warrants have a seven -year term and are exercisable any time after six months following their issuance date. The Warrants may be settled either in 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 Warrants. The Partnership filed a registration statement with respect to the common units issuable upon exercise of the Warrants, which was declared effective by the SEC on August 31, 2016. The Warrants are recorded as permanent equity in the Partnership's consolidated balance sheets with 6,750,000 Warrants outstanding at December 31, 2018 (December 31, 2017 - 6,750,000 ). Brookfield Transaction Warrants and Common Units Issued In September 2017, as part of the Brookfield Transaction, Brookfield and Teekay Corporation invested $610.0 million and $30.0 million , respectively, in the Partnership in exchange for 244.0 million and 12.0 million common units, respectively, at a price of $2.50 per common unit , and the Partnership issued to Brookfield and Teekay Corporation 62.4 million and 3.1 million warrants, respectively (the Brookfield Transaction Warrants ) , with each warrant exercisable for one common unit . As part of the amended and restated Brookfield Promissory Note transaction (see note 11f ), Brookfield concurrently transferred 11.4 million Brookfield Transaction Warrants and $140.0 million to Teekay Corporation to acquire a $200 million subordinated promissory note owed by the Partnership. The $637.0 million net investment in the Partnership by Brookfield and Teekay Corporation was allocated on a relative fair value basis between the 256 million common units issued to Brookfield and Teekay Corporation ( $512.6 million ), the Brookfield Transaction Warrants ( $121.3 million ), the effective extinguishment of the $200 million 2016 Teekay Corporation Promissory Note ( ($160.5) million ) and the concurrent issuance to Brookfield of the $200 million Brookfield Promissory Note ( $163.6 million ) (see note 11f ). The $39.5 million gain on the effective extinguishment of the subordinated promissory note was accounted for as a contribution of capital from Teekay Corporation. The Brookfield Transaction Warrants allow the holders to acquire one common unit for each Brookfield Transaction Warrant for an exercise price of $0.01 per common unit, which are exercisable until September 25, 2024 if the Partnership's common unit volume-weighted average price is equal to or greater than $4.00 per common unit for 10 consecutive trading days. In July 2018, Brookfield, through an affiliate, exercised its option to acquire an additional 2% of ownership interests in the Partnership's general partner from an affiliate of Teekay Corporation in exchange for 1.0 million Brookfield Transaction Warrants. As at December 31, 2018 , Brookfield and Teekay Corporation held 50.0 million and 15.5 million Brookfield Transaction Warrants, respectively (December 31, 2017 - 51.0 million and 14.5 million , respectively). Series B and Series A Preferred Units In April 2015, the Partnership issued 5.0 million 8.50% Series B Preferred Units in a public offering with an aggregate redemption amount of $125.0 million , for net proceeds of $120.8 million . Pursuant to the partnership agreement, distributions on the Series B Preferred Units to preferred unitholders are 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. At any time on or after April 20, 2020, the Series B Preferred Units may be redeemed by the Partnership at a redemption price of $25.00 per unit plus an amount equal to all accumulated and unpaid distributions to the date of redemption. These units are listed on the New York Stock Exchange. In April 2013, the Partnership issued 6.0 million 7.25% Series A Preferred Units in a public offering with an aggregate redemption amount of $150.0 million , for net proceeds of $144.8 million . Pursuant to the partnership agreement, distributions on the Series A Preferred Units to preferred unitholders are 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. At any time on or after April 30, 2018, the Series A Preferred Units may be redeemed by the Partnership at a redemption price of $25.00 per unit plus an amount equal to all accumulated and unpaid distributions to the date of redemption. These units are listed on the New York Stock Exchange. Net (Loss) Income Per Common Unit Year Ended December 31, December 31, December 31, Limited partners' interest in net (loss) income (147,141 ) (339,501 ) (12,952 ) Preferred units - periodic accretion — (2,380 ) (1,644 ) Net gain on repurchase of Series C-1 and Series D Preferred Units — 19,637 — Gain on modification of warrants — 1,495 — 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 (loss) income for basic net (loss) income per common unit (147,141 ) (320,749 ) (31,326 ) Series C-1 Preferred Units - cash distributions — 12,650 — Gain on repurchase of Series C-1 Preferred Units — (26,994 ) — Limited partners' interest in diluted net (loss) income (147,141 ) (335,093 ) (31,326 ) Weighted average number of common units 410,261,239 220,755,937 124,747,207 Dilutive effect of Series C-1 Preferred Units and unit based compensation — 9,184,183 — Common units and common unit equivalents 410,261,239 229,940,120 124,747,207 Limited partner's interest in net (loss) income per common unit - basic (0.36 ) (1.45 ) (0.25 ) - diluted (0.36 ) (1.46 ) (0.25 ) Limited partners’ interest in net (loss) income per common unit – basic is determined by dividing net (loss) income , after deducting the amount of net (loss) income attributable to the non-controlling interests, the general partner’s interest, the distributions on the Series A, B, and E Preferred Units, for periods prior to their exchange or repurchase, the Series C, C-1 and D Preferred Units, the periodic accretion prior to the repurchase of the Series D Preferred Units, the additional consideration to induce conversion of Series C Preferred Units and deemed contributions on exchange of Series C Preferred Units prior to their repurchase or exchange for Series C-1 Preferred Units or common units, the net gain on the repurchase of the Series C-1 and D Preferred Units and gain on the modification of warrants, by the weighted-average number of common units outstanding during the period. The distributions payable or paid on the preferred units for the year ended December 31, 2018 were $31.5 million ( 2017 - $42.1 million , 2016 - $45.8 million ). 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 17 ), warrants and, and for periods prior to their exchange or repurchase, Series C, C-1 and D Preferred Units. Consequently, for periods prior to their repurchase, the net income attributable to limited partners’ interest is exclusive of any distributions on the Series C, C-1 and D Preferred Units, the prior periodic accretion of the Series D Preferred Units, the net gain on the repurchase of preferred units, and the gain on the modification of warrants. In addition, the weighted average number of common units outstanding has been increased assuming conversion of the restricted units and exercise of the warrants using the treasury stock method and, for periods prior to the exchange or repurchase, the Series C, C-1 and D Preferred Units having been 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, for periods prior to their exchange or repurchase, 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 (for applicable periods) could have been anti-dilutive. In periods where income is allocated to common unitholders, the Series C-1 and D Preferred Units could have been anti-dilutive for periods prior to their exchange or repurchase. For the year ended December 31, 2018 , a total common unit equivalent of 72.3 million warrants and 0.1 million restricted units were excluded from the computation of limited partners’ interest in net loss per common unit - diluted, as their effect was anti-dilutive. For the year ended December 31, 2017 , 31.9 million common unit equivalent Series D Preferred Units, 72.3 million common unit equivalent warrants and 0.4 million restricted units were excluded from the computation of limited partners’ interest in net loss per common unit - diluted, as their effect was anti-dilutive. For the year ended December 31, 2016 , 40.6 million Series C, C-1 and D Preferred Units, 6.8 million common unit equivalent warrants and 0.4 million restricted units were excluded from the computation of limited partners' interest in net income per unit - diluted, as their effect was anti-dilutive. The general partner’s and common unitholders’ interests in net (loss) income are calculated as if all net (loss) income was distributed according to the terms of the Partnership’s partnership agreement, regardless of whether those earnings would or could be distributed. The partnership agreement does not provide for the distribution of net (loss) 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 general partner’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, Series B and Series E Preferred Units, and for periods prior to their exchange or repurchase, the Series C, C-1 and D Preferred Units. Unlike available cash, net (loss) income is affected by non-cash items such as depreciation and amortization, unrealized gain or loss on derivative instruments and unrealized foreign currency translation gain or loss. Pursuant to the partnership agreement, allocations to partners are made on a quarterly basis. Public and Private Offerings of Common Units The following table summarizes the issuances of common units over the three years ending December 31, 2018 : Date Offering Type Number of Common Units Issued Offering Price Gross Proceeds (i) Net Proceeds Use of Proceeds (in millions of U.S. Dollars) During 2016 Continuous Offering Program 5,525,310 (ii) 31.8 31.0 General corporate purposes June 2016 Private 21,978,022 $4.55 102.0 99.5 For general corporate purposes, which included funding existing newbuilding installments and capital conversion projects. During 2016 Payment-in-kind 4,558,624 (iii) 0.5 0.5 (iii) June 2016 Series C Conversion 8,323,809 (iv) 0.9 0.7 (iv) During 2017 Payment-in-kind 6,391,087 (iii) 29.8 29.8 (iii) September 2017 Private 256,000,000 (v) 640.0 628.1 To strengthen the Partnership's capital structure and to fund the Partnership's existing growth projects. (i) Including the General Partner’s proportionate capital contribution, where applicable. (ii) In June 2016, the Partnership implemented a replacement $100 million continuous offering program. (iii) Common units issued 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 and payment-in-kind for interest on the 2016 Teekay Corporation Promissory Note (see note 11e ). (iv) In June 2016, the Partnership and the holders 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 consisted 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). (v) In September 2017, as part of the Brookfield Transaction, the Partnership issued to Brookfield 244.0 million common units and the Brookfield Transaction Warrants to purchase 62.4 million common units, for gross proceeds of $610.0 million . In addition, the Partnership issued to Teekay Corporation 12.0 million common units and the Brookfield Transaction Warrants to purchase 3.1 million common units, for gross proceeds of $30.0 million . The net proceeds are exclusive of expenses allocated to the Brookfield Transaction Warrants of $1.4 million . |
Unit Based Compensation
Unit Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Unit Based Compensation | Unit Based Compensation During the year ended December 31, 2018 , a total of 293,770 common units, with an aggregate value of $0.8 million , were granted to the non-management directors of the general partner as part of their annual compensation for 2018 . The Partnership grants restricted unit-based compensation awards as incentive-based compensation to certain employees of the Partnership and Teekay Corporation’s subsidiaries that provide services to the Partnership. During the years ended December 31, 2018 , 2017 and 2016 , the Partnership granted restricted unit-based compensation awards with respect to 1,424,058 , 321,318 and 601,368 units, respectively, with aggregate grant date fair values of $3.7 million , $1.6 million and $2.4 million , respectively for 2018 , 2017 and 2016 , 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 canceled, unless the 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. As at December 31, 2018 , 2017 and 2016 the Partnership had 1,456,999 , 480,301 and 361,355 non-vested restricted units outstanding, respectively. During the year ended December 31, 2018 , restricted unit-based awards with respect to a total of 342,560 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 111,336 common units and by paying $0.4 million in cash. During the year ended December 31, 2017 , restricted unit-based awards with respect to a total of 255,370 common units with a fair value of $2.2 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 83,060 common units and by paying $0.6 million in cash. During the year ended December 31, 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. The Partnership recorded unit-based compensation expense of $1.4 million , $0.9 million and $1.9 million , during the years ended December 31, 2018 , 2017 and 2016 , respectively, in general and administrative expenses in the Partnership’s consolidated statements of (loss) income . As of December 31, 2018 and December 31, 2017 , liabilities relating to cash settled restricted unit-based compensation awards of $0.7 million and $0.5 million , respectively, were recorded in accrued liabilities on the Partnership’s consolidated balance sheets. As at December 31, 2018 , the Partnership had $1.4 million of non-vested awards not yet recognized, which the Partnership expects to recognize over a weighted average period of 0.7 years . |
(Write-down) and Gain (Loss) on
(Write-down) and Gain (Loss) on Sale of Vessels, Conventional Tankers Dispositions | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
(Write-down) and Gain (Loss) on Sale of Vessels, Conventional Tankers Dispositions | (Write-down) and Gain (Loss) on Sale of Vessels and Conventional Tankers Dispositions (Write-down) and Gain (Loss) on Sale of Vessels In 2018 , the carrying value of the Petrojarl Cidade de Rio das Ostras and Piranema Spirit FPSO units were written down to their estimated fair values, using a discounted cash flow valuation, as a result of a reassessment of the future redeployment assumptions for both units. The Partnership's consolidated statement of loss for the year ended December 31, 2018 includes a $180.2 million write-down related to these vessels. The write-down is included in the Partnership's FPSO segment. In 2018 , the carrying value of the HiLoad DP unit was written down to $ nil using a discounted cash flow valuation. The unit was written down as a result of a settlement received from Petrobras (see note 5 ) and a change in the operating plan for the unit. The Partnership's consolidated statement of loss for the year ended December 31, 2018 includes a $19.2 million write-down related to this unit. The HiLoad DP unit had previously been written down to its estimated fair value using a discounted cash flow valuation in 2017 , as a result of a change in expectations for the future employment opportunities for the unit and the unit proceeding into lay-up. The Partnership's consolidated statement of loss for the year ended December 31, 2017 includes a $26.3 million write-down related to this unit. The write-downs are included in the Partnership's shuttle tanker segment. In 2018 , the carrying value of the Nordic Spirit and Stena Spirit shuttle tankers were written down to their estimated fair values, using appraised values, due to the redelivery of these vessels from their charterer after completing their bareboat charter contracts in May 2018 and the resulting change in the expectations for the future opportunities for the vessels. The Nordic Spirit was classified as held for sale on the Partnership's consolidated balance sheet as at December 31, 2018. The Partnership's consolidated statement of loss for the year ended December 31, 2018 includes a $29.7 million write-down related to these vessels, of which $14.8 million is included in a 50% -owned subsidiary of the Partnership. The write-down is included in the Partnership's shuttle tanker segment. In 2018 , the Partnership sold the 1998-built shuttle tankers, the Navion Scandia and Navion Britannia, for net proceeds of $10.8 million and $10.4 million , respectively. The Partnership's consolidated statement of loss for the year ended December 31, 2018 includes a $5.3 million gain related to the sale of these vessels. The gain on sale is included in the Partnership's shuttle tanker segment. In 2017 , the carrying value of two FPSO units were written down to their estimated fair value, using a discounted cash flow valuation. The Petrojarl I FPSO unit was written down to its estimated fair value, as a result of increasing costs associated with additional upgrade work required and estimated liquidated damages to the charterer associated with the delay in the commencement of the unit's operations. During 2017, the Petrojarl I FPSO unit was moved from the Damen Shipyard in the Netherlands to complete upgrades at the Aibel AS shipyard in Norway. Upon arrival at the Aibel AS shipyard, it was determined that additional upgrade work was required, resulting in a further increase in costs and a further delay of the commencement of the FPSO unit's operations until the second quarter of 2018. In addition, during 2017, the Petrojarl Cidade de Rio das Ostras FPSO unit was written down to its estimated fair value, using a discounted cash flow valuation, as a result of an expected change in the operating plans for the unit resulting from receiving confirmation from the charterer that it planned to redeliver the unit upon completion of the firm charter contract in January 2018. The Partnership's consolidated statement of loss for the year ended December 31, 2017 includes an aggregate $265.2 million write-down related to these units. The write-downs are included in the Partnership's FPSO segment. In 2017 , the Nordic Brasilia and Nordic Rio shuttle tankers were written down to their estimated fair values, using appraised values, due to the redelivery of these vessels from their charterer after completing their bareboat charter contracts in 2017 and a resulting change in expectations for the future opportunities and operating plans for the vessels. The Partnership's consolidated statement of loss for the year ended December 31, 2017 includes a $25.2 million write-down related to these units, of which $10.8 million is included in a 50% -owned subsidiary of the Partnership. The write-downs are included in the Partnership's shuttle tanker segment. In 2017, the Partnership sold a 1999-built shuttle tanker, the Navion Marita, for gross proceeds of $5.7 million , which was the approximate carrying value of the vessel at the time of sale. The shuttle tanker had previously been written down to its estimated fair value as a result of the expected sale of the vessel, and the Partnership’s consolidated statement of income for the year ended December 31, 2017 , includes a $5.1 million write-down related to the vessel. In 2016, the carrying value of the Navion Marita had been written down to its estimated fair value, using an appraised value as a result of fewer opportunities to trade the vessel in the conventional tanker market. The Partnership’s consolidated statement of income for the year ended December 31, 2016 , includes a $2.1 million write-down related to the vessel. The write-downs are included in the Partnership’s shuttle tanker segment. In 2017 , the Partnership sold the Navion Saga FSO unit for gross proceeds of $7.4 million , resulting in a gain on sale of approximately $0.4 million recorded during 2017. The unit had previously been written down to its estimated fair value, using an appraised value as a result of the expected sale of the unit. The Partnership’s consolidated statement of income for the year ended December 31, 2016 includes a $1.7 million write-down related to this unit. The gain on sale and write-down of this unit are included in the Partnership’s FSO segment. In 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, and sold a 1995-built shuttle tanker, the Navion Europa , for net proceeds of $14.4 million , for which the Partnership recorded a gain on sale of $6.8 million , in a 67% -owned subsidiary of the Partnership. The $6.8 million gain on sale includes both the Partnership's interest and the non-controlling interest. The gain on sale is included in the Partnership’s shuttle tanker segment. In 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 year ended December 31, 2016 includes a $43.7 million write-down related to these two UMS newbuildings (see notes 3 and 14b). The write-down is included in the Partnership’s UMS segment. Conventional Tankers Dispositions 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. 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. The vessels are currently trading in the spot conventional market. The following table summarizes the pretax profit and components thereof for the Fuji Spirit and Kilimanjaro Spirit for the periods presented in the consolidated statements of income, while these vessels were owned by the Partnership: Year Ended Year Ended Year Ended Revenues — — 8,030 Voyage expenses — — (435 ) Vessel operating expenses — — (1,340 ) General and administrative — — (1 ) Income from vessel operations — — 6,254 Interest expense — — (142 ) Foreign currency exchange loss — — (4 ) Net income before income tax expense — — 6,108 |
Investment in Equity Accounted
Investment in Equity Accounted Joint Ventures | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Equity Accounted Joint Ventures | Investment in Equity Accounted Joint Ventures In October 2014, the Partnership sold a 1995-built shuttle tanker, the Navion Norvegia , to OOGTK Libra GmbH & Co KG (or Libra Joint Venture ), a 50 / 50 joint venture of the Partnership and Ocyan S.A. (or Ocyan) which vessel was converted to a new FPSO unit for the Libra field in Brazil. The FPSO unit commenced operations in late-2017. Included in the joint venture is a ten -year plus construction period loan facility, which as at December 31, 2018 had an outstanding balance of $654.2 million . The interest payments of the loan facility are based on LIBOR, plus a margin of 2.65% . The final payment under the loan facility is due in October 2027. In addition, the Libra Joint Venture entered into ten -year interest rate swap agreements, with an aggregate notional amount of $588.8 million as at December 31, 2018 , 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 weighted average fixed rate of 2.51% . These interest rate swap agreements are not designated in qualifying cash flow hedging relationships for accounting purposes. In June 2013, the Partnership acquired Teekay Corporation’s 50% interest in OOG TKP FPSO GmbH & Co KG, a joint venture with Ocyan, which owns the Itajai FPSO unit. Included in the joint venture is an eight -year loan facility, which as at December 31, 2018 had an outstanding balance of $138.2 million . The interest payments of the loan facility are based on LIBOR, plus a margin of 2.15% . The final payment under the loan facility is due in 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 $123.4 million as at December 31, 2018 , 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 in qualifying cash flow hedging relationships for accounting purposes. As at December 31, 2018 a nd 2017 , the Part nership had total investments of $212.2 million and $169.9 million , respectively, in equity accounted joint ventures. No indicators of impairment existed at December 31, 2018 and 2017 . The following table presents aggregated summarized financial information assuming a 100% ownership interest in the Partnership’s equity accounted joint ventures. The results included are for the Itajai FPSO joint venture and the Libra Joint Venture. As at December 31, 2018 2017 Cash and cash equivalents 89,634 167,381 Other assets - current 58,574 26,994 Vessels and equipment 1,152,039 1,215,451 Other assets - non-current 37,424 51,908 Current portion of long-term debt 90,063 179,701 Other liabilities - current 49,714 59,840 Long-term debt 684,538 771,573 Other liabilities - non-current 96,147 114,115 Year ended December 31, 2018 2017 2016 Revenues 264,215 90,662 80,999 Income from vessel operations 119,774 43,422 42,380 Realized and unrealized (loss) gain on derivative instruments (7,047 ) (139 ) 1,608 Net income 78,916 28,884 35,866 The Partnership does not control its equity-accounted vessels and as a result, the Partnership does not have the unilateral ability to determine whether the cash generated by its equity-accounted vessels is retained within the entities in which the Partnership holds the equity-accounted investments or distributed to the Partnership and other owners. In addition, the Partnership does not control the timing of such distributions to the Partnership and other owners . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | Basis of presentation The consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (or GAAP ). These financial statements include the accounts of Teekay Offshore Partners L.P., which is a limited partnership organized under the laws of the Republic of the Marshall Islands, and its wholly owned or controlled subsidiaries (collectively, the Partnership ). Unless the context otherwise requires, the terms "we," "us," or "our," as used herein, refer to 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 may differ from those estimates. |
Foreign currency | Foreign currency The consolidated financial statements are stated in U.S. Dollars and the functional currency of the Partnership is the U.S. Dollar. Transactions involving other currencies during the year are converted into U.S. Dollars using the exchange rates in effect at the time of the transactions. At the balance sheet dates, monetary assets and liabilities that are denominated in currencies other than the U.S. Dollar are translated to reflect the year-end exchange rates. Resulting gains or losses are reflected separately in the accompanying consolidated statements of (loss) income . |
Revenues and operating expenses | Revenues Each vessel charter may, depending on its terms, contain a lease component, a non-lease component or both. Revenues that are fixed on or prior to the commencement of the contract are recognized by the Partnership on a straight-line basis daily over the term of the contract. Where the term of the contract is based on the duration of a single voyage, the Partnership uses a discharge-to-discharge basis in determining proportionate performance for all tanker spot voyages that contain a lease and a load-to-discharge basis in determining proportionate performance for all tanker spot voyages that do not contain a lease. Consequently, the Partnership does not begin recognizing revenue until a voyage charter has been agreed to by the customer and the Partnership, even if the vessel has discharged its prior cargo and is sailing to the anticipated load location for its next voyage. For towage voyages, proportionate performance is determined based on commencement of the tow to completion of the tow. Reimbursements of vessel operating expenditures incurred to provide the contracted services to the charterer are recognized when the expenses entitling the Partnership to reimbursement are incurred. Revenue or penalties from performance-based metrics, such as production tariffs and other operational performance measures, are recognized as earned or incurred unless such performance-based revenue is based on a multi-period performance-based metric that is allocable to non-lease services provided. In such a case, the Partnership will estimate the amount of variable consideration, to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved and recognize such estimate of revenue over the performance period. The consolidated balance sheets reflect in other current assets the accrued portion of revenues for those voyages that commence prior to balance sheet date and complete after the balance sheet date and reflect in deferred revenues or other long-term liabilities the deferred portion of revenues which will be earned in subsequent periods. Operating expenses Voyage expenses are all expenses unique to a particular voyage, including bunker fuel expenses, port fees, cargo loading and unloading expenses, canal tolls, agency fees and commissions. Vessel operating expenses include crewing, ship management services, repairs and maintenance, insurance, stores, lube oils and communication expenses. Voyage expenses and vessel operating expenses are recognized when incurred except when the Partnership incurs pre-operational costs related to the repositioning of a vessel or offshore unit that relates directly to a specific customer contract, that generates or enhances resources of the Partnership that will be used in satisfying performance obligations in the future, and where such costs are expected to be recovered via the customer contract. In this case, such costs are deferred and amortized over the duration of the customer contract. The Partnership recognizes the expense from vessels time-chartered from other owners, which is included in time-charter hire expenses in the accompanying consolidated statements of (loss) income , on a straight-line basis over the firm period of the charters. |
Cash and cash equivalents | Cash and cash equivalents The Partnership classifies all highly-liquid investments with a maturity date of three months or less when purchased as cash and cash equivalents. |
Accounts receivable and allowance for doubtful accounts | Accounts receivable and allowance for doubtful accounts Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Partnership’s best estimate of the amount of probable credit losses in existing accounts receivable. The Partnership determines the allowance based on historical write-off experience and customer economic data. The Partnership reviews the allowance for doubtful accounts regularly and past due balances are reviewed for collectability. Account balances are charged against the allowance when the Partnership believes that the receivable will not be recovered. |
Investment in equity accounted joint ventures | Investments in equity accounted joint ventures The Partnership’s investments in equity accounted joint ventures are accounted for using the equity method of accounting. Under the equity method of accounting, the initial cost of the investment is adjusted for subsequent additional investments and the Partnership’s proportionate share of earnings or losses and distributions. The Partnership evaluates its investments in joint ventures for impairment when events or circumstances indicate that the carrying value of such investments may have experienced an other-than-temporary decline in value below carrying value. If the estimated fair value is less than the carrying value, the carrying value is written down to its estimated fair value and the resulting impairment is recorded in the Partnership’s consolidated statements of (loss) income . |
Vessels and equipment | Vessels and equipment All pre-delivery costs incurred during the construction of newbuildings and conversions, including interest, supervision and technical costs, are capitalized. The acquisition cost and all costs incurred to restore used vessels purchased by the Partnership to the standards required to properly service the Partnership’s customers are capitalized. Vessel capital modifications include the addition of new equipment or can encompass various modifications to the vessel which are aimed at improving and/or increasing the operational efficiency and functionality of the asset. This type of expenditure is amortized over the estimated useful life of the modification. Expenditures covering recurring routine repairs or maintenance are expensed as incurred. The Partnership's shuttle tankers are comprised of two components: i) a conventional tanker (or the tanker component ) 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 Partnership assessed the useful life of the tanker component as being 25 years and the shuttle component as being 20 years . During the year ended December 31, 2018 , the Partnership considered challenges associated with shuttle tankers approaching 20 years of age in recent years and reassessed the useful life of the tanker component to 20 years . This change in estimate, which commenced as of January 1, 2018, affected 21 vessels in the Partnership's shuttle tanker fleet. The effect of this change in estimate was an increase in depreciation and amortization expense and net loss of $15.7 million , or $0.04 per basic and diluted common unit, for the year ended December 31, 2018 . Depreciation is calculated on a straight-line basis over a vessel’s estimated useful life to an estimated residual value. F loating production storage and offloading (or FPSO ) units are depreciated using an estimated useful life of 20 to 25 years commencing the date the unit is installed at the oil field and is in a condition that is ready to operate. Some of the Partnership’s FPSO units have oil field specific equipment, which is depreciated over the expected life of the oil field. Floating storage and off take (or FSO ) units are depreciated over the estimated contract term or the estimated useful life of the specific unit. The unit for maintenance and safety (or UMS ) is depreciated over an estimated useful life of 35 years commencing the date it arrived at the oil field and was in a condition that was ready to operate. Towage and offshore installation vessels are depreciated over an estimated useful life of 25 years commencing the date the vessel is delivered from the shipyard. Depreciation of vessels and equipment for the years ended December 31, 2018 , 2017 and 2016 , totaled $348.4 million , $286.1 million , and $281.2 million , respectively. Depreciation and amortization includes depreciation on all owned vessels. Interest costs capitalized to vessels and equipment for the years ended December 31, 2018 , 2017 and 2016 totaled $11.1 million , $29.6 million and $27.1 million , respectively. Generally, the Partnership dry docks each shuttle tanker and towage vessel every two and a half to five years . UMS, FSO and FPSO units are generally not dry docked. The Partnership capitalizes a portion of the costs incurred during dry docking and amortizes those costs on a straight-line basis from the completion of a dry docking over the estimated useful life of the dry dock. Included in capitalized dry docking are costs incurred as part of the dry docking to meet regulatory requirements, or expenditures that either add economic life to the vessel, increase the vessel’s earning capacity or improve the vessel’s operating efficiency. The Partnership expenses costs related to routine repairs and maintenance performed during dry docking that do not improve operating efficiency or extend the useful lives of the assets. Dry-docking activity for the three years ended December 31, 2018 , 2017 and 2016 is summarized as follows: Year Ended Year Ended Year Ended December 31, December 31, December 31, 2018 2017 2016 $ $ $ Balance at beginning of the year 42,829 49,238 42,822 Cost incurred for dry-docking 23,602 17,183 25,043 Dry-docking amortization (23,893 ) (22,870 ) (18,627 ) Write down / sale of vessels with capitalized dry-dock expenditure — (722 ) — Balance at end of the year 42,538 42,829 49,238 Vessels and equipment that are “held and used” are assessed for impairment when events or circumstances indicate the carrying amount of the asset may not be recoverable. If the asset’s net carrying value exceeds the net undiscounted cash flows expected to be generated over its remaining useful life, the carrying amount of the asset is reduced to its estimated fair value. The estimated fair value for the Partnership’s impaired vessels is determined using discounted cash flows or appraised values. In cases where an active second hand sale and purchase market does not exist, the Partnership uses a discounted cash flow approach to estimate the fair value of an impaired vessel. In cases where an active second hand sale and purchase market exists, an appraised value is used to estimate the fair value of an impaired vessel. An appraised value is generally the amount the Partnership would expect to receive if it were to sell the vessel. Such appraisal is normally completed by the Partnership. When an asset impairment occurs, the Partnership adjusts the carrying value of the asset to its new cost base and writes off the asset's accumulated depreciation. |
Asset retirement obligation | Asset retirement obligation The Partnership has an asset retirement obligation (or ARO ) relating to the sub-sea mooring and riser system associated with the Randgrid FSO unit. 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 operates, which is currently estimated to be May 2024. 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 liability and asset. |
Debt issuance costs | Debt issuance costs Debt issuance costs related to a recognized debt liability, including bank fees, commissions and legal expenses, are capitalized and amortized over the term of the relevant loan facility to interest expense using an effective interest rate method. Debt issuance costs are presented as a reduction from the carrying amount of that debt liability, unless no amounts have been drawn under the debt liability or the debt issuance costs exceed the carrying value of the related debt liability, in which case the debt issuance costs are presented as other non-current assets. Fees paid to amend a non-revolving credit facility are associated with the extinguishment of the old debt instrument and included in determining the debt extinguishment gain or loss to be recognized. Any unamortized debt issuance costs would be written off. If a debt amendment is considered not to be a substantial amendment, then the fees would be associated with the replacement or modified debt instrument and, along with any existing unamortized debt issuance costs and premium or discount, would be amortized as an adjustment of interest expense over the remaining term of the replacement or modified debt instrument using the effective interest method. Other related costs incurred with third parties directly related to the modification, other than the loan amendment fee, are expensed as incurred. Fees paid to amend revolving credit facilities are deferred and amortized over the term of the modified credit facility. If the borrowing capacity is increased as a result of the amendment, unamortized loan costs of the original facility would be deferred and amortized over the term of the modified credit facility. If the borrowing capacity is decreased as a result of the amendment, a proportionate amount, based on the reduction in borrowing capacity, of the unamortized debt issuance costs of the original facility would be written off and the remaining amount would be deferred and amortized over the term of the modified credit facility. |
Goodwill | Goodwill Goodwill is not amortized, but reviewed for impairment at the reporting unit level on an annual basis or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. When goodwill is reviewed for impairment, the Partnership will measure the amount by which a reporting unit’s carrying value exceeds its fair value, with the maximum impairment not to exceed the carrying value of goodwill. |
Derivative instruments | Derivative instruments All derivative instruments are initially recorded at fair value as either assets or liabilities in the accompanying consolidated balance sheets and subsequently remeasured to fair value, regardless of the purpose or intent for holding the derivative. The method of recognizing the resulting gain or loss is dependent on whether the derivative contract is designed to hedge a specific risk and also qualifies and is designated for hedge accounting. During the years ended December 31, 2018 and 2017, certain of the Partnership's interest rate swaps were designated in qualifying hedging relationships and hedge accounting was applied in the consolidated financial statements or within the Partnership's equity-accounted joint ventures (see note 12 ). When a derivative is designated in a cash flow hedge, the Partnership formally documents the relationship between the derivative and the hedged item. This documentation includes the strategy and risk management objective for undertaking the hedge and the method that will be used to assess the effectiveness of the hedge. Any hedge ineffectiveness is recognized immediately in earnings, as are any gains and losses on the derivative that are excluded from the assessment of hedge effectiveness. The Partnership does not apply hedge accounting if it is determined that the hedge was not effective or will no longer be effective, the derivative was sold or exercised, or the hedged item was sold, repaid or is no longer probable of occurring. As at December 31, 2018, the Partnership has de-designated all hedging relationships and does not apply hedge accounting to any of its derivative instruments. For derivative financial instruments designated in qualifying cash flow hedges, changes in the fair value of the effective portion of the derivative financial instruments are initially recorded as a component of accumulated other comprehensive income in equity. In the periods when the hedged items affect earnings, the associated fair value changes on the hedging derivatives are transferred from equity to the corresponding earnings line item in the consolidated statements of (loss) income . The ineffective portion of the change in fair value of the derivative financial instruments is immediately recognized in the interest expense line of the consolidated statements of (loss) income . A portion of the ineffectiveness of the fair value of derivative instruments is recognized in the equity accounted joint ventures line of the consolidated balance sheets. If a cash flow hedge is de-desiganted and the originally hedged item is still considered probable of occurring, the gains and losses initially recognized in equity remain there until the hedged item impacts earnings, at which point they are transferred to the corresponding earnings line item in the consolidated statements of (loss) income . If the hedged item is no longer probable of occurring, amounts recognized in equity are immediately transferred to the relevant earnings line item in the consolidated statements of (loss) income . For derivative financial instruments that are not designated as accounting hedges, the changes in the fair value of the derivative financial instruments are recognized in earnings. Gains and losses from the Partnership’s non-designated foreign currency forward contracts and interest rate swaps are recorded in realized and unrealized loss on derivative instruments in the consolidated statements of (loss) income . Gains and losses from the Partnership’s non-designated cross currency swaps are recorded in foreign currency exchange loss in the consolidated statements of (loss) income . |
Unit-based compensation | Unit-based compensation The Partnership grants restricted unit-based compensation awards as incentive-based compensation to certain employees of the Partnership and Teekay Corporation’s subsidiaries that provide services to the Partnership (see note 17 ). The Partnership measures the cost of such awards using an option pricing model to determine the grant date fair value of the award and recognizes that cost, net of estimated forfeitures, over the requisite service period. The requisite service period consists of the period from the grant date of the award to the earlier of the date of vesting or the date the recipient becomes eligible for retirement. For unit-based compensation awards subject to graded vesting, the Partnership calculates the value of the award as if it was one single award with one expected life and amortizes the calculated expense for the entire award on a straight-line basis over the requisite service period. Certain of these awards are cash settled. For cash settled awards, the fair value of such awards is remeasured at each reporting date, based on the fair market value of the Partnership's common units at that date, with the change in fair value recognized as compensation expense. Unit-based compensation expenses are recorded under general and administrative expenses in the Partnership’s consolidated statements of (loss) income . |
Income taxes | Income taxes The Partnership is subject to income taxes relating to its subsidiaries in Norway, Australia, Brazil, the United Kingdom, Singapore, Qatar, Canada, Luxembourg and the Netherlands. The Partnership accounts for such taxes using the liability method. Under the liability method, deferred tax assets and liabilities are recognized for the anticipated future tax effects of temporary differences between the financial statement basis and the tax basis of the Partnership’s assets and liabilities using the applicable jurisdictional tax rates. A valuation allowance for deferred tax assets is recorded when it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized. Recognition of uncertain tax positions is dependent upon whether it is more-likely-than-not that a tax position taken or expected to be taken in a tax return will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. If a tax position meets the more-likely-than-not recognition threshold, it is measured to determine the amount of benefit to recognize in the consolidated financial statements based on guidance in the interpretation. The Partnership recognizes interest and penalties related to uncertain tax positions in income tax recovery (expense) in the Partnership’s consolidated statements of (loss) income . |
Accounting pronouncements | Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (or FASB ) issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (or ASU 2014-09 ). ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update creates a five-step model that requires entities to exercise judgment when considering the terms of the contract(s) which include (i) identifying the contract(s) with the customer, (ii) identifying the separate performance obligations in the contract, (iii) determining the transaction price, (iv) allocating the transaction price to the separate performance obligations, and (v) recognizing revenue as each performance obligation is satisfied. ASU 2014-09 was adopted by the Partnership January 1, 2018, and has been applied, at the Partnership’s option, as a cumulative-effect adjustment as of the date of adoption. The Partnership has elected to apply ASC 2014-09 only to those contracts that were not completed as of January 1, 2018 . The Partnership identified the following differences: • Voyage revenues from towage and offshore installation vessels are recognized over the period where the tow is being performed instead of the period of the tow and the mobilization and demobilization of the towage vessel. The cumulative-effect adjustment on January 1, 2018 and the impact for the year ended December 31, 2018 was insignificant. • Revenue from time-charter contracts with fixed annual increases in the daily hire rate during the firm period of the charter to compensate for expected inflationary cost increases are recognized on a smoothed basis over the term of the time-charter, instead of recognized when due under the contract. For time-charters with a termination fee owing if the contract is not extended past the contract term, the non-lease portion of such termination fee is recognized over the contract term, instead of recognized when the termination fee is incurred. These changes had the impact of increasing revenue by $2.9 million for the year ended December 31, 2018 , as well as increasing other assets by $11.4 million , decreasing deferred tax assets by $0.9 million and increasing equity by $10.5 million as at December 31, 2018 . The cumulative-effect adjustment on January 1, 2018 was an increase to equity of $7.7 million . • In certain cases, the Partnership incurs pre-operational costs that relate directly to a specific customer contract, that generate or enhance resources of the Partnership that will be used in satisfying performance obligations in the future, whereby such costs are expected to be recovered via the customer contract. Such costs are deferred and amortized over the duration of the customer contract. The Partnership previously expensed such costs as incurred unless the costs were directly reimbursable by the contract or if they were related to the mobilization of offshore assets to an oil field. This change had the impact of decreasing (increasing) voyage expenses by $1.8 million , vessel operating expenses by $(2.6) million , depreciation and amortization by $1.1 million and equity income by $0.6 million for the year ended December 31, 2018 , as well as increasing other assets by $27.8 million , investments in equity accounted joint ventures by $1.2 million , and equity by $29.0 million as at December 31, 2018 . The cumulative increase to opening equity as at January 1, 2018 was $29.4 million . • The Partnership manages FPSO units owned by Teekay Corporation and other vessels. Upon the adoption of ASU 2014-09, costs incurred by the Partnership for its onshore staff and seafarers are presented as vessel operating expenses and the reimbursement of such expenses are presented as revenue, instead of such amounts being presented on a net basis. This had the impact of increasing revenues and vessel operating expenses by $41.2 million for the year ended December 31, 2018 . There was no cumulative impact to opening equity as at January 1, 2018. • Operating costs for the Partnership's Volatile Organic Compounds (or VOC ) plants on certain shuttle tankers are presented as vessel operating expenses and the reimbursement of such expenses are presented as revenue instead of such amounts being presented on a net basis. This had the impact of increasing revenues and vessel operating expenses by $8.3 million for the year ended December 31, 2018 . There was no cumulative impact to opening equity as at January 1, 2018. • The Partnership previously presented the net allocation for its vessels participating in revenue sharing arrangements as revenues. The Partnership has determined that it is the principal in voyages its vessels perform that are included in the revenue sharing arrangements. As such, the revenue from those voyages is presented in voyage revenues and the difference between this amount and the Partnership's net allocation from the revenue sharing arrangement is presented as voyage expenses. This had the impact of increasing revenues and voyage expenses by $13.1 million for the year ended December 31, 2018 . There was no cumulative impact to opening equity as at January 1, 2018. • The Partnership previously presented all accrued revenue as a component of accounts receivable. The Partnership has determined that if the right to such consideration is conditional upon something other than the passage of time before payment of that consideration is due, such accrued revenue should be presented apart from accounts receivable. This had the impact of increasing other current assets and decreasing accounts receivable by $5.7 million at December 31, 2018 . There was no cumulative impact to opening equity as at January 1, 2018. • Deferred costs have presented solely as a long-term asset if the remaining charter contract is more than one year or presented solely as a short-term asset if the charter contract is less than one year. This had the impact of decreasing other current assets and increasing long term assets by $14.5 million as at December 31, 2018 . There was no cumulative impact to opening equity as at January 1, 2018. In August 2016, the FASB issued Accounting Standards Update 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (or ASU 2016-15 ), which, among other things, provides guidance on two acceptable approaches of classifying distributions received from equity method investees in the statements of cash flows and application of the predominance principle on the cash flow statement classification of cash receipts and payments that have aspects of more than one class of cash flows. ASU 2016-15 became effective for the Partnership January 1, 2018, with a retrospective approach required on adoption. The Partnership has elected to classify distributions received from equity method investees in the statement of cash flows based on the nature of the distribution. In addition, the adoption of ASU 2016-15 resulted in $37.3 million of cross currency swap payments that were related to the principal prepayment or repayment of long-term debt for the year ended December 31, 2018 ( December 31, 2017 - $66.7 million and December 31, 2016 - $42.3 million ), being reclassified from a net operating cash outflow to a prepayment or repayment of long-term debt in net financing cash flow as the amounts related entirely or predominantly to the termination or final settlement of the cross currency swaps. In November 2016, the FASB issued Accounting Standards Update 2016-18, Statement of Cash Flows: Restricted Cash (or ASU 2016-18 ). ASU 2016-18 requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Entities are also required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. ASU 2016-18 became effective for the Partnership January 1, 2018. Adoption of ASU 2016-18 resulted in the Partnership including in its statement of cash flows changes in cash, cash equivalents and restricted cash. In August 2018, the FASB issued Accounting Standards Update 2018-15, Intangibles-Goodwill and Other-Internal Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract , (or ASU 2018-15 ). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. ASU 2018-15 is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. This update was adopted by the Partnership on October 1, 2018. There was no impact on transition from the adoption of this update. In October 2017, the FASB issued Accounting Standards Update 2017-04, Simplifying the Test for Goodwill Impairment . Pursuant to this update, goodwill impairment will now be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill. This update eliminates existing guidance that required an entity to determine goodwill impairment by calculating the implied fair value of goodwill by hypothetically assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. This update was adopted by the Partnership on October 1, 2018. There was no impact on transition from the adoption of this update. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (or ASU 2016-02). ASU 2016-02 establishes a right-of- use model that requires a lessee to record a right of use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. For lessees, leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 requires lessors to classify leases as a sales-type, direct financing, or operating lease. A lease is a sales-type lease if any one of five criteria are met, each of which indicate that the lease, in effect, transfers control of the underlying asset to the lessee. If none of those five criteria are met, but two additional criteria are both met, indicating that the lessor has transferred substantially all of the risks and benefits of the underlying asset to the lessee and a third party, the lease is a direct financing lease. All leases that are not sales-type leases or direct financing leases are operating leases. ASU 2016-02 is effective January 1, 2019, with early adoption permitted. FASB issued an additional accounting standards update in July 2018 that made further amendments to accounting for leases, including allowing the use of a transition approach whereby a cumulative effect adjustment is made as of the effective date, with no retrospective effect. The Partnership has elected to use this new optional transition approach. The Partnership will adopt ASU 2016-02 on January 1, 2019. To determine the cumulative effect adjustment, the Partnership will not reassess whether any expired or existing contracts are, or contain leases, will not reassess lease classification, and will not reassess initial direct costs for any existing leases. The adoption of ASU 2016-02 will result in a change in the accounting method for the lease portion of the daily charter hire for the Partnership's chartered-in vessels accounted for as operating leases with firm periods of greater than one year. As of December 31, 2018 , the Partnership had four in-chartered vessels in its fleet, the accounting for three of which vessels will be impacted by the adoption of ASU 2016-02 as well as a small number of office leases. Under ASU 2016-02, the Partnership will recognize a right-of-use asset and a lease liability on the balance sheet for these charters and office leases based on the present value of future minimum lease payments, whereas currently no right-of-use asset or lease liability is recognized. The right of use asset and lease liability to be recognized on January 1, 2019 is $19.4 million . The pattern of expense recognition of chartered-in vessels is expected to remain substantially unchanged, unless the right of use asset becomes impaired. In addition, direct financing lease payments received will be presented as an operating cash inflow instead of an investing cash inflow in the statement of cash flows. In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (or ASU 2016-13 ). ASU 2016-13 replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This update is effective for the Partnership January 1, 2020, with a modified-retrospective approach. The Partnership is currently evaluating the effect of adopting this new guidance. |
Fair value measurements | Fair value measurements The following methods and assumptions were used to estimate the fair value of each class of financial instrument: Cash and cash equivalents and restricted cash - The fair values of the Partnership’s cash and cash equivalents and restricted cash approximate their carrying amounts reported in the accompanying consolidated balance sheets. 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 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. For a description of the performance criteria, please refer to the Partnership's Annual Report on Form 20-F for the year ended December 31, 2015. The Arendal Spirit UMS was delivered to the Partnership on February 16, 2015. During the second quarter of 2016, the Partnership canceled the UMS construction contracts for its two remaining UMS newbuildings. This was expected to eliminate any future purchase price contingent consideration payments. Consequently, the contingent liability associated with the UMS newbuildings 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 statement of income for the year ended December 31, 2016 . In September 2017, CeFront and subsidiaries of the Partnership entered into a settlement agreement relating to this contingent liability (see note 14b). The Partnership categorizes its fair value estimates using a fair value hierarchy based on the inputs used to measure fair value. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value as follows: Level 1. Observable inputs such as quoted prices in active markets; Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. |
Derivative instruments and Long-term debt | Derivative instruments – The fair value of the Partnership’s derivative instruments is the estimated amount that the Partnership would receive or pay to terminate the agreements at the reporting date, taking into account current interest rates, foreign exchange rates and the current credit worthiness of both the Partnership and the derivative counterparties. The estimated amount is the present value of future cash flows. The Partnership transacts all of its derivative instruments through investment-grade rated financial institutions at the time of the transaction. The Partnership’s interest rate swap agreements and foreign currency forward contracts require no collateral from these institutions; however, collateral is required by these institutions on some of the Partnership’s cross currency swap agreements and as at December 31, 2018 the Partnership had pledged $1.2 million of cash as collateral ( 2017 - $4.1 million ), which has been recorded as restricted cash on the Partnership's consolidated balance sheets. Long-term debt – The fair value of the Partnership’s fixed-rate and variable-rate long-term debt is either based on quoted market prices or estimated using discounted cash flow analysis based on rates currently available for debt with similar terms and remaining maturities and the current credit worthiness of the Partnership. |
Segment reporting | Segment Reporting The Partnership is engaged in the international marine transportation of crude oil, the offshore processing and storage of crude oil, long-distance ocean towage and offshore installation services, and maintenance and safety services through the operation of its shuttle and conventional tankers, FSO units, FPSO units, towage and offshore installation vessels and UMS. The Partnership’s revenues are earned in international markets. The Partnership has six reportable segments: its FPSO segment; its shuttle tanker segment; its FSO segment; its UMS segment; its towage and offshore installation vessels (or towage ) segment; and its conventional tanker segment. The Partnership’s FPSO segment consists of its FPSO units to service its FPSO contracts. The Partnership’s shuttle tanker segment consists of shuttle tankers operating primarily on fixed-rate contracts of affreightment, time-charter contracts or bareboat charter contracts. The Partnership’s FSO segment consists of its FSO units subject to fixed-rate, time-charter contracts or bareboat charter contracts. The Partnership’s UMS segment consists of one unit currently in lay-up. The Partnership’s towage and offshore installation vessels segment consists of long-distance towage and offshore installation vessels which operate on time-charter or voyage charter contracts. The Partnership’s conventional tanker segment consists of two in-chartered conventional tankers, which are currently operating in the spot conventional tanker market. Segment results are evaluated based on income from vessel operations. The accounting policies applied to the reportable segments are the same as those used in the preparation of the Partnership’s consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Dry-Docking Activity | Dry-docking activity for the three years ended December 31, 2018 , 2017 and 2016 is summarized as follows: Year Ended Year Ended Year Ended December 31, December 31, December 31, 2018 2017 2016 $ $ $ Balance at beginning of the year 42,829 49,238 42,822 Cost incurred for dry-docking 23,602 17,183 25,043 Dry-docking amortization (23,893 ) (22,870 ) (18,627 ) Write down / sale of vessels with capitalized dry-dock expenditure — (722 ) — Balance at end of the year 42,538 42,829 49,238 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
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 years ended December 31, 2018 , 2017 and 2016 , are as follows: Year Ended Year Ended Year Ended Balance at beginning of period — — (14,830 ) Acquisition of Logitel — — — Settlement of liability — — — Gain included in Other income (expense) - net — — 14,830 Balance at end of period — — — |
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: December 31, 2018 December 31, 2017 Fair Value Hierarchy Level Carrying Amount Asset (Liability) $ Fair Value Asset (Liability) $ Carrying Amount Asset (Liability) $ Fair Value Asset (Liability) $ Recurring: Cash and cash equivalents and restricted cash Level 1 233,580 233,580 250,294 250,294 Derivatives instruments (note 12) Interest rate swap agreements Level 2 (107,074 ) (107,074 ) (168,247 ) (168,247 ) Cross currency swap agreement Level 2 (4,538 ) (4,538 ) (44,006 ) (44,006 ) Foreign currency forward contracts Level 2 (4,650 ) (4,650 ) (357 ) (357 ) Other: Long-term debt - public (note 8) Level 1 (1,027,696 ) (977,917 ) (666,427 ) (671,635 ) Long-term debt - non-public (note 8) Level 2 (2,070,046 ) (2,082,316 ) (2,457,301 ) (2,475,946 ) Due to affiliates - current (note 11h) Level 2 (125,000 ) (123,025 ) — — Due to affiliates - long term (note 11f) Level 2 — — (163,037 ) (210,089 ) |
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 Year Ended Year Ended Direct financing leases Payment activity Performing 4,793 17,207 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Revenues and Percentage of Consolidated Revenues | The following table presents revenues and percentage of consolidated revenues for customers that accounted for more than 10% of the Partnership’s consolidated revenues during the periods presented. (U.S. Dollars in millions) Year Ended Year Ended Year Ended Royal Dutch Shell Plc (1)(2) $327.6 or 23% $338.2 or 31% $349.0 or 30% Petroleo Brasileiro S.A. (1) $254.8 or 18% $190.7 or 17% $222.0 or 19% Equinor ASA (formerly Statoil ASA) (3) $182.1 or 13% $114.5 or 10% — (4) Premier Oil (5)(6) — (4) $113.5 or 10% $113.5 or 10% (1) Shuttle tanker and FPSO segments. (2) In February 2016, Royal Dutch Shell Plc acquired BG Group Plc; therefore the amount in the table for 2016 includes revenues from both Royal Dutch Shell Plc and BG Group Plc. (3) Shuttle tanker segment and FSO segment. (4) Percentage of consolidated revenue was less than 10% . (5) In April 2016, Premier Oil acquired E.ON Ruhgras UK GP Limited's (or E.ON) UK North Sea assets where the Voyageur Spirit FPSO unit operates. Revenues up to April 2016 are attributable to E.ON. (6) FPSO segment. |
Segment Results as Presented in Consolidated Financial Statements | The following tables include results for the Partnership’s FPSO unit segment; shuttle tanker segment; FSO unit segment; UMS segment; towage and offshore installation vessels segment; and conventional tanker segment for the periods presented in these consolidated financial statements. Year ended December 31, 2018 FPSO Segment Shuttle Tanker Segment FSO Segment UMS Segment Towage Segment Conventional Tanker Segment Eliminations (3) Total Revenues (1) 533,186 636,413 136,557 36,536 53,327 21,325 (920 ) 1,416,424 Voyage expenses — (109,796 ) (769 ) (47 ) (28,925 ) (12,453 ) 182 (151,808 ) Vessel operating expenses (214,623 ) (149,226 ) (42,913 ) (3,679 ) (27,346 ) — 116 (437,671 ) Time-charter hire expenses — (36,421 ) — — — (16,195 ) — (52,616 ) Depreciation and amortization (145,451 ) (155,932 ) (44,077 ) (6,611 ) (20,323 ) — 104 (372,290 ) General and administrative (2) (34,052 ) (21,763 ) (2,174 ) (3,547 ) (3,531 ) (360 ) — (65,427 ) (Write-down) and gain on sale of vessels (180,200 ) (43,155 ) — — — — — (223,355 ) Restructuring charge (1,520 ) — — — — — — (1,520 ) (Loss) income from vessel operations (42,660 ) 120,120 46,624 22,652 (26,798 ) (7,683 ) (518 ) 111,737 Equity income 39,458 — — — — — — 39,458 Investment in joint ventures 212,202 — — — — — — 212,202 Expenditures for vessels and equipment, including advances on newbuilding contracts and conversion costs 54,371 147,540 6,987 — 24,838 — — 233,736 Expenditures for dry docking — 22,135 — — 1,467 — — 23,602 Year ended December 31, 2017 FPSO Segment Shuttle Tanker Segment FSO Segment UMS Segment Towage Segment Conventional Tanker Segment Eliminations (3) Total Revenues 458,388 536,852 66,901 4,236 38,771 14,022 (8,886 ) 1,110,284 Voyage expenses — (80,964 ) (1,172 ) (1,152 ) (17,727 ) (359 ) 1,930 (99,444 ) Vessel operating (expenses) recoveries (149,153 ) (129,517 ) (25,241 ) (33,656 ) (21,074 ) 10 5,067 (353,564 ) Time-charter hire expenses — (62,899 ) — — (925 ) (16,491 ) — (80,315 ) Depreciation and amortization (143,559 ) (125,648 ) (19,406 ) (6,566 ) (15,578 ) — 782 (309,975 ) General and administrative (2) (33,046 ) (17,425 ) (1,864 ) (5,068 ) (4,486 ) (360 ) — (62,249 ) (Write-down) and gain (loss) on sale of vessels (265,229 ) (51,741 ) (1,108 ) — — — — (318,078 ) Restructuring charge (450 ) (210 ) — (2,004 ) — — — (2,664 ) (Loss) income from vessel operations (133,049 ) 68,448 18,110 (44,210 ) (21,019 ) (3,178 ) (1,107 ) (116,005 ) Equity income 14,442 — — — — — — 14,442 Investment in joint ventures 169,875 — — — — — — 169,875 Expenditures for vessels and equipment, including advances on newbuilding contracts and conversion costs 193,817 216,157 88,039 3,931 31,316 — — 533,260 Expenditures for dry docking — 16,323 199 — 661 — — 17,183 Year ended December 31, 2016 FPSO Segment Shuttle Tanker Segment FSO Segment UMS Segment Towage Segment Conventional Tanker Segment Eliminations Total Revenues 495,223 509,596 54,440 34,433 37,952 20,746 — 1,152,390 Voyage expenses — (62,846 ) (1,517 ) — (15,024 ) (1,363 ) — (80,750 ) Vessel operating expenses (165,346 ) (123,950 ) (23,167 ) (32,888 ) (17,524 ) (1,566 ) — (364,441 ) Time-charter hire expenses — (62,511 ) — — — (12,974 ) — (75,485 ) Depreciation and amortization (149,198 ) (122,822 ) (9,311 ) (6,660 ) (12,020 ) — — (300,011 ) General and administrative (2) (35,971 ) (10,160 ) (836 ) (5,495 ) (3,307 ) (353 ) — (56,122 ) Gain on sale and (write down) of vessels — 4,554 (983 ) (43,650 ) — — — (40,079 ) Restructuring charge (4,444 ) (205 ) — — — — — (4,649 ) Income (loss) from vessel operations 140,264 131,656 18,626 (54,260 ) (9,923 ) 4,490 — 230,853 Equity income 17,933 — — — — — — 17,933 Investment in joint ventures 141,819 — — — — — — 141,819 Expenditures for vessels and equipment, including advances on newbuilding contracts and conversion costs 66,234 40,584 101,347 9,742 76,674 — — 294,581 Expenditures for dry docking — 19,105 5,139 — 799 — — 25,043 (1) Includes revenues of $55.0 million and $36.5 million in the shuttle tanker and UMS segments, respectively, during the year ended December 31, 2018 related to a settlement agreement with Petrobras and Petroleo Netherlands B.V. - PNBV S.A. (or Petrobras ) in relation to the previously-terminated charter contracts of the HiLoad DP unit and Arendal Spirit UMS (see note 5). (2) Includes direct general and administrative expenses and indirect general and administrative expenses (allocated to each segment based on estimated use of corporate resources). (3) Includes revenue and expenses earned and incurred between segments of the Partnership, during the years ended December 31, 2018 and December 31, 2017 . |
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: December 31, 2018 December 31, 2017 FPSO segment 2,279,277 2,506,660 Shuttle tanker segment 1,684,887 1,765,664 FSO segment 463,647 516,567 UMS segment 220,509 190,440 Towage segment 419,000 398,610 Conventional tanker segment 4,259 3,360 Unallocated: Cash and cash equivalents and restricted cash 233,580 250,294 Other assets 6,893 6,200 Consolidated total assets 5,312,052 5,637,795 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Partnership Revenue | The following tables contain the Partnership’s revenue for the years ended December 31, 2018 , 2017 and 2016 , by contract type and by segment: Year ended December 31, 2018 FPSO Segment Shuttle Tanker Segment FSO Segment UMS Segment Towage Segment Conventional Tanker Segment Eliminations (1) Total FPSO contracts 481,700 — — — — — — 481,700 Contracts of affreightment — 198,448 — — — — — 198,448 Time charters — 294,112 116,125 — — — — 410,237 Bareboat charters — 44,759 17,383 — — — — 62,142 Voyage charters — 28,027 — — 53,327 21,325 (920 ) 101,759 Management fees and other (2) 51,486 71,067 3,049 36,536 — — — 162,138 533,186 636,413 136,557 36,536 53,327 21,325 (920 ) 1,416,424 Year ended December 31, 2017 FPSO Segment Shuttle Tanker Segment FSO Segment UMS Segment Towage Segment Conventional Tanker Segment Eliminations (1) Total FPSO contracts 458,388 — — — — — — 458,388 Contracts of affreightment — 170,703 — — — — — 170,703 Time charters — 284,281 47,605 4,236 — 9,132 — 345,254 Bareboat charters — 69,568 19,296 — — — — 88,864 Voyage charters — 12,300 — — 38,771 4,890 (8,886 ) 47,075 458,388 536,852 66,901 4,236 38,771 14,022 (8,886 ) 1,110,284 Year ended December 31, 2016 FPSO Segment Shuttle Tanker Segment FSO Segment UMS Segment Towage Segment Conventional Tanker Segment Eliminations Total FPSO contracts 495,223 — — — — — — 495,223 Contracts of affreightment — 148,367 — — — — — 148,367 Time charters — 251,217 38,600 34,433 — 12,271 — 336,521 Bareboat charters — 91,994 15,840 — — — 107,834 Voyage charters — 18,018 — — 37,952 8,475 — 64,445 495,223 509,596 54,440 34,433 37,952 20,746 — 1,152,390 (1) Includes revenues earned between segments of the Partnership, during the years ended December 31, 2018 and December 31, 2017 . (2) Includes revenues of $55.0 million and $36.5 million in the shuttle tanker and UMS segments, respectively, related to a settlement agreement with Petrobras in relation to the previously-terminated charter contracts of the HiLoad DP unit and Arendal Spirit UMS. As part of the settlement agreement, Petrobras has agreed to pay a total amount of $96.0 million to the Partnership, which includes $55.0 million that was paid November 2018, and amounts of $22.0 million payable in late-2020 and $19.0 million payable in late-2021, which are available to be reduced by 40% of the revenues paid prior to the end of 2021 by Petrobras under any new contracts entered into subsequent to October 25, 2018 relating specifically to the Arendal Spirit UMS and the Cidade de Rio das Ostras and Piranema Spirit FPSO units. The following table contains the Partnership’s revenue from contracts that do not contain a lease element and the non-lease element of time-charters accounted for as direct financing leases for the years ended December 31, 2018 , 2017 and 2016 : Year ended December 31, 2018 2017 2016 $ $ $ Non-lease revenue - related to sales type or direct financing leases 4,547 5,813 6,203 Voyage charters - towage 53,327 38,771 37,952 Management fees and other 162,138 — — Total 220,012 44,584 44,155 |
Schedule of Contract Assets and Contract Liabilities | The following table presents the contract assets and contract liabilities on the Partnership’s consolidated balance sheets associated with these long-term charter arrangements from contracts with customers. December 31, 2018 January 1, 2018 $ $ Contract Assets Current 7,926 3,866 Non-Current 62,295 54,919 70,221 58,785 Contract Liabilities Current 55,750 69,668 Non-Current 145,852 176,755 201,602 246,423 |
Schedule of Balances of Assets Recognized from the Costs to Fulfill Contract with Customer | The balances of assets recognized from the costs to fulfill a contract with a customer classified as other assets, split between current and non-current portions, on the Partnership's balance sheet, by main category, excluding balances in the Partnership’s equity accounted joint ventures, are as follows: Year ended December 31, 2018 2017 2016 $ $ $ Pre-operational costs 24,031 4,522 2,855 Offshore asset mobilization costs 51,302 57,818 65,360 Vessel repositioning costs 15,188 — — 90,521 62,340 68,215 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Components of Accrued Liabilities | December 31, 2018 December 31, 2017 Interest including interest rate swaps 44,887 26,111 Payroll and benefits 34,828 10,378 Voyage and vessel expenses 25,475 38,921 Audit, legal, contingency and other general expenses 21,626 101,130 Income and other tax payable 3,080 11,147 129,896 187,687 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | December 31, 2018 December 31, 2017 U.S. Dollar-denominated Revolving Credit Facilities due through 2022 523,125 629,667 U.S. Dollar-denominated Term Loans due through 2030 1,388,107 1,623,440 U.S. Dollar-denominated Term Loan due through 2021 55,018 85,574 U.S. Dollar Bonds due through 2023 1,024,816 550,000 U.S. Dollar Non-Public Bonds due through 2024 141,158 162,659 Norwegian Krone Bonds due through 2019 9,953 121,889 Total principal 3,142,177 3,173,229 Less debt issuance costs and other (44,435 ) (49,501 ) Total debt 3,097,742 3,123,728 Less current portion (554,336 ) (589,767 ) Long-term portion 2,543,406 2,533,961 |
Related Party Transactions an_2
Related Party Transactions and Balances (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Revenues (Expenses) from Related Party Transactions | Year Ended December 31, 2018 2017 2016 Revenues (1) 117,764 49,509 49,228 Vessel operating expenses (2) (6,298 ) (32,346 ) (34,629 ) General and administrative (3) (18,162 ) (31,340 ) (29,944 ) Interest expense (4)(5)(6)(7)(8)(9)(10) (38,695 ) (25,882 ) (22,400 ) Losses on debt repurchases (11) (46,041 ) — — (1) Includes revenue from time-charter-out or bareboat contracts with subsidiaries of Teekay Corporation, including management fees from ship management services provided by the Partnership to a subsidiary of Teekay Corporation. The year ended December 31, 2016 includes an early termination fee received by the Partnership from Teekay Corporation of $4.0 million . (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 interest expense of $10.0 million for the year ended December 31, 2018 (December 31, 2017 and 2016 - $5.3 million and $ nil , respectively), and accretion expense of $2.7 million for the year ended December 31, 2018 (December 31, 2017 and 2016 - $2.2 million and $ nil , respectively), incurred on the Brookfield Promissory Note (see note 11f). The Brookfield Promissory Note was recorded at its relative fair value at its acquisition date of $163.6 million and is recorded net of debt issuance costs on the Partnership's consolidated balance sheet as at December 31, 2017. On July 2, 2018, the Partnership repurchased the Brookfield Promissory Note (see note 11i). (5) Includes interest expense of $5.0 million for the year ended December 31, 2018 (December 31, 2017 and 2016 - $ nil and $ nil , respectively), incurred on the unsecured revolving credit facility provided by Teekay Corporation and Brookfield, which the Partnership entered into on March 31, 2018 (see note 11h). (6) Includes interest expense of $21.0 million for the year ended December 31, 2018 (December 31, 2017 and 2016 - $ nil and $ nil , respectively), incurred on the portion of five-year senior unsecured bonds held by Brookfield (see note 11i). (7) Includes interest expense of $14.6 million for the year ended December 31, 2017 (December 31, 2016 - $10.0 million ), incurred on the 2016 Teekay Corporation Promissory Note (see note 11e). (8) Includes a guarantee fee related to the final bullet payment of the Piranema Spirit FPSO unit debt facility, which was repaid in March 2017, and a guarantee fee related to 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 Partnership's interest rate swaps and cross currency swaps until September 25, 2017 (see notes 11g and 12). (9) Includes interest expense of $5.0 million for the year ended December 31, 2016, incurred on a $100.0 million six-month loan made by Teekay Corporation to the Partnership on January 1, 2016, which bore interest at an annual rate of 10.00% on the outstanding principal balance. The loan was refinanced on July 1, 2016 under the 2016 Teekay Corporation Promissory Note. (10) Includes interest expense of $3.2 million for the year ended December 31, 2016, incurred on a $100 million convertible promissory note issued to Teekay Corporation, which bore interest at an annual rate of 6.50% on the outstanding principal balance. The convertible promissory note was refinanced on July 1, 2016 under the 2016 Teekay Corporation Promissory Note. (11) Includes the loss on the Partnership's prepayment of the Brookfield Promissory Note, which includes the acceleration of non-cash accretion expense of $31.5 million resulting from the difference between the $200.0 million settlement amount at its par value and its carrying value of $168.5 million , an associated early termination fee of $12.0 million paid to Brookfield and the write-off of capitalized loan costs (see note 11i). l) At December 31, 2018 , the carrying value of amounts due from affiliates totaled $59.8 million ( December 31, 2017 - $37.4 million ) and the carrying value of amounts due to affiliates totaled $183.8 million ( December 31, 2017 - $271.5 million ). Amounts due to and from affiliates, other than the Brookfield Promissory Note, the unsecured revolving credit facility provided by Teekay Corporation and Brookfield, and one term loan provided to a subsidiary of Teekay Corporation are non-interest bearing and unsecured, and all due to and from affiliates balances classified as current are expected to be settled within the next fiscal year in the normal course of operations or from financings. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Foreign Currency Forward Contracts | As at December 31, 2018 , the Partnership was committed to the following foreign currency forward contracts: Contract Amount Fair Value / Carrying Average Forward Rate (1) Expected Maturity 2019 2020 (in thousands of U.S. Dollars) Norwegian Krone 425,000 (4,588 ) 7.96 47,809 5,567 Euro 12,000 (62 ) 0.86 13,977 — (4,650 ) 61,786 5,567 (1) Average forward rate represents the contracted amount of foreign currency one U.S. Dollar will buy. |
Summary of Cross Currency Swaps | As at December 31, 2018 , the Partnership was committed to the following cross currency swaps: Principal Principal Floating Rate Receivable Fixed Rate Fair Value / Remaining Reference Margin 95,000 15,409 NIBOR 4.25 % 7.45 % (4,538 ) 0.1 Realized and unrealized (loss) gain of cross currency swaps are recognized in earnings and reported in foreign currency exchange loss in the consolidated statements of (loss) income for the years ended December 31, 2018 , 2017 and 2016 as follows: Year Ended Year Ended Year Ended Realized loss (39,647 ) (84,205 ) (53,497 ) Unrealized gain 38,648 91,914 46,127 Total realized and unrealized (loss) gain on cross currency swaps (999 ) 7,709 (7,370 ) |
Schedule of Interest Rate Swap Agreements | As at December 31, 2018 , the Partnership and its consolidated subsidiaries were committed to the following interest rate swap agreements: Fair Value / Carrying Weighted- Amount of Average Fixed Interest Notional Assets Remaining Interest Rate Amount (Liability) Term Rate Index $ $ (years) (%) (1) U.S. Dollar-denominated interest rate swaps (2) LIBOR 700,000 (83,965 ) 6.5 4.1 % U.S. Dollar-denominated interest rate swaps (3) LIBOR 766,145 (23,109 ) 3.6 3.2 % 1,466,145 (107,074 ) (1) Excludes the margin the Partnership pays on its variable-rate debt, which as at December 31, 2018 , ranged from 0.90% to 4.30% . (2) Notional amount remains constant over the term of the swap. (3) Principal amount reduces quarterly or semi-annually. |
Effective Portion of Gains (Losses) on Interest Rate Swap Agreements | The following tables exclude any interest rate swap agreements designated and qualifying as cash flow hedges in the Partnership’s equity accounted joint ventures. Year Ended December 31, 2018 Year Ended December 31, 2017 Effective Portion Recognized in AOCI (1) Effective Portion Reclassified from AOCI (2) Ineffective Portion (3) Effective Portion Recognized in AOCI (1) Effective Portion Reclassified from AOCI (2) Ineffective Portion (3) (2,495 ) 102 — Interest expense (19 ) (1,186 ) (7 ) Interest expense (2,495 ) 102 — (19 ) (1,186 ) (7 ) Year Ended December 31, 2016 Effective Portion Recognized in AOCI (1) Effective Portion Reclassified from AOCI (2) Ineffective Portion (3) 101 (64 ) 681 Interest expense 101 (64 ) 681 (1) Effective portion of designated and qualifying cash flow hedges recognized in accumulated other comprehensive income (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 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 Other Accrued Current Derivative As at December 31, 2018 Foreign currency contracts — — — (4,225 ) (425 ) Cross currency swaps — — (96 ) (4,442 ) — Interest rate swaps 1,028 2,075 (1,625 ) (14,623 ) (93,929 ) 1,028 2,075 (1,721 ) (23,290 ) (94,354 ) As at December 31, 2017 Foreign currency contracts 347 28 — (665 ) (67 ) Cross currency swaps — — (916 ) (4,412 ) (38,678 ) Interest rate swaps 233 1,565 (3,883 ) (37,438 ) (128,724 ) 580 1,593 (4,799 ) (42,515 ) (167,469 ) |
Effect of (Losses) Gains on Derivatives | Total realized and unrealized gain (loss) of 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 gain (loss) on derivative instruments in the consolidated statements of (loss) income for the years ended December 31, 2018 , 2017 and 2016 as follows: Year Ended Year Ended Year Ended Realized (loss) gain on derivative instruments Interest rate swaps (38,011 ) (78,296 ) (52,819 ) Foreign currency forward contracts (1,228 ) 900 (7,153 ) (39,239 ) (77,396 ) (59,972 ) Unrealized gain (loss) on derivative instruments Interest rate swaps 56,420 33,114 29,937 Foreign currency forward contracts (4,373 ) 1,429 9,722 52,047 34,543 39,659 Total realized and unrealized gain (loss) on derivative instruments 12,808 (42,853 ) (20,313 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Partnership's Deferred Tax Assets and Liabilities | The significant components of the Partnership’s deferred tax assets and liabilities are as follows: December 31, December 31, Deferred tax assets: Tax losses carried forward (1) 251,240 120,789 Other 2,887 6,204 Total deferred tax assets 254,127 126,993 Deferred tax liabilities: Vessels and equipment 17,018 14,046 Other 5,531 985 Total deferred tax liabilities 22,549 15,031 Net deferred tax assets 231,578 111,962 Valuation allowance (224,593 ) (85,560 ) Net deferred tax assets 6,985 26,402 Disclosed in: Deferred tax asset 9,168 28,110 Other long-term liabilities 2,183 1,708 Net deferred tax assets 6,985 26,402 (1) As at December 31, 2018 , the income tax losses carried forward of $1,040.4 million ( December 31, 2017 - $509.8 million ) are available to offset future taxable income in the applicable jurisdictions, of which $651.9 million can be carried forward indefinitely, $0.4 million will expire in 2019, $0.5 million will expire in 2020, $0.4 million will expire in 2021, $0.5 million will expire in 2022, $2.2 million will expire in 2023, $0.3 million will expire in 2024, $0.6 million will expire in 2025, $0.1 million will expire in 2026 and $383.3 million will expire in 2034. |
Components of Provision for Income Taxes | The components of the provision for income taxes are as follows: Year Ended Year Ended Year Ended Current (4,051 ) (1,772 ) (3,954 ) Deferred (18,606 ) 1,870 (4,854 ) Income tax (expense) recovery (22,657 ) 98 (8,808 ) |
Reconciliations of Income Tax Rate and Actual Tax Charge | Reconciliations of the tax charge related to the current year at the applicable statutory income tax rates and the actual tax charge related to the current year are as follows: Year Ended Year Ended Year Ended Net (loss) income before taxes (101,288 ) (299,540 ) 53,283 Net (loss) income not subject to taxes (253,605 ) (244,045 ) (19,706 ) Net income (loss) subject to taxes 152,317 (55,495 ) 72,989 At applicable statutory tax rates 28,437 (15,784 ) 12,972 Permanent differences (23,179 ) 2,424 (13,277 ) Adjustments related to currency differences (338 ) 5,847 (1,869 ) Valuation allowance 17,737 7,415 10,982 Tax expense (recovery) related to current year 22,657 (98 ) 8,808 |
Reconciliation of Partnership's Total Amount of Unrecognized Tax Benefits | The following is a tabular reconciliation of the Partnership’s total amount of unrecognized tax benefits at the beginning and end of 2018 , 2017 and 2016 : Year Ended Year Ended Year Ended Balance of unrecognized tax benefits as at beginning of the year 1,410 2,174 4,047 Decreases for positions related to prior years (189 ) (930 ) (3,376 ) Increases for positions related to the current year 375 166 1,503 Balance of unrecognized tax benefits as at end of the year 1,596 1,410 2,174 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The following is a tabular reconciliation of the Partnership's cash, cash equivalents and restricted cash balances for the periods presented in these consolidated financial statements: As at As at As at 2018 2017 2016 $ $ $ Cash and cash equivalents 225,040 221,934 227,378 Restricted cash (1) 8,540 28,360 92,265 Restricted cash - long-term (1) — — 22,644 233,580 250,294 342,287 (1) Restricted cash as at December 31, 2018 includes amounts held in escrow as collateral on the Partnership's cross currency swaps, funds for a scheduled loan facility repayment, withholding taxes and office lease prepayments. Restricted cash as at December 31, 2017 includes amounts held in escrow as collateral on the Partnership’s cross currency swaps and funds for certain vessel upgrade costs. Restricted cash as at December 31, 2016 includes amounts held in escrow as collateral on the Partnership’s cross currency swaps, funds for certain vessel upgrade and dry dock costs and a performance bond relating to the Petrojarl Knarr FPSO unit. |
Changes in Non-cash Working Capital Items Related to Operating Activities | The changes in non-cash working capital items related to operating activities for the years ended December 31, 2018 , 2017 and 2016 are as follows: Year Ended Year Ended Year Ended Accounts receivable 22,320 (54,830 ) 34,669 Prepaid expenses and other assets (2,104 ) (6,618 ) 5,983 Accounts payable and accrued liabilities (32,800 ) 43,113 38,627 Advances (to) from affiliate (70,643 ) 51,841 (5,061 ) (83,227 ) 33,506 74,218 |
Total Capital and Net Income _2
Total Capital and Net Income Per Common Unit (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Summary of Incentive Distribution Rights | The general partner is entitled to incentive distributions if the amount the Partnership distributes to common unitholders with respect to any quarter exceeds specified target levels shown below: Quarterly Distribution Target Amount (per unit) Unitholders General Partner Minimum quarterly distribution of $0.35 99.24 % 0.76 % Up to $0.4025 99.24 % 0.76 % Above $0.4025 up to $0.4375 86.24 % 13.76 % Above $0.4375 up to $0.525 76.24 % 23.76 % Above $0.525 51.24 % 48.76 % |
Schedule of Net Income Per Common Unit | Net (Loss) Income Per Common Unit Year Ended December 31, December 31, December 31, Limited partners' interest in net (loss) income (147,141 ) (339,501 ) (12,952 ) Preferred units - periodic accretion — (2,380 ) (1,644 ) Net gain on repurchase of Series C-1 and Series D Preferred Units — 19,637 — Gain on modification of warrants — 1,495 — 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 (loss) income for basic net (loss) income per common unit (147,141 ) (320,749 ) (31,326 ) Series C-1 Preferred Units - cash distributions — 12,650 — Gain on repurchase of Series C-1 Preferred Units — (26,994 ) — Limited partners' interest in diluted net (loss) income (147,141 ) (335,093 ) (31,326 ) Weighted average number of common units 410,261,239 220,755,937 124,747,207 Dilutive effect of Series C-1 Preferred Units and unit based compensation — 9,184,183 — Common units and common unit equivalents 410,261,239 229,940,120 124,747,207 Limited partner's interest in net (loss) income per common unit - basic (0.36 ) (1.45 ) (0.25 ) - diluted (0.36 ) (1.46 ) (0.25 ) |
Summary of Issuances of Common Units | The following table summarizes the issuances of common units over the three years ending December 31, 2018 : Date Offering Type Number of Common Units Issued Offering Price Gross Proceeds (i) Net Proceeds Use of Proceeds (in millions of U.S. Dollars) During 2016 Continuous Offering Program 5,525,310 (ii) 31.8 31.0 General corporate purposes June 2016 Private 21,978,022 $4.55 102.0 99.5 For general corporate purposes, which included funding existing newbuilding installments and capital conversion projects. During 2016 Payment-in-kind 4,558,624 (iii) 0.5 0.5 (iii) June 2016 Series C Conversion 8,323,809 (iv) 0.9 0.7 (iv) During 2017 Payment-in-kind 6,391,087 (iii) 29.8 29.8 (iii) September 2017 Private 256,000,000 (v) 640.0 628.1 To strengthen the Partnership's capital structure and to fund the Partnership's existing growth projects. (i) Including the General Partner’s proportionate capital contribution, where applicable. (ii) In June 2016, the Partnership implemented a replacement $100 million continuous offering program. (iii) Common units issued 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 and payment-in-kind for interest on the 2016 Teekay Corporation Promissory Note (see note 11e ). (iv) In June 2016, the Partnership and the holders 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 consisted 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). (v) In September 2017, as part of the Brookfield Transaction, the Partnership issued to Brookfield 244.0 million common units and the Brookfield Transaction Warrants to purchase 62.4 million common units, for gross proceeds of $610.0 million . In addition, the Partnership issued to Teekay Corporation 12.0 million common units and the Brookfield Transaction Warrants to purchase 3.1 million common units, for gross proceeds of $30.0 million . The net proceeds are exclusive of expenses allocated to the Brookfield Transaction Warrants of $1.4 million . |
(Write-down) and Gain (Loss) _2
(Write-down) and Gain (Loss) on Sale of Vessels, Conventional Tankers Dispositions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | Conventional Tankers | |
Summary of Net (Loss) Income from Discontinued Operations | The following table summarizes the pretax profit and components thereof for the Fuji Spirit and Kilimanjaro Spirit for the periods presented in the consolidated statements of income, while these vessels were owned by the Partnership: Year Ended Year Ended Year Ended Revenues — — 8,030 Voyage expenses — — (435 ) Vessel operating expenses — — (1,340 ) General and administrative — — (1 ) Income from vessel operations — — 6,254 Interest expense — — (142 ) Foreign currency exchange loss — — (4 ) Net income before income tax expense — — 6,108 |
Investment in Equity Accounte_2
Investment in Equity Accounted Joint Ventures (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Aggregated Summarized Financial Information for Equity Method's Investment | The following table presents aggregated summarized financial information assuming a 100% ownership interest in the Partnership’s equity accounted joint ventures. The results included are for the Itajai FPSO joint venture and the Libra Joint Venture. As at December 31, 2018 2017 Cash and cash equivalents 89,634 167,381 Other assets - current 58,574 26,994 Vessels and equipment 1,152,039 1,215,451 Other assets - non-current 37,424 51,908 Current portion of long-term debt 90,063 179,701 Other liabilities - current 49,714 59,840 Long-term debt 684,538 771,573 Other liabilities - non-current 96,147 114,115 Year ended December 31, 2018 2017 2016 Revenues 264,215 90,662 80,999 Income from vessel operations 119,774 43,422 42,380 Realized and unrealized (loss) gain on derivative instruments (7,047 ) (139 ) 1,608 Net income 78,916 28,884 35,866 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information - Vessels and Equipment (Details) $ / shares in Units, $ in Thousands | Jan. 01, 2018vessel | Dec. 31, 2018USD ($)component$ / shares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization | $ 372,290 | $ 309,975 | $ 300,011 | |
Interest costs capitalized to vessels and equipment | $ 11,100 | 29,600 | 27,100 | |
UMS segment | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life (in years) | 35 years | |||
Towage vessels | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life (in years) | 25 years | |||
Vessels | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization | $ 348,400 | $ 286,100 | $ 281,200 | |
Minimum | Shuttle tanker and towage vessel | ||||
Property, Plant and Equipment [Line Items] | ||||
Dry docks period | 2 years 6 months | |||
Maximum | Shuttle tanker and towage vessel | ||||
Property, Plant and Equipment [Line Items] | ||||
Dry docks period | 5 years | |||
FPSO segment | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life (in years) | 20 years | |||
FPSO segment | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life (in years) | 25 years | |||
Shuttle tankers | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of components in segment | component | 2 | |||
Tankers | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life (in years) | 25 years | |||
Shuttle | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life (in years) | 20 years | |||
Tangible Assets, Depreciation Period | Shuttle Tanker Segment | ||||
Property, Plant and Equipment [Line Items] | ||||
Increase (Decrease) In Depreciation And Amortization Expense From Change In Accounting Estimate | $ 15,700 | |||
Increase In Net Loss, Per Outstanding Limited Partnership Unit, Basic and Diluted, Net of Tax | $ / shares | $ 0.04 | |||
Tangible Assets, Depreciation Period | Shuttle Tanker Segment | Shuttle tankers | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of vessels | vessel | 21 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Dry-Docking Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Movement in Property, Plant and Equipment [Roll Forward] | |||
Balance at beginning of the year | $ 4,398,836 | ||
Cost incurred for dry-docking | 23,602 | $ 17,183 | $ 25,043 |
Dry-docking amortization | (372,290) | (309,975) | (300,011) |
Write down and gain (loss) on sale of vessels | (223,355) | (318,078) | (40,079) |
Balance at end of the year | 4,196,909 | 4,398,836 | |
Dry-docking activity | |||
Movement in Property, Plant and Equipment [Roll Forward] | |||
Balance at beginning of the year | 42,829 | 49,238 | 42,822 |
Cost incurred for dry-docking | 23,602 | 17,183 | 25,043 |
Dry-docking amortization | (23,893) | (22,870) | (18,627) |
Write down and gain (loss) on sale of vessels | 0 | (722) | 0 |
Balance at end of the year | $ 42,538 | $ 42,829 | $ 49,238 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Additional Information - Asset Retirement Obligation (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Asset retirement obligation | $ 24.7 | $ 23.1 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Additional Information - Employee Pension Plans (Details) | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jan. 01, 2018subsidiary | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined contribution plan cost recognized | $ 4,500,000 | $ 0 | $ 0 | |
Funded status deficiency | $ 1,500,000 | $ 0 | ||
Subsidiaries of Teekay Corporation | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Percentage of ownership interest acquired | 100.00% | |||
Number of subsidiaries acquired | subsidiary | 7 |
Accounting Pronouncements (Deta
Accounting Pronouncements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2019 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Increase in other assets | $ 2,104 | $ 6,618 | $ (5,983) | ||
Decrease in accounts receivable | 22,320 | (54,830) | 34,669 | ||
Cumulative-effect adjustment | $ 41,697 | ||||
ASU 2014-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Decrease in accounts receivable | 5,700 | ||||
Increase in equity | 29,000 | ||||
Cumulative-effect adjustment | 29,400 | ||||
Decreasing (increasing) voyage expenses | (1,800) | ||||
Decreasing (increasing) voyage expenses | (2,600) | ||||
Decreasing (increasing) depreciation and amortization | 1,100 | ||||
Decreasing (increasing) equity income | 600 | ||||
Increase (decrease) in other current assets | (5,700) | ||||
Investments in equity accounted joint ventures | 1,200 | ||||
ASU 2014-09 | Revenue sharing arrangements | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Increase in revenue | 13,100 | ||||
Decreasing (increasing) voyage expenses | (13,100) | ||||
ASU 2016-15 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Principal prepayment or repayment of long-term debt | 37,300 | $ 66,700 | $ 42,300 | ||
Time charters | ASU 2014-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Increase in revenue | 2,900 | ||||
Increase in other assets | 11,400 | ||||
Decreasing deferred tax assets | 900 | ||||
Increase in equity | 10,500 | ||||
Cumulative-effect adjustment | $ 7,700 | ||||
Voyage charters | ASU 2014-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Decreasing (increasing) voyage expenses | (14,500) | ||||
Increase (decrease) in other current assets | 14,500 | ||||
FPSO Segment | ASU 2014-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Increase in revenue | 41,200 | ||||
Decreasing (increasing) voyage expenses | (41,200) | ||||
VOC Equipment | ASU 2014-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Increase in revenue | 8,300 | ||||
Decreasing (increasing) voyage expenses | (8,300) | ||||
Scenario, Forecast | ASU 2016-02 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Right of use asset | $ 19,400 | ||||
Lease liability | $ 19,400 | ||||
Pre-operational costs | ASU 2014-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Increase in other assets | $ 27,800 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Feb. 28, 2015maintenance_and_safety_unit | Aug. 31, 2014USD ($)maintenance_and_safety_unit | Jun. 30, 2016maintenance_and_safety_unit | Dec. 31, 2016maintenance_and_safety_unit | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||
Restricted cash | $ 1.2 | $ 4.1 | ||||
Cross currency swap agreement | ||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||
Restricted cash | $ 1.2 | $ 4.1 | ||||
Logitel | ||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||
Percentage of ownership interest acquired | 100.00% | |||||
Portion of purchase price paid in cash | $ 4 | |||||
Potential additional cash amount for purchase price | $ 27.6 | |||||
Number of units for maintenance and safety | maintenance_and_safety_unit | 1 | 3 | ||||
Logitel | Newbuildings | Cancellation potential | ||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||
Number of units for maintenance and safety | maintenance_and_safety_unit | 2 | 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) (Details) - Logitel - Contingent Consideration - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at beginning of period | $ 0 | $ 0 | $ (14,830) |
Acquisition of Logitel | 0 | 0 | 0 |
Settlement of liability | 0 | 0 | 0 |
Gain included in Other income (expense) - net | 0 | 0 | 14,830 |
Balance at end of period | $ 0 | $ 0 | $ 0 |
Financial Instruments - Estimat
Financial Instruments - Estimated Fair Value of Financial Instruments Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Recurring: | ||||
Cash and cash equivalents and restricted cash | $ 233,580 | $ 250,294 | $ 342,287 | $ 318,993 |
Other: | ||||
Long-term debt (note 8) | (3,097,742) | (3,123,728) | ||
Due to affiliates - current (note 11h) | (183,795) | (108,483) | ||
Due to affiliates - long term (note 11f) | 0 | (163,037) | ||
Interest rate swap agreements | ||||
Derivatives instruments (note 12) | ||||
Interest rate derivatives | (107,074) | |||
Cross currency swap agreement | ||||
Derivatives instruments (note 12) | ||||
Foreign currency derivative instruments | (4,538) | |||
Foreign currency forward contracts | ||||
Derivatives instruments (note 12) | ||||
Foreign currency derivative instruments | (4,650) | |||
Carrying Amount | Level 1 | Public | ||||
Other: | ||||
Long-term debt (note 8) | (1,027,696) | (666,427) | ||
Carrying Amount | Level 1 | Recurring | ||||
Recurring: | ||||
Cash and cash equivalents and restricted cash | 233,580 | 250,294 | ||
Carrying Amount | Level 2 | ||||
Other: | ||||
Due to affiliates - current (note 11h) | (125,000) | 0 | ||
Due to affiliates - long term (note 11f) | 0 | (163,037) | ||
Carrying Amount | Level 2 | Non-public | ||||
Other: | ||||
Long-term debt (note 8) | (2,070,046) | (2,457,301) | ||
Carrying Amount | Level 2 | Recurring | Interest rate swap agreements | ||||
Derivatives instruments (note 12) | ||||
Interest rate derivatives | (107,074) | (168,247) | ||
Carrying Amount | Level 2 | Recurring | Cross currency swap agreement | ||||
Derivatives instruments (note 12) | ||||
Foreign currency derivative instruments | (4,538) | (44,006) | ||
Carrying Amount | Level 2 | Recurring | Foreign currency forward contracts | ||||
Derivatives instruments (note 12) | ||||
Foreign currency derivative instruments | (4,650) | (357) | ||
Fair Value | Level 1 | Public | ||||
Other: | ||||
Long-term debt (note 8) | (977,917) | (671,635) | ||
Fair Value | Level 1 | Recurring | ||||
Recurring: | ||||
Cash and cash equivalents and restricted cash | 233,580 | 250,294 | ||
Fair Value | Level 2 | ||||
Other: | ||||
Due to affiliates - current (note 11h) | (123,025) | 0 | ||
Due to affiliates - long term (note 11f) | 0 | (210,089) | ||
Fair Value | Level 2 | Non-public | ||||
Other: | ||||
Long-term debt (note 8) | (2,082,316) | (2,475,946) | ||
Fair Value | Level 2 | Recurring | Interest rate swap agreements | ||||
Derivatives instruments (note 12) | ||||
Interest rate derivatives | (107,074) | (168,247) | ||
Fair Value | Level 2 | Recurring | Cross currency swap agreement | ||||
Derivatives instruments (note 12) | ||||
Foreign currency derivative instruments | (4,538) | (44,006) | ||
Fair Value | Level 2 | Recurring | Foreign currency forward contracts | ||||
Derivatives instruments (note 12) | ||||
Foreign currency derivative instruments | $ (4,650) | $ (357) |
Financial Instruments - Summary
Financial Instruments - Summary of Partnership's Financing Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Payment activity | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Direct financing leases | $ 4,793 | $ 17,207 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2018vesselsegmentMaintenanceAndSafety | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | segment | 6 |
Number of chartered conventional tankers | vessel | 2 |
UMS Segment | |
Segment Reporting Information [Line Items] | |
Number of units for maintenance and safety | MaintenanceAndSafety | 1 |
Segment Reporting - Revenues an
Segment Reporting - Revenues and Percentage of Consolidated Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue, Major Customer [Line Items] | |||
Revenues | $ 1,416,424 | $ 1,110,284 | $ 1,152,390 |
Revenue | Customer Concentration Risk | Royal Dutch Shell Plc | |||
Revenue, Major Customer [Line Items] | |||
Revenues | $ 327,600 | $ 338,200 | $ 349,000 |
Percentage of consolidated revenue | 23.00% | 31.00% | 30.00% |
Revenue | Customer Concentration Risk | Petroleo Brasileiro S.A. | |||
Revenue, Major Customer [Line Items] | |||
Revenues | $ 254,800 | $ 190,700 | $ 222,000 |
Percentage of consolidated revenue | 18.00% | 17.00% | 19.00% |
Revenue | Customer Concentration Risk | Equinor ASA (formerly Statoil ASA) | |||
Revenue, Major Customer [Line Items] | |||
Revenues | $ 182,100 | $ 114,500 | |
Percentage of consolidated revenue | 13.00% | 10.00% | |
Revenue | Customer Concentration Risk | Premier Oil | |||
Revenue, Major Customer [Line Items] | |||
Revenues | $ 113,500 | $ 113,500 | |
Percentage of consolidated revenue | 10.00% | 10.00% |
Segment Reporting - Segment Res
Segment Reporting - Segment Results as Presented in Consolidated Financial Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 1,416,424 | $ 1,110,284 | $ 1,152,390 | |
Voyage expenses (note 2) | (151,808) | (99,444) | (80,750) | |
Vessel operating expenses | (437,671) | (353,564) | (364,441) | |
Time-charter hire expenses | (52,616) | (80,315) | (75,485) | |
Depreciation and amortization | (372,290) | (309,975) | (300,011) | |
General and administrative | (65,427) | (62,249) | (56,122) | |
(Write-down) and gain on sale of vessels | (223,355) | (318,078) | (40,079) | |
Restructuring charge | (1,520) | (2,664) | (4,649) | |
(Loss) income from vessel operations | 111,737 | (116,005) | 230,853 | |
Equity income (notes 2 and 19) | 39,458 | 14,442 | 17,933 | |
Investment in joint ventures | 212,202 | 169,875 | 141,819 | |
Expenditures for vessels and equipment, including advances on newbuilding contracts and conversion costs | 233,736 | 533,260 | 294,581 | |
Expenditures for dry docking | 23,602 | 17,183 | 25,043 | |
FPSO Segment | ||||
Segment Reporting Information [Line Items] | ||||
(Write-down) and gain on sale of vessels | 265,200 | |||
Operating Segments | FPSO Segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 533,186 | 458,388 | 495,223 | |
Voyage expenses (note 2) | 0 | 0 | 0 | |
Vessel operating expenses | (214,623) | (149,153) | (165,346) | |
Time-charter hire expenses | 0 | 0 | 0 | |
Depreciation and amortization | (145,451) | (143,559) | (149,198) | |
General and administrative | (34,052) | (33,046) | (35,971) | |
(Write-down) and gain on sale of vessels | (180,200) | (265,229) | 0 | |
Restructuring charge | (1,520) | (450) | (4,444) | |
(Loss) income from vessel operations | (42,660) | (133,049) | 140,264 | |
Equity income (notes 2 and 19) | 39,458 | 14,442 | 17,933 | |
Investment in joint ventures | 212,202 | 169,875 | 141,819 | |
Expenditures for vessels and equipment, including advances on newbuilding contracts and conversion costs | 54,371 | 193,817 | 66,234 | |
Expenditures for dry docking | 0 | 0 | 0 | |
Operating Segments | Shuttle Tanker Segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 636,413 | 536,852 | 509,596 | |
Voyage expenses (note 2) | (109,796) | (80,964) | (62,846) | |
Vessel operating expenses | (149,226) | (129,517) | (123,950) | |
Time-charter hire expenses | (36,421) | (62,899) | (62,511) | |
Depreciation and amortization | (155,932) | (125,648) | (122,822) | |
General and administrative | (21,763) | (17,425) | (10,160) | |
(Write-down) and gain on sale of vessels | (43,155) | (51,741) | 4,554 | |
Restructuring charge | 0 | (210) | (205) | |
(Loss) income from vessel operations | 120,120 | 68,448 | 131,656 | |
Equity income (notes 2 and 19) | 0 | 0 | 0 | |
Investment in joint ventures | 0 | 0 | 0 | |
Expenditures for vessels and equipment, including advances on newbuilding contracts and conversion costs | 147,540 | 216,157 | 40,584 | |
Expenditures for dry docking | 22,135 | 16,323 | 19,105 | |
Operating Segments | FSO Segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 136,557 | 66,901 | 54,440 | |
Voyage expenses (note 2) | (769) | (1,172) | (1,517) | |
Vessel operating expenses | (42,913) | (25,241) | (23,167) | |
Time-charter hire expenses | 0 | 0 | 0 | |
Depreciation and amortization | (44,077) | (19,406) | (9,311) | |
General and administrative | (2,174) | (1,864) | (836) | |
(Write-down) and gain on sale of vessels | 0 | (1,108) | (983) | |
Restructuring charge | 0 | 0 | 0 | |
(Loss) income from vessel operations | 46,624 | 18,110 | 18,626 | |
Equity income (notes 2 and 19) | 0 | 0 | 0 | |
Investment in joint ventures | 0 | 0 | 0 | |
Expenditures for vessels and equipment, including advances on newbuilding contracts and conversion costs | 6,987 | 88,039 | 101,347 | |
Expenditures for dry docking | 0 | 199 | 5,139 | |
Operating Segments | UMS Segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 36,536 | 4,236 | 34,433 | |
Voyage expenses (note 2) | (47) | (1,152) | 0 | |
Vessel operating expenses | (3,679) | (33,656) | (32,888) | |
Time-charter hire expenses | 0 | 0 | 0 | |
Depreciation and amortization | (6,611) | (6,566) | (6,660) | |
General and administrative | (3,547) | (5,068) | (5,495) | |
(Write-down) and gain on sale of vessels | $ (43,700) | 0 | 0 | (43,650) |
Restructuring charge | 0 | (2,004) | 0 | |
(Loss) income from vessel operations | 22,652 | (44,210) | (54,260) | |
Equity income (notes 2 and 19) | 0 | 0 | 0 | |
Investment in joint ventures | 0 | 0 | 0 | |
Expenditures for vessels and equipment, including advances on newbuilding contracts and conversion costs | 0 | 3,931 | 9,742 | |
Expenditures for dry docking | 0 | 0 | 0 | |
Operating Segments | Towage Segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 53,327 | 38,771 | 37,952 | |
Voyage expenses (note 2) | (28,925) | (17,727) | (15,024) | |
Vessel operating expenses | (27,346) | (21,074) | (17,524) | |
Time-charter hire expenses | 0 | (925) | 0 | |
Depreciation and amortization | (20,323) | (15,578) | (12,020) | |
General and administrative | (3,531) | (4,486) | (3,307) | |
(Write-down) and gain on sale of vessels | 0 | 0 | 0 | |
Restructuring charge | 0 | 0 | 0 | |
(Loss) income from vessel operations | (26,798) | (21,019) | (9,923) | |
Equity income (notes 2 and 19) | 0 | 0 | 0 | |
Investment in joint ventures | 0 | 0 | 0 | |
Expenditures for vessels and equipment, including advances on newbuilding contracts and conversion costs | 24,838 | 31,316 | 76,674 | |
Expenditures for dry docking | 1,467 | 661 | 799 | |
Operating Segments | Conventional Tanker Segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 21,325 | 14,022 | 20,746 | |
Voyage expenses (note 2) | (12,453) | (359) | (1,363) | |
Vessel operating expenses | 0 | 10 | (1,566) | |
Time-charter hire expenses | (16,195) | (16,491) | (12,974) | |
Depreciation and amortization | 0 | 0 | 0 | |
General and administrative | (360) | (360) | (353) | |
(Write-down) and gain on sale of vessels | 0 | 0 | 0 | |
Restructuring charge | 0 | 0 | 0 | |
(Loss) income from vessel operations | (7,683) | (3,178) | 4,490 | |
Equity income (notes 2 and 19) | 0 | 0 | 0 | |
Investment in joint ventures | 0 | 0 | 0 | |
Expenditures for vessels and equipment, including advances on newbuilding contracts and conversion costs | 0 | 0 | 0 | |
Expenditures for dry docking | 0 | 0 | 0 | |
Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (920) | (8,886) | 0 | |
Voyage expenses (note 2) | 182 | 1,930 | 0 | |
Vessel operating expenses | 116 | 5,067 | 0 | |
Time-charter hire expenses | 0 | 0 | 0 | |
Depreciation and amortization | 104 | 782 | 0 | |
General and administrative | 0 | 0 | 0 | |
(Write-down) and gain on sale of vessels | 0 | 0 | 0 | |
Restructuring charge | 0 | 0 | 0 | |
(Loss) income from vessel operations | (518) | (1,107) | 0 | |
Equity income (notes 2 and 19) | 0 | 0 | 0 | |
Investment in joint ventures | 0 | 0 | 0 | |
Expenditures for vessels and equipment, including advances on newbuilding contracts and conversion costs | 0 | 0 | 0 | |
Expenditures for dry docking | $ 0 | $ 0 | $ 0 |
Segment Reporting - Segment R_2
Segment Reporting - Segment Results as Presented in Consolidated Financial Statements (Footnote) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Nov. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenue related to settlement agreement | $ 55 | |
Shuttle tanker segment | ||
Segment Reporting Information [Line Items] | ||
Revenue related to settlement agreement | $ 55 | |
UMS segment | ||
Segment Reporting Information [Line Items] | ||
Revenue related to settlement agreement | $ 36.5 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Total Segment Assets to Total Assets Presented in Accompanying Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Consolidated total assets | $ 5,312,052 | $ 5,637,795 |
Operating Segments | FPSO segment | ||
Segment Reporting Information [Line Items] | ||
Consolidated total assets | 2,279,277 | 2,506,660 |
Operating Segments | Shuttle tanker segment | ||
Segment Reporting Information [Line Items] | ||
Consolidated total assets | 1,684,887 | 1,765,664 |
Operating Segments | FSO segment | ||
Segment Reporting Information [Line Items] | ||
Consolidated total assets | 463,647 | 516,567 |
Operating Segments | UMS segment | ||
Segment Reporting Information [Line Items] | ||
Consolidated total assets | 220,509 | 190,440 |
Operating Segments | Towage segment | ||
Segment Reporting Information [Line Items] | ||
Consolidated total assets | 419,000 | 398,610 |
Operating Segments | Conventional tanker segment | ||
Segment Reporting Information [Line Items] | ||
Consolidated total assets | 4,259 | 3,360 |
Segment Reconciling Items | Cash and cash equivalents and restricted cash | ||
Segment Reporting Information [Line Items] | ||
Consolidated total assets | 233,580 | 250,294 |
Segment Reconciling Items | Other assets | ||
Segment Reporting Information [Line Items] | ||
Consolidated total assets | $ 6,893 | $ 6,200 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)contractvessel | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Disaggregation of Revenue [Line Items] | |||
Number of primary forms of contracts | contract | 5 | ||
Duration of a single voyage (less than) | 14 days | ||
Duration of time charter contracts (or more) | 1 year | ||
Time charters, cancellation notice period | 2 years | ||
Time charters, term of allowable extension (up to) | 10 years | ||
Term of master agreement | 1 year | ||
Term of renewal | 1 year | ||
Contract with customer, liability, revenue recognized | $ | $ 38.4 | ||
Capitalized contract cost, amortization | $ | $ 19.7 | $ 24.1 | $ 18.9 |
Voyage charters | |||
Disaggregation of Revenue [Line Items] | |||
Duration of a single voyage (less than) | 3 months | ||
Shuttle tankers | Shuttle Tanker Segment | |||
Disaggregation of Revenue [Line Items] | |||
Number of vessels | 13 | ||
Shuttle tankers | Shuttle Tanker Segment | Time charters | Canada | |||
Disaggregation of Revenue [Line Items] | |||
Number of vessels | 3 | ||
Shuttle tankers | Shuttle Tanker Segment | Time charters | Brazil | |||
Disaggregation of Revenue [Line Items] | |||
Number of vessels | 4 | ||
Shuttle tankers | Shuttle Tanker Segment | Management fees and other | |||
Disaggregation of Revenue [Line Items] | |||
Number of vessels | 2 | ||
FPSO units | FPSO Segment | Management fees and other | |||
Disaggregation of Revenue [Line Items] | |||
Number of vessels | 3 | ||
FSO units | FSO Segment | Time charters | |||
Disaggregation of Revenue [Line Items] | |||
Number of vessels | 3 | ||
FSO units | FSO Segment | Management fees and other | |||
Disaggregation of Revenue [Line Items] | |||
Number of vessels | 1 | ||
Minimum | |||
Disaggregation of Revenue [Line Items] | |||
Time charters, FSO units, term of allowable extension | 5 years | ||
Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Time charters, FSO units, term of allowable extension | 12 years |
Revenues - Schedule of Partners
Revenues - Schedule of Partnership Revenue (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | $ 1,416,424 | $ 1,110,284 | $ 1,152,390 | |
Revenue related to settlement agreement | $ 55,000 | |||
Amount due to the Partnership | 96,000 | |||
Amount payable in late 2020 | 22,000 | |||
Amount payable in late 2021 | $ 19,000 | |||
Payables to be reduced (as a percentage) | 40.00% | |||
FPSO contracts | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | $ 481,700 | 458,388 | 495,223 | |
Contracts of affreightment | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 198,448 | 170,703 | 148,367 | |
Time charters | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 410,237 | 345,254 | 336,521 | |
Bareboat charters | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 62,142 | 88,864 | 107,834 | |
Voyage charters | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 101,759 | 47,075 | 64,445 | |
Management fees and other | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 162,138 | 0 | 0 | |
Non-lease revenue - related to sales type or direct financing leases | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 4,547 | 5,813 | 6,203 | |
Voyage charters - towage | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 53,327 | 38,771 | 37,952 | |
Non-lease | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 220,012 | 44,584 | 44,155 | |
Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | (920) | (8,886) | 0 | |
Eliminations | FPSO contracts | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 0 | 0 | 0 | |
Eliminations | Contracts of affreightment | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 0 | 0 | 0 | |
Eliminations | Time charters | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 0 | 0 | 0 | |
Eliminations | Bareboat charters | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 0 | 0 | 0 | |
Eliminations | Voyage charters | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | (920) | (8,886) | 0 | |
Eliminations | Management fees and other | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 0 | |||
FPSO Segment | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 533,186 | 458,388 | 495,223 | |
FPSO Segment | Operating Segments | FPSO contracts | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 481,700 | 458,388 | 495,223 | |
FPSO Segment | Operating Segments | Contracts of affreightment | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 0 | 0 | 0 | |
FPSO Segment | Operating Segments | Time charters | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 0 | 0 | 0 | |
FPSO Segment | Operating Segments | Bareboat charters | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 0 | 0 | 0 | |
FPSO Segment | Operating Segments | Voyage charters | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 0 | 0 | 0 | |
FPSO Segment | Operating Segments | Management fees and other | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 51,486 | |||
Shuttle tanker segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenue related to settlement agreement | 55,000 | |||
Shuttle tanker segment | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 636,413 | 536,852 | 509,596 | |
Shuttle tanker segment | Operating Segments | FPSO contracts | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 0 | 0 | 0 | |
Shuttle tanker segment | Operating Segments | Contracts of affreightment | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 198,448 | 170,703 | 148,367 | |
Shuttle tanker segment | Operating Segments | Time charters | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 294,112 | 284,281 | 251,217 | |
Shuttle tanker segment | Operating Segments | Bareboat charters | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 44,759 | 69,568 | 91,994 | |
Shuttle tanker segment | Operating Segments | Voyage charters | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 28,027 | 12,300 | 18,018 | |
Shuttle tanker segment | Operating Segments | Management fees and other | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 71,067 | |||
FSO segment | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 136,557 | 66,901 | 54,440 | |
FSO segment | Operating Segments | FPSO contracts | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 0 | 0 | 0 | |
FSO segment | Operating Segments | Contracts of affreightment | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 0 | 0 | 0 | |
FSO segment | Operating Segments | Time charters | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 116,125 | 47,605 | 38,600 | |
FSO segment | Operating Segments | Bareboat charters | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 17,383 | 19,296 | 15,840 | |
FSO segment | Operating Segments | Voyage charters | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 0 | 0 | 0 | |
FSO segment | Operating Segments | Management fees and other | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 3,049 | |||
UMS Segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenue related to settlement agreement | 36,500 | |||
UMS Segment | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 36,536 | 4,236 | 34,433 | |
UMS Segment | Operating Segments | FPSO contracts | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 0 | 0 | 0 | |
UMS Segment | Operating Segments | Contracts of affreightment | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 0 | 0 | 0 | |
UMS Segment | Operating Segments | Time charters | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 0 | 4,236 | 34,433 | |
UMS Segment | Operating Segments | Bareboat charters | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 0 | 0 | 0 | |
UMS Segment | Operating Segments | Voyage charters | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 0 | 0 | 0 | |
UMS Segment | Operating Segments | Management fees and other | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 36,536 | |||
Towage segment | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 53,327 | 38,771 | 37,952 | |
Towage segment | Operating Segments | FPSO contracts | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 0 | 0 | 0 | |
Towage segment | Operating Segments | Contracts of affreightment | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 0 | 0 | 0 | |
Towage segment | Operating Segments | Time charters | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 0 | 0 | 0 | |
Towage segment | Operating Segments | Bareboat charters | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 0 | 0 | 0 | |
Towage segment | Operating Segments | Voyage charters | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 53,327 | 38,771 | 37,952 | |
Towage segment | Operating Segments | Management fees and other | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 0 | |||
Conventional Tanker Segment | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 21,325 | 14,022 | 20,746 | |
Conventional Tanker Segment | Operating Segments | FPSO contracts | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 0 | 0 | 0 | |
Conventional Tanker Segment | Operating Segments | Contracts of affreightment | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 0 | 0 | 0 | |
Conventional Tanker Segment | Operating Segments | Time charters | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 0 | 9,132 | 12,271 | |
Conventional Tanker Segment | Operating Segments | Bareboat charters | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 0 | 0 | ||
Conventional Tanker Segment | Operating Segments | Voyage charters | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | 21,325 | $ 4,890 | $ 8,475 | |
Conventional Tanker Segment | Operating Segments | Management fees and other | ||||
Segment Reporting Information [Line Items] | ||||
Partnership's revenue | $ 0 |
Revenues - Schedule of Contract
Revenues - Schedule of Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue from Contract with Customer [Abstract] | |||
Contract assets, current | $ 62,295 | $ 54,919 | |
Contract assets, non-current | 7,926 | 3,866 | |
Contract assets | 70,221 | 58,785 | |
Deferred revenues | 55,750 | 69,668 | $ 69,668 |
Contract liabilities, non-current | 145,852 | 176,755 | |
Contract liabilities | $ 201,602 | $ 246,423 |
Revenues - Schedule of Balances
Revenues - Schedule of Balances of Assets Recognized from the Costs to Fulfill Contract with Customer (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Capitalized Contract Cost [Line Items] | |||
Capitalized contract cost, net | $ 90,521 | $ 62,340 | $ 68,215 |
Pre-operational costs | |||
Capitalized Contract Cost [Line Items] | |||
Capitalized contract cost, net | 24,031 | 4,522 | 2,855 |
Offshore asset mobilization costs | |||
Capitalized Contract Cost [Line Items] | |||
Capitalized contract cost, net | 51,302 | 57,818 | 65,360 |
Vessel repositioning costs | |||
Capitalized Contract Cost [Line Items] | |||
Capitalized contract cost, net | $ 15,188 | $ 0 | $ 0 |
Goodwill and In-Process Reven_2
Goodwill and In-Process Revenue Contracts (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 129,145,000 | $ 129,145,000 | |
Aggregate amortization expense of intangible assets | (35,219,000) | (12,745,000) | $ (12,779,000) |
Amortization of revenue - 2018 | 15,100,000 | ||
Shuttle tanker segment | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 127,100,000 | 127,100,000 | |
Goodwill impairment | 0 | 0 | 0 |
Towage segment | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 2,000,000 | 2,000,000 | |
Goodwill impairment | $ 0 | $ 0 | $ 0 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Interest including interest rate swaps | $ 44,887 | $ 26,111 |
Payroll and benefits | 34,828 | 10,378 |
Voyage and vessel expenses | 25,475 | 38,921 |
Audit, legal, contingency and other general expenses | 21,626 | 101,130 |
Income and other tax payable | 3,080 | 11,147 |
Total accrued liabilities | $ 129,896 | $ 187,687 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Total principal | $ 3,142,177 | $ 3,173,229 |
Less debt issuance costs and other | (44,435) | (49,501) |
Total debt | 3,097,742 | 3,123,728 |
Less current portion | (554,336) | (589,767) |
Long-term portion | 2,543,406 | 2,533,961 |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Total principal | 523,125 | 629,667 |
Term loans | U.S. Dollar-denominated Term Loans due through 2030 | ||
Debt Instrument [Line Items] | ||
Total principal | 1,388,107 | 1,623,440 |
Term loans | U.S. Dollar-denominated Term Loan due through 2021 | ||
Debt Instrument [Line Items] | ||
Total principal | 55,018 | 85,574 |
Bonds | U.S. Dollar Bonds due through 2023 | ||
Debt Instrument [Line Items] | ||
Total principal | 1,024,816 | 550,000 |
Bonds | U.S. Dollar Non-Public Bonds due through 2024 | ||
Debt Instrument [Line Items] | ||
Total principal | 141,158 | 162,659 |
Bonds | Norwegian Krone Bonds due through 2019 | ||
Debt Instrument [Line Items] | ||
Total principal | $ 9,953 | $ 121,889 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information - Revolvers (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)vesselcredit_facility | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($)credit_facility | |
Debt Instrument [Line Items] | |||
Amount reduced under revolving credit facilities, 2019 | $ 556,400,000 | ||
Amount reduced under revolving credit facilities, 2020 | 349,000,000 | ||
Amount reduced under revolving credit facilities, 2021 | 303,000,000 | ||
Amount reduced under revolving credit facilities, 2022 | $ 596,300,000 | ||
Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Number of revolving credit facilities | credit_facility | 2 | 3 | |
Revolving credit facilities borrowing capacity | $ 523,100,000 | $ 125,000,000 | $ 629,700,000 |
Amount reduced under revolving credit facilities, 2019 | 148,100,000 | ||
Amount reduced under revolving credit facilities, 2020 | 100,000,000 | ||
Amount reduced under revolving credit facilities, 2021 | 100,000,000 | ||
Amount reduced under revolving credit facilities, 2022 | $ 175,000,000 | ||
Revolving credit facility | Partnership’s vessels, together with other related security | |||
Debt Instrument [Line Items] | |||
Number of vessels | vessel | 19 | ||
Revolving credit facility | Teekay Shuttle Tankers L.L.C. | |||
Debt Instrument [Line Items] | |||
Minimum liquidity (greater of) | $ 35,000,000 | ||
Minimum historical EBITDA to total interest expense ratio | 1.20 | ||
Maximum net debt to total capitalization ratio required to maintain (as a percent) | 75.00% | ||
Revolving credit facility | Teekay Shuttle Tankers L.L.C. | Minimum | |||
Debt Instrument [Line Items] | |||
Minimum liquidity (percent) (greater of) | 5.00% | ||
Revolving credit facility | Guaranteed by partnership and subsidiaries | |||
Debt Instrument [Line Items] | |||
Number of revolving credit facilities | credit_facility | 1 | ||
Minimum liquidity (greater of) | $ 75,000,000 | ||
Revolving credit facility | Guaranteed by partnership and subsidiaries | Minimum | |||
Debt Instrument [Line Items] | |||
Maturity period | 6 months | ||
Minimum liquidity (percent) (greater of) | 5.00% | ||
Revolving credit facility | Teekay Shuttle Tankers L.L.C. | |||
Debt Instrument [Line Items] | |||
Maturity period | 6 months |
Long-Term Debt - Additional I_2
Long-Term Debt - Additional Information - Term Loans (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)subsidiaryvesselterm_loantanker | Dec. 31, 2017USD ($)term_loan | |
Debt Instrument [Line Items] | ||
Number of subsidiaries with outstanding term loans guaranteed | subsidiary | 2 | |
Number of outstanding term loans | term_loan | 1 | 3 |
Aggregate principal amount | $ 3,142,177 | $ 3,173,229 |
Carrying amount of debt | 3,097,742 | 3,123,728 |
U.S. Dollar-denominated Term Loan due through 2021 | Guarantee of indebtedness of others | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | 27,500 | |
U.S. Dollar-denominated Term Loan due through 2021 | Guarantee of indebtedness of others | Joint venture | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | 27,500 | |
Term loans | U.S. Dollar-denominated Term Loans due through 2030 | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | 1,388,107 | 1,623,440 |
Term loans | U.S. Dollar-denominated Term Loan due through 2021 | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 55,018 | $ 85,574 |
Long-term debt | U.S. Dollar-denominated Term Loan due through 2021 | ||
Debt Instrument [Line Items] | ||
Number of vessels | tanker | 2 | |
Teekay Offshore | ||
Debt Instrument [Line Items] | ||
Ownership interest percentage | 50.00% | |
Teekay Offshore | Long-term debt | U.S. Dollar-denominated Term Loan due through 2021 | Guarantee of indebtedness of others | ||
Debt Instrument [Line Items] | ||
Ownership interest percentage | 50.00% | |
Shuttle Tanker Segment | Shuttle tankers | ||
Debt Instrument [Line Items] | ||
Number of vessels | vessel | 13 | |
Shuttle Tanker Segment | Term loans | Shuttle tankers | ||
Debt Instrument [Line Items] | ||
Number of vessels | vessel | 3 | |
FSO Segment | Term loans | FSO units | ||
Debt Instrument [Line Items] | ||
Number of vessels | vessel | 2 | |
FPSO Segment | Term loans | FPSO units | ||
Debt Instrument [Line Items] | ||
Number of vessels | vessel | 3 | |
Towage Segment | Term loans | Towing and offshore installation vessels | ||
Debt Instrument [Line Items] | ||
Number of vessels | vessel | 10 |
Long-Term Debt - Additional I_3
Long-Term Debt - Additional Information - Bonds (Details) | Jul. 02, 2018USD ($) | Jul. 31, 2018USD ($) | May 31, 2014USD ($) | Nov. 30, 2013USD ($)vessel | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018NOK (kr) | Jul. 31, 2018NOK (kr) | Dec. 31, 2017NOK (kr) | Sep. 25, 2017USD ($) | Aug. 31, 2017USD ($) | Jul. 01, 2016USD ($) | Feb. 28, 2015USD ($) |
Debt Instrument [Line Items] | ||||||||||||||
Carrying amount of debt | $ 3,097,742,000 | $ 3,123,728,000 | ||||||||||||
Long-term portion | 2,543,406,000 | 2,533,961,000 | ||||||||||||
Aggregate principal amount | 3,142,177,000 | 3,173,229,000 | ||||||||||||
Loss on debt repurchase | 55,479,000 | 3,102,000 | $ 0 | |||||||||||
Due to affiliates (notes 11f and 11l) | 0 | $ 163,037,000 | ||||||||||||
Norwegian Kroner Bond maturing in January 2019 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt issued | 10,000,000 | kr 86,000,000 | kr 1,000,000,000 | |||||||||||
Repurchased aggregate principal amount | $ 914,000,000 | |||||||||||||
Aggregate purchase price | 113,800,000 | kr 932,200,000 | ||||||||||||
Bonds | Five-Year Senior Unsecured Bonds Maturing July 2023 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 700,000,000 | $ 700,000,000 | ||||||||||||
Carrying amount of debt | 700,000,000 | |||||||||||||
Debt instrument term (in years) | 5 years | 5 years | ||||||||||||
Interest rate, percentage | 8.50% | 8.50% | 8.50% | |||||||||||
Bonds | Senior Bonds due in June 2024 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 30,000,000 | |||||||||||||
Carrying amount of debt | $ 17,200,000 | |||||||||||||
Interest rate, percentage | 4.27% | 4.27% | ||||||||||||
Bonds | 10-Year Senior Secured Bonds | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 174,200,000 | |||||||||||||
Carrying amount of debt | $ 123,900,000 | |||||||||||||
Debt instrument term (in years) | 10 years | |||||||||||||
Number of vessels | vessel | 2 | |||||||||||||
Interest rate, percentage | 4.96% | |||||||||||||
Bonds | Senior Unsecured Bonds due in August 2022 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 250,000,000 | |||||||||||||
Aggregate principal amount | 250,000,000 | |||||||||||||
Interest rate, percentage | 7.125% | |||||||||||||
Bonds | U.S. Dollar Bonds due through 2019 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 300,000,000 | |||||||||||||
Fixed interest rate | 6.00% | |||||||||||||
Debt instrument term (in years) | 5 years | 5 years | ||||||||||||
Aggregate principal amount | 74,800,000 | |||||||||||||
Repurchased aggregate principal amount | $ 225,200,000 | |||||||||||||
Aggregate purchase price | $ 230,800,000 | |||||||||||||
Subordinated debt | Brookfield Promissory Note | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 200,000,000 | |||||||||||||
Interest rate, percentage | 10.00% | |||||||||||||
Non-cash accretion expense | 31,500,000 | |||||||||||||
Due to affiliates (notes 11f and 11l) | 168,500,000 | $ 200,000,000 | $ 200,000,000 | |||||||||||
Brookfield Promissory Note | Brookfield | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Early termination fee | $ 12,000,000 | |||||||||||||
NIBOR | Bonds | Norwegian Kroner Bond maturing in January 2019 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Marginal rate added for interest paid (as a percent) | 4.25% | |||||||||||||
Interest rate swap agreements | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Notional amount | $ 1,466,145,000 | |||||||||||||
Interest rate swap agreements | Bonds | Norwegian Kroner Bond maturing in January 2019 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 15,400,000 | |||||||||||||
Fixed interest rate | 7.45% | 7.45% | ||||||||||||
Cross currency swap agreement | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Fixed interest rate | 7.45% | 7.45% | ||||||||||||
Notional amount | $ 15,409,000 | |||||||||||||
Cross currency swap agreement | Bonds | Norwegian Kroner Bond maturing in January 2019 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Notional amount | kr | kr 95,000,000 | |||||||||||||
Minimum | Subordinated debt | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Premiums on repurchased bonds (as a percentage) | 2.00% | 2.00% | ||||||||||||
Maximum | Subordinated debt | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Premiums on repurchased bonds (as a percentage) | 2.50% | 2.50% | ||||||||||||
Brookfield | Bonds | Five-Year Senior Unsecured Bonds Maturing July 2023 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 500,000,000 | |||||||||||||
Long-term portion | $ 475,000,000 |
Long-Term Debt - Additional I_4
Long-Term Debt - Additional Information - Other (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)credit_facilityterm_loantranche | Dec. 31, 2017USD ($)credit_facilityterm_loan | |
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 3,097,742 | $ 3,123,728 |
Weighted-average interest rate | 5.10% | 4.10% |
Aggregate principal repayments, 2019 | $ 556,400 | |
Aggregate principal repayments, 2020 | 349,000 | |
Aggregate principal repayments, 2021 | 303,000 | |
Aggregate principal repayments, 2022 | 596,300 | |
Aggregate principal repayments, 2023 | 974,800 | |
Aggregate principal repayments, thereafter | $ 362,700 | |
Number of outstanding term loans | term_loan | 1 | 3 |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Aggregate principal repayments, 2019 | $ 148,100 | |
Aggregate principal repayments, 2020 | 100,000 | |
Aggregate principal repayments, 2021 | 100,000 | |
Aggregate principal repayments, 2022 | $ 175,000 | |
Number of credit facilities | credit_facility | 2 | 3 |
Cross currency swap agreement | ||
Debt Instrument [Line Items] | ||
Fixed interest rate | 7.45% | |
ALP Maritime Services B.V. | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 79,900 | |
Number of tranches | tranche | 1 | |
Fixed interest rate | 2.93% | |
Interest rate swaps | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Marginal rate added for interest paid (as a percent) | 0.90% | 0.90% |
Interest rate swaps | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Marginal rate added for interest paid (as a percent) | 4.30% | 3.75% |
Collateralized debt obligations | Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Number of outstanding term loans | credit_facility | 1 | |
Collateralized debt obligations | Term loan | ||
Debt Instrument [Line Items] | ||
Number of outstanding term loans | credit_facility | 7 | |
Collateralized debt obligations | Minimum | ||
Debt Instrument [Line Items] | ||
Asset value to outstanding drawn principal balance ratio | 100.00% | |
Vessel values to drawn principal balance ratios | 122.00% | |
Collateralized debt obligations | Maximum | ||
Debt Instrument [Line Items] | ||
Asset value to outstanding drawn principal balance ratio | 125.00% | |
Vessel values to drawn principal balance ratios | 414.00% |
Leases - Charters-out (Details)
Leases - Charters-out (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Future Minimum Payments Receivable: | ||
Minimum scheduled future revenues | $ 3,400 | |
Revenues receivable - 2019 | 743.6 | |
Revenues receivable - 2020 | 645.2 | |
Revenues receivable - 2021 | 560 | |
Revenues receivable - 2022 | 526.9 | |
Revenues receivable - 2023 | 275.1 | |
Revenues receivable - Thereafter | 698.1 | |
Property Available for Operating Lease | ||
Schedule Of Operating Leases [Line Items] | ||
Operating leases cost | 4,300 | $ 4,400 |
Operating leases accumulated depreciation | 1,100 | 1,000 |
Operating leases carrying amount of the vessels | 3,200 | $ 3,400 |
Future Minimum Payments Receivable: | ||
Minimum scheduled future revenues | 3,500 | |
Revenues receivable - 2019 | 763 | |
Revenues receivable - 2020 | 661.6 | |
Revenues receivable - 2021 | 576.4 | |
Revenues receivable - 2022 | 537.4 | |
Revenues receivable - 2023 | 277.4 | |
Revenues receivable - Thereafter | $ 727.9 |
Leases - Direct Financing Lease
Leases - Direct Financing Lease (Details) - Direct financing lease - VOC Equipment - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Capital Leased Assets [Line Items] | ||
Unearned income | $ 1,100,000 | $ 1,900,000 |
Future Scheduled Payments: | ||
2,019 | 1,300,000 | |
2,020 | 1,300,000 | |
2,021 | 1,300,000 | |
2,022 | 1,300,000 | |
2,023 | 600,000 | |
Minimum lease payments receivable | $ 5,900,000 | $ 7,600,000 |
Leases - Charters-in (Details)
Leases - Charters-in (Details) - In-Chartered $ in Millions | Dec. 31, 2018USD ($) |
Operating Leased Assets [Line Items] | |
2,019 | $ 34.3 |
2,020 | $ 2.2 |
Restructuring Charge (Details)
Restructuring Charge (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Crew reduction | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 1.5 | $ 4.6 | |
Restructuring costs incurred to date | $ 4.7 | ||
Contract termination | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 2.7 | ||
Restructuring costs incurred to date | 1.5 | 2.7 | |
FPSO Segment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring liabilities accrued | $ 1.5 | $ 0.4 |
Related Party Transactions an_3
Related Party Transactions and Balances - Additional Information - Equinor (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Randgrid shuttle tanker | |
Related Party Transaction [Line Items] | |
Expenses from transactions with related party | $ 18 |
Related Party Transactions an_4
Related Party Transactions and Balances - Additional Information - Petrojarl I FPSO (Details) - Petrojarl I FPSO - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | ||
Entity acquired, purchase price | $ 57 | |
Expenses from transactions with related party | $ 4.5 |
Related Party Transactions an_5
Related Party Transactions and Balances - Additional Information - Shuttle Tankers (Details) $ in Millions | 1 Months Ended | 2 Months Ended | 12 Months Ended | ||
Jun. 30, 2015tanker | Nov. 30, 2017vessel | Dec. 31, 2018USD ($)vessel | Dec. 31, 2017vessel | Dec. 31, 2016vessel | |
Affiliated entity | Shuttle tankers | |||||
Related Party Transaction [Line Items] | |||||
Number of vessels | 3 | 2 | 2 | ||
Affiliated entity | FSO Units | |||||
Related Party Transaction [Line Items] | |||||
Number of vessels | 3 | 3 | 3 | ||
Affiliated entity | Conventional Tankers | |||||
Related Party Transaction [Line Items] | |||||
Number of vessels | 1 | ||||
Construction of new shuttle tankers | |||||
Related Party Transaction [Line Items] | |||||
Operating lease arrangement period, lessor (in years) | 15 years | ||||
Number of vessels | tanker | 3 | ||||
Construction of new shuttle tankers | Newbuildings | |||||
Related Party Transaction [Line Items] | |||||
Number of vessels | 2 | ||||
Expenses from transactions with related party | $ | $ 4.1 |
Related Party Transactions an_6
Related Party Transactions and Balances - Additional Information - Teekay Promissory Note (Details) - USD ($) | Jul. 01, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 25, 2017 |
Related Party Transaction [Line Items] | |||||
Due to affiliates | $ 0 | $ 163,037,000 | |||
Interest expense | 38,695,000 | 25,882,000 | $ 22,400,000 | ||
2016 Teekay Corporation Promissory Note | |||||
Related Party Transaction [Line Items] | |||||
Due to affiliates | $ 200,000,000 | ||||
Subordinated debt | 2016 Teekay Corporation Promissory Note | |||||
Related Party Transaction [Line Items] | |||||
Interest rate, percentage | 10.00% | ||||
Debt instrument term (in years) | 6 months | ||||
Subordinated debt | 2016 Teekay Corporation Promissory Note | Cash | |||||
Related Party Transaction [Line Items] | |||||
Interest rate, percentage | 5.00% | ||||
Subordinated debt | 2016 Teekay Corporation Promissory Note | Cash Equivalents | |||||
Related Party Transaction [Line Items] | |||||
Interest rate, percentage | 5.00% | ||||
Subordinated debt | Brookfield Promissory Note | |||||
Related Party Transaction [Line Items] | |||||
Due to affiliates | $ 200,000,000 | 168,500,000 | $ 200,000,000 | ||
Interest rate, percentage | 10.00% | ||||
Interest expense | $ 10,000,000 | 5,300,000 | 0 | ||
Affiliated entity | Teekay Corporation | 2016 Teekay Corporation Promissory Note | |||||
Related Party Transaction [Line Items] | |||||
Interest expense | 14,600,000 | 10,000,000 | |||
Affiliated entity | Teekay Corporation | Subordinated debt | 2016 Teekay Corporation Promissory Note | Cash | |||||
Related Party Transaction [Line Items] | |||||
Interest expense | 9,600,000 | 7,500,000 | |||
Affiliated entity | Teekay Corporation | Subordinated debt | 2016 Teekay Corporation Promissory Note | Cash Equivalents | |||||
Related Party Transaction [Line Items] | |||||
Interest expense | $ 1,700,000 | $ 500,000 |
Related Party Transactions an_7
Related Party Transactions and Balances - Additional Information - Teekay Corporation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | |
Affiliated entity | |||
Related Party Transaction [Line Items] | |||
Guarantee fee | $ 5,800,000 | $ 3,700,000 | |
Financial Guarantee | |||
Related Party Transaction [Line Items] | |||
Maximum exposure | $ 495,000,000 |
Related Party Transactions an_8
Related Party Transactions and Balances - Additional Information - Unsecured Revolving Credit Facility (Details) - Revolving credit facility - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Revolving credit facilities borrowing capacity | $ 125,000,000 | $ 523,100,000 | $ 629,700,000 |
Teekay Corporation | |||
Related Party Transaction [Line Items] | |||
Revolving credit facilities borrowing capacity | 25,000,000 | ||
Brookfield | |||
Related Party Transaction [Line Items] | |||
Revolving credit facilities borrowing capacity | $ 100,000,000 | ||
LIBOR | March 2019 Revolver | |||
Related Party Transaction [Line Items] | |||
Range of credit facility margin (as a percent) | 5.00% | ||
LIBOR | After March 2019 Revolver | |||
Related Party Transaction [Line Items] | |||
Range of credit facility margin (as a percent) | 7.00% | ||
Guaranteed by partnership and subsidiaries | |||
Related Party Transaction [Line Items] | |||
Minimum liquidity (greater of) | $ 75,000,000 | ||
Minimum | Guaranteed by partnership and subsidiaries | |||
Related Party Transaction [Line Items] | |||
Minimum liquidity (percent) (greater of) | 5.00% |
Related Party Transactions an_9
Related Party Transactions and Balances - Additional Information - Senior Unsecured Bonds (Details) - USD ($) | Jul. 02, 2018 | Jul. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 25, 2017 | Jul. 01, 2016 |
Related Party Transaction [Line Items] | ||||||
Due to affiliates (notes 11f and 11l) | $ 0 | $ 163,037,000 | ||||
Long-term debt | 2,543,406,000 | $ 2,533,961,000 | ||||
Brookfield | Brookfield Promissory Note | ||||||
Related Party Transaction [Line Items] | ||||||
Early termination fee | 12,000,000 | |||||
Bonds | Five-Year Senior Unsecured Bonds Maturing July 2023 | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument, face amount | $ 700,000,000 | $ 700,000,000 | ||||
Debt instrument term (in years) | 5 years | 5 years | ||||
Interest rate, percentage | 8.50% | 8.50% | ||||
Subordinated debt | Brookfield Promissory Note | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument, face amount | $ 200,000,000 | |||||
Interest rate, percentage | 10.00% | |||||
Due to affiliates (notes 11f and 11l) | 168,500,000 | $ 200,000,000 | $ 200,000,000 | |||
Brookfield | Bonds | Five-Year Senior Unsecured Bonds Maturing July 2023 | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument, face amount | $ 500,000,000 | |||||
Long-term debt | $ 475,000,000 |
Related Party Transactions a_10
Related Party Transactions and Balances - Additional Information - Brookfield's Acquisition Conditions (Details) $ in Millions | Jan. 01, 2018USD ($)subsidiary | Sep. 25, 2017USD ($) | Sep. 30, 2017USD ($) |
Brookfield | |||
Related Party Transaction [Line Items] | |||
Cash consideration | $ 610 | $ 610 | |
Management Companies from Teekay Corporation | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership interest acquired | 100.00% | ||
Number of Businesses Acquired | subsidiary | 7 | ||
Cash consideration | $ 1.4 |
Related Party Transactions a_11
Related Party Transactions and Balances - Additional Information - Ownership Information (Details) - Brookfield | 12 Months Ended |
Dec. 31, 2018 | |
General Partner | |
Related Party Transaction [Line Items] | |
Percentage of ownership interest acquired | 49.00% |
Teekay Offshore | |
Related Party Transaction [Line Items] | |
General partner's interest (as a percent) | 60.00% |
Teekay Offshore | Brookfield | |
Related Party Transaction [Line Items] | |
General partner's interest (as a percent) | 51.00% |
Related Party Transactions a_12
Related Party Transactions and Balances - Revenues (Expenses) from Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |||
Revenues | $ 117,764 | $ 49,509 | $ 49,228 |
Vessel operating expenses | (6,298) | (32,346) | (34,629) |
General and administrative | (18,162) | (31,340) | (29,944) |
Interest expense | (38,695) | (25,882) | (22,400) |
Losses on debt repurchases | $ (46,041) | $ 0 | $ 0 |
Related Party Transactions a_13
Related Party Transactions and Balances - Revenues (Expenses) from Related Party Transactions - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jul. 31, 2018 | Jul. 02, 2018 | Sep. 25, 2017 | Jul. 01, 2016 | |
Related Party Transaction [Line Items] | ||||||||
Interest expense | $ 38,695,000 | $ 25,882,000 | $ 22,400,000 | |||||
Due to affiliates | 0 | 163,037,000 | ||||||
Due from affiliates | 59,800,000 | 37,400,000 | ||||||
Due to affiliate | 183,800,000 | 271,500,000 | ||||||
2016 Teekay Corporation Promissory Note | ||||||||
Related Party Transaction [Line Items] | ||||||||
Due to affiliates | $ 200,000,000 | |||||||
Six month loan | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest expense | 5,000,000 | |||||||
Interest rate, percentage | 10.00% | |||||||
Outstanding principal balance of convertible debt | $ 100,000,000 | |||||||
Subordinated debt | Brookfield Promissory Note | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest expense | 10,000,000 | 5,300,000 | 0 | |||||
Accretion expense | 2,700,000 | 2,200,000 | 0 | |||||
Due to affiliates | 168,500,000 | $ 200,000,000 | $ 200,000,000 | |||||
Interest rate, percentage | 10.00% | |||||||
Non-cash accretion expense | 31,500,000 | |||||||
Subordinated debt | 2016 Teekay Corporation Promissory Note | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest rate, percentage | 10.00% | |||||||
Bonds | Five-Year Senior Unsecured Bonds Maturing July 2023 | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest expense | 21,000,000 | 0 | 0 | |||||
Interest rate, percentage | 8.50% | 8.50% | ||||||
Brookfield | ||||||||
Related Party Transaction [Line Items] | ||||||||
Long-term debt | 163,600,000 | |||||||
Petrojarl Knarr FPSO | Convertible Promissory Note | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest expense | 3,200,000 | |||||||
Interest rate, percentage | 6.50% | |||||||
Outstanding principal balance of convertible debt | $ 100,000,000 | |||||||
Teekay Corporation | Affiliated entity | 2016 Teekay Corporation Promissory Note | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest expense | 14,600,000 | 10,000,000 | ||||||
Conventional tanker segment | Teekay Corporation | Affiliated entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
Gain (loss) on contract termination | $ (4,000,000) | 4,000,000 | ||||||
Line of Credit | Teekay Corporation And Brookfield | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest expense | 5,000,000 | $ 0 | $ 0 | |||||
Brookfield Promissory Note | Brookfield | ||||||||
Related Party Transaction [Line Items] | ||||||||
Early termination fee | $ 12,000,000 |
Derivative Instruments - Foreig
Derivative Instruments - Foreign Currency Forward Contracts (Details) $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2018NOK (kr) | Dec. 31, 2018EUR (€) |
Foreign currency forward contracts | |||
Derivative [Line Items] | |||
Fair Value / Carrying Amount of Asset/(Liability) Non-hedge | $ (4,650) | ||
Expected Maturity - 2019 | 61,786 | ||
Expected Maturity - 2020 | $ 5,567 | ||
Norwegian Krone | |||
Derivative [Line Items] | |||
Notional amount | kr | kr 425,000,000 | ||
Average Forward Rate | 7.96 | 7.96 | 7.96 |
Norwegian Krone | Foreign currency forward contracts | |||
Derivative [Line Items] | |||
Fair Value / Carrying Amount of Asset/(Liability) Non-hedge | $ (4,588) | ||
Expected Maturity - 2019 | 47,809 | ||
Expected Maturity - 2020 | $ 5,567 | ||
Euro | |||
Derivative [Line Items] | |||
Notional amount | € | € 12,000,000 | ||
Average Forward Rate | 0.86 | 0.86 | 0.86 |
Euro | Foreign currency forward contracts | |||
Derivative [Line Items] | |||
Fair Value / Carrying Amount of Asset/(Liability) Non-hedge | $ (62) | ||
Expected Maturity - 2019 | 13,977 | ||
Expected Maturity - 2020 | $ 0 |
Derivative Instruments - Summar
Derivative Instruments - Summary of Cross Currency Swaps (Details) - Cross currency swap agreement $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2018NOK (kr) | |
Derivative [Line Items] | ||
Notional amount | $ 15,409 | |
Floating Rate Receivable, Margin (as a percent) | 4.25% | 4.25% |
Fixed Interest Rate Payable (as a percent) | 7.45% | 7.45% |
Fair Value / Asset (Liability) | $ (4,538) | |
Remaining Term (years) | 1 month | |
Norwegian Kroner Bond maturing in January 2019 | Bonds | ||
Derivative [Line Items] | ||
Notional amount | kr | kr 95,000,000 |
Derivative Instruments - Intere
Derivative Instruments - Interest Rate Swap Agreements (Details) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Interest Rate Swap | |
Derivative [Line Items] | |
Notional amount | $ 1,466,145,000 |
Fair Value / Carrying Amount of Assets (Liability) | $ (107,074,000) |
Interest Rate Swap | Minimum | |
Derivative [Line Items] | |
Range of credit facility margin (as a percent) | 0.90% |
Interest Rate Swap | Maximum | |
Derivative [Line Items] | |
Range of credit facility margin (as a percent) | 4.30% |
U.S. Dollar-denominated interest rate swaps | |
Derivative [Line Items] | |
Notional amount | $ 700,000,000 |
Fair Value / Carrying Amount of Assets (Liability) | $ (83,965,000) |
Weighted- Average Remaining Term (years) | 6 years 6 months |
Fixed Interest Rate | 4.10% |
U.S. Dollar-denominated interest rate swaps | |
Derivative [Line Items] | |
Notional amount | $ 766,145,000 |
Fair Value / Carrying Amount of Assets (Liability) | $ (23,109,000) |
Weighted- Average Remaining Term (years) | 3 years 7 months |
Fixed Interest Rate | 3.20% |
Derivative Instruments - Effect
Derivative Instruments - Effective Portion of Gains (Losses) on Interest Rate Swap Agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Effective Portion Recognized in AOCI | $ (2,495) | $ (19) | $ 101 |
Effective Portion Reclassified from AOCI | 102 | (1,186) | (64) |
Ineffective Portion | 0 | (7) | 681 |
Interest expense | |||
Derivative [Line Items] | |||
Effective Portion Recognized in AOCI | (2,495) | (19) | 101 |
Effective Portion Reclassified from AOCI | 102 | (1,186) | (64) |
Ineffective Portion | $ 0 | $ (7) | $ 681 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Aggregate fair value asset | $ 0 | $ 300,000 |
Aggregate fair value liability | 91,100,000 | 157,400,000 |
Restricted cash | $ 1,200,000 | $ 4,100,000 |
Derivative Instruments - Locati
Derivative Instruments - Location and Fair Value Amounts of Derivative Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Other Current Assets | $ 11,879 | $ 29,249 |
Other Assets | 198,992 | 113,225 |
Accrued Liabilities | (129,896) | (187,687) |
Derivative Liabilities | (94,354) | (167,469) |
Derivative Financial Instruments, Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Accrued Liabilities | (1,721) | (4,799) |
Current Portion of Derivative Liabilities | (23,290) | (42,515) |
Derivative Liabilities | (94,354) | (167,469) |
Derivative Financial Instruments, Liabilities | Foreign currency contracts | ||
Derivatives, Fair Value [Line Items] | ||
Accrued Liabilities | 0 | 0 |
Current Portion of Derivative Liabilities | (4,225) | (665) |
Derivative Liabilities | (425) | (67) |
Derivative Financial Instruments, Liabilities | Cross currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Accrued Liabilities | (96) | (916) |
Current Portion of Derivative Liabilities | (4,442) | (4,412) |
Derivative Liabilities | 0 | (38,678) |
Derivative Financial Instruments, Liabilities | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Accrued Liabilities | (1,625) | (3,883) |
Current Portion of Derivative Liabilities | (14,623) | (37,438) |
Derivative Liabilities | (93,929) | (128,724) |
Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Other Current Assets | 1,028 | 580 |
Other Assets | 2,075 | 1,593 |
Derivative Financial Instruments, Assets | Foreign currency contracts | ||
Derivatives, Fair Value [Line Items] | ||
Other Current Assets | 0 | 347 |
Other Assets | 0 | 28 |
Derivative Financial Instruments, Assets | Cross currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Other Current Assets | 0 | 0 |
Other Assets | 0 | 0 |
Derivative Financial Instruments, Assets | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Other Current Assets | 1,028 | 233 |
Other Assets | $ 2,075 | $ 1,565 |
Derivative Instruments - Effe_2
Derivative Instruments - Effect of (Losses) Gains on Derivatives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized gain (loss) on derivative instruments | $ 53,419 | $ 59,702 | $ 44,128 |
Total realized and unrealized gain (loss) on derivative instruments | 12,808 | (42,853) | (20,313) |
Not Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized (loss) gain on derivative instruments | (39,239) | (77,396) | (59,972) |
Unrealized gain (loss) on derivative instruments | 52,047 | 34,543 | 39,659 |
Total realized and unrealized gain (loss) on derivative instruments | 12,808 | (42,853) | (20,313) |
Not Designated as Hedging Instrument | Interest rate swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized (loss) gain on derivative instruments | (38,011) | (78,296) | (52,819) |
Unrealized gain (loss) on derivative instruments | 56,420 | 33,114 | 29,937 |
Not Designated as Hedging Instrument | Foreign currency forward contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized (loss) gain on derivative instruments | (1,228) | 900 | (7,153) |
Unrealized gain (loss) on derivative instruments | $ (4,373) | $ 1,429 | $ 9,722 |
Derivative Instruments - Effe_3
Derivative Instruments - Effect of Gain (Loss) on Cross Currency Swaps on Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total realized and unrealized gain (loss) on derivative instruments | $ 12,808 | $ (42,853) | $ (20,313) |
Foreign exchange and other derivative financial instruments | Cross currency swap agreement | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized loss | (39,647) | (84,205) | (53,497) |
Unrealized gain | 38,648 | 91,914 | 46,127 |
Total realized and unrealized gain (loss) on derivative instruments | $ (999) | $ 7,709 | $ (7,370) |
Income Taxes - Components of Pa
Income Taxes - Components of Partnership's Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Tax losses carried forward | $ 251,240 | $ 120,789 |
Other | 2,887 | 6,204 |
Total deferred tax assets | 254,127 | 126,993 |
Deferred tax liabilities: | ||
Vessels and equipment | 17,018 | 14,046 |
Other | 5,531 | 985 |
Deferred Tax Liabilities, Gross | 22,549 | 15,031 |
Net deferred tax assets | 231,578 | 111,962 |
Valuation allowance | (224,593) | (85,560) |
Net deferred tax assets | 6,985 | 26,402 |
Disclosed in: | ||
Deferred tax asset | 9,168 | 28,110 |
Other long-term liabilities | 2,183 | 1,708 |
Net deferred tax assets | 6,985 | 26,402 |
Operating Loss Carryforwards [Line Items] | ||
Income tax net operating loss carry forward | 1,040,400 | $ 509,800 |
Carried forward indefinitely | ||
Operating Loss Carryforwards [Line Items] | ||
Income tax net operating loss carry forward | 651,900 | |
2,019 | ||
Operating Loss Carryforwards [Line Items] | ||
Income tax net operating loss carry forward | 400 | |
2,020 | ||
Operating Loss Carryforwards [Line Items] | ||
Income tax net operating loss carry forward | 500 | |
2,021 | ||
Operating Loss Carryforwards [Line Items] | ||
Income tax net operating loss carry forward | 400 | |
2,022 | ||
Operating Loss Carryforwards [Line Items] | ||
Income tax net operating loss carry forward | 500 | |
2,023 | ||
Operating Loss Carryforwards [Line Items] | ||
Income tax net operating loss carry forward | 2,200 | |
2,024 | ||
Operating Loss Carryforwards [Line Items] | ||
Income tax net operating loss carry forward | 300 | |
2,025 | ||
Operating Loss Carryforwards [Line Items] | ||
Income tax net operating loss carry forward | 600 | |
2,026 | ||
Operating Loss Carryforwards [Line Items] | ||
Income tax net operating loss carry forward | 100 | |
2,034 | ||
Operating Loss Carryforwards [Line Items] | ||
Income tax net operating loss carry forward | $ 383,300 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Current | $ (4,051) | $ (1,772) | $ (3,954) |
Deferred | (18,606) | 1,870 | (4,854) |
Income tax (expense) recovery | $ (22,657) | $ 98 | $ (8,808) |
Income Taxes - Reconciliations
Income Taxes - Reconciliations of Income Tax Rate and Actual Tax Charge (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Net (loss) income before taxes | $ (101,288) | $ (299,540) | $ 53,283 |
Net (loss) income not subject to taxes | (253,605) | (244,045) | (19,706) |
Net income (loss) subject to taxes | 152,317 | (55,495) | 72,989 |
At applicable statutory tax rates | 28,437 | (15,784) | 12,972 |
Permanent differences | (23,179) | 2,424 | (13,277) |
Adjustments related to currency differences | (338) | 5,847 | (1,869) |
Valuation allowance | 17,737 | 7,415 | 10,982 |
Tax expense (recovery) related to current year | $ 22,657 | $ (98) | $ 8,808 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Partnership's Total Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance of unrecognized tax benefits as at beginning of the year | $ 1,410 | $ 2,174 | $ 4,047 |
Decreases for positions related to prior years | (189) | (930) | (3,376) |
Increases for positions related to the current year | 375 | 166 | 1,503 |
Balance of unrecognized tax benefits as at end of the year | $ 1,596 | $ 1,410 | $ 2,174 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information - Equinor (Details) - USD ($) | 1 Months Ended | |
Nov. 30, 2017 | Dec. 31, 2018 | |
Randgrid shuttle tanker | ||
Loss Contingencies [Line Items] | ||
Estimated claim | $ 100,000,000 | |
Minimum | ||
Loss Contingencies [Line Items] | ||
Range of possible losses in addition to what has already been accrued | $ 0 | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Range of possible losses in addition to what has already been accrued | $ 14,000,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information - Logitel (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Feb. 28, 2015maintenance_and_safety_unit | Aug. 31, 2014maintenance_and_safety_unit | Jun. 30, 2016USD ($)hull | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2017USD ($) | |
Loss Contingencies [Line Items] | ||||||||
Write-down of assets related to newbuildings | $ 223,355,000 | $ 318,078,000 | $ 40,079,000 | |||||
Minimum | ||||||||
Loss Contingencies [Line Items] | ||||||||
Range of possible losses in addition to what has already been accrued | 0 | |||||||
Maximum | ||||||||
Loss Contingencies [Line Items] | ||||||||
Range of possible losses in addition to what has already been accrued | 14,000,000 | |||||||
Stavanger Spirit | ||||||||
Loss Contingencies [Line Items] | ||||||||
Range of possible losses in addition to what has already been accrued | $ 186,200,000 | |||||||
Stavanger Spirit | Maximum | ||||||||
Loss Contingencies [Line Items] | ||||||||
Estimate of possible loss | $ 170,000,000 | |||||||
Nantong Spirit | Logitel Offshore Rig III LLC | ||||||||
Loss Contingencies [Line Items] | ||||||||
Range of possible losses in addition to what has already been accrued | $ 51,900,000 | |||||||
Nantong Spirit | Minimum | ||||||||
Loss Contingencies [Line Items] | ||||||||
Estimate of possible loss | 10,000,000 | |||||||
Nantong Spirit | Maximum | ||||||||
Loss Contingencies [Line Items] | ||||||||
Estimate of possible loss | 40,000,000 | |||||||
UMS segment | ||||||||
Loss Contingencies [Line Items] | ||||||||
Reversed contingent liabilities | 14,500,000 | |||||||
Operating segments | UMS segment | ||||||||
Loss Contingencies [Line Items] | ||||||||
Write-down of assets related to newbuildings | $ 43,700,000 | 0 | $ 0 | $ 43,650,000 | ||||
Logitel | ||||||||
Loss Contingencies [Line Items] | ||||||||
Percentage of ownership interest acquired | 100.00% | |||||||
Number of units for maintenance and safety | maintenance_and_safety_unit | 1 | 3 | ||||||
Loss contingency accrual | $ 43,000,000 | |||||||
Logitel | Sevan Marine ASA | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of hulls to be converted | hull | 2 |
Commitments and Contingencies_3
Commitments and Contingencies - Additional Information - Petrojarl I (Details) - USD ($) $ in Millions | Oct. 31, 2018 | May 31, 2018 | Dec. 31, 2014 |
Petrojarl I L.L.C. | |||
Loss Contingencies [Line Items] | |||
Estimated claim | $ 100 | $ 150 | |
Petrojarl I FPSO | |||
Loss Contingencies [Line Items] | |||
Business acquisition, purchase price | $ 57 | ||
Operating lease arrangement period, lessor (in years) | 5 years |
Commitments and Contingencies_4
Commitments and Contingencies - Additional Information - Royal Dutch Shell (Details) - Shell $ in Millions | 1 Months Ended |
Oct. 31, 2016USD ($) | |
Loss Contingencies [Line Items] | |
Estimated claim | $ 23.6 |
Percentage of rate reduction claim | 20.00% |
Commitments and Contingencies_5
Commitments and Contingencies - Additional Information - Samsung (Details) | 1 Months Ended | 12 Months Ended | 24 Months Ended | ||
Jul. 31, 2018USD ($)newbuilding | Dec. 31, 2018USD ($)newbuilding | Dec. 31, 2020vessel | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Loss Contingencies [Line Items] | |||||
Number of newbuildings | newbuilding | 6 | ||||
Suezmax DP2 Shuttle Tanker Newbuildings | Samsung Heavy Industries Co., Ltd. | |||||
Loss Contingencies [Line Items] | |||||
Number of newbuildings | newbuilding | 4 | ||||
Aggregate fully built-up cost for shipbuilding contracts | $ 602,000,000 | ||||
Payments made towards the commitment | 72,900,000 | ||||
Payments due in 2019 | 248,900,000 | ||||
Payments due in 2020 | 279,700,000 | ||||
Suezmax DP2 Shuttle Tanker Newbuildings | Scenario, Forecast | Samsung Heavy Industries Co., Ltd. | |||||
Loss Contingencies [Line Items] | |||||
Number of vessels | vessel | 2 | ||||
Aframax DP 2 Shuttle Tanker Newbuildings | |||||
Loss Contingencies [Line Items] | |||||
Number of newbuildings | newbuilding | 2 | ||||
Aframax DP 2 Shuttle Tanker Newbuildings | Samsung Heavy Industries Co., Ltd. | |||||
Loss Contingencies [Line Items] | |||||
Aggregate fully built-up cost for shipbuilding contracts | $ 270,000,000 | ||||
Payments made towards the commitment | 12,300,000 | ||||
Payments due in 2019 | 57,700,000 | ||||
Payments due in 2020 | 122,300,000 | ||||
Payments due in 2021 | 77,500,000 | ||||
Revolving credit facility | |||||
Loss Contingencies [Line Items] | |||||
Revolving credit facilities borrowing capacity | 523,100,000 | $ 125,000,000 | $ 629,700,000 | ||
Revolving credit facility | Newbuildings | Suezmax DP2 Shuttle Tanker Newbuildings | |||||
Loss Contingencies [Line Items] | |||||
Revolving credit facilities borrowing capacity | 60,500,000 | ||||
Undrawn amount of revolving credit facility | $ 40,400,000 |
Commitments and Contingencies_6
Commitments and Contingencies - Additional Information - Presentation of Financial Statements (Details) $ in Thousands | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2018USD ($)newbuilding | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2021USD ($) | |
Loss Contingencies [Line Items] | ||||
Net operating cash flow | $ 280,643 | $ 305,200 | $ 396,473 | |
Working capital deficit | (488,000) | |||
Current portion of long-term debt | $ 554,336 | $ 589,767 | ||
Number of newbuildings | newbuilding | 6 | |||
Scenario, Forecast | ||||
Loss Contingencies [Line Items] | ||||
Anticipated payments for vessels under construction | $ 776,000 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Reconciliation of Cash, Cash Equivalents, and Restriched Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 225,040 | $ 221,934 | $ 227,378 | |
Restricted cash | 8,540 | 28,360 | 92,265 | |
Restricted cash - long-term | 0 | 0 | 22,644 | |
Total | $ 233,580 | $ 250,294 | $ 342,287 | $ 318,993 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Changes in Non-Cash Working Capital Items Related to Operating Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |||
Accounts receivable | $ 22,320 | $ (54,830) | $ 34,669 |
Prepaid expenses and other assets | (2,104) | (6,618) | 5,983 |
Accounts payable and accrued liabilities | (32,800) | 43,113 | 38,627 |
Advances (to) from affiliate | (70,643) | 51,841 | (5,061) |
Change in non-cash working capital items related to operating activities | $ (83,227) | $ 33,506 | $ 74,218 |
Supplemental Cash Flow Inform_5
Supplemental Cash Flow Information - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |||
Cash interest paid, net | $ 204.5 | $ 205 | $ 180.9 |
Income taxes paid | $ 2.1 | $ 2.2 | $ 1.5 |
Total Capital and Net Income _3
Total Capital and Net Income Per Common Unit - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Public | |
Limited Partners' Capital Account [Line Items] | |
General partner's interest (as a percent) | 26.70% |
Brookfield | |
Limited Partners' Capital Account [Line Items] | |
General partner's interest (as a percent) | 59.50% |
Brookfield | General Partner | |
Limited Partners' Capital Account [Line Items] | |
General partner's interest (as a percent) | 51.00% |
Teekay Corporation | |
Limited Partners' Capital Account [Line Items] | |
General partner's interest (as a percent) | 13.80% |
Teekay Corporation | General Partner | |
Limited Partners' Capital Account [Line Items] | |
General partner's interest (as a percent) | 49.00% |
Total Capital and Net Income _4
Total Capital and Net Income Per Common Unit - Additional Information - Limited Partners' Rights (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Number of days within which to receive distributed available cash | 45 days |
Minimum percentage of outstanding units to be held for general partner removal | 66.66% |
Total Capital and Net Income _5
Total Capital and Net Income Per Common Unit - Summary of Incentive Distribution Rights (Details) | 12 Months Ended |
Dec. 31, 2018$ / shares | |
Unitholders | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Minimum quarterly distribution of $0.35 | 99.24% |
Up to $0.4025 | 99.24% |
Above $0.4025 up to $0.4375 | 86.24% |
Above $0.4375 up to $0.525 | 76.24% |
$0.525 | 51.24% |
General Partner | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Minimum quarterly distribution of $0.35 | 0.76% |
Up to $0.4025 | 0.76% |
Above $0.4025 up to $0.4375 | 13.76% |
Above $0.4375 up to $0.525 | 23.76% |
$0.525 | 48.76% |
Minimum quarterly distribution of $0.35 | Minimum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Quarterly distribution target amount (USD per unit) | $ 0.35 |
Up to $0.4025 | Maximum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Quarterly distribution target amount (USD per unit) | 0.4025 |
Above $0.4025 up to $0.4375 | Minimum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Quarterly distribution target amount (USD per unit) | 0.4025 |
Above $0.4025 up to $0.4375 | Maximum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Quarterly distribution target amount (USD per unit) | 0.4375 |
Above $0.4375 up to $0.525 | Minimum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Quarterly distribution target amount (USD per unit) | 0.4375 |
Above $0.4375 up to $0.525 | Maximum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Quarterly distribution target amount (USD per unit) | 0.5250 |
Above $0.525 | Minimum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Quarterly distribution target amount (USD per unit) | $ 0.525 |
Total Capital and Net Income _6
Total Capital and Net Income Per Common Unit - Additional Information - Incentive Distribution Rights (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Dividends Payable [Line Items] | |||
Exceeded cash distributions per unit (USD per unit) (less than) | $ 0.04 | $ 0.24 | $ 0.44 |
Common Units | |||
Dividends Payable [Line Items] | |||
Exceeded cash distributions per unit (USD per unit) (less than) | $ 0.35 | $ 0.35 | $ 0.35 |
Total Capital and Net Income _7
Total Capital and Net Income Per Common Unit - Additional Information - Series E Preferred Units (Details) $ / shares in Units, $ in Millions | 1 Months Ended |
Jan. 31, 2018USD ($)$ / sharesshares | |
Series E Preferred Units | |
Class of Stock [Line Items] | |
Preferred units dividend rate | 8.875% |
Liquidation preference per unit (USD per unit) | $ / shares | $ 25 |
Underwriter's Over-allotment Option | Series E Preferred Units | |
Class of Stock [Line Items] | |
Number of units issued | shares | 4,800,000 |
Preferred Partner | Preferred Units | |
Class of Stock [Line Items] | |
Net proceeds | $ | $ 116 |
LIBOR | Series E Preferred Units | |
Class of Stock [Line Items] | |
Variable rate on dividend payment | 6.407% |
Total Capital and Net Income _8
Total Capital and Net Income Per Common Unit - Additional Information - Series C-1 and Series D Preferred Units (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2017USD ($)tranche$ / sharesshares | Jun. 30, 2016tranche | Dec. 31, 2018$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Sep. 25, 2017$ / shares | |
Class of Stock [Line Items] | |||||
Repurchase of preferred units | $ | $ 260,200 | ||||
Accrued and unpaid quarterly distributions | $ | $ 10,200 | ||||
Gain on repurchase | $ | $ 19,971 | ||||
Exercise price of warrants (USD per unit) | $ / shares | $ 0.01 | ||||
Warrants (units) | shares | 6,750,000 | 6,750,000 | |||
Teekay Corporation | |||||
Class of Stock [Line Items] | |||||
General partner's interest (as a percent) | 13.80% | ||||
Brookfield | |||||
Class of Stock [Line Items] | |||||
General partner's interest (as a percent) | 59.50% | ||||
Series D Warrant | |||||
Class of Stock [Line Items] | |||||
Exercise price of warrants (USD per unit) | $ / shares | $ 6.05 | $ 4.55 | $ 4.55 | ||
Warrants (units) | shares | 2,250,000 | ||||
Number of tranches | tranche | 1 | 2 | |||
Warrants | |||||
Class of Stock [Line Items] | |||||
Warrants (units) | shares | 6,750,000 | 6,750,000 | |||
Retained Earnings | |||||
Class of Stock [Line Items] | |||||
Gain on repurchase | $ | $ 20,000 | ||||
Series C-1 Preferred Units | |||||
Class of Stock [Line Items] | |||||
Redemption of preferred units (USD per unit) | $ / shares | $ 18.20 | ||||
Series D Preferred Units | |||||
Class of Stock [Line Items] | |||||
Redemption of preferred units (USD per unit) | $ / shares | $ 23.75 |
Total Capital and Net Income _9
Total Capital and Net Income Per Common Unit - Additional Information - Series D Detachable Warrants (Details) - $ / shares | 1 Months Ended | ||||
Sep. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 25, 2017 | |
Class of Stock [Line Items] | |||||
Warrants outstanding (units) | 6,750,000 | 6,750,000 | |||
Exercise price of warrants (USD per unit) | $ 0.01 | ||||
The $4.55 Warrants | |||||
Class of Stock [Line Items] | |||||
Warrants outstanding (units) | 4,500,000 | ||||
Exercise price of warrants (USD per unit) | $ 4.55 | ||||
The $6.05 Warrants | |||||
Class of Stock [Line Items] | |||||
Warrants outstanding (units) | 2,250,000 | ||||
Exercise price of warrants (USD per unit) | $ 6.05 | ||||
Series D Warrant | |||||
Class of Stock [Line Items] | |||||
Warrants outstanding (units) | 2,250,000 | ||||
Exercise price of warrants (USD per unit) | $ 6.05 | $ 4.55 | $ 4.55 | ||
The Warrants | |||||
Class of Stock [Line Items] | |||||
Warrant term | 7 years | ||||
Period after which warrants are exercisable | 6 months | ||||
Series D Preferred Units | |||||
Class of Stock [Line Items] | |||||
Common units issued | 4,000,000 | ||||
Preferred units dividend rate | 10.50% |
Total Capital and Net Income_10
Total Capital and Net Income Per Common Unit - Additional Information - Brookfield Transaction Warrants and Common Units Issued (Details) | Sep. 25, 2017USD ($)day$ / sharesshares | Jul. 31, 2018shares | Sep. 30, 2017USD ($)shares | Jun. 30, 2016shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Jul. 01, 2016USD ($) |
Class of Warrant or Right [Line Items] | ||||||||
Units issued, price per unit (USD per unit) | $ / shares | $ 2.50 | |||||||
Due to affiliates | $ 0 | $ 163,037,000 | ||||||
Proceeds from issuance of common units and warrants | 0 | 640,595,000 | $ 135,246,000 | |||||
Contribution of capital from Teekay Corporation | 45,315,000 | 3,665,000 | ||||||
Exercise price of warrants (USD per unit) | $ / shares | 0.01 | |||||||
Par value (USD per unit) | $ / shares | $ 4 | |||||||
Consecutive trading days | day | 10 | |||||||
Common Units and Additional Paid-in Capital | Limited Partner | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Contribution of capital from Teekay Corporation | $ 44,442,000 | $ 3,592,000 | ||||||
Common Units | Limited Partner | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Common units issued | shares | 256,000,000 | 256,000,000 | 21,978,022 | 256,000,000 | 27,504,000 | |||
Brookfield | Common Units | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Fair value basis of investment | $ 512,600,000 | |||||||
Warrants | Brookfield | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Fair value basis of investment | 121,300,000 | |||||||
Brookfield Promissory Note | Common Units and Additional Paid-in Capital | Limited Partner | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Contribution of capital from Teekay Corporation | 39,500,000 | |||||||
Subordinated debt | Brookfield Promissory Note | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Due to affiliates | 200,000,000 | $ 168,500,000 | $ 200,000,000 | |||||
Debt instrument, face amount | 200,000,000 | |||||||
Extinguishment of debt | 163,600,000 | |||||||
Subordinated debt | Teekay Corporation Promissory Note | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Debt instrument, face amount | 200,000,000 | |||||||
Extinguishment of debt | 160,500,000 | |||||||
Brookfield | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Purchase price paid in cash | $ 610,000,000 | $ 610,000,000 | ||||||
Number of units to be issued/exchanged | shares | 244,000,000 | 244,000,000 | ||||||
Number of warrants to be issued (in units) | shares | 62,400,000 | |||||||
Proceeds from issuance of common units and warrants | $ 637,000,000 | |||||||
Brookfield | Warrants | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Number of units to be issued/exchanged | shares | 62,400,000 | |||||||
Brookfield | Warrants | Brookfield | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Number of warrants (in units) | shares | 50,000,000 | 51,000,000 | ||||||
Teekay Corporation | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Purchase price paid in cash | $ 30,000,000 | $ 30,000,000 | ||||||
Number of units to be issued/exchanged | shares | 12,000,000 | 12,000,000 | ||||||
Teekay Corporation | Warrants | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Number of units to be issued/exchanged | shares | 3,100,000 | 3,100,000 | ||||||
Teekay Corporation | Warrants | Brookfield | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Number of warrants (in units) | shares | 1,000,000 | 15,500,000 | 14,500,000 | |||||
Teekay Corporation | Subordinated debt | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Number of warrants to be issued (in units) | shares | 11,400,000 | |||||||
Aggregate proceeds from the debt purchase | $ 140,000,000 | |||||||
General Partner | Brookfield | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest Acquired | 2.00% |
Total Capital and Net Income_11
Total Capital and Net Income Per Common Unit - Additional Information - Series B and Series A Preferred Units (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2013 | Dec. 31, 2018 | |
Series B Preferred Units | |||
Class of Stock [Line Items] | |||
Number of units issued | 5,000,000 | ||
Preferred units dividend rate | 8.50% | ||
Aggregate redemption amount | $ 125 | ||
Net proceeds | $ 120.8 | ||
Redemption of preferred units (USD per unit) | $ 25 | ||
Series A Preferred Units | |||
Class of Stock [Line Items] | |||
Number of units issued | 6,000,000 | ||
Preferred units dividend rate | 7.25% | ||
Aggregate redemption amount | $ 150 | ||
Net proceeds | $ 144.8 | ||
Redemption of preferred units (USD per unit) | $ 25 |
Total Capital and Net Income_12
Total Capital and Net Income Per Common Unit - Summary Net (Loss) Income Per Common Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earning Per Share [Line Items] | |||
Limited partners' interest in net (loss) income | $ (147,141) | $ (339,501) | $ (12,952) |
Net gain on repurchase of Series C-1 and Series D Preferred Units | 19,971 | ||
Limited partners' interest in net (loss) income for basic net (loss) income per common unit | (147,141) | (320,749) | (31,326) |
Limited partners' interest in diluted net (loss) income | $ (147,141) | $ (335,093) | $ (31,326) |
Weighted average number of common units (in units) | 410,261,239 | 220,755,937 | 124,747,207 |
Common units and common unit equivalents (in units) | 410,261,239 | 229,940,120 | 124,747,207 |
Limited partner's interest in net (loss) income per common unit | |||
- basic (USD per unit) | $ (0.36) | $ (1.45) | $ (0.25) |
- diluted (USD per unit) | $ (0.36) | $ (1.46) | $ (0.25) |
Series C-1 Preferred Units | |||
Earning Per Share [Line Items] | |||
Dilutive effect of Series C-1 Preferred Units and unit based compensation (in shares) | 0 | 9,184,183 | 0 |
Limited Partner | |||
Earning Per Share [Line Items] | |||
Preferred units - periodic accretion | $ 0 | $ (2,380) | $ (1,644) |
Net gain on repurchase of Series C-1 and Series D Preferred Units | 0 | 19,637 | 0 |
Gain on modification of warrants | 0 | 1,495 | 0 |
Limited partners' interest in net (loss) income for basic net (loss) income per common unit | (147,141) | (320,749) | (31,326) |
Limited Partner | Series C Preferred Units | |||
Earning Per Share [Line Items] | |||
Additional consideration for induced conversion of Series C Preferred Units | 0 | 0 | (36,961) |
Deemed contribution on exchange of Series C Preferred Units | 0 | 0 | 20,231 |
Limited Partner | Series C-1 Preferred Units | |||
Earning Per Share [Line Items] | |||
Net gain on repurchase of Series C-1 and Series D Preferred Units | 0 | (26,994) | 0 |
Series C-1 Preferred Units - cash distributions | $ 0 | $ 12,650 | $ 0 |
Total Capital and Net Income_13
Total Capital and Net Income Per Common Unit - Additional Information - Net Income (Loss) Per Common Unit (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Preferred unitholders' interest in comprehensive income | $ 31.5 | $ 42.1 | $ 45.8 |
Warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in units) | 72.3 | 72.3 | |
Restricted Unit | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in units) | 0.1 | 0.4 | 6.8 |
Series C, C-1 and D Preferred Units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in units) | 31.9 | ||
Series C Preferred Units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in units) | 40.6 |
Total Capital and Net Income_14
Total Capital and Net Income Per Common Unit - Summary of Issuances of Common Units (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 25, 2017 | Sep. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Capital Unit [Line Items] | ||||||
COP/Private, Gross Proceeds | $ 116,003 | $ 625,387 | $ 144,812 | |||
PIK, Gross Proceeds | 18,988 | 15,239 | ||||
Series C Conversion, Gross Proceeds | 47,171 | |||||
Brookfield | ||||||
Capital Unit [Line Items] | ||||||
Number of common units issued | 244,000,000 | 244,000,000 | ||||
Number of warrants to be issued (in units) | 62,400,000 | |||||
Cash consideration | $ 610,000 | $ 610,000 | ||||
Teekay Corporation | ||||||
Capital Unit [Line Items] | ||||||
Number of common units issued | 12,000,000 | 12,000,000 | ||||
Cash consideration | $ 30,000 | $ 30,000 | ||||
Common Units | ||||||
Capital Unit [Line Items] | ||||||
Series C Conversion, Number of Common Units Issued | 1,900,000 | |||||
Inducement Premium on Series C Preferred Units Conversion | ||||||
Capital Unit [Line Items] | ||||||
Series C Conversion, Number of Common Units Issued | 6,400,000 | |||||
Series C Preferred Units | Induced Exchange of Series C Preferred Units | ||||||
Capital Unit [Line Items] | ||||||
Units converted | 1,900,000 | |||||
General Partnership Capital | ||||||
Capital Unit [Line Items] | ||||||
Offering Price (USD per unit) | $ 4.55 | |||||
General Partner | ||||||
Capital Unit [Line Items] | ||||||
COP/Private, Gross Proceeds | 588 | 3,058 | ||||
PIK, Gross Proceeds | (699) | 630 | ||||
Series C Conversion, Gross Proceeds | 889 | |||||
Net Proceeds | 29,800 | 500 | ||||
General Partner | Capital Units | ||||||
Capital Unit [Line Items] | ||||||
PIK, Gross Proceeds | $ 29,800 | $ 500 | ||||
Limited Partner | ||||||
Capital Unit [Line Items] | ||||||
PIK, Number of Common Units Issued | 4,558,624 | |||||
COP/Private, Gross Proceeds | 640,000 | |||||
Series C Conversion, Gross Proceeds | $ 900 | |||||
Net Proceeds | $ 628,100 | $ 700 | ||||
Limited Partner | Common Units | ||||||
Capital Unit [Line Items] | ||||||
COP, Number of Common Units Issued | 5,525,310 | |||||
COP/Private, Number of Common Units Issued | 256,000,000 | 256,000,000 | 21,978,022 | 256,000,000 | 27,504,000 | |
PIK, Number of Common Units Issued | 6,391,087 | 4,558,000 | ||||
Series C Conversion, Number of Common Units Issued | 8,323,809 | 8,324,000 | ||||
COP, Gross Proceeds | $ 31,800 | |||||
COP/Private, Gross Proceeds | $ 102,000 | |||||
Net Proceeds | 99,500 | 31,000 | ||||
Limited Partner | Common Units and Additional Paid-in Capital | ||||||
Capital Unit [Line Items] | ||||||
COP/Private, Gross Proceeds | $ 504,851 | 127,957 | ||||
PIK, Gross Proceeds | $ 19,687 | 15,869 | ||||
Series C Conversion, Gross Proceeds | $ 46,282 | |||||
Limited Partner | Maximum | ||||||
Capital Unit [Line Items] | ||||||
Issue new common units, limited partner interests | $ 100,000 | |||||
Warrants | Brookfield | ||||||
Capital Unit [Line Items] | ||||||
Number of common units issued | 62,400,000 | |||||
Expenses from acquisition | $ 1,400 | |||||
Warrants | Teekay Corporation | ||||||
Capital Unit [Line Items] | ||||||
Number of common units issued | 3,100,000 | 3,100,000 |
Unit Based Compensation (Detail
Unit Based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unit-based compensation expense | $ 65,427 | $ 62,249 | $ 56,122 |
Cash settled restricted unit-based compensation awards | 129,896 | 187,687 | |
Restricted Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common units aggregate value, granted | $ 3,700 | $ 1,600 | $ 2,400 |
Restricted units granted | 1,424,058 | 321,318 | 601,368 |
Vesting period from grant date (in years) | 3 years | ||
Non-vested restricted units outstanding | 1,456,999 | 480,301 | 361,355 |
Common units, vested | 342,560 | 255,370 | 76,637 |
Common units, value | $ 2,000 | $ 2,200 | $ 2,000 |
Equity based compensation and other, units | 111,336 | 83,060 | 25,286 |
Payment to the grantees | $ 400 | $ 600 | $ 200 |
Unit-based compensation expense | 1,400 | 900 | $ 1,900 |
Cash settled restricted unit-based compensation awards | 700 | $ 500 | |
Non-vested awards not yet recognized | $ 1,400 | ||
Expected weighted average period of non-vested awards not yet recognized (in years) | 8 months | ||
Non-management directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted (in units) | 293,770 | ||
Common units aggregate value, granted | $ 800 |
(Write-down) and Gain (Loss) _3
(Write-down) and Gain (Loss) on Sale of Vessels, Conventional Tankers Dispositions - Additional Information - (Write-down) and Gain (Loss) on Sale of Vessels (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Feb. 28, 2015maintenance_and_safety_unit | Aug. 31, 2014maintenance_and_safety_unit | Dec. 31, 2017USD ($) | Jun. 30, 2016maintenance_and_safety_unit | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)vessel | Dec. 31, 2016USD ($)maintenance_and_safety_unit | |
Property, Plant and Equipment [Line Items] | |||||||
Write down and gain (loss) on sale of vessels | $ (223,355,000) | $ (318,078,000) | $ (40,079,000) | ||||
Carrying value | $ 5,637,795,000 | 5,312,052,000 | 5,637,795,000 | ||||
Proceeds from sale of vessels and equipment | 30,049,000 | 13,100,000 | 69,805,000 | ||||
Carrying value of newbuildings | 288,658,000 | 73,713,000 | 288,658,000 | ||||
Logitel | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Number of units for maintenance and safety | maintenance_and_safety_unit | 1 | 3 | |||||
Logitel | Newbuildings | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Write down and gain (loss) on sale of vessels | (43,700,000) | ||||||
Logitel | Newbuildings | Cancellation Potential | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Carrying value of newbuildings | $ 0 | ||||||
Number of units for maintenance and safety | maintenance_and_safety_unit | 2 | 2 | |||||
Navion Scandia | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Proceeds from sale of vessels and equipment | 10,800,000 | ||||||
Navion Britannia | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Proceeds from sale of vessels and equipment | 10,400,000 | ||||||
Navion Scandia and Navion Britannia | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Write down and gain (loss) on sale of vessels | 5,300,000 | ||||||
Navion Marita | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Proceeds from sale of vessels and equipment | $ 5,700,000 | ||||||
Navion Saga FSO | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Write down and gain (loss) on sale of vessels | 400,000 | ||||||
Write-down of units | $ 1,700,000 | ||||||
Gross proceeds from sale | 7,400,000 | ||||||
1992-Built Shuttle Tankers | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Proceeds from sale of vessels and equipment | 5,000,000 | ||||||
1995-Built Shuttle Tankers | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Write down and gain (loss) on sale of vessels | 6,800,000 | ||||||
Proceeds from sale of vessels and equipment | 14,400,000 | ||||||
FPSO Segment | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Write down and gain (loss) on sale of vessels | $ 265,200,000 | ||||||
Number of vessels | vessel | 2 | ||||||
Petrojarl Cidade de Rio das Ostras and Piranema Spirit FPSO Unit | FPSO Segment | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Write down and gain (loss) on sale of vessels | 180,200,000 | ||||||
HiLoad DP Unit | Shuttle Tankers | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Write down and gain (loss) on sale of vessels | 19,200,000 | $ 26,300,000 | |||||
Carrying value | 0 | ||||||
Nordic Spirit and Stena Spirit | Shuttle Tankers | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Write down and gain (loss) on sale of vessels | $ 29,700,000 | ||||||
Navion Brasilia, Nordic Rio and Navion Marita Shuttle Tankers | Shuttle Tankers | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Write down and gain (loss) on sale of vessels | 25,200,000 | ||||||
Nordic Rio Shuttle Tankers | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Write-down of units | 10,800,000 | ||||||
Navion Marita | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Write down and gain (loss) on sale of vessels | $ (5,100,000) | $ (2,100,000) | |||||
50% owned subsidiary | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Ownership interest percentage | 50.00% | 50.00% | |||||
50% owned subsidiary | Nordic Spirit and Stena Spirit | Shuttle Tankers | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Write down and gain (loss) on sale of vessels | $ 14,800,000 | ||||||
Teekay Offshore | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Ownership interest percentage | 50.00% | ||||||
Teekay Offshore | 1995-Built Shuttle Tankers | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Ownership interest percentage | 67.00% |
(Write-down) and Gain (Loss) _4
(Write-down) and Gain (Loss) on Sale of Vessels, Conventional Tankers Dispositions - Additional Information - Conventional Tankers Dispositions (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||||
Proceeds from sale of vessels and equipment | $ 30,049 | $ 13,100 | $ 69,805 | |
Charter contract period | 3 years | |||
Charter contract extension, period | 1 year | |||
2004-Built Conventional Tanker | ||||
Property, Plant and Equipment [Line Items] | ||||
Proceeds from sale of vessels and equipment | $ 26,700 | |||
2003-Built Conventional Tanker | ||||
Property, Plant and Equipment [Line Items] | ||||
Proceeds from sale of vessels and equipment | 23,700 | |||
Conventional Tanker Segment | Teekay Corporation | Affiliated entity | ||||
Property, Plant and Equipment [Line Items] | ||||
Gain (loss) on contract termination | $ 4,000 | $ (4,000) |
(Write-down) and Gain (Loss) _5
(Write-down) and Gain (Loss) on Sale of Vessels, Conventional Tankers Dispositions - Summary of Pretax Profit and Components (Details) - Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations - Conventional Tankers - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Revenues | $ 0 | $ 0 | $ 8,030 |
Voyage expenses | 0 | 0 | (435) |
Vessel operating expenses | 0 | 0 | (1,340) |
General and administrative | 0 | 0 | (1) |
Income from vessel operations | 0 | 0 | 6,254 |
Interest expense | 0 | 0 | (142) |
Foreign currency exchange loss | 0 | 0 | (4) |
Net income before income tax expense | $ 0 | $ 0 | $ 6,108 |
Investment in Equity Accounte_3
Investment in Equity Accounted Joint Ventures - Additional Information (Details) - USD ($) | 1 Months Ended | ||||
Oct. 31, 2014 | Jun. 30, 2013 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||||
Percentage of interest in joint venture | 100.00% | ||||
Debt instrument, face amount | $ 3,097,742,000 | $ 3,123,728,000 | |||
Investment in joint ventures | 212,202,000 | $ 169,875,000 | $ 141,819,000 | ||
Interest Rate Swap | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Notional amount | 1,466,145,000 | ||||
Libra Joint Venture | Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedging | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Term of contract | 10 years | ||||
Notional amount | 588,800,000 | ||||
Fixed interest rate | 2.51% | ||||
OOG-TKP FPSO GmbH & Co KG | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Construction period loan facility, term (in years) | 8 years | ||||
Debt instrument, face amount | 138,200,000 | ||||
OOG-TKP FPSO GmbH & Co KG | Interest Rate Swap | Not Designated as Hedging Instrument | Cash Flow Hedging | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Term of contract | 10 years | ||||
Notional amount | $ 123,400,000 | ||||
Fixed interest rate | 2.63% | ||||
Minimum | OOG-TKP FPSO GmbH & Co KG | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Marginal rate added for interest paid (as a percent) | 2.15% | ||||
OOG-TKP FPSO GmbH & Co KG | Teekay Corporation | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Percentage of interest in joint venture | 50.00% | ||||
Libra Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Percentage of interest in joint venture | 50.00% | ||||
Libra Joint Venture | Ocyan S.A. | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Percentage of interest in joint venture | 50.00% | ||||
Ocyan S.A. | Libra Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Marginal rate added for interest paid (as a percent) | 2.65% | ||||
Ocyan S.A. | Minimum | Teekay Offshore | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Construction period loan facility, term (in years) | 10 years | ||||
Ocyan S.A. | Maximum | Newbuildings | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Debt instrument, face amount | $ 654,200,000 |
Investment in Equity Accounte_4
Investment in Equity Accounted Joint Ventures - Schedule of Aggregated Summarized Financial Information for Equity Method's Investment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||
Cash and cash equivalents | $ 225,040 | $ 221,934 | $ 227,378 |
Other assets - current | 11,879 | 29,249 | |
Vessels and equipment | 4,196,909 | 4,398,836 | |
Other assets - non-current | 198,992 | 113,225 | |
Current portion of long-term debt | 554,336 | 589,767 | |
Other current liabilities (note 5) | 15,062 | 9,056 | |
Long-term debt | 2,543,406 | 2,533,961 | |
Other liabilities - non-current | 236,616 | 249,336 | |
Revenues | 1,416,424 | 1,110,284 | 1,152,390 |
Income from vessel operations | 111,737 | (116,005) | 230,853 |
Realized and unrealized (loss) gain on derivative instruments | 12,808 | (42,853) | (20,313) |
Net income | (123,945) | (299,442) | 44,475 |
Equity Method Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Cash and cash equivalents | 89,634 | 167,381 | |
Other assets - current | 58,574 | 26,994 | |
Vessels and equipment | 1,152,039 | 1,215,451 | |
Other assets - non-current | 37,424 | 51,908 | |
Current portion of long-term debt | 90,063 | 179,701 | |
Other current liabilities (note 5) | 49,714 | 59,840 | |
Long-term debt | 684,538 | 771,573 | |
Other liabilities - non-current | 96,147 | 114,115 | |
Revenues | 264,215 | 90,662 | 80,999 |
Income from vessel operations | 119,774 | 43,422 | 42,380 |
Realized and unrealized (loss) gain on derivative instruments | (7,047) | (139) | 1,608 |
Net income | $ 78,916 | $ 28,884 | $ 35,866 |
Uncategorized Items - too-20181
Label | Element | Value |
General Partner [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 316,000 |
Common Stock Including Additional Paid in Capital [Member] | Limited Partner [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 41,381,000 |