Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2013 | |
Document Information [Line Items] | ' |
Document Type | '20-F/A |
Amendment Flag | 'false |
Document Period End Date | 31-Dec-13 |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'FY |
Trading Symbol | 'KNOP |
Entity Registrant Name | 'KNOT Offshore Partners LP |
Entity Central Index Key | '0001564180 |
Current Fiscal Year End Date | '--12-31 |
Entity Well-known Seasoned Issuer | 'No |
Entity Current Reporting Status | 'Yes |
Entity Filer Category | 'Non-accelerated Filer |
Common Units [Member] | ' |
Document Information [Line Items] | ' |
Entity Common Stock, Shares Outstanding | 8,567,500 |
Subordinated Units [Member] | ' |
Document Information [Line Items] | ' |
Entity Common Stock, Shares Outstanding | 8,567,500 |
Consolidated_and_Combined_Carv
Consolidated and Combined Carve-Out Statements of Operations (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Time charter and bareboat revenues | $73,151 | $62,078 | $41,809 | |
Voyage revenue | 0 | ' | 2,100 | |
Loss of hire insurance recoveries | 250 | 3,575 | ' | |
Total revenues (Notes 2(d), 5, 6, 8 and 18) | 73,401 | 65,653 | 43,909 | |
Operating expenses: (Note 18) | ' | ' | ' | |
Voyage expenses (Note 2(d)) | 0 | ' | 2,653 | |
Vessel operating expenses (Note 2(d)) | 14,288 | 13,000 | 10,795 | |
Depreciation and amortization (Note 13) | 23,768 | 21,181 | 16,229 | |
General and administrative expenses | 5,361 | 4,834 | 927 | |
Total operating expenses | 43,417 | 39,015 | 30,604 | |
Operating income | 29,984 | 26,638 | 13,305 | |
Finance income (expense): (Notes 2(e) and 18) | ' | ' | ' | |
Interest income | 30 | 19 | 34 | |
Interest expense (Note 9(a)) | -10,773 | -13,471 | -9,650 | |
Other finance expense (Note 9(b)) | -2,048 | -3,378 | -2,741 | |
Realized and unrealized gain (loss) on derivative instruments (Note 10) | 505 | -6,031 | -15,489 | |
Net gain (loss) on foreign currency transactions | 193 | -1,771 | -3,037 | |
Total finance expense | -12,093 | -24,632 | -30,883 | |
Income (loss) before income taxes | 17,891 | 2,006 | -17,578 | |
Income tax benefit (expense) (Notes 2(q) and 17) | -2,827 | -1,261 | 1,240 | |
Net income (loss) | 15,064 | 745 | -16,338 | |
General Partner's interest in net income (loss) | 301 | ' | ' | |
Limited Partner's interest in net income (loss) | $14,764 | ' | ' | |
Earnings per unit: (Note 21) | ' | ' | ' | |
Cash distributions declared and paid per unit | $1.19 | [1] | ' | ' |
Common Units [Member] | ' | ' | ' | |
Earnings per unit: (Note 21) | ' | ' | ' | |
Earnings per unit (basic and diluted) | $1.06 | [2] | ' | ' |
Subordinated Units [Member] | ' | ' | ' | |
Earnings per unit: (Note 21) | ' | ' | ' | |
Earnings per unit (basic and diluted) | $1.06 | [2] | ' | ' |
General Partner Unit [Member] | ' | ' | ' | |
Earnings per unit: (Note 21) | ' | ' | ' | |
Earnings per unit (basic and diluted) | $1.06 | [2] | ' | ' |
[1] | Cash distributions declared in respect of the year ended December 31, 2013. Of this amount, $0.752 per unit was paid in 2013 and $0.435 per unit was paid in February 2014. | |||
[2] | Earning per unit information for the year ended December 31, 2013 is in respect of the period from the closing of the IPO (April 15, 2013) to December 31, 2013. |
Consolidated_and_Combined_Carv1
Consolidated and Combined Carve-Out Statements of Operations (Parenthetical) (USD $) | 9 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 9 Months Ended |
Dec. 31, 2013 | Dec. 31, 2013 | Feb. 14, 2014 | Feb. 28, 2014 | Dec. 31, 2013 | |
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||
Cash distributions declared | $0.75 | $0.75 | $0.44 | $0.44 | $0.44 |
Consolidated_and_Combined_Carv2
Consolidated and Combined Carve-Out Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' |
Net income (loss) | $15,064 | $745 | ($16,338) |
Other comprehensive income, net of tax | ' | ' | ' |
Comprehensive income (loss) | $15,064 | $745 | ($16,338) |
Consolidated_and_Combined_Carv3
Consolidated and Combined Carve-Out Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents (Notes 2(f) and 11) | $28,836 | $1,287 |
Restricted cash (Notes 2(g) and 11) | 458 | 830 |
Trade accounts receivable, less allowance for doubtful accounts of $0 in, 2013 and $0 in 2012 (Notes 2(h) and 12(a)) | ' | 99 |
Amounts due from related parties (Note 18(d)) | 77 | ' |
Inventories (Note 2(i)) | 578 | 541 |
Deferred tax asset (Notes 2(q) and 17) | ' | 290 |
Current portion of derivative assets (Notes 2(p), 10 and 11) | 248 | ' |
Other current assets (Notes 2(j) and 12(b)) | 1,814 | 3,459 |
Total current assets | 32,011 | 6,506 |
Vessels and equipment (Notes 2(k), 2(l), 2(m), 13 and 18(a)): | ' | ' |
Vessels | 692,926 | 548,141 |
Less accumulated depreciation and amortization | -75,141 | -51,373 |
Net property, plant, and equipment | 617,785 | 496,768 |
Goodwill (Notes 2(n) and 14) | 5,750 | 5,750 |
Deferred debt issuance cost (Note 2(o)) | 2,010 | 2,787 |
Derivative assets (Notes 2(p), 10 and 11) | 2,617 | ' |
Total assets | 660,173 | 511,811 |
Current liabilities: | ' | ' |
Trade accounts payable | 1,107 | 370 |
Accrued expenses (Note 15) | 2,642 | 1,803 |
Current portion of long-term debt (Notes 11 and 16) | 29,269 | 28,833 |
Current portion derivative liabilities (Notes 2(p), 10 and 11) | 2,124 | 5,258 |
Income taxes payable (Notes 2(q) and 17) | 743 | ' |
Contract liabilities (Notes 2(n) and 14(b)) | 1,518 | 1,518 |
Prepaid charter and deferred revenue (Note 2(r)) | 4,471 | 4,369 |
Amount due to related parties (Note 18(d)) | 163 | 12,423 |
Total current liabilities | 42,037 | 54,574 |
Long-term liabilities: | ' | ' |
Long-term debt (Notes 11 and 16) | 310,359 | 319,017 |
Derivative liabilities (Notes 2(p), 10 and 11) | ' | 22,622 |
Contract liabilities (Notes 2(n) and 14(b)) | 12,793 | 14,311 |
Deferred tax liabilities (Notes 2(q) and 17) | 2,141 | 3,097 |
Long-term debt from related parties (Note 16) | 10,349 | ' |
Other long-term liabilities | 567 | 996 |
Total liabilities | 378,246 | 414,617 |
Commitments and contingencies (Notes 2(s) and 19) | ' | ' |
Equity: | ' | ' |
Owners' equity | ' | 97,194 |
Partners' capital: | ' | ' |
Subordinated unitholders | 107,857 | ' |
General partner interest | 5,297 | ' |
Total partners' capital | 281,927 | ' |
Total liabilities and equity | 660,173 | 511,811 |
Common Units [Member] | ' | ' |
Partners' capital: | ' | ' |
Total partners' capital | $168,773 | ' |
Consolidated_and_Combined_Carv4
Consolidated and Combined Carve-Out Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts | $0 | $0 |
Consolidated_and_Combined_Carv5
Consolidated and Combined Carve-Out Statements of Changes in Partners' Capital/Owners' Equity (USD $) | Total | KNOT [Member] | Common Units [Member] | Subordinated Units [Member] | Subordinated Units [Member] | General Partner Unit [Member] | Owners' Invested Equity [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands, except Share data | USD ($) | USD ($) | USD ($) | USD ($) | KNOT [Member] | USD ($) | USD ($) | USD ($) |
Beginning Balance at Dec. 31, 2010 | $45,669 | ' | ' | ' | ' | ' | $45,669 | ' |
Net income (loss) | -16,338 | ' | ' | ' | ' | ' | -16,338 | ' |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' |
Movement in invested equity | 38,040 | ' | ' | ' | ' | ' | 38,040 | ' |
Ending Balance at Dec. 31, 2011 | 67,370 | ' | ' | ' | ' | ' | 67,370 | ' |
Net income (loss) | 745 | ' | ' | ' | ' | ' | 745 | ' |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' |
Movement in invested equity | 29,079 | ' | ' | ' | ' | ' | 29,079 | ' |
Ending Balance at Dec. 31, 2012 | 97,194 | ' | ' | ' | ' | ' | 97,194 | ' |
Net income (loss) | -3,538 | ' | ' | ' | ' | ' | -3,538 | ' |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' |
Movement in invested equity | 10,882 | ' | ' | ' | ' | ' | 10,882 | ' |
Ending Balance at Apr. 15, 2013 | 104,538 | ' | ' | ' | ' | ' | 104,538 | ' |
Ending Balance, Shares at Apr. 15, 2013 | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance at Dec. 31, 2012 | 97,194 | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 15,064 | ' | ' | ' | ' | ' | ' | ' |
Proceeds from initial public offering (8,567,500 common units (including 1,117,500 common units sold pursuant to the full exercise of the underwriters' option to purchase additional units) net of underwriters' discount of $11,605 (Note 3) | 168,313 | ' | ' | ' | ' | ' | ' | ' |
Proceeds from initial public offering, Shares | ' | ' | 8,567,500 | 8,567,500 | ' | ' | ' | ' |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' |
Ending Balance at Dec. 31, 2013 | 281,927 | ' | 168,773 | 107,857 | ' | ' | ' | ' |
Beginning Balance at Apr. 15, 2013 | 104,538 | ' | ' | ' | ' | ' | 104,538 | ' |
Elimination of equity | 27,792 | ' | ' | ' | ' | ' | 27,792 | ' |
Elimination of equity, Shares | ' | ' | ' | ' | ' | ' | ' | ' |
Allocation of partnership capital to unitholders | ' | ' | ' | 127,141 | ' | 5,189 | -132,330 | ' |
Proceeds from initial public offering (8,567,500 common units (including 1,117,500 common units sold pursuant to the full exercise of the underwriters' option to purchase additional units) net of underwriters' discount of $11,605 (Note 3) | 168,313 | ' | ' | ' | ' | ' | ' | ' |
Proceeds from initial public offering, Shares | ' | ' | 168,313 | ' | ' | ' | ' | ' |
Initial public offering costs | -2,201 | ' | ' | ' | ' | ' | ' | ' |
Initial public offering costs, Shares | ' | ' | -2,201 | ' | ' | ' | ' | ' |
Post initial public offering net income | 18,602 | ' | 9,106 | 9,125 | ' | 371 | ' | ' |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' |
Cash distributions | -13,163 | -21,954 | ' | ' | ' | ' | ' | ' |
Cash distributions, Shares | ' | ' | -6,445 | -6,455 | -21,954 | -263 | ' | ' |
Ending Balance at Dec. 31, 2013 | $281,927 | ' | $168,773 | $107,857 | ' | $5,297 | ' | ' |
Consolidated_and_Combined_Carv6
Consolidated and Combined Carve-Out Statements of Changes in Partners' Capital/Owners' Equity (Parenthetical) (Common Units [Member], USD $) | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 |
Common Units [Member] | ' |
Common units issued | 8,567,500 |
Common units issued pursuant to the exercise of under writers option | 1,117,500 |
Underwriting discount | $11,605 |
Consolidated_and_Combined_Carv7
Consolidated and Combined Carve-Out Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows provided by operating activities: | ' | ' | ' |
Net income (loss) | $15,064 | $745 | ($16,338) |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 23,768 | 21,181 | 16,229 |
Amortization of contract liabilities | -1,518 | -1,518 | -868 |
Amortization of deferred debt issuance cost | 1,741 | 982 | 658 |
Deferred income tax (benefit) expense | 2,827 | 1,261 | -1,240 |
Unrealized (gain) loss on derivative instruments | -1,770 | 549 | 8,923 |
Unrealized loss on foreign currency transactions | 32 | 579 | 3,056 |
Other items | -427 | -426 | 2,677 |
Changes in operating assets and liabilities | ' | ' | ' |
Decrease (increase) in trade accounts receivable | 99 | -6 | -93 |
Decrease in receivables from owner and affiliates | ' | ' | 386 |
Decrease (increase) in inventories | 197 | -71 | 218 |
Decrease (increase) in other current assets | 2,555 | -1,609 | -211 |
Increase in amounts due from related parties | -77 | ' | ' |
Increase in amounts due to related parties | 109 | ' | ' |
Increase (decrease) in trade accounts payable | 662 | -334 | -7,874 |
Increase (decrease) in accrued expenses | 771 | -342 | 324 |
Increase in other liabilities | 26 | ' | ' |
Increase (decrease) prepaid revenue | 101 | -1,684 | 5,626 |
Net cash provided by operating activities (Note 20) | 44,160 | 19,307 | 11,473 |
Cash flows from investing activities: | ' | ' | ' |
Disposals (additions) to vessel and equipment | 215 | -52 | -137,276 |
Acquisition of the Carmen Knutsen (net of cash required) (Note 22) | -55,683 | ' | ' |
Settlement of foreign exchange forward contracts | ' | ' | -828 |
Net cash used in investing activities | -55,468 | -52 | -138,104 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from issuance of long-term debt | 45,422 | ' | 176,299 |
Proceeds from issuance of long-term debt from related parties (Note 16, 18 and 22) | 10,453 | ' | ' |
Repayment of long-term debt | -142,873 | -28,083 | -17,166 |
Repayment of short-term debt | ' | ' | -20,000 |
Payments of debt issuance cost | -1,098 | ' | -2,536 |
Changes in payables to owners and affiliates (Notes 20) | ' | 3,491 | -47,846 |
Changes in payables to related parties | -15,174 | ' | ' |
Contributions from/distribution to owner, net (Notes 20) | 11,623 | 3,414 | 38,040 |
Proceeds from initial public offering, net of underwriters' discount | 168,313 | ' | ' |
Cash distributed to KNOT | -21,954 | ' | ' |
Offering cost | -2,201 | ' | ' |
Cash distribution | -13,163 | ' | ' |
Change in restricted cash | -458 | 22 | -346 |
Net cash provided by (used in) financing activities | 38,890 | -21,156 | 126,445 |
Effect of exchange rate changes on cash | -33 | -1 | ' |
Net increase (decrease) in cash and cash equivalents | 27,549 | -1,902 | -186 |
Cash and cash equivalents at the beginning of the year | 1,287 | 3,189 | 3,375 |
Cash and cash equivalents at the end of the year | $28,836 | $1,287 | $3,189 |
Description_of_Business
Description of Business | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Description of Business | ' |
1) Description of Business | |
KNOT Offshore Partners LP (the “Partnership”) was formed as a limited partnership under the laws of the Republic of the Marshall Islands and is majority-owned by Knutsen NYK Offshore Tankers AS (“KNOT”). The Partnership was formed for the purpose of acquiring 100% ownership interests in four shuttle tankers in connection with the Partnership’s initial public offering of its common units (the “IPO”), which was completed on April 15, 2013. | |
The Partnership was established prior to the closing of the IPO. In connection with the consummation of the IPO, through KNOT Offshore Partners UK LLC (“KNOT UK”), a 100% owned limited liability company formed under the laws of the Marshall Islands, the Partnership acquired a 100% ownership interest in KNOT Shuttle Tankers AS, a wholly owned subsidiary of KNOT, which as of February 27, 2013 directly or indirectly owned (1) 100% of Knutsen Shuttle Tankers XII KS, the owner of the Recife Knutsen and the Fortaleza Knutsen, (2) 100% of Knutsen Shuttle Tankers XII AS, the general partner of Knutsen Shuttle Tankers XII KS, and (3) the Windsor Knutsen and the Bodil Knutsen and all of their related charters, inventory and long-term debt. In establishing the new KNOT Shuttle Tankers AS structure, KNOT formed three new Norwegian subsidiaries, which acquired 90% of Knutsen Shuttle Tankers XII KS, 100% of the Windsor Knutsen and 100% of the Bodil Knutsen, respectively. | |
In connection with the consummation of the IPO, (1) the Partnership issued to KNOT 8,567,500 subordinated units, representing a 49.0% limited partner interest in the Partnership, and 100% of the incentive distribution rights (“IDRs”); (2) KNOT Offshore Partners GP LLC, a wholly owned subsidiary of KNOT and the general partner of the Partnership (the “General Partner”), continued its 2.0% general partner interest in the Partnership; and (3) the Partnership issued and sold to the public, through the underwriters, 8,567,500 common units (including 1,117,500 common units sold pursuant to the full exercise of the underwriters’ option to purchase additional units), representing a 49.0% limited partner interest in the Partnership. The Partnership received gross proceeds before underwriting discounts, the structuring fee and estimated offering expenses of approximately $179.9 million in connection with the IPO, all as further described in Note 3—Formation Transactions and Initial Public Offering. | |
For periods prior to April 15, 2013 (the closing of the IPO), the Partnership and its subsidiaries that had interests in the Windsor Knutsen, the Bodil Knutsen, the Recife Knutsen and the Fortaleza Knutsen are collectively referred to as the “Combined Entity.” The transfers and contributions of the subsidiaries holding interests in the Windsor Knutsen, the Bodil Knutsen, the Recife Knutsen and the Fortaleza Knutsen from KNOT to the Partnership in connection with the IPO were deemed to be a reorganization of entities under common control. As a reorganization of entities under common control, the transfer of the subsidiaries and other net assets has been recorded at KNOT’s historical book value. | |
Pursuant to the Partnership’s First Amended and Restated Agreement of Limited Partnership (the “Partnership Agreement”), the General Partner has irrevocably delegated to the Partnership’s board of directors the power to oversee and direct the operations of, manage and determine the strategies and policies of the Partnership. During the period from the IPO until the time of the Partnership’s first annual meeting of unitholders (“AGM”) on June 25, 2013, the General Partner retained the sole power to appoint, remove and replace all members of the Partnership’s board of directors. At the first AGM, four of the seven board members became electable by the common unitholders and accordingly, from this date, KNOT, as the owner of the General Partner, no longer retained the power to control the Partnership’s board of directors and hence the Partnership. As a result, the Partnership is no longer considered to be under common control with KNOT, and, as a consequence, the Partnership no longer accounts for any vessel acquisitions from KNOT after June 25, 2013 as a transfer of equity interests between entities under common control. | |
On August 1, 2013, the Partnership’s wholly owned subsidiary, KNOT Shuttle Tanker AS, acquired Knutsen Shuttle Tanker 13 AS, the company that owns the Carmen Knutsen, from KNOT. The acquisition of the Carmen Knutsen was accounted for as an acquisition of a business. Accordingly, the results of the Carmen Knutsen are consolidated into the Partnership’s results from the date of its acquisition. There has been no retroactive restatement of the Partnership’s financial statements to reflect the historical results of the Carmen Knutsen prior to its acquisition. See Note 22—Acquisition of the Carmen Knutsen. | |
Each of the Windsor Knutsen, the Bodil Knutsen, the Recife Knutsen, the Fortaleza Knutsen and the Carmen Knutsen are referred to as a “Vessel” and, collectively, as the “Vessels.” As of December 31, 2013, the Partnership operated a fleet of five vessels. The Vessels operate under fixed long-term charters. The time charters for the Windsor Knutsen and the Bodil Knutsen expire in 2014 and 2016, respectively, and contain charterer options for extension through 2016 and 2019, respectively. The Recife Knutsen and the Fortaleza Knutsen are under bareboat charters that expire in 2023. The Carmen Knutsen is under a long-term time charter that expires in 2018 and contains charterer options for extension through 2021. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Accounting Policies [Abstract] | ' | ||||
Summary of Significant Accounting Policies | ' | ||||
2) Summary of Significant Accounting Policies | |||||
(a) Basis of Preparation | |||||
The consolidated and combined carve-out financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). All intercompany balances and transactions are eliminated. | |||||
The consolidated and combined financial statements include the financial statements of the entities listed in Note 4. | |||||
As of April 16, 2013, the financial statements of the Partnership as a separate legal entity are presented on a consolidated basis. Prior to April 16, 2013, the results of operations, cash flows and balance sheet have been carved out of the consolidated financial statements of KNOT and therefore are presented on a combined carve-out basis. As of February 27, 2013, KNOT Shuttle Tankers AS acquired the 100% ownership in KNOT Shuttle Tankers 12 AS, KNOT Shuttle Tankers 17 AS, KNOT Shuttle Tankers 18 AS, and Knutsen Shuttle Tankers XII AS in a reorganization under common control. As of February 27, 2013, KNOT Shuttle Tankers 12 AS and Knutsen Shuttle Tankers XII AS owned a 90% and 10% ownership interest, respectively, in Knutsen Shuttle Tankers XII KS; and KNOT Shuttle Tankers 17 AS owned a 100% interest in Bodil Knutsen and KNOT Shuttle Tankers 18 AS owned a 100% interest in Windsor Knutsen. As a reorganization of entities under common control, the transfer of the subsidiaries and other net assets has been recorded at KNOT’s historical book value. | |||||
The Bodil Knutsen and the Windsor Knutsen were not operated as discrete units or included in single purpose legal entities. Accordingly, these Vessels have been “carved-out” of KNOT’s assets, liabilities, revenues, expenses and cash flows as they relate to the Predecessor’s business through the use of the information system of KNOT. Specific information is recorded and coded by vessel for each accounting transaction for certain line items in the combined carve-out financial statements. Therefore, amounts for such Vessels were specifically identified for revenues, vessel expenses, vessel operating expenses, depreciation and amortization, interest expense and related debt issuance cost for long-term debt and realized and unrealized losses on derivative instruments; and related balances for such Vessels were specifically identified for trade accounts receivable, inventories, prepaid expenses, vessels and equipment, intangible assets, trade accounts payable, certain accrued expenses, prepaid charter revenues, long-term debt, derivative liabilities and contract liabilities. | |||||
Vessels operating expenses includes ship management fees for the provision of technical and commercial management of Vessels and are based on intercompany charges invoiced by KNOT. All long-term debt is specifically related to financing of the individual Vessels. Derivatives are composed of interest rate swap derivatives and foreign exchange forward contracts. The interest rate swaps were entered into in conjunction with the individual Vessel financing to secure fixed interest rates. The interest rate swaps are included in the combined carve-out financial statements to reflect all of the historical cost of doing business even though they will not be transferred to the Partnership. The foreign exchange forward contracts were entered into in conjunction with the construction of certain of the individual Vessels to secure the amounts payable in foreign currencies. Since these Vessels were delivered in 2011, there were no outstanding foreign exchange forward contracts as of December 31, 2011 and 2012. | |||||
The following items, which are not directly attributable to the Vessels, have been allocated to the combined carve-out financial statements as set forth below: | |||||
• | General and administrative expenses of KNOT were invoiced to its subsidiaries based upon certain transfer pricing principles by type of cost. See to Note 18 – Related Party Transactions. The invoiced amounts that cannot be attributed to the Bodil Knutsen and the Windsor Knutsen have been allocated pro rata based on the number of vessels in KNOT’s fleet. | ||||
• | Cash and cash equivalents for general purposes at the legal entity level have not been allocated. The cash and cash equivalents and restricted cash balances are only included in the combined carve-out balance sheets to the extent they are specifically related to the Bodil Knutsen’s and the Windsor Knutsen’s petty cash or provisions of the loan agreements. Interest income cannot be attributed to the specific Vessels and has only been included in the combined carve-out financial statements to the extent it relates to an interesting bearing cash account included in the combined carve-out balance sheets. | ||||
• | Payables to owners and affiliates (“owner balances”) are not tracked on an individual Vessel basis for the Bodil Knutsen and the Windsor Knutsen but at the legal entity level. General allocations of owner balances based on the number of vessels within a legal entity would be inherently arbitrary. Therefore, the Predecessor has identified specific payments made by owners to shipyards on Vessels under construction or conversion on behalf of the legal entity owning the Vessel and reflected these balances as payable to owners and affiliates, adjusted for subsequent external bank refinancing or settlements of payables at the legal entity level, in the combined carve-out balance sheet. Interest expense has been allocated on the basis of these owner balances and the historical intercompany interest rates charged by the owners to its subsidiaries on owner balances. | ||||
• | Net gain (loss) of foreign currency transactions cannot be attributed directly to the Bodil Knutsen and the Windsor Knutsen and has been allocated based upon specifically identified or allocated balances included on the combined carve-out balance sheets. | ||||
• | Goodwill arose in 2008 when TSSI acquired the remaining 50% interest in the majority of KNOT’s vessels, including the Windsor Knutsen and the three other Vessels of the Predecessor under construction, in a transaction that was accounted for as a step acquisition. This transaction resulted in goodwill for KNOT. KNOT’s goodwill was allocated to the Predecessor based upon the Predecessor’s percentage of fair value of the Vessel, the Vessels under construction and the favorable or unfavorable charter contract rights acquired at the acquisition date to the total fair value acquired by KNOT for all vessels, vessels under construction and favorable or unfavorable charter contract rights. See Note 2(n) – Summary of Significant Accounting Policies: Goodwill and Intangibles and Note 14 – Goodwill, Intangible Assets and Contract Liabilities. | ||||
The Partnership’s activities included in the consolidated and combined carve-out financial statements contain Norwegian entities or activities that were organized as non-taxable partnerships or were without tax status. To reflect the historical cost of doing business, the income tax expense and related deferred tax assets and liabilities arising for the Predecessor activities included in the historical parent entities have been included in the consolidated and combined carve-out financial statements calculated on a separate return basis. | |||||
The Vessels of the Partnership were not historically owned by a separate legal entity or operated as a discrete group. Therefore, no separate share capital existed in owner’s equity. Further, certain Vessels had cash accounts shared with other vessels of the KNOT Group that were not allocated to the Predecessor. | |||||
Accordingly, the historical consolidated and combined carve-out financial statements prior to April 16, 2013 reflect allocations of certain expenses, including that of general and administrative expenses, mark-to-market valuations of interest rate swap derivatives, interest expense on related party payables and net gain (loss) on foreign currency transactions. These allocated costs have been accounted for as equity contribution in the consolidated and combined carve-out balance sheets. | |||||
Included in the Combined Entity’s equity prior to April 16, 2013 are amounts (net liabilities of $27.8 million) relating to certain assets and liabilities that were carved out as they were readily separable and identifiable within the books of KNOT. However, these amounts have been retained by KNOT and have not been transferred to the Partnership and therefore have been eliminated from the Partnership’s opening equity as of April 16, 2013. Details of the net liabilities eliminated are as follows: | |||||
(U.S. Dollars in thousands) | |||||
Balance sheet captions: | |||||
Other current assets | $ | 89 | |||
Other non-current assets | — | ||||
Other current liabilities (*) | (6,321 | ) | |||
Other long-term liabilities (*) | (21,560 | ) | |||
Net liabilities | $ | (27,792 | ) | ||
(*) | The majority of the assets and liabilities not transferred to the Partnership are related to interest swap derivatives (Note 10) and insurance proceeds pursuant to the Contribution and Sale Agreement entered into in connection with the closing of the IPO on April 15, 2013 (Note 8). | ||||
Management believes that the allocations included in these consolidated and combined carve-out financial statements are reasonable to present the financial position, results of operations and cash flows of the Partnership on a stand-alone basis. In the opinion of management these consolidated and combined carve-out financial statements reflect all adjustments, of a normal recurring nature, necessary to present fairly in all material respects, the Partnership’s consolidated and combined carve-out financial statements for the year ended December 31, 2013. However, the financial position, results of operations and cash flows of the Combined Entity as presented may differ from those that would have been achieved had the Partnership operated autonomously for all years presented as the Partnership would have had additional general and administrative expenses, including legal, accounting, treasury and regulatory compliance and other costs normally incurred by a stand-alone listed publicly traded entity. Accordingly, the comparative historical consolidated and combined financial statements do not purport to be indicative of the future financial position, results of operations or cash flows of the Partnership. | |||||
(b) Reporting Currency | |||||
The consolidated and combined carve-out financial statements are prepared in the reporting currency of U.S. Dollars. The functional currency of the vessel-owning Partnership subsidiaries is the U.S. Dollar, because the subsidiaries operate in the international shipping market, in which all revenues are U.S. Dollar-denominated and the majority of expenditures are made in U.S. Dollars. 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. As of 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 and combined carve-out statements of operations. | |||||
(c) Use of Estimates | |||||
The preparation of consolidated and combined carve-out financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives and impairment of Vessels, drydocking, the valuation of derivatives and income taxes. | |||||
(d) Revenues and Operating Expenses | |||||
The Partnership recognizes revenues from time charters and bareboat charters as operating leases on a straight-line basis over the term of the charter, net of any commissions. Under time charters, revenue is not recognized during days the Vessel is off-hire. Revenue is recognized from delivery of the Vessel to the charterer, until the end of the contract period. Under time charters, the Partnership is responsible for providing the crewing and other services related to the Vessel’s operations, the cost of which is included in the daily hire rate, except when off-hire. Fees received from customers for customized equipment are deferred and recognized over the contract period. Under bareboat charters, the Partnership provides a specified Vessel for a fixed period of time at a specified day rate. The Partnership recognizes revenues from spot contracts as voyage revenues using the percentage of completion method on a discharge-to-discharge basis. | |||||
Voyage expenses are all expenses unique to a particular voyage, including bunker fuel expenses, port fees, cargo loading and unloading expenses, canal tolls and agency fees. Voyage expenses are paid by the customer under time charter and bareboat charters. Voyage expenses are paid by the Partnership for spot contracts and during periods of off-hire and are recognized when incurred. | |||||
Vessel operating expenses include crewing, repairs and maintenance, insurance, stores, lube oils and communication expenses. Vessel operating expenses are paid by the Partnership for time charters, spot contracts and during off-hire and are recognized when incurred. | |||||
As further discussed in Note 18—Related Party Transactions, related parties have provided the management services for the Vessels and employ the crews that work on the Vessels. The Partnership has no direct employees and, accordingly, is not liable for any pension or post-retirement benefits. | |||||
(e) Financial Income (Expense) | |||||
Interest expenses incurred on the Partnership’s debt incurred during the construction of the Vessels exceeding one year are capitalized during the construction period. | |||||
(f) Cash and Cash Equivalents | |||||
The Partnership considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. | |||||
(g) Restricted Cash | |||||
Restricted cash consists of bank deposits, which may only be used to settle principal payments under the Partnership’s Vessel financing arrangements. | |||||
(h) Trade Accounts Receivable | |||||
Accounts receivable are recorded at the invoiced amount and do not bear interest. Under terms of the current time charters and bareboat charters, the customers are committed to pay for the full month’s charter the first day of each month. See Note 2(r) —Summary of Significant Accounting Policies: Prepaid Charter and Deferred Revenue. The allowance for doubtful accounts is the Partnership’s best estimate of the amount of probable credit losses in existing accounts receivable. The Partnership establishes provisions for doubtful accounts on a case-by-case basis when it is unlikely that required payments of specific amounts will occur. In establishing these provisions, the Partnership considers the financial condition of the customer as well as specific circumstances related to the receivable. Receivable amounts determined to be unrecoverable are written-off. There were no provisions as allowance for doubtful accounts or amounts written-off against the allowance for doubtful accounts as of December 31, 2013 and 2012. The Partnership does not have any off-balance-sheet credit exposure related to its customers. | |||||
(i) Inventories | |||||
Inventories, which are comprised principally of lubricating oils, are stated at the lower of cost or market. For vessels on time charters or bareboat charters, there are no bunkers, as the charterer supplies the bunkers, which principally consist of fuel oil. Cost is determined using the first-in, first-out method for all inventories. | |||||
(j) Other Current Assets | |||||
Other current assets principally consist of prepaid expenses, the current portion of deferred cost and other receivables. | |||||
(k) Vessels and Equipment | |||||
Vessels and equipment are stated at the historical acquisition or construction cost, including capitalized interest, supervision and technical and delivery cost, net of accumulated depreciation and impairment loss, if any. Expenditures for subsequent conversions and major improvements are capitalized, provided that such costs increase the earnings capacity or improve the efficiency or safety of the vessels. | |||||
Generally, the Partnership drydocks each vessel every 60 months until the vessel is 15 years old and every 30 months thereafter, as required for the renewal of certifications issued by classification societies. For vessels operating on time charters, the Partnership capitalizes the costs directly associated with the classification and regulatory requirements for inspection of the vessels, major repairs and improvements incurred during drydocking. Drydock cost is amortized on a straight-line basis over the period until the next planned drydocking takes place. The Partnership expenses costs related to routine repairs and maintenance performed during drydocking or as otherwise incurred. For vessels that are newly built or acquired, an element of the cost of the vessel is initially allocated to a drydock component and amortized on a straight-line basis over the period until the next planned drydocking. When significant drydocking expenditures occur prior to the expiration of this period, the Partnership expenses the remaining unamortized balance of the original drydocking cost in the month of the subsequent drydocking. For vessels operating on bareboat charters, the charter party bears the cost of any drydocking. | |||||
Depreciation on vessels and equipment is calculated on a straight-line basis over the asset’s estimated useful life, less an estimated residual value, as follows: | |||||
Useful Life | |||||
Hull | 25 years | ||||
Anchor-handling, loading and unloading equipment | 25 years | ||||
Main/auxiliary engine | 25 years | ||||
Thruster, dynamic positioning systems, cranes and other equipment | 25 years | ||||
Drydock costs | 2.5–5 years | ||||
A Vessel is depreciated to its estimated residual value, which is calculated based on the weight of the ship and estimated steel price. Any cost related to the disposal is deducted from the residual value. | |||||
(l) Capitalized Interest | |||||
Interest expenses incurred on the Partnership’s debt during the construction of the Vessels exceeding one year is capitalized during the construction period. | |||||
(m) Impairment of Long-Lived Assets | |||||
Vessels and equipment, vessels under construction and intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Partnership first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. | |||||
(n) Goodwill and Intangibles | |||||
Goodwill is not amortized but is reviewed for impairment on an annual basis or more frequently if impairment indicators are identified. | |||||
The Partnership tests goodwill for impairment using a two-step analysis, with the option of performing a qualitative assessment before performing the first step of the two-step analysis, whereby the carrying value of the reporting unit is compared to its fair value in the first step. If the carrying value of the reporting unit is greater than its fair value, the second step is performed, where the implied fair value of goodwill is compared to its carrying value. An impairment charge is recognized for the amount by which the carrying amount of goodwill exceeds its fair value. The fair value is estimated using the net present value of discounted cash flows of the reporting unit. The Partnership has only one reporting unit. | |||||
Other intangible assets represent contractual rights for charters obtained in connection with a step acquisition that had favorable contractual terms relative to market as of the acquisition date. Contractual rights for charters obtained in connection with a step acquisition that had unfavorable contractual terms are classified as contract liabilities in the consolidated combined carve-out balance sheets. The favorable and unfavorable contract rights are amortized to revenues over the period of the contract. | |||||
(o) Debt Issuance Costs | |||||
Debt issuance costs, including fees, commissions and legal expenses, are deferred. Debt issuance costs of term loans are amortized over the term of the relevant loan. Amortization of debt issuance costs is included in interest expense. | |||||
(p) Derivative Instruments | |||||
All derivative instruments are initially recorded at fair value as either assets or liabilities in the accompanying consolidated and combined carve-out balance sheets and subsequently measured to fair value. The Partnership does not apply hedge accounting to its derivative instruments. Changes in the fair value of the derivative instruments are recognized in earnings. Gains and losses from the interest rate swap contracts of the Partnership related to long-term mortgage debt and foreign exchange forward contracts are recorded in realized and unrealized gain (loss) on derivative instruments in the consolidated and combined carve-out statements of operations. Cash flows related to interest rate swap contracts are presented as cash flows provided by operating activities, and cash flows related to foreign exchange forward contracts are presented as cash flows used in investing activities in the consolidated and combined carve-out statements of cash flows. | |||||
(q) Income Taxes | |||||
Historically, part of the Partnership activities were subject to ordinary taxation and taxes were paid on taxable income (including operating income and net financial income and expense), while part of the activities were subject to the Norwegian Tonnage Tax regime (“the tonnage tax regime”). Under the tonnage tax regime, the tax is based on the tonnage of the vessel, and operating income is tax free. The net financial income and expense remains taxable as ordinary income tax for entities subject to the tonnage tax regime. Income taxes arising from the part of activities subject to ordinary taxation are included in income tax expense in the consolidated and combined carve-out statements of operations. For the portion of activities subject to the tonnage tax regime, tonnage taxes are classified as vessel operating expenses while the current and deferred taxes arising on net financial income and expense are reflected as income tax expense in the consolidated and combined carve-out statements of operations. The amounts of tonnage tax included in operating expenses for the years ended December 31, 2013 and 2012 were $100 thousand and $66 thousand, respectively. | |||||
The Partnership accounts for deferred income 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 enacted tax rates expected to apply to taxable income in the years in which these temporary differences are expected to be recovered or settled. 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 financial statements based on U.S. GAAP guidance. The Partnership recognizes interest and penalties related to uncertain tax positions in income tax expense. | |||||
(r) Prepaid Charter and Deferred Revenue | |||||
Under terms of the time charters and bareboat charters, the customer pays for the month’s charter the first day of each month that is recorded as prepaid charter revenues. Deferred revenues for fees received from customers for customized equipment are classified as prepaid charter and deferred revenue for the current portion and as other long-term liabilities for the non-current portion. | |||||
(s) Commitments, Contingencies and Insurance Proceeds | |||||
Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. See Note 19—Commitments and Contingencies. | |||||
Insurance claims for property damage for recoveries up to the amount of loss recognized are recorded when the claims submitted to insurance carriers are probable of recovery. Claims for property damage in excess of the loss recognized and for loss off-hire are considered gain contingencies, which are generally recognized when the proceeds are received. | |||||
(t) Fair Value Measurements | |||||
The Partnership utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Partnership determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: | |||||
• | Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. | ||||
• | Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. | ||||
• | Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. | ||||
(u) Recently Issued Accounting Standards | |||||
In December 2011, the FASB issued ASU (Accounting Standards Update) No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities (“ASU 2011-11”). ASU 2011-11 requires an entity to disclose information about offsetting and related arrangements to enable users of financial statements to understand the effect of those arrangements on its financial position, and to allow investors to better compare financial statements prepared under U.S. GAAP with financial statements prepared under IFRS. The new standards are effective for annual periods beginning January 1, 2013, and interim periods within those annual periods. Retrospective application is required. The Partnership adopted the provisions of ASU 2011-11 as of January 1, 2013. The adoption of ASU 2011-11 did not have a material impact on the Partnership’s consolidated and combined carve-out financial statements. | |||||
In February 2013, the FASB issued ASU No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 2013-02”). ASU 2013-02 requires reporting and disclosure about changes in accumulated other comprehensive income (“AOCI”) balances and reclassifications out of AOCI. For public companies, the ASU is effective prospectively for fiscal years and interim periods within those years beginning after December 15, 2012. The adoption of ASU 2013-02 did not have a material impact on the Partnership’s consolidated and combined carve-out financial statements. | |||||
There are no recent accounting pronouncements issued whose adoption would have a material impact on the Partnership’s consolidated and combined carve-out financial statements in the current year or are expected to have a material impact on future years. |
Formation_Transactions_and_Ini
Formation Transactions and Initial Public Offering | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Text Block [Abstract] | ' | |||
Formation Transactions and Initial Public Offering | ' | |||
3) Formation Transactions and Initial Public Offering | ||||
During April 2013, the following transactions occurred in connection with the transfer of the interests in KNOT Shuttle Tankers AS and the subsequent IPO: | ||||
Capital Contribution | ||||
(i) | KNOT contributed to the Partnership’s subsidiary KNOT UK its 100% interest in KNOT Shuttle Tankers AS, which directly or indirectly owned (1) Knutsen Shuttle Tankers XII KS, the owner of the Recife Knutsen and the Fortaleza Knutsen, (2) Knutsen Shuttle Tankers XII AS, the general partner of Knutsen Shuttle Tankers XII KS, and (3) the Windsor Knutsen and the Bodil Knutsen and all of their related charters, inventory and long-term debt. This has been accounted for as a capital contribution by KNOT to the Partnership. However, for the purpose of the historical combined carved-out financial statements, the net assets of the Vessels are included in the carve-out balance sheet as of December 31, 2012. | |||
Recapitalization of the Partnership | ||||
(ii) | The Partnership issued to KNOT 8,567,500 subordinated units, representing a 49.0% limited partner interest in the Partnership, and 100% of the IDRs, which will entitle KNOT to increasing percentages of the cash the Partnership distributes in excess of $0.43125 per unit per quarter. | |||
(iii) | The Partnership issued 349,694 general partner units to the General Partner, KNOT Offshore Partners GP LLC, a wholly owned subsidiary of KNOT, representing a 2.0% general partner interest in the Partnership. | |||
Initial Public Offering | ||||
(iv) | In connection with the IPO, the Partnership issued and sold to the public, through the underwriters, 8,567,500 common units (including 1,117,500 common units sold pursuant to the full exercise of the underwriters’ option to purchase additional units), representing a 49.0% limited partner interest in the Partnership. The price per common unit in the IPO was $21.00. The Partnership received gross proceeds of approximately $179.9 million in connection with the IPO. Expenses relating to the IPO, including, among other things, incremental costs directly attributable to the IPO, were deferred and charged against the gross proceeds of the IPO, whereas other costs have been expensed as incurred. The net proceeds of the IPO (approximately $160.7 million, after deducting underwriting discounts, commissions and structuring fees and offering expenses payable by the Partnership) have been used by the Partnership to make a cash distribution to KNOT of approximately $21.95 million (which equals net proceeds from the underwriters’ option exercised in full after deducting the underwriting discounts and commissions), to repay approximately $118.9 million of outstanding debt and pre-fund approximately $3.0 million of the Partnership’s one-time entrance tax into the Norwegian tonnage tax regime. The reminder of the net proceeds was made available for general partnership purposes. | |||
Agreements | ||||
In connection with the IPO, at or prior to the closing of the IPO, the Partnership entered into several agreements, including: | ||||
• | An Administrative Services Agreement with KNOT UK, pursuant to which: | |||
• | KNOT UK agreed to provide to the Partnership administrative services; and | |||
• | KNOT UK is permitted to subcontract certain of the administrative services provided under the administrative services agreement to Knutsen OAS (UK) Ltd. (“KOAS UK”) and Knutsen OAS Shipping AS (“KOAS”), both wholly owned subsidiaries of TS Shipping Invest AS (“TSSI”); | |||
• | Amended Technical Management Agreements with KNOT Management AS (“KNOT Management”), a wholly owned subsidiary of KNOT, that govern the crew, technical and commercial management of the vessels in the fleet; | |||
• | A Contribution and Sale Agreement with KNOT. See Note 2(a)—Summary of Significant Accounting Policies: Basis of Preparation; | |||
• | Amendments to certain of the Partnership’s existing vessel financing agreements to permit the transactions pursuant to which the Partnership acquired its initial fleet in connection with the IPO and to include a $20.0 million revolving credit facility; and | |||
• | An Omnibus Agreement with KNOT, the General Partner and the other parties thereto governing, among other things: | |||
• | To what extent the Partnership and KNOT may compete with each other; | |||
• | The Partnership’s option to purchase the Carmen Knutsen within 24 months after the closing of the IPO, any of the Hilda Knutsen, the Torill Knutsen, the Ingrid Knutsen and the Raquel Knutsen from KNOT within 24 months after KNOT notifies the Partnership’s board of directors of their respective acceptances by their charterers upon reaching an agreement with KNOT regarding the respective purchase prices; | |||
• | Certain rights of first offer on shuttle tankers operating under charters of five or more years; | |||
• | The provision of certain indemnities to the Partnership by KNOT; and | |||
• | KNOT’s guarantee of the payment of the hire rate under the existing Bodil Knutsen and Windsor Knutsen charters for a period of five years following the closing date of the IPO. |
Subsidiaries
Subsidiaries | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Noncontrolling Interest [Abstract] | ' | ||||
Subsidiaries | ' | ||||
4) Subsidiaries | |||||
The following table lists the Partnership’s subsidiaries and their purpose as of December 31, 2013. | |||||
Company Name | Jurisdiction of | Purpose | |||
Formation | |||||
KNOT Offshore Partners UK LLC | Marshall Islands | Holding company | |||
KNOT Shuttle Tankers AS | Norway | Holding company | |||
KNOT Shuttle Tankers 12 AS | Norway | Majority owner of Knutsen Shuttle | |||
Tankers XII KS | |||||
KNOT Shuttle Tankers 17 AS | Norway | Owner of the Bodil Knutsen | |||
KNOT Shuttle Tankers 18 AS | Norway | Owner of the Windsor Knutsen | |||
Knutsen Shuttle Tankers 13 AS | Norway | Owner of the Carmen Knutsen | |||
Knutsen Shuttle Tankers XII KS | Norway | Owner of the Fortaleza Knutsen and | |||
the Recife Knutsen | |||||
Knutsen Shuttle Tankers XII AS | Norway | General partner of Knutsen Shuttle | |||
Tanker XII KS |
Significant_Risks_and_Uncertai
Significant Risks and Uncertainties Including Business and Credit Concentrations | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Risks And Uncertainties [Abstract] | ' | ||||||||||||||||||||||||
Significant Risks and Uncertainties Including Business and Credit Concentrations | ' | ||||||||||||||||||||||||
5) Significant Risks and Uncertainties Including Business and Credit Concentrations | |||||||||||||||||||||||||
Each of the Vessels is employed under long-term fixed charters, which mitigates earnings risk. The Partnership’s operational results are dependent on the worldwide market for shuttle tankers and timing of entrance into long-term charters. Market conditions for shipping activities are typically volatile, and, as a consequence, the hire rates may vary from year to year. The market is mainly dependent upon two factors: the supply of vessels and the overall growth in the world economy. The general supply of vessels is a combination of newbuilds, demolition activity of older vessels and legislation that limits the use of older vessels or new standards for vessels used in specific trades. | |||||||||||||||||||||||||
As of December 31, 2013, all of the Partnership’s Vessel crews, which are employed through Knutsen OAS Shipping AS, were represented by collective bargaining agreements that are renegotiated annually, or bi-annually. | |||||||||||||||||||||||||
The Partnership did not incur any loss relating to its customers during the years ended December 31, 2013, 2012 and 2011. | |||||||||||||||||||||||||
The following table presents revenues and percentage of combined revenues for customers that accounted for more than 10% of the Partnership’s combined revenues during the years ended December 31, 2013, 2012 and 2011. All of these customers are major international oil companies. | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
(U.S. Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Brazil Shipping I Limited, a subsidiary of BG Group Plc | $ | 20,311 | 28 | % | $ | 14,905 | 23 | % | $ | 13,172 | 30 | % | |||||||||||||
Fronape International Company, a subsidiary of Petrobras Transporte S.A. | 22,860 | 31 | % | 24,980 | 38 | % | 14,540 | 33 | % | ||||||||||||||||
Statoil ASA | 21,563 | 29 | % | 22,193 | 34 | % | 14,096 | 32 | % | ||||||||||||||||
Repsol Sinopec Brasil, S.A., a subsidiary of Repsol Sinopec Brasil, B.V. | 8,417 | 12 | % | — | — | — | — | ||||||||||||||||||
The Partnership has financial assets that expose it to credit risk arising from possible default by a counterparty. The Partnership considers its counterparties to be creditworthy financial institutions and does not expect any significant loss to result from non-performance by such counterparties. The maximum loss due to credit risk that the Partnership would incur if counterparties failed completely to perform would be the carrying value of cash and cash equivalents, restricted cash and trade accounts receivable. The Partnership, in the normal course of business, does not demand collateral from its counterparties. |
Operating_Leases
Operating Leases | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Leases [Abstract] | ' | ||||
Operating Leases | ' | ||||
6) Operating Leases | |||||
The time charters and bareboat charters of the Vessels with third parties are accounted for as operating leases. The minimum contractual future revenues to be received from time charters and bareboat charters as of December 31, 2013, were as follows: | |||||
(U.S. Dollars in thousands) | |||||
2014 | $ | 85,936 | |||
2015 | 86,359 | ||||
2016 | 86,787 | ||||
2017 | 87,218 | ||||
2018 | 37,459 | ||||
2019 and thereafter | 103,701 | ||||
Total | $ | 487,460 | |||
The Partnership’s fleet as of December 31, 2013 consisted of: | |||||
• | the Fortaleza Knutsen, a shuttle tanker built in 2011 that is currently operating under a bareboat charter that expires in March 2023 with Fronape International Company, a subsidiary of Petrobras Transporte S.A. (“Transpetro”); | ||||
• | the Recife Knutsen, a shuttle tanker built in 2011 that is currently operating under a bareboat charter that expires in August 2023 with Fronape International Company, a subsidiary of Transpetro; | ||||
• | the Bodil Knutsen, a shuttle tanker built in 2011 that is currently operating under a time charter that expires in May 2016 with Statoil ASA (“Statoil”), with options to extend until May 2019; | ||||
• | the Windsor Knutsen, a conventional oil tanker built in 2007 and retrofitted to a shuttle tanker in 2011 that is currently operating under a time charter that is scheduled to expire between June 30 and August 30, 2014 with Brazil Shipping I Limited, a subsidiary of BG Group Plc; and | ||||
• | the Carmen Knutsen, a shuttle tanker built in 2013 that is currently operating under a time charter that expires in January 2018, with Repsol Sinopec Brasil, S.A, a subsidiary of Repsol Sinopec Brasil, B.V. (“Repsol”), with options to extend until January 2021. | ||||
Segment_Information
Segment Information | 12 Months Ended |
Dec. 31, 2013 | |
Segment Reporting [Abstract] | ' |
Segment Information | ' |
7) Segment Information | |
The Partnership has not presented segment information as it considers its operations to occur in one reportable segment, the shuttle tanker market. During 2013, 2012 and 2011, the Partnership’s fleet operated under three time charters and two bareboat charters. See Note 5- Significant Risks and Uncertainties Including Business and Credit Concentrations for revenues from customers accounting for over 10 % of the Partnership’s consolidated and combined revenue. In both time charters and bareboat charters, the charterer, not the Partnership, controls the choice of which trading areas the Vessels will serve. Accordingly, the Partnership’s management, including the chief operating decision makers, does not evaluate performance according to geographical region. |
Insurance_Proceeds
Insurance Proceeds | 12 Months Ended |
Dec. 31, 2013 | |
Extraordinary And Unusual Items [Abstract] | ' |
Insurance Proceeds | ' |
8) Insurance Proceeds | |
In March 2012, the Windsor Knutsen damaged its propeller. As a result, the Vessel was off-hire from April 1, 2012 to June 24, 2012 for repairs. Under the Partnership’s loss of hire policies, its insurer will pay the Partnership the hire rate agreed in respect of each vessel for each day, in excess of 14 deductible days, for the time that the Vessel is out of service as a result of damage, for a maximum of 180 days. During the year ended December 31, 2013 and 2012, the Partnership received payments for loss of hire insurance of $0.3 million and $3.6 million, respectively, which was recorded as a component of total revenues since day rates are recovered under terms of the policy. | |
In addition, as of April 15, 2013 and December 31, 2012, the Partnership recorded $3.5 million and $3.0 million, respectively, for the probable recoveries up to the amount of loss under hull and machinery insurance for the repairs as a result of the propeller damage to the Windsor Knutsen. This is classified under vessel operating expenses along with the cost of the repairs of $4.0 million and $4.1 million, respectively. | |
In accordance with the Contribution and Sale Agreement entered into as of April 15, 2013, insurance claims were not transferred to the Partnership upon closing, and, therefore, there is no claim in the consolidated and combined carve-out balance sheet as of December 31, 2013. See Consolidated and Combined Carve-Out Statements of Changes in Partners’ Capital/Owners’ Capital and Note 2(a)—Summary of Significant Accounting Policies: Basis of Preparation. |
Finance_Income_Expense
Finance Income (Expense) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Banking And Thrift Interest [Abstract] | ' | ||||||||||||
Finance Income (Expense) | ' | ||||||||||||
9) Finance Income (Expense) | |||||||||||||
(a) Interest Expense | |||||||||||||
A reconciliation of total interest cost to interest expense as reported in the consolidated and combined carve-out statements of operations for the years ended December 31, 2013, 2012 and 2011 is as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
(U.S. Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Interest cost capitalized | $ | — | $ | — | $ | 3,525 | |||||||
Interest expense | 10,773 | 13,471 | 9,650 | ||||||||||
Total interest cost | $ | 10,773 | $ | 13,471 | $ | 13,175 | |||||||
(b) Other Finance Expense | |||||||||||||
The following table presents the other finance expense for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||
Year Ended December 31, | |||||||||||||
(U.S. Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Bank fees, charges and external guarantee costs | $ | 1,414 | $ | 1,169 | $ | 918 | |||||||
Related party guarantee commissions (Note 18) | 634 | 2,206 | 1,455 | ||||||||||
Related party financing service fee (Note 18) | — | 3 | 368 | ||||||||||
Total other finance expense | $ | 2,048 | $ | 3,378 | $ | 2,741 | |||||||
Derivative_Instruments
Derivative Instruments | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||
Derivative Instruments | ' | ||||||||||||
10) Derivative Instruments | |||||||||||||
Interest Rate Risk Management | |||||||||||||
The consolidated and combined carve-out financial statements include the results of interest rate swap contracts to manage the Partnership’s exposure related to changes in interest rates on its variable rate debt instruments and the results of foreign exchange forward contracts to manage its exposure related to changes in currency exchange rates on its operating expenses, mainly crew expenses, in other currency than USD and on its contract obligations. The Partnership does not apply hedge accounting for derivative instruments. The Partnership does not speculate using derivative instruments. | |||||||||||||
By using derivative financial instruments to economically hedge exposures to changes in interest rates, the Partnership exposes itself to credit risk and market risk. Derivative instruments that economically hedge exposures are used for risk management purposes, but these instruments are not designated as hedges for accounting purposes. Credit risk is the failure of the counterparty to perform under the terms of the derivative instrument. When the fair value of a derivative instrument is positive, the counterparty owes the Partnership, which creates credit risk for the Partnership. When the fair value of a derivative instrument is negative, the Partnership owes the counterparty, and, therefore, the Partnership is not exposed to the counterparty’s credit risk in those circumstances. The Partnership minimizes counterparty credit risk in derivative instruments by entering into transactions with major banking and financial institutions. The derivative instruments entered into by the Partnership do not contain credit risk-related contingent features. | |||||||||||||
Market risk is the adverse effect on the value of a derivative instrument that results from a change in interest rates, currency exchange rates or commodity prices. The market risk associated with interest rate contracts is managed by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. | |||||||||||||
The Partnership assesses interest rate risk by monitoring changes in interest rate exposures that may adversely impact expected future cash flows and by evaluating economical hedging opportunities. | |||||||||||||
The Partnership has historically used variable interest rate mortgage debt to finance its vessel construction or conversions. The variable interest rate mortgage debt obligations expose the Partnership to variability in interest payments due to changes in interest rates. The Partnership believes that it is prudent to limit the variability of a portion of its interest payments. To meet this objective, the Partnership entered into London Interbank Offered Rate (“LIBOR”)-based interest rate swap contracts to manage fluctuations in cash flows resulting from changes in the benchmark interest rate of LIBOR. These swaps change the variable rate cash flow exposure on the mortgage debt obligations to fixed cash flows. Under the terms of the interest rate swap contracts, the Partnership receives LIBOR-based variable interest rate payments and makes fixed interest rate payments, thereby creating the equivalent of fixed rate debt for the notional amount of its debt hedged. | |||||||||||||
All interest rate swap contracts entered into in conjunction with the individual vessel financings prior to the closing date of the IPO have been carved out, as they were readily separable and identifiable within the books of KNOT. Additionally, all these interest rate swap contracts have been retained by KNOT and have not been transferred to the Partnership. Therefore, such interest rate swap contracts have been eliminated from the Partnership’s opening equity position as of April 16, 2013. See Consolidated and Combined Carve-Out Statements of Changes in Partners’ Capital/Owners’ Capital and Note 2(a)—Summary of Significant Accounting Policies: Basis of Preparation. | |||||||||||||
As of December 31, 2013 and 2012, the total notional amount of the Partnership’s outstanding interest rate swap contracts that were entered into in order to hedge outstanding or forecasted debt obligations were $200 million and $128.5 million, respectively. As of December 31, 2013, the carrying amount of the interest rate swaps contracts were net assets of $0.5 million, and as of December 31, 2012, the carrying amount of the interest rate swap contracts were liabilities of $27.9 million. See Note 11—Fair Value Measurements. | |||||||||||||
Changes in the fair value of interest rate swap contracts are reported in realized and unrealized gain (loss) on derivative instruments in the same period in which the related interest affects earnings. | |||||||||||||
The Partnership and its subsidiaries utilize the U.S. Dollar as their functional and reporting currency, because all of their revenues and the majority of their expenditures, including the majority of their investments in vessels and their financing transactions, are denominated in U.S. Dollars. The Predecessor has also from time to time contracted vessels with contractual obligations to pay the yards in currencies other than the U.S. Dollar. Payment obligations in currencies other than the U.S. Dollar, and in particular operating expenses in NOK, expose the Partnership to variability in currency exchange rates. The Partnership believes that it is prudent to limit the variability of a portion of its currency exchange exposure. To meet this objective, the Partnership entered into foreign exchange forward contracts to manage fluctuations in cash flows resulting from changes in the exchange rates towards the U.S. Dollar. The agreements change the variable exchange rate to fixed exchange rates at agreed dates. | |||||||||||||
As of December 31, 2013 2012 and 2011, the total contract amount in foreign currency of the Partnership’s or the Predecessor’s outstanding foreign exchange forward contracts that were entered into to economically hedge outstanding future payments in currencies other than the U.S. Dollar were NOK 124.4 million, 0 (no contracts) and 0 (no contracts), respectively. As of December 31, 2013 and 2012, the carrying amount of the Partnership’s foreign exchange forward contracts was an asset of $0.2 million and $0 million, respectively. See Note 11—Fair Value Measurements. | |||||||||||||
The following table presents the realized and unrealized gains and losses that are recognized in earnings as net gain (loss) on derivative instruments for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||
Year Ended December 31 | |||||||||||||
(U.S. Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Realized gain (loss) | |||||||||||||
Interest rate swap contracts | $ | (1,265 | ) | $ | (5,482 | ) | $ | (5,738 | ) | ||||
Foreign exchange forward contracts | — | — | (828 | ) | |||||||||
Unrealized gain (loss) | |||||||||||||
Interest rate swap contracts | 1,522 | (549 | ) | (11,407 | ) | ||||||||
Foreign exchange forward contracts | 248 | — | 2,484 | ||||||||||
Total | $ | 505 | $ | (6,031 | ) | $ | (15,489 | ) | |||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
11) Fair Value Measurements | |||||||||||||||||
(a) Fair Value of Financial Instruments | |||||||||||||||||
The following table presents the carrying amounts and estimated fair values of the Partnership’s financial instruments as of December 31, 2013 and 2012. Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | |||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||
(U.S. Dollars in thousands) | Carrying | Fair Value | Carrying | Fair Value | |||||||||||||
Amount | Amount | ||||||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | $ | 28,836 | $ | 28,836 | $ | 1,287 | $ | 1,287 | |||||||||
Restricted cash | 458 | 458 | 830 | 830 | |||||||||||||
Current derivative assets: | |||||||||||||||||
Foreign exchange forward contract | 248 | 248 | — | — | |||||||||||||
Non-current derivative assets: | |||||||||||||||||
Interest rate swap contracts | 2,617 | 2,617 | — | — | |||||||||||||
Financial liabilities: | |||||||||||||||||
Current derivative liabilities: | |||||||||||||||||
Interest rate swap contracts | 2,124 | 2,124 | 5,258 | 5,258 | |||||||||||||
Foreign exchange forward contract | — | — | — | — | |||||||||||||
Non-current derivative liabilities: | |||||||||||||||||
Interest rate swap contracts | — | — | 22,622 | 22,622 | |||||||||||||
Long-term debt, current and non-current | 349,977 | 350,999 | 347,850 | 342,655 | |||||||||||||
The carrying amounts shown in the table above are included in the consolidated and combined carve-out balance sheets under the indicated captions. The carrying value of trade accounts receivable, trade accounts payable and receivables/payables to owners and affiliates approximate their fair value. | |||||||||||||||||
The fair values of the financial instruments shown in the above table as of December 31, 2013 and 2012 represent the amounts that would be received to sell those assets or that would be paid to transfer those liabilities in an orderly transaction between market participants at that date. Those fair value measurements maximize the use of observable inputs. However, in situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects the Partnership’s own judgment about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by the Partnership based on the best information available in the circumstances, including expected cash flows, appropriately risk-adjusted discount rates and available observable and unobservable inputs. | |||||||||||||||||
The following methods and assumptions were used to estimate the fair value of each class of financial instruments: | |||||||||||||||||
• | Cash and cash equivalents and restricted cash: The fair value of the Partnership’s cash balances approximates the carrying amounts due to the current nature of the amounts. | ||||||||||||||||
• | Foreign exchange forward contracts: The fair value is calculated using mid-rates (excluding margins) as determined by counterparties based on available market rates as of the balance sheet date. The fair value is discounted from the value at expiration to the current value of the contracts. | ||||||||||||||||
• | Interest rate swap contracts: The fair value of interest rate swap contracts is determined using an income approach using the following significant inputs: (1) the term of the swap contract (weighted average of 4.3 years and 5.9 years, respectively), (2) the notional amount of the swap contract (ranging from $10,000 to $50,000), discount rates interpolated based on relevant LIBOR swap curves; and (3) the rate on the fixed leg of the swap contract (rates ranging from 1.25% to 1.44% for the contracts as of December 31,2013 and rates ranging from 3.84% to 5.10% for the contracts as of December 31, 2012). | ||||||||||||||||
• | Long-term debt: With respect to long-term debt measurements, the Partnership uses market interest rates and adjusts that rate for all necessary risks, including its own credit risk. In determining an appropriate spread to reflect its credit standing, the Partnership considered interest rates currently offered to the KNOT Group for similar debt instruments of comparable maturities by KNOT’s and the Partnership’s bankers as well as other banks that regularly compete to provide financing to the Partnership. | ||||||||||||||||
(b) Fair Value Hierarchy | |||||||||||||||||
The following table presents the placement in the fair value hierarchy of assets and liabilities that are measured at fair value on a recurring basis (including items that are required to be measured at fair value or for which fair value is required to be disclosed) as of December 31, 2013 and 2012: | |||||||||||||||||
Fair Value Measurements at | |||||||||||||||||
Reporting Date Using | |||||||||||||||||
(U.S. Dollars in thousands) | December 31, | Quoted Price | Significant | Significant | |||||||||||||
2013 | in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||
Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | $ | 28,836 | $ | 28,836 | $ | — | $ | — | |||||||||
Restricted cash | 458 | 458 | — | — | |||||||||||||
Current derivative asset: | |||||||||||||||||
Foreign exchange forward contracts | 248 | — | 248 | — | |||||||||||||
Non-current derivative assets: | |||||||||||||||||
Interest rate swap contracts | 2,617 | — | 2,617 | — | |||||||||||||
Financial liabilities: | |||||||||||||||||
Current derivative liabilities: | |||||||||||||||||
Interest rate swap contracts | 2,124 | — | 2,124 | — | |||||||||||||
Foreign exchange forward contracts | — | — | — | — | |||||||||||||
Non-current derivative liabilities: | |||||||||||||||||
Interest rate swap contracts | — | — | — | — | |||||||||||||
Long-term debt, current and non-current | 350,999 | — | 350,999 | — | |||||||||||||
Fair Value Measurements at | |||||||||||||||||
Reporting Date Using | |||||||||||||||||
(U.S. Dollars in thousands) | December 31, | Quoted Price | Significant | Significant | |||||||||||||
2012 | in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||
Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | $ | 1,287 | $ | 1,287 | $ | — | $ | — | |||||||||
Restricted cash | 830 | 830 | — | — | |||||||||||||
Current derivative asset: | |||||||||||||||||
Foreign exchange forward contracts | — | — | — | — | |||||||||||||
Non-current derivative assets: | |||||||||||||||||
Interest rate swap contracts | — | — | — | — | |||||||||||||
Financial liabilities: | |||||||||||||||||
Current derivative liabilities: | |||||||||||||||||
Interest rate swap contracts | 5,258 | — | 5,258 | — | |||||||||||||
Foreign exchange forward contracts | — | — | — | — | |||||||||||||
Non-current derivative liabilities: | |||||||||||||||||
Interest rate swap contracts | 22,622 | — | 22,622 | — | |||||||||||||
Long-term debt, current and non-current | 342,655 | — | 342,655 | — | |||||||||||||
The Partnership’s accounting policy is to recognize transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. There were no transfers into or out of Level 1, Level 2 or Level 3 as of December 31, 2013 and 2012. | |||||||||||||||||
Trade_Accounts_Receivables
Trade Accounts Receivables | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Receivables [Abstract] | ' | ||||||||
Trade Accounts Receivables | ' | ||||||||
12) Trade Accounts Receivables | |||||||||
(a) Trade Accounts Receivables | |||||||||
Trade accounts receivable are presented net of provisions for doubtful accounts. As of December 31, 2013 and 2012, there was no provision for doubtful accounts. | |||||||||
(b) Other Current Assets | |||||||||
Other current assets consist of the following: | |||||||||
Year Ended December 31, | |||||||||
(U.S. Dollars in thousands) | 2013 | 2012 | |||||||
Insurance claims for recoveries | — | $ | 1,000 | ||||||
Refund of value added tax | 312 | — | |||||||
Prepaid expenses | 247 | 191 | |||||||
Current portion of deferred debt issuance cost | 1,116 | 982 | |||||||
Deferred incremental costs of MLP offering | — | 1,078 | |||||||
Other receivable | 139 | 208 | |||||||
Total other current assets | $ | 1,814 | $ | 3,459 | |||||
Deferred incremental costs of MLP offering includes specific incremental costs directly attributable to the offering of the Partnership units in the IPO, such as legal fees, auditor fees, printing costs, travel costs and similar items. These costs are deferred and have been charged against the gross proceeds of the offering at the close of the IPO. | |||||||||
Vessels_and_Equipment
Vessels and Equipment | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||||||||||
Vessels and Equipment | ' | ||||||||||||||||
13) Vessels and Equipment | |||||||||||||||||
(U.S. Dollars in thousands) | Vessel & | Vessel under | Accumulated | Net vessels | |||||||||||||
equipment | construction | depreciation | |||||||||||||||
Balance December 31, 2011 | $ | 548,989 | $ | — | $ | (31,092 | ) | $ | 517,897 | ||||||||
Additions | 52 | — | — | 52 | |||||||||||||
Drydock costs | — | — | — | — | |||||||||||||
Transfer from vessels under construction | — | — | — | — | |||||||||||||
Disposals | (900 | ) | — | 900 | — | ||||||||||||
Depreciation | — | — | (21,181 | ) | (21,181 | ) | |||||||||||
(U.S. Dollars in thousands) | Vessel & | Vessel under | Accumulated | Net vessels | |||||||||||||
equipment | construction | depreciation | |||||||||||||||
Balance December 31, 2012 | $ | 548,141 | $ | — | $ | (51,373 | ) | $ | 496,768 | ||||||||
Additions | 143,231 | — | — | 143,231 | |||||||||||||
Drydock costs | 1,781 | — | — | 1,781 | |||||||||||||
Transfer from vessels under construction | — | — | — | — | |||||||||||||
Disposal | (227 | ) | — | — | (227 | ) | |||||||||||
Depreciation | — | — | (23,768 | ) | (23,768 | ) | |||||||||||
Balance December 31, 2013 | $ | 692,926 | 0 | $ | (75,141 | ) | $ | (617,785 | ) | ||||||||
As of December 31, 2013 and 2012, Vessels with a book value of $618 million and $497 million, respectively, are pledged as security held as a guarantee for the Partnership’s long-term debt. See Note 16—Long-Term Debt. | |||||||||||||||||
Drydocking activity for the years ended December 31, 2013 and 2012 is summarized as follows: | |||||||||||||||||
Year Ended | |||||||||||||||||
December 31, | |||||||||||||||||
(U.S. Dollars in thousands) | 2013 | 2012 | |||||||||||||||
Balance at the beginning of the year | $ | 2,472 | $ | 3,228 | |||||||||||||
Costs incurred for drydocking | 12 | — | |||||||||||||||
Costs allocated to drydocking as part of acquisition of business | 1,769 | — | |||||||||||||||
Drydock amortization | (884 | ) | (756 | ) | |||||||||||||
Balance at the end of the year | $ | 3,369 | $ | 2,472 | |||||||||||||
Goodwill_Intangible_Assets_and
Goodwill, Intangible Assets and Contract Liabilities | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||
Goodwill, Intangible Assets and Contract Liabilities | ' | ||||||||||||||||||||
14) Goodwill, Intangible Assets and Contract Liabilities | |||||||||||||||||||||
(a) Goodwill | |||||||||||||||||||||
Goodwill arose in 2008 when TSSI acquired the remaining 50% interest in the majority of KNOT’s vessels, including the Windsor Knutsen and the three other Vessels of the Partnership under construction, in a transaction that was accounted for as a step acquisition. See Note 2(a)—Summary of Significant Accounting Policies: Basis of preparation for a discussion on the allocation method. The carrying amount of goodwill that was allocated to the Partnership was $5,750 as of December 31, 2013 and 2012. | |||||||||||||||||||||
(b) Intangible Assets and Contract Liabilities | |||||||||||||||||||||
The Partnership’s identified finite-lived intangible assets associated with contractual rights for a charter of a Vessel obtained in connection with a step acquisition in 2008 that had favorable contractual terms relative to market as of the acquisition date. The finite-lived intangible assets of $533 were fully amortized as of December 31, 2010. In addition, as part of that transaction, unfavorable contractual rights for charters of two of the Vessels that had unfavorable contractual terms. The unfavorable contract rights are amortized over the period of the contract to time charter and bareboat revenues as follows: | |||||||||||||||||||||
(U.S. Dollars in thousands) | Balance as of | Amortization | Balance as of | Amortization | Balance as of | ||||||||||||||||
December 31, | for the year | December 31, | for the year | December 31, | |||||||||||||||||
2011 | ended | 2012 | ended | 2013 | |||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||
2012 | 2013 | ||||||||||||||||||||
Contract liabilities: | |||||||||||||||||||||
Unfavorable contract rights | $ | (17,347 | ) | $ | 1,518 | $ | (15,829 | ) | $ | 1,518 | $ | (14,311 | ) | ||||||||
Total amortization income | $ | 1,518 | $ | 1,518 | |||||||||||||||||
Accumulated amortization for contract liabilities was $3,904 and $2,386 as of December 31, 2013 and 2012, respectively. | |||||||||||||||||||||
The amortization of contract liabilities that is classified under time charter and bareboat revenues on the consolidated combined carve-out income statement for the next five years is expected to be as follows: | |||||||||||||||||||||
(U.S. Dollars in thousands) | 2014 | 2015 | 2016 | 2017 | 2018 and | ||||||||||||||||
thereafter | |||||||||||||||||||||
Contract liabilities: | |||||||||||||||||||||
Unfavorable contract rights | $ | (1,518 | ) | $ | (1,518 | ) | $ | (1,518 | ) | $ | (1,518 | ) | $ | (8,239 | ) | ||||||
Accrued_Expenses
Accrued Expenses | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Accrued Expenses | ' | ||||||||
15) Accrued Expenses | |||||||||
The following table presents accrued expenses as of December 31, 2013 and 2012: | |||||||||
Year Ended December 31, | |||||||||
(U.S. Dollars in thousands) | 2013 | 2012 | |||||||
Operating expenses | $ | 808 | $ | 460 | |||||
Interest expenses | 1,599 | 1,045 | |||||||
Other finance expenses | 235 | 298 | |||||||
Total accrued expenses | $ | 2,642 | $ | 1,803 | |||||
LongTerm_Debt
Long-Term Debt | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||
Long-Term Debt | ' | ||||||||||
16) Long-Term Debt | |||||||||||
Prior to the closing of the IPO, existing vessel financing agreements were amended to permit the transactions pursuant to which the Partnership acquired its initial fleet at the closing of the IPO and to establish a $20.0 million revolving credit facility. | |||||||||||
The Partnership used the net proceeds from the IPO to repay either a portion of the amounts outstanding or the full amount outstanding under the existing loan facilities. All amended loan agreements have been assessed for debt extinguishment or debt modifications in accordance with Accounting Standards Codification 470, Debt. Debt that has been fully repaid has been accounted for as debt extinguishment, i.e., for all extinguishments of debt, the difference between the reacquisition price (which includes any premium) and the net carrying amount of the debt being extinguished (which includes any deferred debt issuance costs) has been recognized as a gain or loss when the debt was extinguished. | |||||||||||
In August 2013, the Partnership acquired through its subsidiary, KNOT Shuttle Tankers AS, KNOT’s 100% interest in the company that owns and operates the Carmen Knutsen. The purchase price was $145.0 million, less bank debt of $89.1 million, originally drawn at $93 million, and other purchase price adjustments of $0.1 million. The purchase price was settled by way of a cash payment of $45.4 million and a seller’s credit provided by KNOT in the form of a loan for $10.5 million (the “Seller Loan”). The existing senior loan facility related to the Fortaleza Knutsen and the Recife Knutsen was further amended to increase borrowing capacity by $25.4 million, and $20.0 million was drawn under the existing loan facility related to the Bodil Knutsen. | |||||||||||
Long-term debt as of December 31, 2013 and 2012, consisted of following: | |||||||||||
(U.S. Dollars in thousands) | Vessel | December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||||
$160 million loan facility | Fortaleza Knutsen & Recife Knutsen | $ | 132,425 | $ | 144,100 | ||||||
$19 million loan facility | Fortaleza Knutsen & Recife Knutsen | — | 18,350 | ||||||||
$120 million loan facility | Bodil Knutsen | 67,615 | 106,600 | ||||||||
$85 million loan facility | Windsor Knutsen | 52,400 | 56,400 | ||||||||
$27.3 million loan facility | Windsor Knutsen | — | 22,400 | ||||||||
$93 million loan facility | Carmen Knutsen | 87,188 | — | ||||||||
Seller’s credit | 10,349 | — | |||||||||
Total long-term debt | 349,977 | 347,850 | |||||||||
Less current installments | 29,269 | 28,833 | |||||||||
Less seller’s credit | 10,349 | — | |||||||||
Long-term debt, excluding current installment and seller’s credit | $ | 310,359 | $ | 319,017 | |||||||
$160 Million Secured Loan Facility and $19 Million Secured Loan Facility | |||||||||||
The $160 million senior secured loan facility, as amended (the “Fortaleza and Recife Facility”), includes two tranches. Each tranche is repayable in quarterly installments over five years with final balloon payments due at maturity in March 2016 and August 2016. The Partnership used $26.3 million of net proceeds from the IPO to repay borrowings under the $160 million senior secured facility. The amendment to this loan agreement was accounted for as debt modification, and the Partnership recorded an additional $0.3 million as deferred financing fees in the consolidated and combined carve-out balance sheets. | |||||||||||
The $19 million junior secured loan facility was fully repaid by using net proceeds from the IPO. At the closing date of the IPO, the outstanding long-term debt relating to the $19 million junior secured loan facility was $18.1 million. The amendment to this loan agreement was accounted for as debt extinguishment, and the remaining unamortized balance of $0.4 million was written-off from deferred financing fees. | |||||||||||
The Fortaleza and Recife Facility was amended to increase borrowing capacity by $25.4 million in connection with the settlement of the acquisition of the Carmen Knutsen. | |||||||||||
The Fortaleza and Recife Facility bears interest at LIBOR plus a fixed margin of 3.0%. | |||||||||||
The Fortaleza and Recife Facility is secured by the Fortaleza Knutsen and the Recife Knutsen, and the Partnership and KNOT Shuttle Tankers AS are the sole guarantors. It also contains the following financial covenants: | |||||||||||
• | Positive working capital for the borrower; | ||||||||||
• | Minimum liquidity of the Partnership of $15 million plus increments of $1 million for each additional vessel acquired by the Partnership above the eighth vessel and $1.5 million for each owned vessel with less than 12 months remaining tenor on its employment contract; | ||||||||||
• | Minimum book equity ratio for the Partnership of 30%; | ||||||||||
• | Minimum EBITDA to interest ratio for the Partnership of 2.50; and | ||||||||||
• | Market value of the Fortaleza Knutsen and Recife Knutsen to be no less than 100% of the outstanding balance under the Fortaleza and Recife Facility. | ||||||||||
The Fortaleza and Recife Facility also identifies various events that may trigger mandatory reduction, prepayment and cancellation of the facility, including total loss or sale of a vessel and customary events of default. | |||||||||||
The borrower was in compliance with the amended financial covenants as of December 31, 2013. | |||||||||||
$120 Million Secured Loan Facility | |||||||||||
The $120 million secured loan facility includes two tranches. One tranche is repayable in semi-annual installments over five years with final balloon payments due at maturity in February 2016. The second tranche is repayable in semi-annual installments over 12 years assuming the balloon payment of the first tranche is refinanced in 2016. If the balloon payment of the first tranche is not refinanced in 2016, the second tranche becomes repayable with a final balloon payment due at maturity in February 2016. The Partnership used approximately $52.1 million of net proceeds from the IPO to repay borrowings under the $120 million secured loan facility and to amend such facility. The amended facility (the “Bodil Facility”) consists of a $50.0 million term loan facility and a $20.0 million revolving credit facility. | |||||||||||
The Bodil Facility bears interest at LIBOR plus a margin ranging from 0.6% to 3.0%. In addition to the interest rates, the borrower shall pay to the agent (for distribution to GIEK) a guarantee commission of 1.75% per annum of the outstanding amounts under the GIEK Guarantee, payable semi-annually in arrears. GIEK means the Guarantee Institute for Export Credits (“Garanti-Instituttet for Eksportkreditt”), the Norwegian central governmental agency responsible for furnishing guarantees and insurance of export credits. | |||||||||||
The amendment to this loan agreement was accounted for as debt modification, and the Partnership recorded an additional $0.3 million as deferred financing fees in the consolidated and combined carve-out balance sheets. | |||||||||||
The revolving credit facility bears interest at LIBOR plus a fixed margin of 3.0% and has a commitment fee equal to 40% of the margin of the Revolving Credit facility calculated on the daily undrawn portion of the revolving credit facility (40% of 3.0%, which is 1.2% of the undrawn facility account). | |||||||||||
The Bodil Knutsen, assignments of earnings, charterparty contracts and insurance proceeds are pledged as collateral for the Bodil Facility. The Partnership and KNOT Shuttle Tankers AS are the sole guarantors. The Bodil Facility contains the following financial covenants: | |||||||||||
• | Market value of the Bodil Knutsen to be no less than 100% of the outstanding balance under the Bodil Facility for the first four years and 125% for the fifth year; | ||||||||||
• | Positive working capital for the borrower; | ||||||||||
• | Minimum liquidity of the Partnership of $15 million plus increments of $1 million for each additional vessel acquired by the Partnership above the eighth vessel and $1.5 million for each owned vessel with less than 12 months remaining tenor on its employment contract; | ||||||||||
• | Minimum book equity ratio for the Partnership of 30%; and | ||||||||||
• | Minimum EBITDA to interest ratio for the Partnership of 2.50. | ||||||||||
The Bodil Facility also identifies various events that may trigger mandatory reduction, prepayment and cancellation of the facility, including total loss or sale of a vessel and customary events of default. | |||||||||||
The borrower was in compliance with the amended financial covenants as of December 31, 2013. | |||||||||||
$85 Million Secured Loan Facility | |||||||||||
The Windsor Purchase Facility is repayable in semi-annual installments over eight years with a final balloon payment due at maturity in May 2015. None of the Windsor Purchase Facility was repaid in connection with the IPO. | |||||||||||
Under the loan agreement, the borrower pays on a monthly basis into a retention account subsequently used for principal installments. This account is considered restricted cash. | |||||||||||
The amended Windsor Purchase Facility bears interest at LIBOR plus a fixed margin of 2.25%. Before the amendment the interest rate was LIBOR plus a fixed margin of 0.82%. | |||||||||||
The Windsor Knutsen, assignments of earnings, charterparty contracts and insurance proceeds are pledged as collateral for the Windsor Purchase Facility. The amended Windsor Purchase Facility contains the following financial covenant: | |||||||||||
• | Market value of the Windsor Knutsen to be no less than 110% of the aggregate outstanding balance of the Windsor Purchase Facility. | ||||||||||
The amended Windsor Purchase Facility also identifies various events that may trigger mandatory reduction, prepayment and cancellation of the facility, including total loss or sale of a vessel and customary events of default. | |||||||||||
The amendment to this loan agreement was accounted for as debt modification, and the Partnership recorded an additional $0.1 million as deferred financing fees in the audited condensed consolidated and combined carve-out balance sheets. | |||||||||||
The borrower was in compliance with the amended financial covenants as of December 31, 2013. | |||||||||||
$27.3 Million Secured Loan Facility | |||||||||||
The $27.3 million secured loan facility (the “Windsor Conversion Facility”) was fully repaid by using net proceeds from the IPO. At the closing date of the IPO, the outstanding long-term debt relating to the Windsor Conversion Facility was approximately $22.4 million. The amendment to this loan agreement was accounted for as debt extinguishment, and the remaining unamortized balance of $0.2 million was written-off from deferred financing fee. | |||||||||||
$93 Million Secured Loan Facility | |||||||||||
The $93 million secured loan facility (the “Carmen Facility”) is repayable in quarterly installments over five years with a final balloon payment due at maturity in January 2018. The Carmen Facility bears interest at LIBOR plus a margin of 2.5%. The Carmen Knutsen, assignments of earnings, charterparty contracts and insurance proceeds are pledged as collateral for the Carmen Facility. The Partnership and KNOT Shuttle Tankers AS are the sole guarantors. The Carmen Facility contains the following financial covenants: | |||||||||||
• | Market value of the Carmen Knutsen to be no less than 100% of the outstanding balance under the Carmen Facility for the first four years and 125% for the fifth year; | ||||||||||
• | Positive working capital for the borrower; | ||||||||||
• | Minimum liquidity of the Partnership of $15 million plus increments of $1 million for each additional vessel acquired by the Partnership above the eighth vessel and $1.5 million for each owned vessel with less than 12 months remaining tenor on its employment contract; | ||||||||||
• | Minimum book equity ratio for the Partnership of 30%; and | ||||||||||
• | Minimum EBITDA to interest ratio for the Partnership of 2.50. | ||||||||||
The Carmen Facility also identifies various events that may trigger mandatory reduction, prepayment and cancellation of the facility, including total loss or sale of a vessel and customary events of default. | |||||||||||
The borrower was in compliance with the amended financial covenants as of December 31, 2013. | |||||||||||
$10.5 Million Seller’s Credit | |||||||||||
As part of the financing for the purchase of the Carmen Knutsen, KNOT provided the Seller Loan. The Seller Loan is non-amortizing, matures in five years or such other date as the parties agree and bears interest at LIBOR plus a fixed margin of 4.5%. Additionally, the Seller Loan is guaranteed by the Partnership, constitutes a senior debt obligation of the KNOT Shuttle Tankers AS and has priority over any shareholder loans or equity provided to KNOT Shuttle Tankers AS by its owners. The Seller Loan contains customary provisions in case of non-payment or bankruptcy proceedings and carries a default interest of LIBOR plus a fixed margin of 8%. The Seller Loan was reduced by $0.1 million as settlement for the working capital in Knutsen Shuttle Tankers 13 AS. | |||||||||||
The LIBOR interest rates for the individual loans do not include the effect of the Partnership’s interest rate swaps. See Note 10 – Derivative Instruments and Note 11 – Fair Value Measurements. | |||||||||||
The partnership does not have any unused commitments for long-term financing arrangements. Each of the Partnership’s loan facilities with the banks contain cross-default provisions that would be trigged if the Partnership and its subsidiaries defaults under their respective loan arrangements. In addition, each of the Partnership’s loan facilities with the banks contains material adverse change clauses that allow the lenders to accelerate debt repayments under conditions not objectively determinable. | |||||||||||
The total outstanding debt as of December 31, 2013 is repayable as follows: | |||||||||||
(US $ in thousands) | |||||||||||
2014 | $ | 29,269 | |||||||||
2015 | 74,619 | ||||||||||
2016 | 145,802 | ||||||||||
2017 | 11,750 | ||||||||||
2018 and thereafter | 88,537 | ||||||||||
Total | $ | 349,977 | |||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
17) Income Taxes | |||||||||||||
(a) Components of Current and Deferred Tax Expense (Benefit) | |||||||||||||
All of the loss from continuing operations before income taxes was taxable to Norway for the years ended December 31, 2013, 2012 and 2011 as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
(U.S. Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Income (loss) before income taxes | $ | 17,891 | $ | 2,006 | $ | (17,578 | ) | ||||||
The significant components of current and deferred income tax expense (benefit) attributable to income from continuing operations for the years ended December 31, 2013 and 2012 are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
(U.S. Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Current tax expense | $ | 686 | $ | — | $ | — | |||||||
Deferred tax expense (benefit) | 2,141 | 1,261 | (1,240 | ) | |||||||||
Income tax expense (benefit) | 2,827 | 1,261 | (1,240 | ) | |||||||||
(b) Tax Rate Reconciliation | |||||||||||||
Income taxes attributable to income or loss from continuing operations was an income tax expense of $2,827 $1,261 and income tax benefit of $1,546 for the years ended December 31, 2013 and 2012, respectively, and differed from the amounts computed by applying the Norwegian ordinary income tax rate of 28% to pretax net income as a result of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
(U.S. Dollars in thousands, except for tax rate) | 2013 | 2012 | 2011 | ||||||||||
Income tax expense (benefit) at Norwegian ordinary tax regime(1) | $ | 111 | $ | 562 | $ | (4,922 | ) | ||||||
Income tax expense (benefit) at Norwegian tonnage tax regime | 188 | — | — | ||||||||||
Adjustments for amounts not taxable under tonnage tax regime | — | (3,154 | ) | (125 | ) | ||||||||
Adjustments due to permanent differences | — | 2,228 | 103 | ||||||||||
Translation differences (1) | (168 | ) | (605 | ) | (15 | ) | |||||||
Entrance tax into the Norwegian tonnage tax regime | 2,696 | — | — | ||||||||||
Reduction in income tax benefit resulting from a change in valuation allowance | — | 2,230 | 3,719 | ||||||||||
Income tax expense (benefit) | 2,827 | 1,261 | (1,240 | ) | |||||||||
Effective tax rate | 16 | % | 63 | % | 7 | % | |||||||
-1 | These tax elements are related to the carve-out period in 2013, a total tax benefit of $57. | ||||||||||||
(c) Components of Deferred Tax Assets and Liabilities | |||||||||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2013 and 2012 are presented below. | |||||||||||||
Year Ended December 31, | |||||||||||||
(U.S. Dollars in thousands) | 2013 | 2012 | |||||||||||
Deferred tax assets: | |||||||||||||
Accrued guarantee commission | $ | — | $ | 83 | |||||||||
Contracts liabilities | — | 814 | |||||||||||
Interest rate swaps | 41 | 7,806 | |||||||||||
Prepaid charter and deferred revenue | — | 49 | |||||||||||
Tax loss carry forward for ordinary tax | — | 13,963 | |||||||||||
Financial loss carry forwards for tonnage tax | 7,718 | 5,788 | |||||||||||
Total deferred tax asset | 7,759 | 28,503 | |||||||||||
Less valuation allowance | (7,759 | ) | (11,922 | ) | |||||||||
Net deferred tax asset | — | 16,581 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Vessel and equipment | — | 17,999 | |||||||||||
Long-term debt | — | 1,003 | |||||||||||
Contract Liabilities | — | 9 | |||||||||||
Entrance tax | 2,141 | — | |||||||||||
Deferred debt issuance cost | — | 377 | |||||||||||
Total deferred tax liabilities | 2,141 | 19,388 | |||||||||||
Net deferred tax liabilities | $ | 2,141 | $ | 2,807 | |||||||||
The net deferred tax liability is classified in the combined carve-out balance sheet as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
(U.S. Dollars in thousands) | 2013 | 2012 | |||||||||||
Current deferred tax asset | $ | — | $ | 290 | |||||||||
Non-current deferred tax liabilities | (2,141 | ) | (3,097 | ) | |||||||||
Net deferred tax liabilities | (2,141 | ) | (2,807 | ) | |||||||||
Changes in the net deferred tax liabilities at December 31, 2013 and 2012 are presented below: | |||||||||||||
Year Ended December 31, | |||||||||||||
(U.S. Dollars in thousands) | 2013 | 2012 | |||||||||||
Net deferred tax liabilities at January 1 | $ | 2,807 | $ | 1,546 | |||||||||
Change in temporary differences | 111 | 2,257 | |||||||||||
Benefit of loss carried forward ordinary tax | — | (935 | ) | ||||||||||
Benefit of loss carried forward tonnage tax | — | (1,686 | ) | ||||||||||
Change in valuation allowance | — | 2,230 | |||||||||||
Translation differences | (168 | ) | (605 | ) | |||||||||
Elimination of deferred tax not transferred to the partnership | (2,750 | ) | — | ||||||||||
Changes in temporary differences after the IPO date | 2,141 | — | |||||||||||
Net deferred tax liabilities at December 31 | 2,141 | 2,807 | |||||||||||
A valuation allowance for deferred tax assets is recorded when it is more likely than not that some of or all of the benefit from the deferred tax asset will not be realized. The valuation allowances were $7,759 and $11,922 respectively, as of December 31, 2013 and 2012. The valuation allowances relate to the financial loss carry forwards and other deferred tax assets for tonnage tax that, in the judgment of the Partnership, are more-likely-than not to be realized reflecting the Partnership’s cumulative loss position for tonnage tax. In assessing the relizability of deferred tax assets, the Partnership considers whether it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized taking into account all the positive and negative evidence available. | |||||||||||||
After the reorganization of the Predecessor’s activities into the new group structure in February 2013, all profit from continuing operations in Norway is taxable within the tonnage tax regime. The consequence of the reorganization is a one-time entrance tax into the Norwegian tonnage tax regime due to the Partnership’s acquisition of the shares in the subsidiary that owns the Fortaleza Knutsen and the Recife Knutsen. Total amount of the entrance tax was estimated to be approximately $3.0 million, which was recognized in the first three months ended period of March 31, 2013. The entrance tax on this gain is payable over several years and is calculated by multiplying the tax rate of 28% by the declining balance of the gain, which will decline by 20% each year. At year end the entrance tax has declined to approximately $2.7 million compared to the effect on the time of the reorganization due to translation effects and tax rate changes. Tax payable in 2014 will be calculated by multiplying the tax basis with 28%. The deferred tax liabilities is calculated based on a tax rate of 27%. | |||||||||||||
Approximately $0.6 million of the estimated entrance tax of $2.7 million is estimated to be payable in the fourth quarter of 2014 and presented as current taxes payable, while $2.1 million is presented as non-current deferred taxes payable. In addition to the $0.6 million of the estimated payable income tax there is ordinary payable tonnage tax which result in total payable tax of $0.7 million. | |||||||||||||
The tax loss carry forward from ordinary taxation and financial loss carry forwards for tonnage tax have no expiration dates. | |||||||||||||
The Partnership’s Norwegian income tax returns are subject to examination by Norwegian tax authorities going back ten years from 2013. The Partnership had no unrecognized tax benefits as December 31, 2013 and 2012. During the years ended December 31, 2013 and 2012, the partnership did not incur any interest or penalties on its tax return. | |||||||||||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||
Related Party Transactions | ' | ||||||||||||
18) Related Party Transactions | |||||||||||||
(a) Related Parties | |||||||||||||
Historically, the Combined Entity operated as an integrated part of KNOT. KNOT is owned 50% by TSSI and 50% by Nippon Yusen Kaisha (“NYK”). TSSI also controls 99% of KOAS, which subcontracts services from Knutsen OAS Management AS, which served as the vessel management companies for KNOT and its subsidiaries until June 30, 2012. As of July 1, 2012, KNOT Management AS, a 100% owned subsidiary of KNOT, assumed responsibility for the commercial and technical management of the Vessels. | |||||||||||||
The Partnership has been charged by KNOT, KOAS and TSSI for commercial services related to the charters, technical and operational support related to the operation of the Vessels, certain administrative costs and finance fees. Consequently, for the periods prior to April 16, 2013, for the purpose of the Consolidated and Combined Entity’s statements of operations, these costs and fees include allocations as described above and in Note 2(a)—Summary of Significant Accounting Policies: Basis of Preparation. | |||||||||||||
On February 18, 2013, the Partnership terminated the Commercial Management Agreements that existed between KNOT Management and the owners of the Windsor Knutsen and the Bodil Knutsen, and on March 20, 2013, the Partnership terminated the Commercial Management Agreements that existed between KNOT Management and the owner of the Fortaleza Knutsen and the Recife Knutsen. In consideration for the termination of the Commercial Management Agreement, a cancellation fee was paid for each Vessel equal to the remuneration to be paid in accordance with the Commercial Management Agreement until the expiration of the time charter and bareboat for each Vessel. The cancellation fees have been charged to the Consolidated and Combined Entity’s statements of operations as described in Note 2(a)—Summary of Significant Accounting Policies: Basis of Preparation. On February 18, 2013, the existing technical management agreements were amended. These agreements govern the crew, technical and commercial management of the Vessels. The Windsor Knutsen and the Bodil Knutsen, which operate under time charters, are subject to amended technical management agreements pursuant to which certain crew, technical and commercial management services are provided by KNOT Management. Under these amended technical management agreements, the Partnership’s subsidiaries pay fees to and reimburse the costs and expenses of KNOT Management. The Fortaleza Knutsen and the Recife Knutsen operate under bareboat charters, and, as a result, the customer is responsible for providing the crew, technical and commercial management of the vessel. | |||||||||||||
On March 25, 2013, the Partnership entered into an administrative services agreement with KNOT UK, pursuant to which KNOT UK provides administrative services, and KNOT UK is permitted to subcontract certain of the administrative services provided under the administrative services agreement to KOAS UK and KOAS. Certain of the services intended to be provided to the Partnership by KOAS have been performed by KNOT under the same terms as the services provided to the Partnership by KOAS. | |||||||||||||
The amounts of such costs and expenses included in the audited condensed consolidated and combined carve-out statements of operations for the years ended December 31, 2013, 2012 and 2011 are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
(U.S. Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Statements of operations: | |||||||||||||
Time charter and bareboat revenues: | |||||||||||||
Commercial commission fee from KNOT to Vessels (1) | $ | 95 | $ | 775 | $ | 544 | |||||||
Cancellation fee from KNOT to Vessels (2) | 3,448 | — | — | ||||||||||
Operating expenses: | |||||||||||||
Technical and operational management fee from KOAS to Vessels (3) | — | 436 | 742 | ||||||||||
Technical and operational management fee from KNOT to Vessels (3) | 1,073 | 426 | — | ||||||||||
General and administrative expenses: | |||||||||||||
Administration fee from KNOT (4) | 510 | 359 | 52 | ||||||||||
Administration fee from KOAS (4) | 392 | — | — | ||||||||||
Administration fee from KOAS UK (4) | 112 | — | — | ||||||||||
Accounting service fee from KNOT (5) | 27 | 17 | 8 | ||||||||||
IPO administration cost from KNOT (6) | 454 | 877 | — | ||||||||||
Finance income (expense): | |||||||||||||
Financing service fee from KNOT to Vessels (7) | — | 3 | 368 | ||||||||||
Interest expense charged from KNOT (8) | 336 | 1,654 | 1,764 | ||||||||||
Interest income charged to TSSI (8) | (10 | ) | — | — | |||||||||
Guarantee commission from TSSI to Vessels (9) | 210 | 818 | 860 | ||||||||||
Guarantee commission from KNOT to Vessels (9) | 424 | 1,388 | 595 | ||||||||||
Total | $ | 7,071 | $ | 6,753 | $ | 4,933 | |||||||
-1 | Commercial commission fee from KNOT to Vessels: KNOT provides commercial services related to negotiating and maintaining the charters. KNOT invoices a fixed percentage of revenue as a commercial commission fee for these services. | ||||||||||||
-2 | Cancellation fee from KNOT to Vessels: In consideration for the termination of the Commercial Management Agreement, a cancellation fee was paid for each Vessel equal to the remuneration to be paid in accordance with the Commercial Management Agreement until the expiration of the time charter for each Vessel. As the cancellation fee relates to the commercial commission fee, it has been presented as part of operating income, consistent with the presentation of commissions. | ||||||||||||
-3 | Technical and operational management fee from KOAS and KNOT to Vessels: KOAS and KNOT provide technical and operational management of the vessels on time charter including crewing, purchasing, maintenance and other operational, bookkeeping and administrative support. For bareboat charters, KOAS provides bookkeeping and administrative support. KOAS invoices a fixed amount per day per vessel based upon providing either time charter or bareboat charter services. In addition, there is also a charge for 24-hour emergency response services provided by KOAS for all vessels managed by KOAS and KNOT. The direct cost for the response services has been allocated to all vessels without a mark-up based upon the number of vessels managed by KOAS and KNOT. | ||||||||||||
-4 | Administration fee from KNOT, KOAS and KOAS UK: Administration costs include the compensation and benefits of KNOT management and administrative staff as well as other general and administration expenses. Net administration costs are total administration cost plus a 5% margin, reduced for the total fees for services delivered by the administration staffs (the accounting service fees (see (5) below), the financing service fees (see (6) below) and the estimated shareholder costs for KNOT that have not been allocated. As such, the level of net administration costs as a basis for the allocation can vary from year to year based on the administration and financing services offered by KNOT to all the vessels in its fleet each year. | ||||||||||||
-5 | Accounting service fee from KNOT: KNOT invoiced each subsidiary a fixed fee for the preparation of the statutory financial statements (including Knutsen Shuttle Tankers XII KS, which owns the Recife Knutsen and the Fortaleza Knutsen and Knutsen Shuttle Tankers XII AS). Such charges were allocated to the Bodil Knutsen and the Windsor Knutsen based on the number of vessels in the legal entity until the Bodil Knutsen and the Windsor Knutsen were sold to KNOT Shuttle Tankers 17 AS and KNOT Shuttle Tankers 18 AS as part of the reorganization prior to the IPO. | ||||||||||||
-6 | IPO administration cost from KNOT: In connection with the preparation of the financial statements and the Form F-1, KNOT has invoiced the actual cost for internal resources, including salaries and administration cost, plus a 5% margin. Since the costs were not incremental cost directly attributable to the IPO, they were expensed as incurred. | ||||||||||||
-7 | Financing service fee from KNOT to Vessels: KNOT invoiced each vessel for a fixed percentage of the principal of any new loan facilities for vessel financing as compensation for the time and costs of loan negotiations with external banks. | ||||||||||||
-8 | Interest expense charged from, interest income charged to KNOT/TSSI: KNOT/TSSI invoiced interest expense (income) for any outstanding payables to (receivable from) owners and affiliates to the vessel-owning subsidiaries (including Knutsen Shuttle Tankers XII KS, which owns the Recife Knutsen and the Fortaleza Knutsen and Knutsen Shuttle Tankers XII AS). Since payables to (receivables from) owners and affiliates are not tracked by vessel, balances based upon payments by owners to the shipyard have been allocated to the Bodil Knutsen and the Windsor Knutsen (see Note 2(a)—Summary of Significant Accounting Policies: Basis of Preparation for a description of the allocation principles applied. Interest expense has been allocated based upon the allocated payables to owners and affiliates and the historical interest rates charged. | ||||||||||||
-9 | Guarantee commission from TSSI/KNOT to Vessels: TSSI and KNOT were guarantors for the Predecessor’s loan facilities (see Note 16—Long-term Debt and Note 18(b)—Related Party Transactions: Guarantees). TSSI and KNOT invoiced an annual commission to each of the Vessels as a fixed percentage of the outstanding balance as compensation for the guarantee. | ||||||||||||
(b) Guarantees | |||||||||||||
Pursuant to the Omnibus Agreement, KNOT agreed to guarantee the payments of the hire rate under the existing charters of each of the Bodil Knutsen and the Windsor Knutsen for a period of five years from the closing date of the IPO. The Partnership will not incur any guarantee commissions in the future relating to such guarantees. | |||||||||||||
Prior to the IPO, the Partnership entered into amended financing agreements with various lenders. The majority of the Partnership’s original external vessel financing agreements have been guaranteed by either KNOT or TSSI, for which a guarantee commission was paid. Following the closing of the IPO and the amendments to the vessel financing agreements, the Partnership guarantees the obligations of the Partnership’s subsidiaries directly under the vessel financing agreements. Therefore, the Partnership will not incur any guarantee commissions on a going forward basis. | |||||||||||||
(c) Transactions with Management and Directors | |||||||||||||
Trygve Seglem, the President and CEO of KNOT, has received approximately $427,000 in salary from KNOT Management for the full year of 2012. He also controls Seglem Holding AS, which has a 100% equity interest in TSSI, which controls KOAS. TSSI owns 50% in KNOT. Trygve Seglem owns 70% of the equity interests in Seglem Holding AS, and each of his daughters, Synnøve Seglem and Jorunn Seglem, owns 15% of the equity interests in Seglem Holding AS. | |||||||||||||
NYK, which own 50% of KNOT, has management and administrative personnel on secondment to KNOT starting in March 2011. The cost for such services was $639,000 for 2012. NYK has no other related party transactions with KNOT. | |||||||||||||
See footnotes (4) and (5) to Note 18(b)—Related Party Transactions: Related Parties for a discussion of the allocation principles for KNOT’s administrative costs, including management and administrative staff, included in the combined carve-out statements of operations. | |||||||||||||
In connection with the IPO, KNOT UK entered into an employment agreement with Arild Vik dated March 28, 2013 and effective on April 28, 2013. Arild Vik serves as KNOT UK’s Chief Executive Officer and Chief Financial Officer. His annualized base salary is 200,000 British Pounds. In addition, the employment agreement also provides for a discretionary annual bonus (as determined by the board of directors of KNOT UK), the reimbursement of relocation expenses to the United Kingdom (up to a maximum of 30,000 British Pounds), payment by KNOT UK of housing costs in London, participation in other employment benefits in which other senior executives of KNOT UK participate, 60 working days of paid vacation per year (plus public holidays), and up to 13 weeks of paid sick leave per year. An accrual of $47,000 has been hade to cover insurance and pension expenses for Mr. Vik for 2013. | |||||||||||||
Non-management directors will each receive a director fee of $40,000 per year. Members of the audit and conflicts committees will each receive a committee fee of $5,000 per year. | |||||||||||||
(d) Amounts Due from (to) Related Parties | |||||||||||||
Balances with related parties consisted of the following: | |||||||||||||
(U.S. Dollars in thousands) | At December 31, | At December 31, | |||||||||||
2013 | 2012 | ||||||||||||
Balance Sheets: | |||||||||||||
Trading balances due from KOAS | $ | 27 | $ | — | |||||||||
Trading balances due from KNOT and affiliates | 50 | — | |||||||||||
Amount due from related parties | $ | 77 | $ | — | |||||||||
Trading balances due to KOAS | $ | 141 | $ | 12,423 | |||||||||
Trading balances due to KNOT and affiliates | 22 | — | |||||||||||
Amount due to related parties | $ | 163 | $ | 12,423 | |||||||||
Amounts due from (to) related parties are unsecured and intended to be settled in the ordinary course of business. They primarily relate to vessel management and other fees due to KNOT and KOAS. | |||||||||||||
On August 1, 2013, the Partnership acquired KNOT’s 100% interest in Knutsen Shuttle Tankers 13 AS, the company that owns and operates the Carmen Knutsen. See Note 22—Acquisition of the Carmen Knutsen. As part of the financing for the acquisition, KNOT provided the Seller Loan. The Seller Loan is non-amortizing, matures in five years or such other date as the parties agree and bears interest at LIBOR plus a fixed margin of 4.5%. Additionally, the Seller Loan is guaranteed by the Partnership, constitutes a senior debt obligation of the KNOT Shuttle Tankers AS and has priority over any shareholder loans or equity provided to KNOT Shuttle Tankers AS by its owners. The Seller Loan contains customary provisions in case of non-payment or bankruptcy proceedings and carries a default interest of LIBOR plus a fixed margin of 8%. The Seller Loan was reduced by $0.1 million as settlement for the working capital in Knutsen Shuttle Tankers 13 AS. | |||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
19) Commitments and Contingencies | |
Assets Pledged | |
As of December 31, 2013 and 2012, Vessels with a book value of $618 million and $497 million, respectively, were pledged as security held as guarantee for the Partnership’s long-term debt and interest rate swap obligations. See Note 10—Derivative Instruments and Note 16—Long-Term Debt. | |
Claims and Legal Proceedings | |
In September 2012, the Bodil Knutsen was involved in an accident that damaged a mooring at a port of call. There was no damage to the Vessel. The Partnership accrued for the probable liability for the threatened claim for damages to the mooring for the year ended December 31, 2012. The probable liability is subject to revisions as additional information becomes available and insurance claims can be submitted when damage claims are received. At the closing of the IPO on April 15, 2013, the probable liability and insurance claim were not transferred to the Partnership. Therefore, for the year ended December 31, 2013, the probable liability and insurance claim was $0 (see Note 8—Insurance Proceeds). | |
Under the Partnership’s time charters, claims to reduce hire rate payments can be made if the Vessel does not perform to certain specifications in the agreements. An accrual for a probable claim was recorded for the year ended December 31, 2013 and for the year ended December 31, 2012, which is subject to revisions. | |
The Partnership is involved in various claims and legal actions from time to time arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the consolidated and combined carve-out financial position, results of operations or cash flows. | |
Insurance | |
The Partnership maintains insurance on all the Vessels to insure against marine and war risks, which include damage to or total loss of the Vessels, subject to deductible amounts that average $0.150 million per Vessel, and loss of hire. | |
Under the loss of hire policies, the insurer will pay a compensation for the lost hire rate agreed in respect of each Vessel for each day, in excess of 14 deductible days, for the time that the Vessel is out of service as a result of damage, for a maximum of 180 days. In addition, the Partnership maintains protection and indemnity insurance, which covers third-party legal liabilities arising in connection with the Vessels’ activities, including, among other things, the injury or death of third-party persons, loss or damage to cargo, claims arising from collisions with other vessels and other damage to other third-party property, including pollution arising from oil or other substances. This insurance is unlimited, except for pollution, which is limited to $1 billion per vessel per incident. The protection and indemnity insurance is maintained through a protection and indemnity association, and as a member of the association, the Partnership may be required to pay amounts above budgeted premiums if the member claims exceed association reserves, subject to certain reinsured amounts. If the Partnership experiences multiple claims each with individual deductibles, losses due to risks that are not insured or claims for insured risks that are not paid, it could have a material adverse effect on the Partnership’s results of operations and financial condition. |
Supplemental_Cash_Flows_Inform
Supplemental Cash Flows Information | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Supplemental Cash Flow Elements [Abstract] | ' | ||||||||||||
Supplemental Cash Flows Information | ' | ||||||||||||
20) Supplemental Cash Flows Information | |||||||||||||
The following supplemental information is provided related to the Combined Carve-Out Statements of Cash Flows for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||
Year Ended December 31, | |||||||||||||
(U.S. Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Non-cash investing and financing activities: | |||||||||||||
Payable to owner and affiliates converted to equity | $ | 27,051 | $ | 25,664 | $ | — | |||||||
Supplemental cash flows information: | |||||||||||||
Interest paid | 10,219 | 13,612 | 8,926 | ||||||||||
Income taxes paid | — | — | — | ||||||||||
Earnings_per_Unit_and_Cash_Dis
Earnings per Unit and Cash Distributions | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Earnings Per Share [Abstract] | ' | ||||
Earnings per Unit and Cash Distributions | ' | ||||
21) Earnings per Unit and Cash Distributions | |||||
The calculations of basic and diluted earnings per unit are presented below: | |||||
(U.S. Dollars in thousands, except unit and per unit amounts) | April 15th to | ||||
December 31, | |||||
2013 | |||||
Post IPO net income attributable to the members of KNOT Offshore Partners LP | $ | 18,603 | |||
Less: Distribution paid (1) | 20,779 | ||||
Under (over) distributed earnings | (2,176 | ) | |||
Under (over) distributed earnings attributable to: | |||||
Common unitholders | (1,066 | ) | |||
Subordinated unitholders(2) | (1,066 | ) | |||
General Partner | (44 | ) | |||
Weighted average units outstanding (basic and diluted) (in thousands): | |||||
Common unitholders | 8,568 | ||||
Subordinated unitholders | 8,568 | ||||
General Partner | 350 | ||||
Earnings per unit (basic and diluted): | |||||
Common unitholders | $ | 1.063 | |||
Subordinated unitholders(2) | $ | 1.065 | |||
General Partner | $ | 1.063 | |||
Cash distributions declared and paid in the period per unit(3) | $ | 0.752 | |||
Subsequent event: Cash distributions declared and paid per unit relating to the period(4) | $ | 0.435 | |||
-1 | For the purpose of the calculation of earnings per unit, the cash distributions paid are based on the number of units outstanding at the period end date. This calculation assumes that cash distributions to IDR holders for the period April 15 to December 31, 2013 were $0.02. | ||||
-2 | This includes the net income attributable to the IDR holders. The IDRs generally may not be transferred by the subordinated unitholders until March 31, 2018. The net income attributable to IDRs for the period April 15 to December 31, 2013 was $0.02. | ||||
-3 | Refers to cash distribution declared and paid during the period April 15 to December 31, 2013. | ||||
-4 | Refers to cash distribution declared and paid subsequent to the fourth quarter. | ||||
Earnings per unit information is given for the year ended 2013 and for the period from the date of the closing of the IPO (April 15, 2013) to December 31, 2013. Earnings per unit information has not been presented for any period prior to the IPO as the information is not comparable due to the change in the Partnership’s structure and the basis of preparation of the financial statements as described in Note 2—Summary of Significant Accounting Policies. | |||||
As of December 31, 2013, of the Partnership’s total number of units outstanding representing limited partner interests, 49% were held by the public (in the form of 8,567,500 common units, representing 100% of the Partnership’s common units) and 49% were held by KNOT in the form of 8,567,500 subordinated units, representing 100% of the Partnership’s subordinated units). In addition, KNOT, through its ownership of the General Partner, held the 2.0% general partner interest (in the form of 349,694 general partner units). | |||||
Earnings per unit is determined by dividing net income, after deducting the distribution paid, by the weighted-average number of units outstanding during the applicable period. For the period presented prior to April 16, 2013, such units are deemed equal to the subordinated units received by KNOT and the common units sold to the public. | |||||
The General Partner’s, common unitholders’ and subordinated unit holders’ interest in net income are calculated as if all net income was distributed according to the terms of the Partnership Agreement, regardless of whether those earnings would or could be distributed. The Partnership Agreement does not provide for the distribution of net income. Rather, it provides for the distribution of available cash, which is a contractually defined term that generally means all cash on hand at the end of each quarter less the amount of cash reserves established by the Partnership’s board of directors to provide for the proper conduct of the Partnership’s business, including reserves for maintenance and replacement capital expenditures and anticipated capital requirements. In addition, KNOT, as the initial holder of all IDRs, has the right, at the time when there are no subordinated units outstanding and it has received incentive distributions at the highest level to which it is entitled (48.0% for each of the prior four consecutive fiscal quarters), to reset the initial cash target distribution levels at higher levels based on the distribution at the time of the exercise of the reset election. Unlike available cash, net income is affected by non-cash items, such as depreciation and amortization, unrealized gains and losses on derivative instruments and unrealized foreign currency gains and losses. | |||||
Under the Partnership Agreement, during the subordinated period, the common units will have the right to receive distributions of available cash from operating surplus in an amount equal to the minimum quarterly distribution (the “MQD”) of $0.375 per unit per quarter, plus arrearages in the payment of the MQD on the common units from prior quarters, before any distributions of available cash from operating surplus may be made on the subordinated units. | |||||
The amount of the MQD is $0.375 per unit or $1.50 per unit on an annualized basis and is made in the following manner, during the subordinated period: | |||||
• | first, 98.0% to the common unitholders, pro rata, and 2.0% to the General Partner, until each outstanding common unit has received the MQD for that quarter; | ||||
• | second, 98.0% to the common unitholders, pro rata, and 2.0% to the General Partner, until each outstanding common unit has received an amount equal to any arrearages in payment of the MQD on the common units for prior quarters during the subordination period; and | ||||
• | third, 98.0% to the subordinated unitholders, pro rata, and 2.0% to the General Partner until each subordinated unit has received the MQD for that quarter. | ||||
In addition, KNOT currently holds all of the IDRs in the Partnership. IDRs represent the rights to receive an increasing percentage of quarterly distributions of available cash from operating surplus after the MQD and the target distribution levels have been achieved. | |||||
If for any quarter: | |||||
• | the Partnership has distributed available cash from operating surplus to the common and subordinated unitholders in an amount equal to the MQD; and | ||||
• | the Partnership has distributed available cash from operating surplus on outstanding common units in an amount necessary to eliminate any cumulative arrearages in payment of the MQD; | ||||
then, the Partnership will distribute any additional available cash from operating surplus for that quarter among the unitholders and the General Partner in the following manner: | |||||
• | first, 98.0% to all unitholders, pro rata, and 2.0% to the General Partner, until each unitholder receives a total of $0.43125 per unit for that quarter (the “first target distribution”); | ||||
• | second, 85.0% to all unitholders, pro rata, and 2.0% to the General Partner and 13.0% to the holders of the IDRs, pro rata, until each unitholder receives a total of $0.46875 per unit for that quarter (the “second target distribution”); | ||||
• | third, 75.0% to all unitholders, pro rata, and 2.0% to the General Partner and 23.0% to the holders of the IDRs, pro rata, until each unitholder receives a total of $0.5625 per unit for that quarter (the “third target distribution”); and | ||||
• | thereafter, 50.0% to all unitholders, pro rata, 2.0% to the General Partner and 48.0% to the holders of the IDRs, pro rata. | ||||
In each case, the amount of the target distribution set forth above is exclusive of any distributions to common unitholders to eliminate any cumulative arrearages in payment of the MQD. The percentage interests set forth above assume that the General Partner maintains its 2.0% general partner interest and that the Partnership does not issue additional classes of equity securities. | |||||
Acquisition_of_the_Carmen_Knut
Acquisition of the Carmen Knutsen | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Business Combinations [Abstract] | ' | ||||
Acquisition of the Carmen Knutsen | ' | ||||
22) Acquisition of the Carmen Knutsen | |||||
In August 2013, the Partnership acquired KNOT’s 100% interest in Knutsen Shuttle Tankers 13 AS, the company that owns and operates the Carmen Knutsen. The purchase price was $145.0 million for the vessel, less assumed bank debt of $89.1 million and other purchase price adjustments of $0.1 million. The Carmen Knutsen was delivered to its current charterer, Repsol Sinopec Brasil S.A., in January 2013 under a time charter expiring in January 2018. | |||||
The Partnership accounted for the acquisition of the Carmen Knutsen as an acquisition of a business. The purchase price of the acquisition has been allocated to the identifiable assets acquired. The allocation of the purchase price to acquired identifiable assets was based on their estimated fair values at the date of acquisition. The allocation is final. The fair values allocated to each class of identifiable assets in the Carmen Knutsen acquisition and the difference between the purchase price and net assets acquired were calculated as follows: | |||||
(U.S. Dollars in thousands) | August 1, 2013 | ||||
Purchase price (1) | $ | 55,772 | |||
Less: Fair value of net assets acquired: | |||||
Vessel and equipment (2) | 145,000 | ||||
Cash | 89 | ||||
Inventories | 234 | ||||
Other current assets | 108 | ||||
Long-term debt | (89,125 | ) | |||
Trade accounts payable | (91 | ) | |||
Accrued expenses | (387 | ) | |||
Amount due to related parties | (56 | ) | |||
Subtotal | 55,772 | ||||
Difference between the purchase price and fair value of net assets acquired | $ | — | |||
-1 | The purchase price of $55.772 million comprises the following: | ||||
(U.S. Dollars in thousands) | |||||
Cash consideration paid to KNOT | $ | 45,423 | |||
Seller’s credit | 10,349 | ||||
Purchase price | $ | 55,772 | |||
-2 | Vessel and equipment includes allocation to dry docking of $1,769. | ||||
Revenue and Profit Contributions | |||||
Since the Carmen Knutsen acquisition date, the business has contributed revenues of $8.4 million and net income of $2.5 million to the Partnership for the period from August 1, 2013 to December 31, 2013. | |||||
The table below shows comparative summarized consolidated pro forma financial information for the Partnership for the year ended December 31, 2013, giving effect to the Partnership’s acquisition and financing of the Carmen Knutsen as if it had taken place on January 1, 2013. Since the Carmen Knutsen was delivered January 2, 2013, there is no pro forma amount for the year ended December 31, 2012. | |||||
(U.S. Dollars in thousands, except per unit amounts) | Year Ended | ||||
December 31, | |||||
2013 | |||||
Revenue | $ | 84,037 | |||
Net income | 16,695 | ||||
Included in the pro forma adjustments are depreciation related to the purchase price allocation performed on the acquired identifiable assets as if the acquisition had taken place on January 1, 2013. In addition, the pro forma adjustments include finance expenses related to the increased borrowings as if the acquisition had taken place on January 1, 2013. | |||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
23) Subsequent Events | |
The Partnership has evaluated subsequent events from the balance sheet date through April 14, 2014, the date at which the audited condensed consolidated and combined carve-out financial statements were available to be issued, and determined that there are no other items to disclose, except as follows: | |
On February 14, 2014, the Partnership paid a quarterly cash distribution of $0.435 per unit with respect to the quarter ended December 31, 2013. The aggregate amount of the paid distribution was $20.8 million. This corresponds to US $1.74 per outstanding unit on an annualized basis. | |
In February 2014, the Partnership entered into two interest rate swap agreements effective in February 2014, and ending in August 2018. The interest rate swap agreements have a total initial notional amount of $50.0 million. Under the terms of the interest rate swap agreements, the Partnership will receive from the counterparty interest on the notional amount based on three-month LIBOR and will pay to the counterparty a fixed rate of 1.45%. | |
We have been notified that BG Group will not exercise its option to extend the Windsor Knutsen time charter after the expiration of its initial term. The vessel will be redelivered between June 30 and August 30, 2014 at BG Group’s option. The process of reemploying the vessel is ongoing. Pursuant to our omnibus agreement with KNOT, in the event the Windsor Knutsen is not receiving from any charterer a rate of hire that is equal to or greater than the rate of hire that would have been in effect in the event BG Group had exercised its option under the existing Windsor Knutsen charter, KNOT shall pay us such rate of hire that would have been in effect for a period up to April 15, 2018, subject to certain limitations as described in our omnibus agreement. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Accounting Policies [Abstract] | ' | ||||
Basis of Preparation | ' | ||||
(a) Basis of Preparation | |||||
The consolidated and combined carve-out financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). All intercompany balances and transactions are eliminated. | |||||
The consolidated and combined financial statements include the financial statements of the entities listed in Note 4. | |||||
As of April 16, 2013, the financial statements of the Partnership as a separate legal entity are presented on a consolidated basis. Prior to April 16, 2013, the results of operations, cash flows and balance sheet have been carved out of the consolidated financial statements of KNOT and therefore are presented on a combined carve-out basis. As of February 27, 2013, KNOT Shuttle Tankers AS acquired the 100% ownership in KNOT Shuttle Tankers 12 AS, KNOT Shuttle Tankers 17 AS, KNOT Shuttle Tankers 18 AS, and Knutsen Shuttle Tankers XII AS in a reorganization under common control. As of February 27, 2013, KNOT Shuttle Tankers 12 AS and Knutsen Shuttle Tankers XII AS owned a 90% and 10% ownership interest, respectively, in Knutsen Shuttle Tankers XII KS; and KNOT Shuttle Tankers 17 AS owned a 100% interest in Bodil Knutsen and KNOT Shuttle Tankers 18 AS owned a 100% interest in Windsor Knutsen. As a reorganization of entities under common control, the transfer of the subsidiaries and other net assets has been recorded at KNOT’s historical book value. | |||||
The Bodil Knutsen and the Windsor Knutsen were not operated as discrete units or included in single purpose legal entities. Accordingly, these Vessels have been “carved-out” of KNOT’s assets, liabilities, revenues, expenses and cash flows as they relate to the Predecessor’s business through the use of the information system of KNOT. Specific information is recorded and coded by vessel for each accounting transaction for certain line items in the combined carve-out financial statements. Therefore, amounts for such Vessels were specifically identified for revenues, vessel expenses, vessel operating expenses, depreciation and amortization, interest expense and related debt issuance cost for long-term debt and realized and unrealized losses on derivative instruments; and related balances for such Vessels were specifically identified for trade accounts receivable, inventories, prepaid expenses, vessels and equipment, intangible assets, trade accounts payable, certain accrued expenses, prepaid charter revenues, long-term debt, derivative liabilities and contract liabilities. | |||||
Vessels operating expenses includes ship management fees for the provision of technical and commercial management of Vessels and are based on intercompany charges invoiced by KNOT. All long-term debt is specifically related to financing of the individual Vessels. Derivatives are composed of interest rate swap derivatives and foreign exchange forward contracts. The interest rate swaps were entered into in conjunction with the individual Vessel financing to secure fixed interest rates. The interest rate swaps are included in the combined carve-out financial statements to reflect all of the historical cost of doing business even though they will not be transferred to the Partnership. The foreign exchange forward contracts were entered into in conjunction with the construction of certain of the individual Vessels to secure the amounts payable in foreign currencies. Since these Vessels were delivered in 2011, there were no outstanding foreign exchange forward contracts as of December 31, 2011 and 2012. | |||||
The following items, which are not directly attributable to the Vessels, have been allocated to the combined carve-out financial statements as set forth below: | |||||
• | General and administrative expenses of KNOT were invoiced to its subsidiaries based upon certain transfer pricing principles by type of cost. See to Note 18 – Related Party Transactions. The invoiced amounts that cannot be attributed to the Bodil Knutsen and the Windsor Knutsen have been allocated pro rata based on the number of vessels in KNOT’s fleet. | ||||
• | Cash and cash equivalents for general purposes at the legal entity level have not been allocated. The cash and cash equivalents and restricted cash balances are only included in the combined carve-out balance sheets to the extent they are specifically related to the Bodil Knutsen’s and the Windsor Knutsen’s petty cash or provisions of the loan agreements. Interest income cannot be attributed to the specific Vessels and has only been included in the combined carve-out financial statements to the extent it relates to an interesting bearing cash account included in the combined carve-out balance sheets. | ||||
• | Payables to owners and affiliates (“owner balances”) are not tracked on an individual Vessel basis for the Bodil Knutsen and the Windsor Knutsen but at the legal entity level. General allocations of owner balances based on the number of vessels within a legal entity would be inherently arbitrary. Therefore, the Predecessor has identified specific payments made by owners to shipyards on Vessels under construction or conversion on behalf of the legal entity owning the Vessel and reflected these balances as payable to owners and affiliates, adjusted for subsequent external bank refinancing or settlements of payables at the legal entity level, in the combined carve-out balance sheet. Interest expense has been allocated on the basis of these owner balances and the historical intercompany interest rates charged by the owners to its subsidiaries on owner balances. | ||||
• | Net gain (loss) of foreign currency transactions cannot be attributed directly to the Bodil Knutsen and the Windsor Knutsen and has been allocated based upon specifically identified or allocated balances included on the combined carve-out balance sheets. | ||||
• | Goodwill arose in 2008 when TSSI acquired the remaining 50% interest in the majority of KNOT’s vessels, including the Windsor Knutsen and the three other Vessels of the Predecessor under construction, in a transaction that was accounted for as a step acquisition. This transaction resulted in goodwill for KNOT. KNOT’s goodwill was allocated to the Predecessor based upon the Predecessor’s percentage of fair value of the Vessel, the Vessels under construction and the favorable or unfavorable charter contract rights acquired at the acquisition date to the total fair value acquired by KNOT for all vessels, vessels under construction and favorable or unfavorable charter contract rights. See Note 2(n) – Summary of Significant Accounting Policies: Goodwill and Intangibles and Note 14 – Goodwill, Intangible Assets and Contract Liabilities. | ||||
The Partnership’s activities included in the consolidated and combined carve-out financial statements contain Norwegian entities or activities that were organized as non-taxable partnerships or were without tax status. To reflect the historical cost of doing business, the income tax expense and related deferred tax assets and liabilities arising for the Predecessor activities included in the historical parent entities have been included in the consolidated and combined carve-out financial statements calculated on a separate return basis. | |||||
The Vessels of the Partnership were not historically owned by a separate legal entity or operated as a discrete group. Therefore, no separate share capital existed in owner’s equity. Further, certain Vessels had cash accounts shared with other vessels of the KNOT Group that were not allocated to the Predecessor. | |||||
Accordingly, the historical consolidated and combined carve-out financial statements prior to April 16, 2013 reflect allocations of certain expenses, including that of general and administrative expenses, mark-to-market valuations of interest rate swap derivatives, interest expense on related party payables and net gain (loss) on foreign currency transactions. These allocated costs have been accounted for as equity contribution in the consolidated and combined carve-out balance sheets. | |||||
Included in the Combined Entity’s equity prior to April 16, 2013 are amounts (net liabilities of $27.8 million) relating to certain assets and liabilities that were carved out as they were readily separable and identifiable within the books of KNOT. However, these amounts have been retained by KNOT and have not been transferred to the Partnership and therefore have been eliminated from the Partnership’s opening equity as of April 16, 2013. Details of the net liabilities eliminated are as follows: | |||||
(U.S. Dollars in thousands) | |||||
Balance sheet captions: | |||||
Other current assets | $ | 89 | |||
Other non-current assets | — | ||||
Other current liabilities (*) | (6,321 | ) | |||
Other long-term liabilities (*) | (21,560 | ) | |||
Net liabilities | $ | (27,792 | ) | ||
(*) | The majority of the assets and liabilities not transferred to the Partnership are related to interest swap derivatives (Note 10) and insurance proceeds pursuant to the Contribution and Sale Agreement entered into in connection with the closing of the IPO on April 15, 2013 (Note 8). | ||||
Management believes that the allocations included in these consolidated and combined carve-out financial statements are reasonable to present the financial position, results of operations and cash flows of the Partnership on a stand-alone basis. In the opinion of management these consolidated and combined carve-out financial statements reflect all adjustments, of a normal recurring nature, necessary to present fairly in all material respects, the Partnership’s consolidated and combined carve-out financial statements for the year ended December 31, 2013. However, the financial position, results of operations and cash flows of the Combined Entity as presented may differ from those that would have been achieved had the Partnership operated autonomously for all years presented as the Partnership would have had additional general and administrative expenses, including legal, accounting, treasury and regulatory compliance and other costs normally incurred by a stand-alone listed publicly traded entity. Accordingly, the comparative historical consolidated and combined financial statements do not purport to be indicative of the future financial position, results of operations or cash flows of the Partnership. | |||||
Reporting Currency | ' | ||||
(b) Reporting Currency | |||||
The consolidated and combined carve-out financial statements are prepared in the reporting currency of U.S. Dollars. The functional currency of the vessel-owning Partnership subsidiaries is the U.S. Dollar, because the subsidiaries operate in the international shipping market, in which all revenues are U.S. Dollar-denominated and the majority of expenditures are made in U.S. Dollars. 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. As of 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 and combined carve-out statements of operations. | |||||
Use of Estimates | ' | ||||
(c) Use of Estimates | |||||
The preparation of consolidated and combined carve-out financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives and impairment of Vessels, drydocking, the valuation of derivatives and income taxes. | |||||
Revenues and Operating Expenses | ' | ||||
(d) Revenues and Operating Expenses | |||||
The Partnership recognizes revenues from time charters and bareboat charters as operating leases on a straight-line basis over the term of the charter, net of any commissions. Under time charters, revenue is not recognized during days the Vessel is off-hire. Revenue is recognized from delivery of the Vessel to the charterer, until the end of the contract period. Under time charters, the Partnership is responsible for providing the crewing and other services related to the Vessel’s operations, the cost of which is included in the daily hire rate, except when off-hire. Fees received from customers for customized equipment are deferred and recognized over the contract period. Under bareboat charters, the Partnership provides a specified Vessel for a fixed period of time at a specified day rate. The Partnership recognizes revenues from spot contracts as voyage revenues using the percentage of completion method on a discharge-to-discharge basis. | |||||
Voyage expenses are all expenses unique to a particular voyage, including bunker fuel expenses, port fees, cargo loading and unloading expenses, canal tolls and agency fees. Voyage expenses are paid by the customer under time charter and bareboat charters. Voyage expenses are paid by the Partnership for spot contracts and during periods of off-hire and are recognized when incurred. | |||||
Vessel operating expenses include crewing, repairs and maintenance, insurance, stores, lube oils and communication expenses. Vessel operating expenses are paid by the Partnership for time charters, spot contracts and during off-hire and are recognized when incurred. | |||||
As further discussed in Note 18—Related Party Transactions, related parties have provided the management services for the Vessels and employ the crews that work on the Vessels. The Partnership has no direct employees and, accordingly, is not liable for any pension or post-retirement benefits. | |||||
Financial Income (Expense) | ' | ||||
(e) Financial Income (Expense) | |||||
Interest expenses incurred on the Partnership’s debt incurred during the construction of the Vessels exceeding one year are capitalized during the construction period. | |||||
Cash and Cash Equivalents | ' | ||||
(f) Cash and Cash Equivalents | |||||
The Partnership considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. | |||||
Restricted Cash | ' | ||||
(g) Restricted Cash | |||||
Restricted cash consists of bank deposits, which may only be used to settle principal payments under the Partnership’s Vessel financing arrangements. | |||||
Trade Accounts Receivable | ' | ||||
(h) Trade Accounts Receivable | |||||
Accounts receivable are recorded at the invoiced amount and do not bear interest. Under terms of the current time charters and bareboat charters, the customers are committed to pay for the full month’s charter the first day of each month. See Note 2(r) —Summary of Significant Accounting Policies: Prepaid Charter and Deferred Revenue. The allowance for doubtful accounts is the Partnership’s best estimate of the amount of probable credit losses in existing accounts receivable. The Partnership establishes provisions for doubtful accounts on a case-by-case basis when it is unlikely that required payments of specific amounts will occur. In establishing these provisions, the Partnership considers the financial condition of the customer as well as specific circumstances related to the receivable. Receivable amounts determined to be unrecoverable are written-off. There were no provisions as allowance for doubtful accounts or amounts written-off against the allowance for doubtful accounts as of December 31, 2013 and 2012. The Partnership does not have any off-balance-sheet credit exposure related to its customers. | |||||
Inventories | ' | ||||
(i) Inventories | |||||
Inventories, which are comprised principally of lubricating oils, are stated at the lower of cost or market. For vessels on time charters or bareboat charters, there are no bunkers, as the charterer supplies the bunkers, which principally consist of fuel oil. Cost is determined using the first-in, first-out method for all inventories. | |||||
Other Current Assets | ' | ||||
(j) Other Current Assets | |||||
Other current assets principally consist of prepaid expenses, the current portion of deferred cost and other receivables. | |||||
Vessels and Equipment | ' | ||||
(k) Vessels and Equipment | |||||
Vessels and equipment are stated at the historical acquisition or construction cost, including capitalized interest, supervision and technical and delivery cost, net of accumulated depreciation and impairment loss, if any. Expenditures for subsequent conversions and major improvements are capitalized, provided that such costs increase the earnings capacity or improve the efficiency or safety of the vessels. | |||||
Generally, the Partnership drydocks each vessel every 60 months until the vessel is 15 years old and every 30 months thereafter, as required for the renewal of certifications issued by classification societies. For vessels operating on time charters, the Partnership capitalizes the costs directly associated with the classification and regulatory requirements for inspection of the vessels, major repairs and improvements incurred during drydocking. Drydock cost is amortized on a straight-line basis over the period until the next planned drydocking takes place. The Partnership expenses costs related to routine repairs and maintenance performed during drydocking or as otherwise incurred. For vessels that are newly built or acquired, an element of the cost of the vessel is initially allocated to a drydock component and amortized on a straight-line basis over the period until the next planned drydocking. When significant drydocking expenditures occur prior to the expiration of this period, the Partnership expenses the remaining unamortized balance of the original drydocking cost in the month of the subsequent drydocking. For vessels operating on bareboat charters, the charter party bears the cost of any drydocking. | |||||
Depreciation on vessels and equipment is calculated on a straight-line basis over the asset’s estimated useful life, less an estimated residual value, as follows: | |||||
Useful Life | |||||
Hull | 25 years | ||||
Anchor-handling, loading and unloading equipment | 25 years | ||||
Main/auxiliary engine | 25 years | ||||
Thruster, dynamic positioning systems, cranes and other equipment | 25 years | ||||
Drydock costs | 2.5–5 years | ||||
A Vessel is depreciated to its estimated residual value, which is calculated based on the weight of the ship and estimated steel price. Any cost related to the disposal is deducted from the residual value. | |||||
Capitalized Interest | ' | ||||
(l) Capitalized Interest | |||||
Interest expenses incurred on the Partnership’s debt during the construction of the Vessels exceeding one year is capitalized during the construction period. | |||||
Impairment of Long-Lived Assets | ' | ||||
(m) Impairment of Long-Lived Assets | |||||
Vessels and equipment, vessels under construction and intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Partnership first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. | |||||
Goodwill and Intangibles | ' | ||||
(n) Goodwill and Intangibles | |||||
Goodwill is not amortized but is reviewed for impairment on an annual basis or more frequently if impairment indicators are identified. | |||||
The Partnership tests goodwill for impairment using a two-step analysis, with the option of performing a qualitative assessment before performing the first step of the two-step analysis, whereby the carrying value of the reporting unit is compared to its fair value in the first step. If the carrying value of the reporting unit is greater than its fair value, the second step is performed, where the implied fair value of goodwill is compared to its carrying value. An impairment charge is recognized for the amount by which the carrying amount of goodwill exceeds its fair value. The fair value is estimated using the net present value of discounted cash flows of the reporting unit. The Partnership has only one reporting unit. | |||||
Other intangible assets represent contractual rights for charters obtained in connection with a step acquisition that had favorable contractual terms relative to market as of the acquisition date. Contractual rights for charters obtained in connection with a step acquisition that had unfavorable contractual terms are classified as contract liabilities in the consolidated combined carve-out balance sheets. The favorable and unfavorable contract rights are amortized to revenues over the period of the contract. | |||||
Debt Issuance Costs | ' | ||||
(o) Debt Issuance Costs | |||||
Debt issuance costs, including fees, commissions and legal expenses, are deferred. Debt issuance costs of term loans are amortized over the term of the relevant loan. Amortization of debt issuance costs is included in interest expense. | |||||
Derivative Instruments | ' | ||||
(p) Derivative Instruments | |||||
All derivative instruments are initially recorded at fair value as either assets or liabilities in the accompanying consolidated and combined carve-out balance sheets and subsequently measured to fair value. The Partnership does not apply hedge accounting to its derivative instruments. Changes in the fair value of the derivative instruments are recognized in earnings. Gains and losses from the interest rate swap contracts of the Partnership related to long-term mortgage debt and foreign exchange forward contracts are recorded in realized and unrealized gain (loss) on derivative instruments in the consolidated and combined carve-out statements of operations. Cash flows related to interest rate swap contracts are presented as cash flows provided by operating activities, and cash flows related to foreign exchange forward contracts are presented as cash flows used in investing activities in the consolidated and combined carve-out statements of cash flows. | |||||
Income Taxes | ' | ||||
(q) Income Taxes | |||||
Historically, part of the Partnership activities were subject to ordinary taxation and taxes were paid on taxable income (including operating income and net financial income and expense), while part of the activities were subject to the Norwegian Tonnage Tax regime (“the tonnage tax regime”). Under the tonnage tax regime, the tax is based on the tonnage of the vessel, and operating income is tax free. The net financial income and expense remains taxable as ordinary income tax for entities subject to the tonnage tax regime. Income taxes arising from the part of activities subject to ordinary taxation are included in income tax expense in the consolidated and combined carve-out statements of operations. For the portion of activities subject to the tonnage tax regime, tonnage taxes are classified as vessel operating expenses while the current and deferred taxes arising on net financial income and expense are reflected as income tax expense in the consolidated and combined carve-out statements of operations. The amounts of tonnage tax included in operating expenses for the years ended December 31, 2013 and 2012 were $100 thousand and $66 thousand, respectively. | |||||
The Partnership accounts for deferred income 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 enacted tax rates expected to apply to taxable income in the years in which these temporary differences are expected to be recovered or settled. 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 financial statements based on U.S. GAAP guidance. The Partnership recognizes interest and penalties related to uncertain tax positions in income tax expense. | |||||
Prepaid Charter and Deferred Revenue | ' | ||||
(r) Prepaid Charter and Deferred Revenue | |||||
Under terms of the time charters and bareboat charters, the customer pays for the month’s charter the first day of each month that is recorded as prepaid charter revenues. Deferred revenues for fees received from customers for customized equipment are classified as prepaid charter and deferred revenue for the current portion and as other long-term liabilities for the non-current portion. | |||||
Commitments, Contingencies and Insurance Proceeds | ' | ||||
(s) Commitments, Contingencies and Insurance Proceeds | |||||
Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. See Note 19—Commitments and Contingencies. | |||||
Insurance claims for property damage for recoveries up to the amount of loss recognized are recorded when the claims submitted to insurance carriers are probable of recovery. Claims for property damage in excess of the loss recognized and for loss off-hire are considered gain contingencies, which are generally recognized when the proceeds are received. | |||||
Fair Value Measurements | ' | ||||
(t) Fair Value Measurements | |||||
The Partnership utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Partnership determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: | |||||
• | Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. | ||||
• | Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. | ||||
• | Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. | ||||
Recently Issued Accounting Standards | ' | ||||
(u) Recently Issued Accounting Standards | |||||
In December 2011, the FASB issued ASU (Accounting Standards Update) No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities (“ASU 2011-11”). ASU 2011-11 requires an entity to disclose information about offsetting and related arrangements to enable users of financial statements to understand the effect of those arrangements on its financial position, and to allow investors to better compare financial statements prepared under U.S. GAAP with financial statements prepared under IFRS. The new standards are effective for annual periods beginning January 1, 2013, and interim periods within those annual periods. Retrospective application is required. The Partnership adopted the provisions of ASU 2011-11 as of January 1, 2013. The adoption of ASU 2011-11 did not have a material impact on the Partnership’s consolidated and combined carve-out financial statements. | |||||
In February 2013, the FASB issued ASU No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 2013-02”). ASU 2013-02 requires reporting and disclosure about changes in accumulated other comprehensive income (“AOCI”) balances and reclassifications out of AOCI. For public companies, the ASU is effective prospectively for fiscal years and interim periods within those years beginning after December 15, 2012. The adoption of ASU 2013-02 did not have a material impact on the Partnership’s consolidated and combined carve-out financial statements. | |||||
There are no recent accounting pronouncements issued whose adoption would have a material impact on the Partnership’s consolidated and combined carve-out financial statements in the current year or are expected to have a material impact on future years. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Accounting Policies [Abstract] | ' | ||||
Schedule of Net Liabilities Eliminated | ' | ||||
Details of the net liabilities eliminated are as follows: | |||||
(U.S. Dollars in thousands) | |||||
Balance sheet captions: | |||||
Other current assets | $ | 89 | |||
Other non-current assets | — | ||||
Other current liabilities (*) | (6,321 | ) | |||
Other long-term liabilities (*) | (21,560 | ) | |||
Net liabilities | $ | (27,792 | ) | ||
(*) | The majority of the assets and liabilities not transferred to the Partnership are related to interest swap derivatives (Note 10) and insurance proceeds pursuant to the Contribution and Sale Agreement entered into in connection with the closing of the IPO on April 15, 2013 (Note 8). | ||||
Schedule of Depreciation on Vessels and Equipment | ' | ||||
Depreciation on vessels and equipment is calculated on a straight-line basis over the asset’s estimated useful life, less an estimated residual value, as follows: | |||||
Useful Life | |||||
Hull | 25 years | ||||
Anchor-handling, loading and unloading equipment | 25 years | ||||
Main/auxiliary engine | 25 years | ||||
Thruster, dynamic positioning systems, cranes and other equipment | 25 years | ||||
Drydock costs | 2.5–5 years |
Significant_Risks_and_Uncertai1
Significant Risks and Uncertainties Including Business and Credit Concentrations (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Risks And Uncertainties [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Revenues and Percentage of Combined Revenues for Customers | ' | ||||||||||||||||||||||||
The following table presents revenues and percentage of combined revenues for customers that accounted for more than 10% of the Partnership’s combined revenues during the years ended December 31, 2013, 2012 and 2011. All of these customers are major international oil companies. | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
(U.S. Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Brazil Shipping I Limited, a subsidiary of BG Group Plc | $ | 20,311 | 28 | % | $ | 14,905 | 23 | % | $ | 13,172 | 30 | % | |||||||||||||
Fronape International Company, a subsidiary of Petrobras Transporte S.A. | 22,860 | 31 | % | 24,980 | 38 | % | 14,540 | 33 | % | ||||||||||||||||
Statoil ASA | 21,563 | 29 | % | 22,193 | 34 | % | 14,096 | 32 | % | ||||||||||||||||
Repsol Sinopec Brasil, S.A., a subsidiary of Repsol Sinopec Brasil, B.V. | 8,417 | 12 | % | — | — | — | — |
Operating_Leases_Tables
Operating Leases (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Leases [Abstract] | ' | ||||
Summary of Minimum Contractual Future Revenues | ' | ||||
The time charters and bareboat charters of the Vessels with third parties are accounted for as operating leases. The minimum contractual future revenues to be received from time charters and bareboat charters as of December 31, 2013, were as follows: | |||||
(U.S. Dollars in thousands) | |||||
2014 | $ | 85,936 | |||
2015 | 86,359 | ||||
2016 | 86,787 | ||||
2017 | 87,218 | ||||
2018 | 37,459 | ||||
2019 and thereafter | 103,701 | ||||
Total | $ | 487,460 | |||
Finance_Income_Expense_Tables
Finance Income (Expense) (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Banking And Thrift Interest [Abstract] | ' | ||||||||||||
Reconciliation of Total Interest Cost to Interest Expense | ' | ||||||||||||
A reconciliation of total interest cost to interest expense as reported in the consolidated and combined carve-out statements of operations for the years ended December 31, 2013, 2012 and 2011 is as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
(U.S. Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Interest cost capitalized | $ | — | $ | — | $ | 3,525 | |||||||
Interest expense | 10,773 | 13,471 | 9,650 | ||||||||||
Total interest cost | $ | 10,773 | $ | 13,471 | $ | 13,175 | |||||||
Summary of Other Finance Expense | ' | ||||||||||||
The following table presents the other finance expense for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||
Year Ended December 31, | |||||||||||||
(U.S. Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Bank fees, charges and external guarantee costs | $ | 1,414 | $ | 1,169 | $ | 918 | |||||||
Related party guarantee commissions (Note 18) | 634 | 2,206 | 1,455 | ||||||||||
Related party financing service fee (Note 18) | — | 3 | 368 | ||||||||||
Total other finance expense | $ | 2,048 | $ | 3,378 | $ | 2,741 | |||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||
Schedule of Realized and Unrealized Gains and Losses Recognized in Earnings | ' | ||||||||||||
The following table presents the realized and unrealized gains and losses that are recognized in earnings as net gain (loss) on derivative instruments for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||
Year Ended December 31 | |||||||||||||
(U.S. Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Realized gain (loss) | |||||||||||||
Interest rate swap contracts | $ | (1,265 | ) | $ | (5,482 | ) | $ | (5,738 | ) | ||||
Foreign exchange forward contracts | — | — | (828 | ) | |||||||||
Unrealized gain (loss) | |||||||||||||
Interest rate swap contracts | 1,522 | (549 | ) | (11,407 | ) | ||||||||
Foreign exchange forward contracts | 248 | — | 2,484 | ||||||||||
Total | $ | 505 | $ | (6,031 | ) | $ | (15,489 | ) | |||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Carrying Amounts and Estimated Fair Values of Partnership 's Financial Instruments | ' | ||||||||||||||||
The following table presents the carrying amounts and estimated fair values of the Partnership’s financial instruments as of December 31, 2013 and 2012. Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | |||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||
(U.S. Dollars in thousands) | Carrying | Fair Value | Carrying | Fair Value | |||||||||||||
Amount | Amount | ||||||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | $ | 28,836 | $ | 28,836 | $ | 1,287 | $ | 1,287 | |||||||||
Restricted cash | 458 | 458 | 830 | 830 | |||||||||||||
Current derivative assets: | |||||||||||||||||
Foreign exchange forward contract | 248 | 248 | — | — | |||||||||||||
Non-current derivative assets: | |||||||||||||||||
Interest rate swap contracts | 2,617 | 2,617 | — | — | |||||||||||||
Financial liabilities: | |||||||||||||||||
Current derivative liabilities: | |||||||||||||||||
Interest rate swap contracts | 2,124 | 2,124 | 5,258 | 5,258 | |||||||||||||
Foreign exchange forward contract | — | — | — | — | |||||||||||||
Non-current derivative liabilities: | |||||||||||||||||
Interest rate swap contracts | — | — | 22,622 | 22,622 | |||||||||||||
Long-term debt, current and non-current | 349,977 | 350,999 | 347,850 | 342,655 | |||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||
The following table presents the placement in the fair value hierarchy of assets and liabilities that are measured at fair value on a recurring basis (including items that are required to be measured at fair value or for which fair value is required to be disclosed) as of December 31, 2013 and 2012: | |||||||||||||||||
Fair Value Measurements at | |||||||||||||||||
Reporting Date Using | |||||||||||||||||
(U.S. Dollars in thousands) | December 31, | Quoted Price | Significant | Significant | |||||||||||||
2013 | in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||
Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | $ | 28,836 | $ | 28,836 | $ | — | $ | — | |||||||||
Restricted cash | 458 | 458 | — | — | |||||||||||||
Current derivative asset: | |||||||||||||||||
Foreign exchange forward contracts | 248 | — | 248 | — | |||||||||||||
Non-current derivative assets: | |||||||||||||||||
Interest rate swap contracts | 2,617 | — | 2,617 | — | |||||||||||||
Financial liabilities: | |||||||||||||||||
Current derivative liabilities: | |||||||||||||||||
Interest rate swap contracts | 2,124 | — | 2,124 | — | |||||||||||||
Foreign exchange forward contracts | — | — | — | — | |||||||||||||
Non-current derivative liabilities: | |||||||||||||||||
Interest rate swap contracts | — | — | — | — | |||||||||||||
Long-term debt, current and non-current | 350,999 | — | 350,999 | — | |||||||||||||
Fair Value Measurements at | |||||||||||||||||
Reporting Date Using | |||||||||||||||||
(U.S. Dollars in thousands) | December 31, | Quoted Price | Significant | Significant | |||||||||||||
2012 | in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||
Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | $ | 1,287 | $ | 1,287 | $ | — | $ | — | |||||||||
Restricted cash | 830 | 830 | — | — | |||||||||||||
Current derivative asset: | |||||||||||||||||
Foreign exchange forward contracts | — | — | — | — | |||||||||||||
Non-current derivative assets: | |||||||||||||||||
Interest rate swap contracts | — | — | — | — | |||||||||||||
Financial liabilities: | |||||||||||||||||
Current derivative liabilities: | |||||||||||||||||
Interest rate swap contracts | 5,258 | — | 5,258 | — | |||||||||||||
Foreign exchange forward contracts | — | — | — | — | |||||||||||||
Non-current derivative liabilities: | |||||||||||||||||
Interest rate swap contracts | 22,622 | — | 22,622 | — | |||||||||||||
Long-term debt, current and non-current | 342,655 | — | 342,655 | — | |||||||||||||
Trade_Accounts_Receivables_Tab
Trade Accounts Receivables (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Receivables [Abstract] | ' | ||||||||
Schedule of Other Current Assets | ' | ||||||||
Other current assets consist of the following: | |||||||||
Year Ended December 31, | |||||||||
(U.S. Dollars in thousands) | 2013 | 2012 | |||||||
Insurance claims for recoveries | — | $ | 1,000 | ||||||
Refund of value added tax | 312 | — | |||||||
Prepaid expenses | 247 | 191 | |||||||
Current portion of deferred debt issuance cost | 1,116 | 982 | |||||||
Deferred incremental costs of MLP offering | — | 1,078 | |||||||
Other receivable | 139 | 208 | |||||||
Total other current assets | $ | 1,814 | $ | 3,459 | |||||
Vessels_and_Equipment_Tables
Vessels and Equipment (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||||||||||
Schedule of Property Plant and Equipment | ' | ||||||||||||||||
(U.S. Dollars in thousands) | Vessel & | Vessel under | Accumulated | Net vessels | |||||||||||||
equipment | construction | depreciation | |||||||||||||||
Balance December 31, 2011 | $ | 548,989 | $ | — | $ | (31,092 | ) | $ | 517,897 | ||||||||
Additions | 52 | — | — | 52 | |||||||||||||
Drydock costs | — | — | — | — | |||||||||||||
Transfer from vessels under construction | — | — | — | — | |||||||||||||
Disposals | (900 | ) | — | 900 | — | ||||||||||||
Depreciation | — | — | (21,181 | ) | (21,181 | ) | |||||||||||
(U.S. Dollars in thousands) | Vessel & | Vessel under | Accumulated | Net vessels | |||||||||||||
equipment | construction | depreciation | |||||||||||||||
Balance December 31, 2012 | $ | 548,141 | $ | — | $ | (51,373 | ) | $ | 496,768 | ||||||||
Additions | 143,231 | — | — | 143,231 | |||||||||||||
Drydock costs | 1,781 | — | — | 1,781 | |||||||||||||
Transfer from vessels under construction | — | — | — | — | |||||||||||||
Disposal | (227 | ) | — | — | (227 | ) | |||||||||||
Depreciation | — | — | (23,768 | ) | (23,768 | ) | |||||||||||
Balance December 31, 2013 | $ | 692,926 | 0 | $ | (75,141 | ) | $ | (617,785 | ) | ||||||||
Summary of Drydocking Activity | ' | ||||||||||||||||
Drydocking activity for the years ended December 31, 2013 and 2012 is summarized as follows: | |||||||||||||||||
Year Ended | |||||||||||||||||
December 31, | |||||||||||||||||
(U.S. Dollars in thousands) | 2013 | 2012 | |||||||||||||||
Balance at the beginning of the year | $ | 2,472 | $ | 3,228 | |||||||||||||
Costs incurred for drydocking | 12 | — | |||||||||||||||
Costs allocated to drydocking as part of acquisition of business | 1,769 | — | |||||||||||||||
Drydock amortization | (884 | ) | (756 | ) | |||||||||||||
Balance at the end of the year | $ | 3,369 | $ | 2,472 | |||||||||||||
Goodwill_Intangible_Assets_and1
Goodwill, Intangible Assets and Contract Liabilities (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||
Schedule of Intangible Assets and Contract Liabilities | ' | ||||||||||||||||||||
The unfavorable contract rights are amortized over the period of the contract to time charter and bareboat revenues as follows: | |||||||||||||||||||||
(U.S. Dollars in thousands) | Balance as of | Amortization | Balance as of | Amortization | Balance as of | ||||||||||||||||
December 31, | for the year | December 31, | for the year | December 31, | |||||||||||||||||
2011 | ended | 2012 | ended | 2013 | |||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||
2012 | 2013 | ||||||||||||||||||||
Contract liabilities: | |||||||||||||||||||||
Unfavorable contract rights | $ | (17,347 | ) | $ | 1,518 | $ | (15,829 | ) | $ | 1,518 | $ | (14,311 | ) | ||||||||
Total amortization income | $ | 1,518 | $ | 1,518 | |||||||||||||||||
Amortization of Contract Liabilities Classified Under Time Charter and Bareboat Revenues on Consolidated Combined Carve-Out Income Statement for Next Five Years | ' | ||||||||||||||||||||
The amortization of contract liabilities that is classified under time charter and bareboat revenues on the consolidated combined carve-out income statement for the next five years is expected to be as follows: | |||||||||||||||||||||
(U.S. Dollars in thousands) | 2014 | 2015 | 2016 | 2017 | 2018 and | ||||||||||||||||
thereafter | |||||||||||||||||||||
Contract liabilities: | |||||||||||||||||||||
Unfavorable contract rights | $ | (1,518 | ) | $ | (1,518 | ) | $ | (1,518 | ) | $ | (1,518 | ) | $ | (8,239 | ) | ||||||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Schedule of Accrued Expenses | ' | ||||||||
The following table presents accrued expenses as of December 31, 2013 and 2012: | |||||||||
Year Ended December 31, | |||||||||
(U.S. Dollars in thousands) | 2013 | 2012 | |||||||
Operating expenses | $ | 808 | $ | 460 | |||||
Interest expenses | 1,599 | 1,045 | |||||||
Other finance expenses | 235 | 298 | |||||||
Total accrued expenses | $ | 2,642 | $ | 1,803 | |||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||
Schedule of Long-Term Debt | ' | ||||||||||
Long-term debt as of December 31, 2013 and 2012, consisted of following: | |||||||||||
(U.S. Dollars in thousands) | Vessel | December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||||
$160 million loan facility | Fortaleza Knutsen & Recife Knutsen | $ | 132,425 | $ | 144,100 | ||||||
$19 million loan facility | Fortaleza Knutsen & Recife Knutsen | — | 18,350 | ||||||||
$120 million loan facility | Bodil Knutsen | 67,615 | 106,600 | ||||||||
$85 million loan facility | Windsor Knutsen | 52,400 | 56,400 | ||||||||
$27.3 million loan facility | Windsor Knutsen | — | 22,400 | ||||||||
$93 million loan facility | Carmen Knutsen | 87,188 | — | ||||||||
Seller’s credit | 10,349 | — | |||||||||
Total long-term debt | 349,977 | 347,850 | |||||||||
Less current installments | 29,269 | 28,833 | |||||||||
Less seller’s credit | 10,349 | — | |||||||||
Long-term debt, excluding current installment and seller’s credit | $ | 310,359 | $ | 319,017 | |||||||
Summary of Total Outstanding Debt Repayable | ' | ||||||||||
The total outstanding debt as of December 31, 2013 is repayable as follows: | |||||||||||
(US $ in thousands) | |||||||||||
2014 | $ | 29,269 | |||||||||
2015 | 74,619 | ||||||||||
2016 | 145,802 | ||||||||||
2017 | 11,750 | ||||||||||
2018 and thereafter | 88,537 | ||||||||||
Total | $ | 349,977 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule of Income (Loss) from Continuing Operations Before Income Taxes | ' | ||||||||||||
All of the loss from continuing operations before income taxes was taxable to Norway for the years ended December 31, 2013, 2012 and 2011 as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
(U.S. Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Income (loss) before income taxes | $ | 17,891 | $ | 2,006 | $ | (17,578 | ) | ||||||
Schedule of Components of Current and Deferred Income Tax Expense (Benefit) | ' | ||||||||||||
The significant components of current and deferred income tax expense (benefit) attributable to income from continuing operations for the years ended December 31, 2013 and 2012 are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
(U.S. Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Current tax expense | $ | 686 | $ | — | $ | — | |||||||
Deferred tax expense (benefit) | 2,141 | 1,261 | (1,240 | ) | |||||||||
Income tax expense (benefit) | 2,827 | 1,261 | (1,240 | ) | |||||||||
Summary of Tax Rate Reconciliation | ' | ||||||||||||
Income taxes attributable to income or loss from continuing operations was an income tax expense of $2,827 $1,261 and income tax benefit of $1,546 for the years ended December 31, 2013 and 2012, respectively, and differed from the amounts computed by applying the Norwegian ordinary income tax rate of 28% to pretax net income as a result of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
(U.S. Dollars in thousands, except for tax rate) | 2013 | 2012 | 2011 | ||||||||||
Income tax expense (benefit) at Norwegian ordinary tax regime(1) | $ | 111 | $ | 562 | $ | (4,922 | ) | ||||||
Income tax expense (benefit) at Norwegian tonnage tax regime | 188 | — | — | ||||||||||
Adjustments for amounts not taxable under tonnage tax regime | — | (3,154 | ) | (125 | ) | ||||||||
Adjustments due to permanent differences | — | 2,228 | 103 | ||||||||||
Translation differences (1) | (168 | ) | (605 | ) | (15 | ) | |||||||
Entrance tax into the Norwegian tonnage tax regime | 2,696 | — | — | ||||||||||
Reduction in income tax benefit resulting from a change in valuation allowance | — | 2,230 | 3,719 | ||||||||||
Income tax expense (benefit) | 2,827 | 1,261 | (1,240 | ) | |||||||||
Effective tax rate | 16 | % | 63 | % | 7 | % | |||||||
-1 | These tax elements are related to the carve-out period in 2013, a total tax benefit of $57. | ||||||||||||
Components of Deferred Tax Assets and Liabilities | ' | ||||||||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2013 and 2012 are presented below. | |||||||||||||
Year Ended December 31, | |||||||||||||
(U.S. Dollars in thousands) | 2013 | 2012 | |||||||||||
Deferred tax assets: | |||||||||||||
Accrued guarantee commission | $ | — | $ | 83 | |||||||||
Contracts liabilities | — | 814 | |||||||||||
Interest rate swaps | 41 | 7,806 | |||||||||||
Prepaid charter and deferred revenue | — | 49 | |||||||||||
Tax loss carry forward for ordinary tax | — | 13,963 | |||||||||||
Financial loss carry forwards for tonnage tax | 7,718 | 5,788 | |||||||||||
Total deferred tax asset | 7,759 | 28,503 | |||||||||||
Less valuation allowance | (7,759 | ) | (11,922 | ) | |||||||||
Net deferred tax asset | — | 16,581 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Vessel and equipment | — | 17,999 | |||||||||||
Long-term debt | — | 1,003 | |||||||||||
Contract Liabilities | — | 9 | |||||||||||
Entrance tax | 2,141 | — | |||||||||||
Deferred debt issuance cost | — | 377 | |||||||||||
Total deferred tax liabilities | 2,141 | 19,388 | |||||||||||
Net deferred tax liabilities | $ | 2,141 | $ | 2,807 | |||||||||
The net deferred tax liability is classified in the combined carve-out balance sheet as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
(U.S. Dollars in thousands) | 2013 | 2012 | |||||||||||
Current deferred tax asset | $ | — | $ | 290 | |||||||||
Non-current deferred tax liabilities | (2,141 | ) | (3,097 | ) | |||||||||
Net deferred tax liabilities | (2,141 | ) | (2,807 | ) | |||||||||
Changes in the net deferred tax liabilities at December 31, 2013 and 2012 are presented below: | |||||||||||||
Year Ended December 31, | |||||||||||||
(U.S. Dollars in thousands) | 2013 | 2012 | |||||||||||
Net deferred tax liabilities at January 1 | $ | 2,807 | $ | 1,546 | |||||||||
Change in temporary differences | 111 | 2,257 | |||||||||||
Benefit of loss carried forward ordinary tax | — | (935 | ) | ||||||||||
Benefit of loss carried forward tonnage tax | — | (1,686 | ) | ||||||||||
Change in valuation allowance | — | 2,230 | |||||||||||
Translation differences | (168 | ) | (605 | ) | |||||||||
Elimination of deferred tax not transferred to the partnership | (2,750 | ) | — | ||||||||||
Changes in temporary differences after the IPO date | 2,141 | — | |||||||||||
Net deferred tax liabilities at December 31 | 2,141 | 2,807 | |||||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||
Schedule of Related Party Costs and Expenses | ' | ||||||||||||
The amounts of such costs and expenses included in the audited condensed consolidated and combined carve-out statements of operations for the years ended December 31, 2013, 2012 and 2011 are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
(U.S. Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Statements of operations: | |||||||||||||
Time charter and bareboat revenues: | |||||||||||||
Commercial commission fee from KNOT to Vessels (1) | $ | 95 | $ | 775 | $ | 544 | |||||||
Cancellation fee from KNOT to Vessels (2) | 3,448 | — | — | ||||||||||
Operating expenses: | |||||||||||||
Technical and operational management fee from KOAS to Vessels (3) | — | 436 | 742 | ||||||||||
Technical and operational management fee from KNOT to Vessels (3) | 1,073 | 426 | — | ||||||||||
General and administrative expenses: | |||||||||||||
Administration fee from KNOT (4) | 510 | 359 | 52 | ||||||||||
Administration fee from KOAS (4) | 392 | — | — | ||||||||||
Administration fee from KOAS UK (4) | 112 | — | — | ||||||||||
Accounting service fee from KNOT (5) | 27 | 17 | 8 | ||||||||||
IPO administration cost from KNOT (6) | 454 | 877 | — | ||||||||||
Finance income (expense): | |||||||||||||
Financing service fee from KNOT to Vessels (7) | — | 3 | 368 | ||||||||||
Interest expense charged from KNOT (8) | 336 | 1,654 | 1,764 | ||||||||||
Interest income charged to TSSI (8) | (10 | ) | — | — | |||||||||
Guarantee commission from TSSI to Vessels (9) | 210 | 818 | 860 | ||||||||||
Guarantee commission from KNOT to Vessels (9) | 424 | 1,388 | 595 | ||||||||||
Total | $ | 7,071 | $ | 6,753 | $ | 4,933 | |||||||
-1 | Commercial commission fee from KNOT to Vessels: KNOT provides commercial services related to negotiating and maintaining the charters. KNOT invoices a fixed percentage of revenue as a commercial commission fee for these services. | ||||||||||||
-2 | Cancellation fee from KNOT to Vessels: In consideration for the termination of the Commercial Management Agreement, a cancellation fee was paid for each Vessel equal to the remuneration to be paid in accordance with the Commercial Management Agreement until the expiration of the time charter for each Vessel. As the cancellation fee relates to the commercial commission fee, it has been presented as part of operating income, consistent with the presentation of commissions. | ||||||||||||
-3 | Technical and operational management fee from KOAS and KNOT to Vessels: KOAS and KNOT provide technical and operational management of the vessels on time charter including crewing, purchasing, maintenance and other operational, bookkeeping and administrative support. For bareboat charters, KOAS provides bookkeeping and administrative support. KOAS invoices a fixed amount per day per vessel based upon providing either time charter or bareboat charter services. In addition, there is also a charge for 24-hour emergency response services provided by KOAS for all vessels managed by KOAS and KNOT. The direct cost for the response services has been allocated to all vessels without a mark-up based upon the number of vessels managed by KOAS and KNOT. | ||||||||||||
-4 | Administration fee from KNOT, KOAS and KOAS UK: Administration costs include the compensation and benefits of KNOT management and administrative staff as well as other general and administration expenses. Net administration costs are total administration cost plus a 5% margin, reduced for the total fees for services delivered by the administration staffs (the accounting service fees (see (5) below), the financing service fees (see (6) below) and the estimated shareholder costs for KNOT that have not been allocated. As such, the level of net administration costs as a basis for the allocation can vary from year to year based on the administration and financing services offered by KNOT to all the vessels in its fleet each year. | ||||||||||||
-5 | Accounting service fee from KNOT: KNOT invoiced each subsidiary a fixed fee for the preparation of the statutory financial statements (including Knutsen Shuttle Tankers XII KS, which owns the Recife Knutsen and the Fortaleza Knutsen and Knutsen Shuttle Tankers XII AS). Such charges were allocated to the Bodil Knutsen and the Windsor Knutsen based on the number of vessels in the legal entity until the Bodil Knutsen and the Windsor Knutsen were sold to KNOT Shuttle Tankers 17 AS and KNOT Shuttle Tankers 18 AS as part of the reorganization prior to the IPO. | ||||||||||||
-6 | IPO administration cost from KNOT: In connection with the preparation of the financial statements and the Form F-1, KNOT has invoiced the actual cost for internal resources, including salaries and administration cost, plus a 5% margin. Since the costs were not incremental cost directly attributable to the IPO, they were expensed as incurred. | ||||||||||||
-7 | Financing service fee from KNOT to Vessels: KNOT invoiced each vessel for a fixed percentage of the principal of any new loan facilities for vessel financing as compensation for the time and costs of loan negotiations with external banks. | ||||||||||||
-8 | Interest expense charged from, interest income charged to KNOT/TSSI: KNOT/TSSI invoiced interest expense (income) for any outstanding payables to (receivable from) owners and affiliates to the vessel-owning subsidiaries (including Knutsen Shuttle Tankers XII KS, which owns the Recife Knutsen and the Fortaleza Knutsen and Knutsen Shuttle Tankers XII AS). Since payables to (receivables from) owners and affiliates are not tracked by vessel, balances based upon payments by owners to the shipyard have been allocated to the Bodil Knutsen and the Windsor Knutsen (see Note 2(a)—Summary of Significant Accounting Policies: Basis of Preparation for a description of the allocation principles applied. Interest expense has been allocated based upon the allocated payables to owners and affiliates and the historical interest rates charged. | ||||||||||||
-9 | Guarantee commission from TSSI/KNOT to Vessels: TSSI and KNOT were guarantors for the Predecessor’s loan facilities (see Note 16—Long-term Debt and Note 18(b)—Related Party Transactions: Guarantees). TSSI and KNOT invoiced an annual commission to each of the Vessels as a fixed percentage of the outstanding balance as compensation for the guarantee. | ||||||||||||
Summary of Amounts Due from (to) Related Parties | ' | ||||||||||||
Balances with related parties consisted of the following: | |||||||||||||
(U.S. Dollars in thousands) | At December 31, | At December 31, | |||||||||||
2013 | 2012 | ||||||||||||
Balance Sheets: | |||||||||||||
Trading balances due from KOAS | $ | 27 | $ | — | |||||||||
Trading balances due from KNOT and affiliates | 50 | — | |||||||||||
Amount due from related parties | $ | 77 | $ | — | |||||||||
Trading balances due to KOAS | $ | 141 | $ | 12,423 | |||||||||
Trading balances due to KNOT and affiliates | 22 | — | |||||||||||
Amount due to related parties | $ | 163 | $ | 12,423 | |||||||||
Supplemental_Cash_Flows_Inform1
Supplemental Cash Flows Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Supplemental Cash Flow Elements [Abstract] | ' | ||||||||||||
Supplemental Information Related to Combined Carve-Out Statements of Cash Flows | ' | ||||||||||||
The following supplemental information is provided related to the Combined Carve-Out Statements of Cash Flows for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||
Year Ended December 31, | |||||||||||||
(U.S. Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Non-cash investing and financing activities: | |||||||||||||
Payable to owner and affiliates converted to equity | $ | 27,051 | $ | 25,664 | $ | — | |||||||
Supplemental cash flows information: | |||||||||||||
Interest paid | 10,219 | 13,612 | 8,926 | ||||||||||
Income taxes paid | — | — | — | ||||||||||
Earnings_per_Unit_and_Cash_Dis1
Earnings per Unit and Cash Distributions (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Earnings Per Share [Abstract] | ' | ||||
Schedule of Calculations of Basic and Diluted Earnings per Unit | ' | ||||
The calculations of basic and diluted earnings per unit are presented below: | |||||
(U.S. Dollars in thousands, except unit and per unit amounts) | April 15th to | ||||
December 31, | |||||
2013 | |||||
Post IPO net income attributable to the members of KNOT Offshore Partners LP | $ | 18,603 | |||
Less: Distribution paid (1) | 20,779 | ||||
Under (over) distributed earnings | (2,176 | ) | |||
Under (over) distributed earnings attributable to: | |||||
Common unitholders | (1,066 | ) | |||
Subordinated unitholders(2) | (1,066 | ) | |||
General Partner | (44 | ) | |||
Weighted average units outstanding (basic and diluted) (in thousands): | |||||
Common unitholders | 8,568 | ||||
Subordinated unitholders | 8,568 | ||||
General Partner | 350 | ||||
Earnings per unit (basic and diluted): | |||||
Common unitholders | $ | 1.063 | |||
Subordinated unitholders(2) | $ | 1.065 | |||
General Partner | $ | 1.063 | |||
Cash distributions declared and paid in the period per unit(3) | $ | 0.752 | |||
Subsequent event: Cash distributions declared and paid per unit relating to the period(4) | $ | 0.435 | |||
-1 | For the purpose of the calculation of earnings per unit, the cash distributions paid are based on the number of units outstanding at the period end date. This calculation assumes that cash distributions to IDR holders for the period April 15 to December 31, 2013 were $0.02. | ||||
-2 | This includes the net income attributable to the IDR holders. The IDRs generally may not be transferred by the subordinated unitholders until March 31, 2018. The net income attributable to IDRs for the period April 15 to December 31, 2013 was $0.02. | ||||
-3 | Refers to cash distribution declared and paid during the period April 15 to December 31, 2013. | ||||
-4 | Refers to cash distribution declared and paid subsequent to the fourth quarter. |
Acquisition_of_the_Carmen_Knut1
Acquisition of the Carmen Knutsen (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Business Combinations [Abstract] | ' | ||||
Schedule of Fair Values Allocated to Each Class of Identifiable Assets in Carmen Knutsen Acquisition and Difference between Purchase Price and Net Assets Acquired | ' | ||||
The fair values allocated to each class of identifiable assets in the Carmen Knutsen acquisition and the difference between the purchase price and net assets acquired were calculated as follows: | |||||
(U.S. Dollars in thousands) | August 1, 2013 | ||||
Purchase price (1) | $ | 55,772 | |||
Less: Fair value of net assets acquired: | |||||
Vessel and equipment (2) | 145,000 | ||||
Cash | 89 | ||||
Inventories | 234 | ||||
Other current assets | 108 | ||||
Long-term debt | (89,125 | ) | |||
Trade accounts payable | (91 | ) | |||
Accrued expenses | (387 | ) | |||
Amount due to related parties | (56 | ) | |||
Subtotal | 55,772 | ||||
Difference between the purchase price and fair value of net assets acquired | $ | — | |||
-1 | The purchase price of $55.772 million comprises the following: | ||||
(U.S. Dollars in thousands) | |||||
Cash consideration paid to KNOT | $ | 45,423 | |||
Seller’s credit | 10,349 | ||||
Purchase price | $ | 55,772 | |||
-2 | Vessel and equipment includes allocation to dry docking of $1,769. | ||||
Schedule of Summarized Consolidated Pro Forma Financial Information | ' | ||||
Since the Carmen Knutsen was delivered January 2, 2013, there is no pro forma amount for the year ended December 31, 2012. | |||||
(U.S. Dollars in thousands, except per unit amounts) | Year Ended | ||||
December 31, | |||||
2013 | |||||
Revenue | $ | 84,037 | |||
Net income | 16,695 |
Description_of_Business_Additi
Description of Business - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
In Millions, except Share data, unless otherwise specified | Apr. 30, 2013 | Dec. 31, 2013 | Feb. 27, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Vessel | Windsor Knutsen [Member] | Bodil Knutsen [Member] | Recife Knutsen [Member] | Fortaleza Knutsen [Member] | Carmen Knutsen [Member] | Subordinated Units [Member] | General Partner Unit [Member] | General Partner Unit [Member] | Common Units [Member] | Common Units [Member] | KNOT Offshore Partners UK LLC [Member] | |||
Tanker | ||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of ownership interests to be acquired by Partnership in four shuttle tankers | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shuttle tankers to be acquired | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial public offering completion date | ' | 15-Apr-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage of limited liability company | 49.00% | ' | ' | ' | 30.00% | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% |
Ownership description | ' | ' | 'the Partnership acquired a 100% ownership interest in KNOT Shuttle Tankers AS, a wholly owned subsidiary of KNOT, which as of February 27, 2013 directly or indirectly owned (1) 100% of Knutsen Shuttle Tankers XII KS, the owner of the Recife Knutsen and the Fortaleza Knutsen, (2) 100% of Knutsen Shuttle Tankers XII AS, the general partner of Knutsen Shuttle Tankers XII KS, and (3) the Windsor Knutsen and the Bodil Knutsen and all of their related charters, inventory and long-term debt. In establishing the new KNOT Shuttle Tankers AS structure, KNOT formed three new Norwegian subsidiaries, which acquired 90% of Knutsen Shuttle Tankers XII KS, 100% of the Windsor Knutsen and 100% of the Bodil Knutsen, respectively. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common units issued to public | ' | ' | ' | ' | ' | ' | ' | ' | 8,567,500 | ' | ' | 168,313 | 8,567,500 | ' |
Percentage of limited liability company | ' | ' | ' | ' | ' | ' | ' | ' | 49.00% | ' | ' | 49.00% | 49.00% | ' |
Percentage of incentive distribution rights | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of interest held by general partner | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | 2.00% | ' | ' | ' |
Common units sold pursuant to the full exercise of underwriters' options | ' | 1,117,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross proceeds from IPO | ' | $179.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Time charters expiration year | ' | ' | ' | '2014 | '2016 | ' | ' | '2018 | ' | ' | ' | ' | ' | ' |
Time charterer options extension year | ' | ' | ' | '2016 | '2019 | ' | ' | '2021 | ' | ' | ' | ' | ' | ' |
Bareboat charters expiration year | ' | ' | ' | ' | ' | '2023 | '2023 | ' | ' | ' | ' | ' | ' | ' |
Number of operating vessels | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 15, 2013 | Feb. 27, 2013 | Dec. 31, 2011 |
Reporting_Unit | |||||
Significant Acquisitions and Disposals [Line Items] | ' | ' | ' | ' | ' |
Ownership description | ' | ' | ' | 'the Partnership acquired a 100% ownership interest in KNOT Shuttle Tankers AS, a wholly owned subsidiary of KNOT, which as of February 27, 2013 directly or indirectly owned (1) 100% of Knutsen Shuttle Tankers XII KS, the owner of the Recife Knutsen and the Fortaleza Knutsen, (2) 100% of Knutsen Shuttle Tankers XII AS, the general partner of Knutsen Shuttle Tankers XII KS, and (3) the Windsor Knutsen and the Bodil Knutsen and all of their related charters, inventory and long-term debt. In establishing the new KNOT Shuttle Tankers AS structure, KNOT formed three new Norwegian subsidiaries, which acquired 90% of Knutsen Shuttle Tankers XII KS, 100% of the Windsor Knutsen and 100% of the Bodil Knutsen, respectively. | ' |
Foreign exchange forward contracts outstanding | ' | ' | ' | ' | ' |
Net liabilities | -378,246 | -414,617 | -27,792 | ' | ' |
Provision for doubtful accounts | ' | ' | ' | ' | ' |
Number of reporting unit | 1 | ' | ' | ' | ' |
Tonnage tax included in operating expenses | $100 | $66 | ' | ' | ' |
KNOT Shuttle Tankers AS [Member] | ' | ' | ' | ' | ' |
Significant Acquisitions and Disposals [Line Items] | ' | ' | ' | ' | ' |
Ownership description | ' | ' | ' | 'As of February 27, 2013, KNOT Shuttle Tankers AS acquired the 100% ownership in KNOT Shuttle Tankers 12 AS, KNOT Shuttle Tankers 17 AS, KNOT Shuttle Tankers 18 AS, and Knutsen Shuttle Tankers XII AS in a reorganization under common control. As of February 27, 2013, KNOT Shuttle Tankers 12 AS and Knutsen Shuttle Tankers XII AS owned a 90% and 10% ownership interest, respectively, in Knutsen Shuttle Tankers XII KS; and KNOT Shuttle Tankers 17 AS owned a 100% interest in Bodil Knutsen and KNOT Shuttle Tankers 18 AS owned a 100% interest in Windsor Knutsen. As a reorganization of entities under common control, the transfer of the subsidiaries and other net assets has been recorded at KNOTbs historical book value. | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Schedule of Net Liabilities Eliminated (Detail) (USD $) | Dec. 31, 2013 | Apr. 15, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Regulatory Assets [Abstract] | ' | ' | ' |
Other current assets | $1,814 | $89 | $3,459 |
Other non-current assets | ' | ' | ' |
Other current liabilities | ' | -6,321 | ' |
Other long-term liabilities | -567 | -21,560 | -996 |
Net liabilities | ($378,246) | ($27,792) | ($414,617) |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Schedule of Net Liabilities Eliminated (Parenthetical) (Detail) | Dec. 31, 2013 |
Regulatory Assets [Abstract] | ' |
Initial public offering completion date | 15-Apr-13 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Schedule of Depreciation on Vessels and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Hull [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Asset's estimated useful life | '25 years |
Anchor-Handling, Loading and Unloading Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Asset's estimated useful life | '25 years |
Main/Auxiliary Engine [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Asset's estimated useful life | '25 years |
Thruster, Dynamic Positioning Systems, Cranes and Other Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Asset's estimated useful life | '25 years |
Minimum [Member] | Drydock Costs [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Asset's estimated useful life | '2 years 6 months |
Maximum [Member] | Drydock Costs [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Asset's estimated useful life | '5 years |
Formation_Transactions_and_Ini1
Formation Transactions and Initial Public Offering - Additional Information (Detail) (USD $) | 1 Months Ended | 9 Months Ended | 12 Months Ended |
Apr. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Securities Financing Transaction [Line Items] | ' | ' | ' |
Increase in cash the partnership distributed in excess per unit | $0.43 | ' | ' |
Percentage of limited liability company | 49.00% | ' | ' |
Gross proceeds upon IPO | ' | ' | $179,900,000 |
Common units sold pursuant to the full exercise of the underwriters' | ' | ' | 1,117,500 |
Net proceeds upon IPO | ' | 168,313,000 | 168,313,000 |
Cash distribution | ' | 20,779,000 | 21,954,000 |
Revolving credit facility outstanding | ' | 20,000,000 | 20,000,000 |
IPO Administration Cost [Member] | ' | ' | ' |
Securities Financing Transaction [Line Items] | ' | ' | ' |
Common units sold and issued to public | 8,567,500 | ' | ' |
Common unit, per share amount | $21 | ' | ' |
Gross proceeds upon IPO | 179,900,000 | ' | ' |
Common units sold pursuant to the full exercise of the underwriters' | 1,117,500 | ' | ' |
Net proceeds upon IPO | 160,700,000 | ' | ' |
Repayment of outstanding debt | 118,900,000 | ' | ' |
One-time entrance tax | 3,000,000 | ' | ' |
General Partner Unit [Member] | ' | ' | ' |
Securities Financing Transaction [Line Items] | ' | ' | ' |
Number of general partner units issued to the General Partner | 349,694 | ' | ' |
Percentage of partnership interest held by General Partner | 2.00% | ' | 2.00% |
KNOT UK [Member] | ' | ' | ' |
Securities Financing Transaction [Line Items] | ' | ' | ' |
Percentage of contribution to subsidiary | 100.00% | ' | ' |
KNOT [Member] | ' | ' | ' |
Securities Financing Transaction [Line Items] | ' | ' | ' |
Number of subordinated units issued | 8,567,500 | ' | ' |
KNOT [Member] | IPO Administration Cost [Member] | ' | ' | ' |
Securities Financing Transaction [Line Items] | ' | ' | ' |
Cash distribution | $21,950,000 | ' | ' |
Partnership [Member] | ' | ' | ' |
Securities Financing Transaction [Line Items] | ' | ' | ' |
Percentage of limited partner interest | 49.00% | ' | ' |
Incentive Distribution Rights [Member] | ' | ' | ' |
Securities Financing Transaction [Line Items] | ' | ' | ' |
Percentage of limited partner interest | 100.00% | ' | ' |
Significant_Risks_and_Uncertai2
Significant Risks and Uncertainties Including Business and Credit Concentrations - Additional Information (Detail) (Minimum [Member]) | 12 Months Ended |
Dec. 31, 2013 | |
Minimum [Member] | ' |
Revenue, Major Customer [Line Items] | ' |
Benchmark percentage of revenues and combined revenues concentration | 10.00% |
Significant_Risks_and_Uncertai3
Significant Risks and Uncertainties Including Business and Credit Concentrations - Schedule of Revenues and Percentage of Combined Revenues for Customers (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Revenues | $73,401 | $65,653 | $43,909 |
Brazil Shipping I Limited, a Subsidiary of BG Group Plc [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Revenues | 20,311 | 14,905 | 13,172 |
Fronape International Company, a Subsidiary of Petrobras Transporte S.A. [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Revenues | 22,860 | 24,980 | 14,540 |
Statoil ASA [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Revenues | 21,563 | 22,193 | 14,096 |
Repsol Sinopec Brasil, S.A., a Subsidiary of Repsol Sinopec Brasil, B.V. [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Revenues | $8,417 | ' | ' |
Revenues [Member] | Brazil Shipping I Limited, a Subsidiary of BG Group Plc [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of combined revenues for customers | 28.00% | 23.00% | 30.00% |
Revenues [Member] | Fronape International Company, a Subsidiary of Petrobras Transporte S.A. [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of combined revenues for customers | 31.00% | 38.00% | 33.00% |
Revenues [Member] | Statoil ASA [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of combined revenues for customers | 29.00% | 34.00% | 32.00% |
Revenues [Member] | Repsol Sinopec Brasil, S.A., a Subsidiary of Repsol Sinopec Brasil, B.V. [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of combined revenues for customers | 12.00% | ' | ' |
Operating_Leases_Summary_of_Mi
Operating Leases - Summary of Minimum Contractual Future Revenues (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | ' |
2014 | $85,936 |
2015 | 86,359 |
2016 | 86,787 |
2017 | 87,218 |
2018 | 37,459 |
2019 and thereafter | 103,701 |
Total | $487,460 |
Operating_Leases_Additional_In
Operating Leases - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Bodil Knutsen [Member] | ' |
Lease Rental Expenses [Line Items] | ' |
Lease expiration period | 31-May-16 |
Option to extend lease expiration date | '2019-05 |
Windsor Knutsen [Member] | Minimum [Member] | ' |
Lease Rental Expenses [Line Items] | ' |
Lease expiration period | 30-Jun-14 |
Windsor Knutsen [Member] | Maximum [Member] | ' |
Lease Rental Expenses [Line Items] | ' |
Lease expiration period | 30-Aug-14 |
Carmen Knutsen [Member] | ' |
Lease Rental Expenses [Line Items] | ' |
Lease expiration period | 15-Jan-18 |
Option to extend lease expiration date | '2021-01 |
Fortaleza Knutsen [Member] | ' |
Lease Rental Expenses [Line Items] | ' |
Lease expiration period | 23-Mar-23 |
Recife Knutsen [Member] | ' |
Lease Rental Expenses [Line Items] | ' |
Lease expiration period | 23-Aug-23 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Segment | |
Segment Reporting Information [Line Items] | ' |
Number of reportable segments | 1 |
Revenues [Member] | ' |
Segment Reporting Information [Line Items] | ' |
Benchmark percentage of revenues and combined revenues concentration | 10.00% |
Insurance_Proceeds_Additional_
Insurance Proceeds - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |
Apr. 15, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Business Interruption Loss [Line Items] | ' | ' | ' |
Insurance recoveries | ' | $250,000 | $3,575,000 |
Cost of repairs, vessel operating expenses | 4,000,000 | ' | 4,100,000 |
Windsor Knutsen [Member] | ' | ' | ' |
Business Interruption Loss [Line Items] | ' | ' | ' |
Partnership's loss, description | ' | 'Under the Partnership's loss of hire policies, its insurer will pay the Partnership the hire rate agreed in respect of each vessel for each day, in excess of 14 deductible days, for the time that the Vessel is out of service as a result of damage, for a maximum of 180 days. | ' |
Vessel, off-hire period | ' | 'April 1, 2012 to June 24, 2012 | ' |
Insurance recoveries | ' | 300,000 | 3,600,000 |
Windsor Knutsen [Member] | Hull and Machinery Insurance [Member] | ' | ' | ' |
Business Interruption Loss [Line Items] | ' | ' | ' |
Insurance recoveries | $3,500,000 | ' | $3,000,000 |
Finance_Income_Expense_Reconci
Finance Income (Expense) - Reconciliation of Total Interest Cost to Interest Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Interest cost capitalized | ' | ' | $3,525 |
Interest expense | 10,773 | 13,471 | 9,650 |
Total interest cost | $10,773 | $13,471 | $13,175 |
Finance_Income_Expense_Summary
Finance Income (Expense) - Summary of Other Finance Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Bank fees, charges and external guarantee costs | $1,414 | $1,169 | $918 |
Related party guarantee commissions (Note 18) | 634 | 2,206 | 1,455 |
Related party financing service fee (Note 18) | ' | 3 | 368 |
Total other finance expense | $2,048 | $3,378 | $2,741 |
Derivative_Instruments_Additio
Derivative Instruments - Additional Information (Detail) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | Interest Rate Swap Contracts [Member] | Interest Rate Swap Contracts [Member] | Foreign Exchange Forward Contracts [Member] | Foreign Exchange Forward Contracts [Member] | Foreign Exchange Forward Contracts [Member] | Foreign Exchange Forward Contracts [Member] | Foreign Exchange Forward Contracts [Member] |
USD ($) | USD ($) | USD ($) | NOK | USD ($) | NOK | NOK | |
Contract | Contract | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Derivative, Notional amount of outstanding obligations | $200 | $128.50 | ' | 124.4 | ' | 0 | 0 |
Carrying amount of derivative assets | 0.5 | ' | 0.2 | ' | 0 | ' | ' |
Carrying amount of derivative liabilities | ' | $27.90 | ' | ' | ' | ' | ' |
Derivative, Number of contracts outstanding | ' | ' | ' | ' | 0 | 0 | 0 |
Derivative_Instruments_Schedul
Derivative Instruments - Schedule of Realized and Unrealized Gains and Losses Recognized in Earnings (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Realized gain (loss) | $505 | ($6,031) | ($15,489) |
Unrealized gain (loss) | 1,770 | -549 | -8,923 |
Interest Rate Swap Contracts [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Realized gain (loss) | -1,265 | -5,482 | -5,738 |
Unrealized gain (loss) | 1,522 | -549 | -11,407 |
Foreign Exchange Forward Contracts [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Realized gain (loss) | ' | ' | -828 |
Unrealized gain (loss) | $248 | ' | $2,484 |
Fair_Value_Measurements_Carryi
Fair Value Measurements - Carrying Amounts and Estimated Fair Values of Partnership 's Financial Instruments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Financial assets: | ' | ' | ' | ' |
Cash and cash equivalents | $28,836 | $1,287 | $3,189 | $3,375 |
Current derivative assets | 248 | ' | ' | ' |
Non-current derivative assets | 2,617 | ' | ' | ' |
Financial liabilities: | ' | ' | ' | ' |
Current derivative liabilities | 2,124 | 5,258 | ' | ' |
Non-current derivative liabilities | ' | 22,622 | ' | ' |
Long-term debt, current and non-current | 349,977 | 347,850 | ' | ' |
Foreign Exchange Forward Contracts [Member] | ' | ' | ' | ' |
Financial assets: | ' | ' | ' | ' |
Current derivative assets | 248 | ' | ' | ' |
Financial liabilities: | ' | ' | ' | ' |
Current derivative liabilities | ' | ' | ' | ' |
Interest Rate Swap Contracts [Member] | ' | ' | ' | ' |
Financial assets: | ' | ' | ' | ' |
Non-current derivative assets | 2,617 | ' | ' | ' |
Financial liabilities: | ' | ' | ' | ' |
Current derivative liabilities | 2,124 | 5,258 | ' | ' |
Non-current derivative liabilities | ' | 22,622 | ' | ' |
Carrying Amount [Member] | ' | ' | ' | ' |
Financial assets: | ' | ' | ' | ' |
Cash and cash equivalents | 28,836 | 1,287 | ' | ' |
Restricted cash | 458 | 830 | ' | ' |
Financial liabilities: | ' | ' | ' | ' |
Long-term debt, current and non-current | 349,977 | 347,850 | ' | ' |
Carrying Amount [Member] | Foreign Exchange Forward Contracts [Member] | ' | ' | ' | ' |
Financial assets: | ' | ' | ' | ' |
Current derivative assets | 248 | ' | ' | ' |
Financial liabilities: | ' | ' | ' | ' |
Current derivative liabilities | ' | ' | ' | ' |
Carrying Amount [Member] | Interest Rate Swap Contracts [Member] | ' | ' | ' | ' |
Financial assets: | ' | ' | ' | ' |
Non-current derivative assets | 2,617 | ' | ' | ' |
Financial liabilities: | ' | ' | ' | ' |
Current derivative liabilities | 2,124 | 5,258 | ' | ' |
Non-current derivative liabilities | ' | 22,622 | ' | ' |
Fair Value [Member] | ' | ' | ' | ' |
Financial assets: | ' | ' | ' | ' |
Cash and cash equivalents | 28,836 | 1,287 | ' | ' |
Restricted cash | 458 | 830 | ' | ' |
Financial liabilities: | ' | ' | ' | ' |
Long-term debt, current and non-current | 350,999 | 342,655 | ' | ' |
Fair Value [Member] | Foreign Exchange Forward Contracts [Member] | ' | ' | ' | ' |
Financial assets: | ' | ' | ' | ' |
Current derivative assets | 248 | ' | ' | ' |
Financial liabilities: | ' | ' | ' | ' |
Current derivative liabilities | ' | ' | ' | ' |
Fair Value [Member] | Interest Rate Swap Contracts [Member] | ' | ' | ' | ' |
Financial assets: | ' | ' | ' | ' |
Non-current derivative assets | 2,617 | ' | ' | ' |
Financial liabilities: | ' | ' | ' | ' |
Current derivative liabilities | 2,124 | 5,258 | ' | ' |
Non-current derivative liabilities | ' | $22,622 | ' | ' |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (Interest Rate Swap Contracts [Member], USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Assets And Liabilities Carrying Value And Fair Value [Line Items] | ' | ' |
Weighted average remaining terms | '4 years 3 months 18 days | '5 years 10 months 24 days |
Minimum [Member] | ' | ' |
Assets And Liabilities Carrying Value And Fair Value [Line Items] | ' | ' |
Notional amount | 10,000 | ' |
Fixed interest rate | 1.25% | 3.84% |
Maximum [Member] | ' | ' |
Assets And Liabilities Carrying Value And Fair Value [Line Items] | ' | ' |
Notional amount | 50,000 | ' |
Fixed interest rate | 1.44% | 5.10% |
Fair_Value_Measurements_Schedu
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial assets: | ' | ' |
Cash and cash equivalents | $28,836 | $1,287 |
Restricted cash | 458 | 830 |
Current derivative asset | 248 | ' |
Non-current derivative assets | 2,617 | ' |
Financial liabilities: | ' | ' |
Current derivative liabilities | 2,124 | 5,258 |
Non-current derivative liabilities | ' | 22,622 |
Long-term debt, current and non-current | 350,999 | 342,655 |
Foreign Exchange Forward Contracts [Member] | ' | ' |
Financial assets: | ' | ' |
Current derivative asset | 248 | ' |
Financial liabilities: | ' | ' |
Current derivative liabilities | ' | ' |
Interest Rate Swap Contracts [Member] | ' | ' |
Financial assets: | ' | ' |
Non-current derivative assets | 2,617 | ' |
Financial liabilities: | ' | ' |
Current derivative liabilities | 2,124 | 5,258 |
Non-current derivative liabilities | ' | 22,622 |
Quoted Price in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | 28,836 | 1,287 |
Restricted cash | 458 | 830 |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Financial liabilities: | ' | ' |
Long-term debt, current and non-current | 350,999 | 342,655 |
Significant Other Observable Inputs (Level 2) [Member] | Foreign Exchange Forward Contracts [Member] | ' | ' |
Financial assets: | ' | ' |
Current derivative asset | 248 | ' |
Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Swap Contracts [Member] | ' | ' |
Financial assets: | ' | ' |
Non-current derivative assets | 2,617 | ' |
Financial liabilities: | ' | ' |
Current derivative liabilities | 2,124 | 5,258 |
Non-current derivative liabilities | ' | $22,622 |
Trade_Accounts_Receivables_Add
Trade Accounts Receivables - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Receivables [Abstract] | ' | ' |
Provision for doubtful accounts | ' | ' |
Trade_Accounts_Receivables_Sch
Trade Accounts Receivables - Schedule of Other Current Assets (Detail) (USD $) | Dec. 31, 2013 | Apr. 15, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Receivables [Abstract] | ' | ' | ' |
Insurance claims for recoveries | ' | ' | $1,000 |
Refund of value added tax | 312 | ' | ' |
Prepaid expenses | 247 | ' | 191 |
Current portion of deferred debt issuance cost | 1,116 | ' | 982 |
Deferred incremental costs of MLP offering | ' | ' | 1,078 |
Other receivable | 139 | ' | 208 |
Total other current assets | $1,814 | $89 | $3,459 |
Vessels_and_Equipment_Schedule
Vessels and Equipment - Schedule of Property Plant and Equipment (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' |
Accumulated depreciation, beginning balance | ($51,373) | ($31,092) |
Accumulated depreciation, disposals for the period | ' | 900 |
Depreciation | -23,768 | -21,181 |
Accumulated depreciation, ending balance | -75,141 | -51,373 |
Net vessels, beginning balance | 496,768 | 517,897 |
Additions | 143,231 | 52 |
Drydock costs | 1,781 | ' |
Disposal | -227 | ' |
Depreciation | -23,768 | -21,181 |
Net vessels, ending balance | 617,785 | 496,768 |
Vessel Under Construction [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Vessel under construction, beginning balance | ' | ' |
Vessel under construction, ending balance | 0 | ' |
Vessel & Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Vessel and equipment, beginning balance | 548,141 | 548,989 |
Additions | 143,231 | 52 |
Drydock costs | 1,781 | ' |
Transfer from vessels under construction | ' | ' |
Disposal | -227 | -900 |
Vessel and equipment, ending balance | $692,926 | $548,141 |
Vessels_and_Equipment_Addition
Vessels and Equipment - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Property Plant And Equipment Useful Life And Values [Abstract] | ' | ' |
Book value of assets pledged | $618 | $496.80 |
Vessels_and_Equipment_Summary_
Vessels and Equipment - Summary of Drydocking Activity (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Property Plant And Equipment Useful Life And Values [Abstract] | ' | ' |
Balance at the beginning of the year | $2,472 | $3,228 |
Costs incurred for drydocking | 12 | ' |
Costs allocated to drydocking as part of acquisition of business | 1,769 | ' |
Drydock amortization | -884 | -756 |
Balance at the end of the year | $3,369 | $2,472 |
Goodwill_Intangible_Assets_and2
Goodwill, Intangible Assets and Contract Liabilities - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | TSSI [Member] | |||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Goodwill acquisition ownership interest | ' | ' | ' | 50.00% |
Carrying amount of goodwill | $5,750 | $5,750 | ' | ' |
Finite-lived intangible assets | ' | ' | 533 | ' |
Accumulated amortization for contract liabilities | $3,904 | $2,386 | ' | ' |
Goodwill_Intangible_Assets_and3
Goodwill, Intangible Assets and Contract Liabilities - Schedule of Intangible Assets and Contract Liabilities (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Beginning Balance | ' | ' | ($533) |
Amortization | 1,518 | 1,518 | 868 |
Unfavorable Contract Rights [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Beginning Balance | -15,829 | -17,347 | ' |
Amortization | 1,518 | 1,518 | ' |
Ending Balance | ($14,311) | ($15,829) | ' |
Goodwill_Intangible_Assets_and4
Goodwill, Intangible Assets and Contract Liabilities - Amortization of Contract Liabilities Classified Under Time Charter and Bareboat Revenues on Consolidated Combined Carve-Out Income Statement for Next Five Years (Detail) (Unfavorable Contract Rights [Member], USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Unfavorable Contract Rights [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
2014 | ($1,518) |
2015 | -1,518 |
2016 | -1,518 |
2017 | -1,518 |
2018 and thereafter | ($8,239) |
Accrued_Expenses_Schedule_of_A
Accrued Expenses - Schedule of Accrued Expenses (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other Items Net Interest And Other Financial Income [Line Items] | ' | ' |
Total accrued expenses | $2,642 | $1,803 |
Operating Expenses [Member] | ' | ' |
Other Items Net Interest And Other Financial Income [Line Items] | ' | ' |
Total accrued expenses | 808 | 460 |
Interest Expenses [Member] | ' | ' |
Other Items Net Interest And Other Financial Income [Line Items] | ' | ' |
Total accrued expenses | 1,599 | 1,045 |
Other Finance Expenses [Member] | ' | ' |
Other Items Net Interest And Other Financial Income [Line Items] | ' | ' |
Total accrued expenses | $235 | $298 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||
Apr. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 15, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Carmen Knutsen [Member] | Bodil Knutsen [Member] | Bodil Knutsen [Member] | Bodil Knutsen [Member] | Fortaleza Knutsen and Recife Knutsen [Member] | Windsor Knutsen [Member] | Seller's Credit [Member] | 160 Million Senior Secured Loan Facility [Member] | 19 Million Junior Secured Loan Facility [Member] | 160 Million Secured Loan Facility and 19 Million Junior Secured Loan [Member] | 160 Million Secured Loan Facility and 19 Million Junior Secured Loan [Member] | 160 Million Secured Loan Facility and 19 Million Junior Secured Loan [Member] | 120 Million Loan Facility [Member] | 120 Million Loan Facility [Member] | 120 Million Loan Facility [Member] | Term Loan Facility [Member] | 27.3 Million Secured Loan Facility [Member] | 27.3 Million Secured Loan Facility [Member] | 93 Million Secured Loan Facility [Member] | 93 Million Secured Loan Facility [Member] | 93 Million Secured Loan Facility [Member] | 10.5 Million Seller's Credit [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | First Four Years [Member] | First Four Years [Member] | Fifth Year [Member] | Fifth Year [Member] | After Amendment [Member] | After Amendment [Member] | Before Amendment [Member] | Before Amendment [Member] | |||||
Vessel | Vessel Acquired [Member] | Vessel Owned [Member] | Tranches | Vessel | Vessel Acquired [Member] | Vessel Owned [Member] | Tranches | Minimum [Member] | Maximum [Member] | Bodil Knutsen [Member] | Vessel | Vessel Acquired [Member] | Less Than 12 Months Remaining Tenor [Member] | Bodil Knutsen [Member] | Garanti-Instituttet for Eksportkreditt [Member] | Carmen Knutsen [Member] | Bodil Knutsen [Member] | Carmen Knutsen [Member] | Bodil Knutsen [Member] | Windsor Knutsen [Member] | 10.5 Million Seller's Credit [Member] | Windsor Knutsen [Member] | 10.5 Million Seller's Credit [Member] | ||||||||||||||
Vessel Owned [Member] | |||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility established | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisitions purchase price | ' | ' | ' | ' | 145,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective date of acquisition | ' | ' | ' | ' | 1-Aug-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business combination purchase price settlement, cash payment | ' | 55,683,000 | ' | ' | ' | ' | ' | ' | ' | ' | 45,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business combination purchase price, bank debt | ' | ' | ' | ' | 89,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Original drawn amount of bank debt | ' | ' | ' | ' | 93,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business combination purchase price settlement, loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount drawn under the existing loan facility | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other purchase price adjustments | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | 25,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior secured loan facility quarterly repayable installments description | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The Windsor Purchase Facility is repayable in semi-annual installments over eight years | ' | 'Each tranche is repayable in quarterly installments over five years | ' | ' | ' | ' | 'The second tranche is repayable in semi-annual installments over 12 years assuming the balloon payment of the first tranche is refinanced in 2016. | ' | ' | ' | ' | ' | 'The $93 million secured loan facility (the "Carmen Facility") is repayable in quarterly installments over five years | ' | ' | 'The Seller Loan is non-amortizing, matures in five years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from IPO | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26,300,000 | ' | ' | ' | ' | 52,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred financing fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | 300,000 | ' | ' | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior secured loan facility maturity date description | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'May 2015 | ' | 'March 2016 and August 2016 | ' | ' | ' | ' | 'February 2016 | ' | ' | ' | ' | ' | 'January 2018 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of tranches | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Secured loan facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,000,000 | ' | ' | ' | 120,000,000 | ' | ' | ' | 27,300,000 | ' | 93,000,000 | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Written-off deferred financing fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of debt repaid with proceeds from IPO | ' | 142,873,000 | 28,083,000 | 17,166,000 | ' | ' | ' | ' | ' | ' | ' | ' | 18,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long term debt interest rate description | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR plus a fixed margin of 3.0% | 'LIBOR plus a fixed margin of 2.25% | ' | ' | ' | ' | ' | ' | 'LIBOR plus a margin ranging from 0.6% to 3.0% | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR plus a fixed margin of 4.5% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long term debt interest rate percentage | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | 0.60% | 3.00% | ' | ' | ' | 2.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.25% | 4.50% | 0.82% | 8.00% |
Minimum liquidity of Partnership | ' | ' | ' | ' | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of vessel acquired | ' | ' | ' | ' | ' | 8 | ' | ' | ' | ' | ' | ' | ' | 8 | ' | ' | ' | ' | ' | ' | ' | ' | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in minimum liquidity of partnership | ' | ' | ' | ' | ' | ' | 1,000,000 | 1,500,000 | ' | ' | ' | ' | ' | ' | 1,000,000 | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum book equity ratio for Partnership | 49.00% | ' | ' | ' | ' | 30.00% | ' | ' | ' | ' | ' | ' | ' | 30.00% | ' | ' | ' | ' | ' | ' | ' | ' | 30.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum EBITDA to interest ratio | ' | ' | ' | ' | ' | 2.5 | ' | ' | ' | ' | ' | ' | ' | 2.5 | ' | ' | ' | ' | ' | ' | ' | ' | 2.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Market value percentage of secured loan facility outstanding balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | 110.00% | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | 125.00% | 125.00% | ' | ' | ' | ' |
Long-term debt outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $50,000,000 | ' | $22,400,000 | ' | ' | ' | ' | ' | $20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of guarantee commission | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility percentage of commitment fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility calculated description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Revolving Credit facility calculated on the daily undrawn portion of the revolving credit facility (40% of 3.0%, which is 1.2% of the undrawn facility account) | ' | ' | ' | ' | ' | ' | ' | ' |
LongTerm_Debt_Schedule_of_Long
Long-Term Debt - Schedule of Long-Term Debt (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | $349,977 | $347,850 |
Less current installments | 29,269 | 28,833 |
Long-term debt, excluding current installment and seller's credit | 310,359 | 319,017 |
160 Million Loan Facility [Member] | Fortaleza Knutsen and Recife Knutsen [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | 132,425 | 144,100 |
19 Million Loan Facility [Member] | Fortaleza Knutsen and Recife Knutsen [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | ' | 18,350 |
120 Million Loan Facility [Member] | Bodil Knutsen [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | 67,615 | 106,600 |
85 Million Loan Facility [Member] | Windsor Knutsen [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | 52,400 | 56,400 |
27.3 Million Loan Facility [Member] | Windsor Knutsen [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | ' | 22,400 |
93 Million Loan Facility [Member] | Carmen Knutsen [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | 87,188 | ' |
Seller's Credit [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | $10,349 | ' |
LongTerm_Debt_Schedule_of_Long1
Long-Term Debt - Schedule of Long-Term Debt (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
160 Million Loan Facility [Member] | Fortaleza Knutsen and Recife Knutsen [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt instrument face amount | $160 |
19 Million Loan Facility [Member] | Fortaleza Knutsen and Recife Knutsen [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt instrument face amount | 19 |
120 Million Loan Facility [Member] | Bodil Knutsen [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt instrument face amount | 120 |
85 Million Loan Facility [Member] | Windsor Knutsen [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt instrument face amount | 85 |
27.3 Million Loan Facility [Member] | Windsor Knutsen [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt instrument face amount | 27.3 |
93 Million Loan Facility [Member] | Carmen Knutsen [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt instrument face amount | $93 |
LongTerm_Debt_Summary_of_Total
Long-Term Debt - Summary of Total Outstanding Debt Repayable (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Instruments [Abstract] | ' | ' |
2014 | $29,269 | ' |
2015 | 74,619 | ' |
2016 | 145,802 | ' |
2017 | 11,750 | ' |
2018 and thereafter | 88,537 | ' |
Total | $349,977 | $347,850 |
Income_Taxes_Schedule_of_Incom
Income Taxes - Schedule of Income (Loss) from Continuing Operations Before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Income (loss) before income taxes | $17,891 | $2,006 | ($17,578) |
Income_Taxes_Schedule_of_Compo
Income Taxes - Schedule of Components of Current and Deferred Income Tax Expense (Benefit) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Current tax expense | $686 | ' | ' |
Deferred tax expense (benefit) | 2,827 | 1,261 | -1,240 |
Income tax expense (benefit) | $2,827 | $1,261 | ($1,240) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2013 | Dec. 31, 2014 | |
Scenario, Forecast [Member] | |||||
Income Tax Rate Reconciliation [Line Items] | ' | ' | ' | ' | ' |
Income tax (expense) benefit from continuing operations | $2,827,000 | $1,261,000 | ($1,240,000) | ' | ' |
Income tax rate | 28.00% | ' | ' | ' | ' |
Valuation allowances | 7,759,000 | 11,922,000 | ' | ' | ' |
Entrance tax | 2,141,000 | ' | ' | 3,000,000 | ' |
Entrance tax, annual decline in gain | 20.00% | ' | ' | ' | ' |
Entrance tax payable | 2,700,000 | ' | ' | ' | ' |
Income tax rate, deferred tax liabilities | 27.00% | ' | ' | ' | ' |
Entrance tax payable, current | ' | ' | ' | ' | 600,000 |
Entrance tax payable, non current | 2,100,000 | ' | ' | ' | ' |
Estimated income tax payable | 700,000 | ' | ' | ' | ' |
Unrecognized tax benefits | 0 | 0 | ' | ' | ' |
Interest or penalties on tax return | $0 | $0 | ' | ' | ' |
Period for income tax returns | '10 years | ' | ' | ' | ' |
Income_Taxes_Summary_of_Tax_Ra
Income Taxes - Summary of Tax Rate Reconciliation (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Rate Reconciliation [Line Items] | ' | ' | ' |
Adjustments due to permanent differences | ' | $2,228 | $103 |
Translation differences | -168 | -605 | -15 |
Reduction in income tax benefit resulting from a change in valuation allowance | ' | 2,230 | 3,719 |
Income tax expense (benefit) | 2,827 | 1,261 | -1,240 |
Effective tax rate | 16.00% | 63.00% | 7.00% |
Norwegian Ordinary Tax Regime [Member] | ' | ' | ' |
Income Tax Rate Reconciliation [Line Items] | ' | ' | ' |
Income tax expense (benefit) | 111 | 562 | -4,922 |
Norwegian Tonnage Tax Regime [Member] | ' | ' | ' |
Income Tax Rate Reconciliation [Line Items] | ' | ' | ' |
Income tax expense (benefit) | 188 | ' | ' |
Adjustments for amounts not taxable under tonnage tax regime | ' | -3,154 | -125 |
Entrance tax into the Norwegian tonnage tax regime | $2,696 | ' | ' |
Income_Taxes_Summary_of_Tax_Ra1
Income Taxes - Summary of Tax Rate Reconciliation (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Rate Reconciliation [Line Items] | ' | ' | ' |
Total tax benefit | $2,827 | $1,261 | ($1,240) |
Carve-Out [Member] | ' | ' | ' |
Income Tax Rate Reconciliation [Line Items] | ' | ' | ' |
Total tax benefit | $57 | ' | ' |
Income_Taxes_Components_of_Def
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Deferred tax assets: | ' | ' | ' | ' |
Accrued guarantee commission | ' | ' | $83 | ' |
Prepaid charter and deferred revenue | ' | ' | 49 | ' |
Tax loss carry forwards | 7,718 | ' | 5,788 | ' |
Total deferred tax asset | 7,759 | ' | 28,503 | ' |
Less valuation allowance | -7,759 | ' | -11,922 | ' |
Net deferred tax asset | ' | ' | 16,581 | ' |
Deferred tax liabilities: | ' | ' | ' | ' |
Vessel and equipment | ' | ' | 17,999 | ' |
Long-term debt | ' | ' | 1,003 | ' |
Entrance tax | 2,141 | 3,000 | ' | ' |
Deferred debt issuance cost | ' | ' | 377 | ' |
Total deferred tax liabilities | 2,141 | ' | 19,388 | ' |
Net deferred tax liabilities | 2,141 | ' | 2,807 | 1,546 |
Norwegian Ordinary Tax Regime [Member] | ' | ' | ' | ' |
Deferred tax assets: | ' | ' | ' | ' |
Tax loss carry forwards | ' | ' | 13,963 | ' |
Contracts Liabilities [Member] | ' | ' | ' | ' |
Deferred tax assets: | ' | ' | ' | ' |
Contracts liabilities | ' | ' | 814 | ' |
Deferred tax liabilities: | ' | ' | ' | ' |
Contract Liabilities | ' | ' | 9 | ' |
Interest Rate Swap Contracts [Member] | ' | ' | ' | ' |
Deferred tax assets: | ' | ' | ' | ' |
Contracts liabilities | $41 | ' | $7,806 | ' |
Income_Taxes_Classification_of
Income Taxes - Classification of Net Deferred Tax Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Income Tax Disclosure [Abstract] | ' | ' | ' |
Current deferred tax asset | ' | $290 | ' |
Non-current deferred tax liabilities | -2,141 | -3,097 | ' |
Net deferred tax liabilities | ($2,141) | ($2,807) | ($1,546) |
Income_Taxes_Changes_in_Net_De
Income Taxes - Changes in Net Deferred Tax Liabilities (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Components Of Deferred Tax Asset And Liabilities [Line Items] | ' | ' | ' |
Net deferred tax liabilities at January 1 | $2,807 | $1,546 | ' |
Change in temporary differences | 111 | 2,257 | ' |
Change in valuation allowance | ' | 2,230 | ' |
Translation differences | -168 | -605 | -15 |
Elimination of deferred tax not transferred to the partnership | -2,750 | ' | ' |
Changes in temporary differences after the IPO date | 2,141 | ' | ' |
Net deferred tax liabilities at December 31 | 2,141 | 2,807 | 1,546 |
Norwegian Ordinary Tax Regime [Member] | ' | ' | ' |
Components Of Deferred Tax Asset And Liabilities [Line Items] | ' | ' | ' |
Tax loss carry forwards | ' | -935 | ' |
Norwegian Tonnage Tax Regime [Member] | ' | ' | ' |
Components Of Deferred Tax Asset And Liabilities [Line Items] | ' | ' | ' |
Tax loss carry forwards | ' | ($1,686) | ' |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) | 0 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||
Aug. 01, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 01, 2013 | |
USD ($) | Chief Executive Officer [Member] | Chief Executive and Financial Officer [Member] | Chief Executive and Financial Officer [Member] | Chief Executive and Financial Officer [Member] | Non-Management Directors [Member] | Non-Management Directors [Member] | TSSI [Member] | TSSI [Member] | NYK [Member] | NYK [Member] | KNOT Management AS [Member] | Management and Administrative Fee [Member] | Knutsen Shuttle Tankers 13 AS [Member] | ||
USD ($) | GBP (£) | USD ($) | Maximum [Member] | Director Fee [Member] | Committee Fee [Member] | Chief Executive Officer [Member] | USD ($) | ||||||||
Relocation Expenses [Member] | USD ($) | USD ($) | |||||||||||||
GBP (£) | |||||||||||||||
Schedule of Other Related Party Transactions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Partnership, ownership interest | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | 50.00% | ' | ' | ' | 100.00% |
Limited partnership (LP), ownership structure | ' | 'KNOT is owned 50% by TSSI and 50% by Nippon Yusen Kaisha ("NYK"). TSSI also controls 99% of KOAS, which subcontracts services from Knutsen OAS Management AS, which served as the vessel management companies for KNOT and its subsidiaries until June 30, 2012. As of July 1, 2012, KNOT Management AS, a 100% owned subsidiary of KNOT, assumed responsibility for the commercial and technical management of the Vessels. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage by parent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 100.00% | ' | ' |
Partnership agreement, description | ' | 'On March 25, 2013, the Partnership entered into an administrative services agreement with KNOT UK, pursuant to which KNOT UK provides administrative services, and KNOT UK is permitted to subcontract certain of the administrative services provided under the administrative services agreement to KOAS UK and KOAS. Certain of the services intended to be provided to the Partnership by KOAS have been performed by KNOT under the same terms as the services provided to the Partnership by KOAS. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Guarantor obligations, related party disclosure | ' | 'Pursuant to the Omnibus Agreement, KNOT agreed to guarantee the payments of the hire rate under the existing charters of each of the Bodil Knutsen and the Windsor Knutsen for a period of five years from the closing date of the IPO. The Partnership will not incur any guarantee commissions in the future relating to such guarantees. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Management and Directors, Compensation | ' | ' | $427,000 | £ 200,000 | ' | £ 30,000 | $40,000 | $5,000 | ' | ' | ' | ' | ' | ' | ' |
Equity interest in entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' |
Costs and expenses, related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 639,000 | ' |
Agreement date | ' | ' | ' | 28-Mar-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective date of agreement | ' | ' | ' | 28-Apr-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued salaries | ' | ' | ' | ' | 47,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument term | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate description | ' | 'The Seller Loan is non-amortizing, matures in five years or such other date as the parties agree and bears interest at LIBOR plus a fixed margin of 4.5%. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | 4.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Default interest rate | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan reduced as settlement for working capital | $100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related_Party_Transactions_Sch
Related Party Transactions - Schedule of Related Party Costs and Expenses (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule of Other Related Party Transactions [Line Items] | ' | ' | ' |
Time charter and bareboat revenues | $7,071,000 | $6,753,000 | $4,933,000 |
KNOT [Member] | Commercial Commission Fee [Member] | ' | ' | ' |
Schedule of Other Related Party Transactions [Line Items] | ' | ' | ' |
Time charter and bareboat revenues | 95,000 | 775,000 | 544,000 |
KNOT [Member] | Cancellation Fee [Member] | ' | ' | ' |
Schedule of Other Related Party Transactions [Line Items] | ' | ' | ' |
Time charter and bareboat revenues | 3,448,000 | ' | ' |
KNOT [Member] | Technical and Operational Management Fee [Member] | ' | ' | ' |
Schedule of Other Related Party Transactions [Line Items] | ' | ' | ' |
Operating expenses | 1,073,000 | 426,000 | ' |
KNOT [Member] | Administration Fee [Member] | ' | ' | ' |
Schedule of Other Related Party Transactions [Line Items] | ' | ' | ' |
General and administrative expenses | 510,000 | 359,000 | 52,000 |
KNOT [Member] | Accounting Service Fee [Member] | ' | ' | ' |
Schedule of Other Related Party Transactions [Line Items] | ' | ' | ' |
General and administrative expenses | 27,000 | 17,000 | 8,000 |
KNOT [Member] | IPO Administration Cost [Member] | ' | ' | ' |
Schedule of Other Related Party Transactions [Line Items] | ' | ' | ' |
General and administrative expenses | 454,000 | 877,000 | ' |
KNOT [Member] | Financing Fee [Member] | ' | ' | ' |
Schedule of Other Related Party Transactions [Line Items] | ' | ' | ' |
Finance income (expense) | ' | 3,000 | 368,000 |
KNOT [Member] | Interest Expenses [Member] | ' | ' | ' |
Schedule of Other Related Party Transactions [Line Items] | ' | ' | ' |
Interest expense charged from KNOT | 336,000 | 1,654,000 | 1,764,000 |
KNOT [Member] | Guarantee Commission [Member] | ' | ' | ' |
Schedule of Other Related Party Transactions [Line Items] | ' | ' | ' |
Finance income (expense) | 424,000 | 1,388,000 | 595,000 |
KOAS [Member] | Technical and Operational Management Fee [Member] | ' | ' | ' |
Schedule of Other Related Party Transactions [Line Items] | ' | ' | ' |
Operating expenses | ' | 436,000 | 742,000 |
KOAS [Member] | Administration Fee [Member] | ' | ' | ' |
Schedule of Other Related Party Transactions [Line Items] | ' | ' | ' |
General and administrative expenses | 392,000 | ' | ' |
KOAS UK [Member] | Administration Fee [Member] | ' | ' | ' |
Schedule of Other Related Party Transactions [Line Items] | ' | ' | ' |
General and administrative expenses | 112,000 | ' | ' |
TSSI [Member] | Interest Income [Member] | ' | ' | ' |
Schedule of Other Related Party Transactions [Line Items] | ' | ' | ' |
Interest income charged to TSSI | -10,000 | ' | ' |
TSSI [Member] | Guarantee Commission [Member] | ' | ' | ' |
Schedule of Other Related Party Transactions [Line Items] | ' | ' | ' |
Finance income (expense) | $210,000 | $818,000 | $860,000 |
Related_Party_Transactions_Sum
Related Party Transactions - Summary of Amounts Due from (to) Related Parties (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Balance Sheets: | ' | ' |
Amount due from related parties | $77 | ' |
Amount due to related parties | 163 | 12,423 |
KOAS [Member] | ' | ' |
Balance Sheets: | ' | ' |
Amount due from related parties | 27 | ' |
Amount due to related parties | 141 | 12,423 |
KNOT [Member] | ' | ' |
Balance Sheets: | ' | ' |
Amount due from related parties | 50 | ' |
Amount due to related parties | $22 | ' |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Commitments And Contingencies Disclosure [Abstract] | ' | ' |
Book value of assets pledged as security | $618,000,000 | $497,000,000 |
Probable liability and insurance claim | 0 | ' |
Insurance coverage deductible amount per vessel | 150,000 | ' |
Lost hire compensation insurance coverage, description | 'Under the loss of hire policies, the insurer will pay a compensation for the lost hire rate agreed in respect of each Vessel for each day, in excess of 14 deductible days, for the time that the Vessel is out of service as a result of damage, for a maximum of 180 days | ' |
Insurance coverage for pollution, maximum liability per vessel | $1,000,000,000 | ' |
Lost hire compensation insurance coverage, deductible days | '14 days | ' |
Lost hire compensation insurance coverage, maximum days | '180 days | ' |
Supplemental_Cash_Flows_Inform2
Supplemental Cash Flows Information - Supplemental Information Related to Combined Carve-Out Statements of Cash Flows (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Non-cash investing and financing activities: | ' | ' | ' |
Payable to owner and affiliates converted to equity | $27,051 | $25,664 | ' |
Supplemental cash flows information: | ' | ' | ' |
Interest paid | 10,219 | 13,612 | 8,926 |
Income taxes paid | ' | ' | ' |
Earnings_per_Unit_and_Cash_Dis2
Earnings per Unit and Cash Distributions - Schedule of Calculations of Basic and Diluted Earnings per Unit (Detail) (USD $) | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 9 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 14, 2014 | Feb. 28, 2014 | Dec. 31, 2013 | |||
Post IPO Net Income Attributable to the Members of KNOT Offshore Partners LP [Member] | Common Units [Member] | Common Units [Member] | Subordinated Units [Member] | Subordinated Units [Member] | General Partner Unit [Member] | General Partner Unit [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||||||
Earnings Per Share Basic And Diluted [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Less: Distribution paid | $20,779 | $21,954 | ' | ' | ' | ' | ' | ' | ' | $20,800 | ' | ' | |||
Net income (loss) | -2,176 | ' | 18,603 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Under (over) distributed earnings attributable to: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Under (over) distributed earnings to limited partners | ' | 14,764 | ' | -1,066 | ' | -1,066 | ' | ' | ' | ' | ' | ' | |||
Under (over) distributed earnings to general partners | ($44) | $301 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Weighted average units outstanding (basic and diluted) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Weighted average units outstanding, basic and diluted | ' | ' | ' | 8,568 | ' | 8,568 | ' | 350 | ' | ' | ' | ' | |||
Earnings per unit (basic and diluted): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Earnings per unit, basic and diluted | ' | ' | ' | $1.06 | $1.06 | [1] | $1.06 | $1.06 | [1] | $1.06 | $1.06 | [1] | ' | ' | ' |
Cash distributions declared and paid in the period per unit | $0.75 | $0.75 | ' | ' | ' | ' | ' | ' | ' | $0.44 | $0.44 | $0.44 | |||
[1] | Earning per unit information for the year ended December 31, 2013 is in respect of the period from the closing of the IPO (April 15, 2013) to December 31, 2013. |
Earnings_per_Unit_and_Cash_Dis3
Earnings per Unit and Cash Distributions - Schedule of Calculations of Basic and Diluted Earnings per Unit (Parenthetical) (Detail) (USD $) | 9 Months Ended | 12 Months Ended | 9 Months Ended |
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
IDR Holders [Member] | |||
Earnings Per Share Basic And Diluted [Line Items] | ' | ' | ' |
Cash distributions declared and paid in the period per unit | $0.75 | $0.75 | $0.02 |
Net income attributable to IDRs | ' | ' | $0.02 |
Earnings_per_Unit_and_Cash_Dis4
Earnings per Unit and Cash Distributions - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
First Target Distribution [Member] | Second Target Distribution [Member] | Third Target Distribution [Member] | Minimum Quarterly Distribution [Member] | Annual Distribution [Member] | Additional Available Cash From Operating Surplus [Member] | Additional Available Cash From Operating Surplus [Member] | Additional Available Cash From Operating Surplus [Member] | Additional Available Cash From Operating Surplus [Member] | Common Units [Member] | Common Units [Member] | Common Units [Member] | Subordinated Units [Member] | Subordinated Units [Member] | General Partner Unit [Member] | General Partner Unit [Member] | General Partner Unit [Member] | General Partner Unit [Member] | General Partner Unit [Member] | General Partner Unit [Member] | General Partner Unit [Member] | General Partner Unit [Member] | General Partner Unit [Member] | IDR Holders [Member] | IDR Holders [Member] | IDR Holders [Member] | IDR Holders [Member] | |||
First Target Distribution [Member] | Second Target Distribution [Member] | Third Target Distribution [Member] | Target Distribution Thereafter [Member] | First Target Distribution [Member] | Second Target Distribution [Member] | Third Target Distribution [Member] | First Target Distribution [Member] | Second Target Distribution [Member] | Third Target Distribution [Member] | Additional Available Cash From Operating Surplus [Member] | Additional Available Cash From Operating Surplus [Member] | Additional Available Cash From Operating Surplus [Member] | Additional Available Cash From Operating Surplus [Member] | Additional Available Cash From Operating Surplus [Member] | Additional Available Cash From Operating Surplus [Member] | Additional Available Cash From Operating Surplus [Member] | |||||||||||||
First Target Distribution [Member] | Second Target Distribution [Member] | Third Target Distribution [Member] | Target Distribution Thereafter [Member] | Second Target Distribution [Member] | Third Target Distribution [Member] | Target Distribution Thereafter [Member] | |||||||||||||||||||||||
Distribution Made to Limited Partner [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of limited partner interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49.00% | ' | ' | 49.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of common units outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,567,500 | ' | ' | 8,567,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of partnership's units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of interest held by general partner | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of general partner units outstanding | 349,694 | 349,694 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distribution, per unit | ' | ' | ' | ' | ' | $0.38 | $1.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of operating surplus distributed to unitholders | ' | ' | ' | ' | ' | ' | ' | 98.00% | 85.00% | 75.00% | 50.00% | ' | 98.00% | 98.00% | ' | 98.00% | ' | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | ' | 13.00% | 23.00% | 48.00% |
Distributions to each unitholder, Per unit | $0.75 | $0.75 | $0.43 | $0.47 | $0.56 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.02 | ' | ' | ' |
Acquisition_of_the_Carmen_Knut2
Acquisition of the Carmen Knutsen - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended | 1 Months Ended | 5 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 31, 2013 | Dec. 31, 2013 | Aug. 01, 2013 | |
Carmen Knutsen [Member] | Carmen Knutsen [Member] | Carmen Knutsen [Member] | |||||
Loans At Acquisition Date [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, fair value of vessel and equipment acquired | ' | ' | ' | ' | $145,000,000 | ' | $145,000,000 |
Business acquisition, bank debt assumed | ' | ' | ' | ' | 89,100,000 | ' | ' |
Business acquisition, other purchase price adjustments | ' | ' | ' | ' | 100,000 | ' | ' |
Revenues | ' | 73,401,000 | 65,653,000 | 43,909,000 | ' | 8,400,000 | ' |
Net income | ($2,176,000) | ' | ' | ' | ' | $2,500,000 | ' |
Acquisition_of_the_Carmen_Knut3
Acquisition of the Carmen Knutsen - Schedule of Fair Values Allocated to Each Class of Identifiable Assets in Carmen Knutsen Acquisition and Difference between Purchase Price and Net Assets Acquired (Detail) (USD $) | 8 Months Ended | 7 Months Ended | |||
In Thousands, unless otherwise specified | Aug. 01, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 01, 2013 | Aug. 31, 2013 |
Carmen Knutsen [Member] | Carmen Knutsen [Member] | ||||
Loans At Acquisition Date [Line Items] | ' | ' | ' | ' | ' |
Purchase price | $55,772 | ' | ' | $55,772 | ' |
Less: Fair value of net assets acquired: | ' | ' | ' | ' | ' |
Vessel and equipment | ' | ' | ' | 145,000 | 145,000 |
Cash | ' | ' | ' | 89 | ' |
Inventories | ' | ' | ' | 234 | ' |
Other current assets | ' | ' | ' | 108 | ' |
Long-term debt | ' | ' | ' | -89,125 | ' |
Trade accounts payable | ' | ' | ' | -91 | ' |
Accrued expenses | ' | ' | ' | -387 | ' |
Amount due to related parties | ' | ' | ' | -56 | ' |
Subtotal | ' | ' | ' | 55,772 | ' |
Difference between the purchase price and fair value of net assets acquired | ' | $5,750 | $5,750 | ' | ' |
Acquisition_of_the_Carmen_Knut4
Acquisition of the Carmen Knutsen - Schedule of Fair Values Allocated to Each Class of Identifiable Assets in Carmen Knutsen Acquisition and Difference between Purchase Price and Net Assets Acquired (Parenthetical) (Detail) (USD $) | 8 Months Ended |
In Thousands, unless otherwise specified | Aug. 01, 2013 |
Loans At Acquisition Date [Line Items] | ' |
Cash consideration paid to KNOT | $45,423 |
Seller's credit | 10,349 |
Purchase price | 55,772 |
Dry Docking [Member] | ' |
Loans At Acquisition Date [Line Items] | ' |
allocation to dry docking | $1,769 |
Acquisition_of_the_Carmen_Knut5
Acquisition of the Carmen Knutsen - Schedule of Summarized Consolidated Pro Forma Financial Information (Detail) (Carmen Knutsen [Member], USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Carmen Knutsen [Member] | ' |
Loans At Acquisition Date [Line Items] | ' |
Revenue | $84,037 |
Net income | $16,695 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 9 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 14, 2014 | Feb. 28, 2014 | Dec. 31, 2013 | Feb. 28, 2014 | Feb. 28, 2014 | |
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||||
Interest Rate Swap Contracts [Member] | Interest Rate Swap Contracts [Member] | |||||||
Interest_Rate_Swaps | Three-Month LIBOR [Member] | |||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Cash distribution paid, date paid | 14-Feb-14 | ' | ' | ' | ' | ' | ' | ' |
Distribution Made To Limited Partner Distributions Paid Per Unit Annualized Basis | ' | ' | ' | $1.74 | ' | ' | ' | ' |
Cash distribution paid, aggregate | ' | $20,779,000 | $21,954,000 | $20,800,000 | ' | ' | ' | ' |
Cash distribution paid, per unit | ' | $0.75 | $0.75 | $0.44 | $0.44 | $0.44 | ' | ' |
Number of interest rate swap agreements | ' | ' | ' | ' | ' | ' | 2 | ' |
Notional amount | ' | ' | ' | ' | ' | ' | $50,000,000 | ' |
Fixed interest rate | ' | ' | ' | ' | ' | ' | ' | 1.45% |