Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document And Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Trading Symbol | TGP |
Entity Registrant Name | Teekay LNG Partners L.P. |
Entity Central Index Key | 0001308106 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 79,360,719 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Voyage revenues (notes 6 and 12a) | $ 510,762 | $ 432,676 | $ 396,444 |
Voyage expenses | (28,237) | (8,202) | (1,656) |
Vessel operating expenses (note 12a) | (117,658) | (101,539) | (87,890) |
Time-charter hire expense (note 12a) | (7,670) | 0 | 0 |
Depreciation and amortization | (124,378) | (105,545) | (95,542) |
General and administrative expenses (notes 12a and 17) | (28,512) | (18,141) | (19,199) |
Write-down of goodwill and write-down and loss on sales of vessels (notes 8 and 19) | (54,653) | (50,600) | (38,976) |
Restructuring charges (note 18) | (1,845) | 0 | 0 |
Income from vessel operations | 147,809 | 148,649 | 153,181 |
Equity income (notes 7 and 14d) | 53,546 | 9,789 | 62,307 |
Interest expense | (128,303) | (80,937) | (58,844) |
Interest income | 3,760 | 2,915 | 2,583 |
Realized and unrealized gain (loss) on non-designated derivative instruments (note 13) | 3,278 | (5,309) | (7,161) |
Foreign currency exchange gain (loss) (notes 10 and 13) | 1,371 | (26,933) | 5,335 |
Other (expense) income (note 14b) | (51,373) | 1,561 | 1,537 |
Net income before income tax expense | 30,088 | 49,735 | 158,938 |
Income tax expense (notes 11 and 14c) | (3,213) | (824) | (973) |
Net income | 26,875 | 48,911 | 157,965 |
Non-controlling interest in net income | (1,494) | 14,946 | 17,514 |
Preferred unitholders' interest in net income | 25,701 | 13,979 | 2,719 |
General Partner's interest in net income | 53 | 400 | 2,755 |
Limited partners’ interest in net income | $ 2,615 | $ 19,586 | $ 134,977 |
Limited partners’ interest in net income per common unit (note 16): | |||
Basic (USD per unit) | $ 0.03 | $ 0.25 | $ 1.70 |
Diluted (USD per unit) | $ 0.03 | $ 0.25 | $ 1.69 |
Weighted-average number of common units outstanding (note 16): | |||
Basic (in units) | 79,672,435 | 79,617,778 | 79,568,352 |
Diluted (in units) | 79,842,328 | 79,791,041 | 79,671,858 |
Cash distributions declared per common unit (USD per unit) | $ 0.56 | $ 0.56 | $ 0.56 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net income | $ 26,875 | $ 48,911 | $ 157,965 |
Other comprehensive (loss) income: | |||
Unrealized (loss) gain on qualifying cash flow hedging instruments, net of tax (note 13) | (893) | 1,140 | (486) |
Amounts reclassified from accumulated other comprehensive income, net of tax | |||
Other comprehensive (loss) income | (1,124) | 4,032 | 2,803 |
Comprehensive income | 25,751 | 52,943 | 160,768 |
Non-controlling interest in comprehensive (loss) income | (856) | 15,074 | 17,691 |
Preferred unitholders' interest in comprehensive income | 25,701 | 13,979 | 2,719 |
General and limited partners' interest in comprehensive income | 906 | 23,890 | 140,358 |
To equity income | |||
Amounts reclassified from accumulated other comprehensive income, net of tax | |||
Realized (gain) loss on qualifying cash flow hedging instruments | (383) | 2,465 | 3,289 |
To interest expense | |||
Amounts reclassified from accumulated other comprehensive income, net of tax | |||
Realized (gain) loss on qualifying cash flow hedging instruments | $ 152 | $ 427 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current | ||
Cash and cash equivalents | $ 149,014 | $ 244,241 |
Restricted cash – current (note 15a) | 38,329 | 22,326 |
Accounts receivable, including non-trade of $6,461 (2017 – $13,203) (note 7a iii) | 20,795 | 24,054 |
Prepaid expenses | 8,076 | 6,539 |
Vessels held for sale (note 19c and 19d) | 0 | 33,671 |
Current portion of derivative assets (note 13) | 835 | 1,078 |
Current portion of net investments in direct financing leases (note 6) | 12,635 | 9,884 |
Current portion of advances to equity-accounted joint ventures (note 7) | 79,108 | 0 |
Advances to affiliates (notes 12c and 13) | 8,229 | 7,300 |
Other current assets (note 2) | 2,306 | 0 |
Total current assets | 319,327 | 349,093 |
Restricted cash – long-term (note 15a) | 35,521 | 72,868 |
Vessels and equipment | ||
At cost, less accumulated depreciation of $665,206 (2017 – $681,991) | 1,657,338 | 1,416,381 |
Vessels related to capital leases, at cost, less accumulated depreciation of $66,878 (2017 – $25,883) (note 5a) | 1,585,243 | 1,044,838 |
Advances on newbuilding contracts (notes 12b and 14a) | 86,942 | 444,493 |
Total vessels and equipment | 3,329,523 | 2,905,712 |
Investment in and advances to equity-accounted joint ventures (note 7) | 1,037,025 | 1,094,596 |
Net investments in direct financing leases (note 6) | 562,528 | 486,106 |
Other assets (notes 6 and 11) | 11,432 | 8,043 |
Derivative assets (note 13) | 2,362 | 6,172 |
Intangible assets – net (note 8) | 52,222 | 61,078 |
Goodwill (note 8) | 34,841 | 35,631 |
Total assets | 5,384,781 | 5,019,299 |
Current | ||
Accounts payable | 3,830 | 3,509 |
Accrued liabilities (notes 9 and 13) | 74,753 | 45,757 |
Unearned revenue (notes 5c and 6) | 30,108 | 25,873 |
Current portion of long-term debt (note 10) | 135,901 | 552,404 |
Current obligations related to capital leases (note 5a) | 81,219 | 106,946 |
In-process contracts (note 7a iii) | 0 | 7,946 |
Current portion of derivative liabilities (note 13) | 11,604 | 79,139 |
Advances from affiliates (note 12c) | 14,731 | 12,140 |
Total current liabilities | 352,146 | 833,714 |
Long-term debt (note 10) | 1,833,875 | 1,245,588 |
Long-term obligations related to capital leases (note 5a) | 1,217,337 | 904,603 |
Other long-term liabilities (notes 5c and 7a) | 43,788 | 58,174 |
Derivative liabilities (note 13) | 55,038 | 45,797 |
Total liabilities | 3,502,184 | 3,087,876 |
Commitments and contingencies (notes 5, 7, 10, 13 and 14) | ||
Equity | ||
Limited Partners - common units (79.4 million units and 79.6 million units issued and outstanding at December 31, 2018 and 2017, respectively) (note 16) | 1,496,107 | 1,539,248 |
Limited Partners - preferred units (11.8 million units issued and outstanding at December 31, 2018 and 2017) (note 16) | 285,159 | 285,159 |
General Partner | 49,271 | 50,152 |
Accumulated other comprehensive income | 2,717 | 4,479 |
Partners' equity | 1,833,254 | 1,879,038 |
Non-controlling interest | 49,343 | 52,385 |
Total equity | 1,882,597 | 1,931,423 |
Total liabilities and total equity | $ 5,384,781 | $ 5,019,299 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands, shares in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Non-trade accounts receivable | $ 6,461 | $ 13,203 |
Accumulated depreciation on vessel and equipment | 665,206 | 681,991 |
Accumulated depreciation on vessels under capital leases | $ 66,878 | $ 25,883 |
Limited Partners - common units issued | 79.4 | 79.6 |
Limited Partners - common units outstanding | 79.4 | 79.6 |
Limited Partners - preferred units issued | 11.8 | 11.8 |
Limited Partners - preferred units outstanding | 11.8 | 11.8 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
OPERATING ACTIVITIES | |||
Net income | $ 26,875 | $ 48,911 | $ 157,965 |
Non-cash and non-operating items: | |||
Unrealized gain on non-designated derivative instruments (note 13) | (30,133) | (13,448) | (19,433) |
Depreciation and amortization | 124,378 | 105,545 | 95,542 |
Write-down of goodwill and write-down and loss on sales of vessels | 54,653 | 50,600 | 38,976 |
Unrealized foreign currency exchange (gain) loss including the effect of the termination of cross currency swaps (note 13) | (7,525) | 23,153 | (15,345) |
Equity income, net of dividends received of $14,421 (2017 – $42,692 and 2016 – $31,113) | (39,125) | 32,903 | (31,194) |
Ineffective portion of qualifying hedge-accounted interest rate swaps included in interest expense | (740) | 740 | 0 |
Other non-cash items | (1,035) | (5,616) | (9,602) |
Change in non-cash operating assets and liabilities (note 15b) | 19,218 | (2,396) | (9,861) |
Expenditures for dry docking | (15,368) | (21,642) | (12,686) |
Net operating cash flow | 131,198 | 218,750 | 194,362 |
FINANCING ACTIVITIES | |||
Proceeds from issuance of long-term debt | 1,135,304 | 362,527 | 573,514 |
Scheduled repayments of long-term debt and settlement of related swaps | (506,437) | (194,237) | (316,450) |
Prepayments of long-term debt and settlement of related swaps | (465,122) | (236,474) | (481,133) |
Financing issuance costs | (11,932) | (8,361) | (3,462) |
Proceeds from financing related to sales and leaseback of vessels | 370,050 | 656,935 | 355,306 |
Scheduled repayments of obligations related to capital leases | (59,722) | (42,000) | (21,594) |
Proceeds from issuance of preferred units net of offering costs (note 16) | 0 | 164,411 | 120,707 |
Repurchase of common units (note 16) | (3,786) | 0 | 0 |
Cash distributions paid | (70,345) | (56,650) | (45,467) |
Dividends paid to non-controlling interest | (2,925) | (1,595) | (3,402) |
Other | 0 | (605) | 0 |
Net financing cash flow | 385,085 | 643,951 | 178,019 |
INVESTING ACTIVITIES | |||
Expenditures for vessels and equipment | (686,148) | (708,608) | (345,790) |
Capital contributions and advances to equity-accounted joint ventures | (40,544) | (183,874) | (120,879) |
Return of capital and repayment of advances from equity-accounted joint ventures | 0 | 92,320 | 5,500 |
Proceeds from sale of equity-accounted joint venture | 54,438 | 0 | 0 |
Receipts from direct financing leases | 10,882 | 13,143 | 23,650 |
Proceeds from sales of vessels (note 19a) | 28,518 | 20,580 | 94,311 |
Net investing cash flow | (632,854) | (766,439) | (343,208) |
(Decrease) increase in cash, cash equivalents and restricted cash | (116,571) | 96,262 | 29,173 |
Cash, cash equivalents and restricted cash, beginning of the year | 339,435 | 243,173 | 214,000 |
Cash, cash equivalents and restricted cash, end of the year | $ 222,864 | $ 339,435 | $ 243,173 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Cash Flows [Abstract] | |||
Dividends received | $ 14,421 | $ 42,692 | $ 31,113 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Total Equity - USD ($) shares in Thousands, $ in Thousands | Total | General Partner | Common UnitsLimited Partners | Preferred UnitsLimited Partners | Accumulated Other Comprehensive Income (Loss) | Non- controlling Interest |
Beginning balance, units at Dec. 31, 2015 | 79,551 | |||||
Beginning balance at Dec. 31, 2015 | $ 1,543,679 | $ 48,786 | $ 1,472,327 | $ (2,051) | $ 24,617 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 157,965 | 2,755 | 134,977 | $ 2,719 | 17,514 | |
Other comprehensive (loss) income | 2,803 | 2,626 | 177 | |||
Distributions declared | (45,467) | (910) | $ (44,557) | |||
Dividends paid to non-controlling interest | (3,402) | (3,402) | ||||
Equity based compensation, net of withholding tax, units | 21 | |||||
Equity based compensation, net of withholding tax | 1,127 | 22 | $ 1,105 | |||
Proceeds from equity offerings (note 16), units | 5,000 | |||||
Proceeds from equity offerings (note 16) | 120,707 | $ 120,707 | ||||
Ending balance, units at Dec. 31, 2016 | 79,572 | 5,000 | ||||
Ending balance at Dec. 31, 2016 | 1,777,412 | 50,653 | $ 1,563,852 | $ 123,426 | 575 | 38,906 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 48,911 | 400 | 19,586 | 13,979 | 14,946 | |
Other comprehensive (loss) income | 4,032 | 3,904 | 128 | |||
Distributions declared | (62,150) | (909) | $ (44,584) | $ (16,657) | ||
Dividends paid to non-controlling interest | (1,595) | (1,595) | ||||
Equity based compensation, net of withholding tax, units | 55 | |||||
Equity based compensation, net of withholding tax | 402 | 8 | $ 394 | |||
Proceeds from equity offerings (note 16), units | 6,800 | |||||
Proceeds from equity offerings (note 16) | 164,411 | $ 164,411 | ||||
Ending balance, units at Dec. 31, 2017 | 79,627 | 11,800 | ||||
Ending balance at Dec. 31, 2017 | 1,931,423 | 50,152 | $ 1,539,248 | $ 285,159 | 4,479 | 52,385 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 26,875 | 53 | 2,615 | 25,701 | (1,494) | |
Other comprehensive (loss) income | (1,124) | (1,762) | 638 | |||
Distributions declared | (71,229) | (911) | $ (44,617) | $ (25,701) | ||
Dividends paid to non-controlling interest | (2,925) | (2,925) | ||||
Equity based compensation, net of withholding tax, units | 61 | |||||
Equity based compensation, net of withholding tax | 624 | 12 | $ 612 | |||
Repurchase of common units (note 16), units | (327) | |||||
Repurchase of common units (note 16) | (3,786) | (76) | $ (3,710) | |||
Ending balance, units at Dec. 31, 2018 | 79,361 | 11,800 | ||||
Ending balance at Dec. 31, 2018 | $ 1,882,597 | $ 49,271 | $ 1,496,107 | $ 285,159 | $ 2,717 | $ 49,343 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Total Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Partners' Capital [Abstract] | |||
Equity based compensation, withholding tax | $ 0.7 | $ 0.6 | $ 0.2 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of presentation These consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (or GAAP ). They include the accounts of Teekay LNG Partners L.P., which is a limited partnership organized under the laws of the Republic of The Marshall Islands, its wholly-owned or controlled subsidiaries and any variable interest entities (or VIEs ) of which it is the primary beneficiary (collectively, the Partnership ) . The preparation of these consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. Significant intercompany balances and transactions have been eliminated upon consolidation. In addition, certain comparative figures have been reclassified to conform to the presentation adopted in the current period relating to a change in the Partnership's reportable segments (see Note 4) and to reclassifications of certain related party transactions between vessel operating expenses and general and administrative expenses in the Partnership's consolidated statements of income that resulted in a decrease in vessel operating expenses and an offsetting increase in general and administrative expenses of $1.6 million and $0.7 million for the years ended December 31, 2017 and December 31, 2016, respectively. Foreign currency The consolidated financial statements are stated in U.S. Dollars and the functional currency of the Partnership is the U.S. Dollar. Transactions involving other currencies during the year are converted into U.S. Dollars using the exchange rates in effect at the time of the transactions. At the balance sheet date, 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 in foreign currency exchange gain (loss) in the accompanying consolidated statements of income. Revenues Time charters Revenues from time-charters accounted for as operating leases are recognized by the Partnership on a straight-line basis daily over the term of the charter. Upon commencement of a time charter accounted for as a direct financing lease, the carrying value of the vessel is derecognized and the net investment in the lease is recognized. The lease element of time-charter hire receipts is allocated to the lease receivable and voyage revenues over the term of the lease using the effective interest rate method. The non-lease element of time-charter hire receipts is recognized by the Partnership on a straight-line basis daily over the term of the charter. For time-charter contracts where the charterer is responsible for the operation of the vessel, the Partnership offsets any vessel operating expenses it incurs against reimbursements from the charterer. The Partnership does not recognize revenues during days that the vessel is off-hire or if collectability of receipts of charter payments from charterers is not reasonably assured. When the time charter contains a profit-sharing agreement, the Partnership recognizes the profit-sharing or contingent revenues when the contingency is resolved. Voyage charters Revenues from voyage charters are recognized on a proportionate performance method. The Partnership uses a discharge-to-discharge basis in determining proportionate performance for all spot voyages that contain a lease and a load-to-discharge basis in determining proportionate performance for all spot voyages that do not contain a lease. The Partnership does not begin recognizing revenue until a charter has been agreed to by the customer, even if the vessel has discharged its cargo and is sailing to the anticipated load port on its next voyage. The consolidated balance sheets reflect, in other current assets, the accrued portion of revenues for those voyages that commence prior to balance sheet date and complete after the balance sheet date. Bareboat charters Revenues from bareboat charters accounted for as operating leases are recognized by the Partnership on a straight-line basis daily over the term of the charter. Upon commencement of a bareboat charter accounted for as a direct financing lease, the carrying value of the vessel is derecognized and the net investment in the lease is recognized. Bareboat hire receipts are allocated to the lease receivable and voyage revenues over the term of the lease using the effective interest rate method. The Partnership does not recognize revenues if collectability of charter hire payments is not reasonably assured. Operating expenses Voyage expenses include all expenses unique to a particular voyage, including fuel expenses, port fees, cargo loading and unloading expenses, canal tolls, agency fees and commissions. The Partnership, as shipowner, pays voyage expenses under voyage charters. The Partnership’s customers pay voyage expenses under time charters, except when the vessel is off-hire during the term of a time-charter, in which case the Partnership pays voyage expenses. Vessel operating expenses include crewing, ship management services, repairs and maintenance, insurance, stores, lube oils and communication expenses. Voyage expenses and vessel operating expenses are recognized when incurred except when the Partnership incurs pre-operational costs related to the repositioning of a vessel (i) that relates directly to a specific customer contract, (ii) that generates or enhances resources of the Partnership that will be used in satisfying performance obligations in the future; and (iii) where such costs are expected to be recovered via the customer contract. In this case, such costs are deferred and amortized over the duration of the customer contract. The Partnership recognizes the expense from vessels accounted for as operating leases, which is included in time-charter hire expense, on a straight-line basis over the firm period of the charters. Cash and cash equivalents The Partnership classifies all highly liquid investments with an original maturity date of three months or less as cash and cash equivalents. Restricted cash The Partnership maintains restricted cash deposits relating to certain term loans, collateral for derivatives, project tenders, leasing arrangements, amounts received from charterers to be used only for dry-docking expenditures and emergency repairs and other obligations. Accounts receivable and allowance for doubtful accounts Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Partnership’s best estimate of the amount of probable credit losses in existing accounts receivable. The Partnership determines the allowance based on historical write-off experience and customer economic data. The Partnership reviews the allowance for doubtful accounts regularly and past due balances are reviewed for collectability. Account balances are charged against the allowance when the Partnership believes that the receivable will not be recovered. The consolidated balance sheets reflect amounts where the right to consideration is conditioned upon the passage of time as "accounts receivable," and reflect accrued revenue where the right to consideration is conditioned upon something other than the passage of time as "other current assets." Other loan receivables The Partnership’s advances to equity-accounted joint ventures and any other investments in loan receivables are recorded at cost. The Partnership analyzes its loans for collectability during each reporting period. A loan loss provision is recognized, based on current information and events, if it is probable that the Partnership will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors the Partnership considers in determining if a loan loss provision is required include, among other things, an assessment of the financial condition of the debtor , payment history of the debtor, general economic conditions, the credit rating of the debtor (when available), any information provided by the debtor regarding its ability to repay the loan, and the fair value of the underlying collateral. When a loan loss provision is recognized, the Partnership measures the amount of the loss provision based on the present value of expected future cash flows discounted at the loan’s effective interest rate and recognizes the resulting loss in the consolidated statements of income. The carrying value of the loan is adjusted each subsequent period to reflect any changes in the present value of the expected future cash flows, which may result in increases or decreases to the loan loss provision. The following table contains a summary of the carrying value of the Partnership’s financing receivables by type of borrower, the method by which the Partnership monitors the credit quality of its financing receivables on a quarterly basis and the grade as at December 31, 2018 . Class of Financing Receivable Credit Quality Indicator Grade December 31, December 31, Direct financing leases Payment activity Performing 575,163 495,990 Other receivables: Long-term receivable and accrued revenue included in accounts receivable and other assets Payment activity Performing 5,694 5,476 Advances to equity-accounted joint ventures (note 7) Other internal metrics Performing 131,386 131,685 712,243 633,151 Vessels and equipment All pre-delivery costs incurred during the construction of newbuildings, including interest and supervision and technical costs, are capitalized. The acquisition cost and all costs incurred to restore used vessels purchased by the Partnership to the standards required to properly service the Partnership’s customers are capitalized. Interest costs capitalized to vessels and equipment for the years ended December 31, 2018 , 2017 and 2016 aggregated $14.8 million , $13.9 million and $9.9 million , respectively. Vessel capital modifications include the addition of new equipment or certain modifications to the vessel which are aimed at improving or increasing the operational efficiency and functionality of the asset. This type of expenditure is capitalized and depreciated over the estimated useful life of the modification. Expenditures covering recurring routine repairs and maintenance are expensed as incurred. Depreciation is calculated on a straight-line basis over a vessel’s estimated useful life, less an estimated residual value. Depreciation is calculated using an estimated useful life of 25 years for conventional tankers, 30 years for liquefied petroleum gas (or LPG ) carriers and 35 years for liquefied natural gas (or LNG ) carriers, from the date the vessel is delivered from the shipyard, or a shorter period if regulations prevent the Partnership from operating the vessels for 25 years , 30 years , or 35 years , respectively. Depreciation of vessels and equipment, excluding amortization of dry-docking expenditures, for the years ended December 31, 2018 , 2017 and 2016 aggregated $115.5 million , $96.7 million and $86.6 million , respectively. Depreciation and amortization includes depreciation on all owned vessels and amortization of vessels accounted for as capital leases. Generally, the Partnership dry docks each of its vessels every two and a half to five years. The Partnership capitalizes certain costs incurred during dry docking and amortizes those costs on a straight-line basis from the completion of a dry docking to the estimated completion of the next dry docking. The Partnership includes in capitalized dry docking those costs incurred as part of the dry docking to meet classification and regulatory requirements. The Partnership expenses costs related to routine repairs and maintenance performed during dry docking. The following table summarizes the change in the Partnership’s capitalized dry docking costs, from January 1, 2016 to December 31, 2018 : Year Ended Year Ended Year Ended Balance at January 1, 39,144 33,538 33,916 Cost incurred for dry docking 15,259 22,283 13,944 Write-downs and sales of vessels (2,448 ) (2,782 ) (2,886 ) Dry-dock amortization (11,590 ) (13,895 ) (11,436 ) Balance at December 31, 40,365 39,144 33,538 Vessels and equipment that are intended to be held and used in the Partnership's business are assessed for impairment when events or circumstances indicate the carrying amount of the asset may not be recoverable. If the asset’s net carrying value exceeds the net undiscounted cash flows expected to be generated over its remaining useful life, the carrying amount of the asset is reduced to its estimated fair value. The estimated fair value for the Partnership’s impaired vessels is determined using discounted cash flows or appraised values. In cases where an active second-hand sale and purchase market does not exist, the Partnership uses a discounted cash flow approach to estimate the fair value of an impaired vessel. In cases where an active second-hand sale and purchase market exists, an appraised value is used to estimate the fair value of an impaired vessel. An appraised value is generally the amount the Partnership would expect to receive if it were to sell the vessel. Such appraisal is normally completed by the Partnership and is based on second-hand sale and purchase data. Vessels and equipment that are "held for sale" are measured at the lower of their carrying amount or fair value less costs to sell and are not depreciated while classified as held for sale. Interest and other expenses and related liabilities attributable to vessels and equipment classified as held for sale continue to be recognized as incurred. Gains on vessels sold and leased back under capital leases are deferred and amortized over the remaining term of the capital lease. Losses on vessels sold and leased back under capital leases are recognized immediately when the fair value of the vessel at the time of a sale-leaseback transaction is less than its book value. In such case, the Partnership would recognize a loss in the amount by which book value exceeds fair value. Equity-accounted investments The Partnership’s investments in certain joint ventures, in which the Partnership has the ability to exercise significant influence over the operating and financial policies of the entity, are accounted for using the equity method of accounting. Under the equity method of accounting, investments are stated at initial cost and are adjusted for subsequent additional investments and the Partnership’s proportionate share of earnings or losses and distributions. The Partnership evaluates its equity-accounted investments for impairment when events or circumstances indicate that the carrying value of such investments may have experienced an other-than-temporary decline in value below its carrying value. If an equity-accounted investment is impaired and if the estimated fair value is less than its carrying value, the carrying value is written down to its estimated fair value and the resulting impairment is recorded in the Partnership’s consolidated statements of income. The Partnership’s maximum exposure to loss is the amount it has invested in its equity-accounted for investments. Debt issuance costs Debt issuance costs related to a recognized debt liability, including fees, commissions and legal expenses, are deferred and presented as a direct reduction from the carrying amount of that debt liability and amortized on an effective interest rate method over the term of the relevant loan. Debt issuance costs that are not attributable to a specific debt liability or where the debt issuance costs exceed the carrying value of the related debt liability (primarily undrawn revolving credit facilities) are deferred and presented as other non-current assets in the Partnership's consolidated balance sheets. Amortization of debt issuance costs is included in interest expense in the Partnership’s consolidated statements of income. Fees paid to substantially amend a non-revolving credit facility are associated with the extinguishment of the old debt instrument and included in determining the debt extinguishment gain or loss to be recognized. In addition, any unamortized debt issuance costs are written off. If the amendment is considered not to be a substantial amendment, then the fees would be associated with the replacement or modified debt instrument and, along with any existing unamortized premium, discount and unamortized debt issuance costs, would be amortized as an adjustment of interest expense over the remaining term of the replacement or modified debt instrument using the effective interest method. Other related costs incurred with third parties directly related to the modification, other than the loan amendment fee, are expensed as incurred. Fees paid to amend a revolving credit facility are deferred and amortized over the term of the modified revolving credit facility. If the borrowing capacity of the revolving credit facility increases as a result of the amendment, unamortized debt issuance costs of the original revolving credit facility are amortized over the remaining term of the modified revolving credit facility. If the borrowing capacity of the revolving credit facility decreases as a result of the amendment, a proportionate amount, based on the reduction in borrowing capacity, of the unamortized debt issuance costs of the original revolving credit facility are written off and the remaining amount is amortized over the remaining term of the modified revolving credit facility. Goodwill and intangible assets Goodwill is not amortized but is reviewed for impairment at the reporting unit level on an annual basis or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. A reporting unit is a component of the Partnership that constitutes a business for which discrete financial information is available and regularly reviewed by management. When goodwill is reviewed for impairment, the Partnership may elect to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. Alternatively, the Partnership may bypass this step and use a fair value approach to identify potential goodwill impairment and, when necessary, measure the amount of impairment. The Partnership uses a discounted cash flow model to determine the fair value of reporting units, unless there is a readily determinable fair market value. The Partnership adopted ASU 2017-04, Simplifying the Test for Goodwill Impairment, effective October 1, 2018. Consequently, goodwill impairment is measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill. Customer-related intangible assets are amortized over the expected life of a customer contract. The amount amortized each year is weighted based on the projected revenue to be earned under the contracts. Intangible assets are assessed for impairment when and if impairment indicators exist. An impairment loss is recognized if the carrying amount of an intangible asset is not recoverable and its carrying amount exceeds its fair value. Derivative instruments All derivative instruments are initially recorded at fair value as either assets or liabilities in the accompanying consolidated balance sheets and subsequently remeasured to fair value each period end, regardless of the purpose or intent for holding the derivative. The method of recognizing the resulting gain or loss is dependent on whether the derivative contract is designed to hedge a specific risk and whether the contract qualifies for hedge accounting. When a derivative is designated as a cash flow hedge, the Partnership formally documents the relationship between the derivative and the hedged item. This documentation includes the strategy and risk management objective for undertaking the hedge and the method that will be used to assess the effectiveness of the hedge. Any hedge ineffectiveness is recognized immediately in earnings, as are any gains and losses on the derivative that are excluded from the assessment of hedge effectiveness. The Partnership does not apply hedge accounting if it is determined that the hedge was not effective or will no longer be effective, the derivative was sold or exercised, or the hedged item was sold, repaid or no longer probable of occurring. For derivative financial instruments designated and qualifying as cash flow hedges, changes in the fair value of the effective portion of the derivative financial instruments are initially recorded as a component of accumulated other comprehensive income in total equity. In the periods when the hedged items affect earnings, the associated fair value changes on the hedging derivatives are transferred from total equity to the corresponding earnings line item (e.g. interest expense) in the Partnership’s consolidated statements of income. The ineffective portion of the change in fair value of the derivative financial instruments is immediately recognized in the corresponding earnings line item in the Partnership’s consolidated statements of income. If a cash flow hedge is terminated and the originally hedged item is still considered probable of occurring, the gains and losses initially recognized in total equity remain there until the hedged item impacts earnings, at which point they are transferred to the corresponding earnings line item in the Partnership’s consolidated statements of income. If the hedged items are no longer probable of occurring, amounts recognized in total equity are immediately transferred to the earnings item in the Partnership’s consolidated statements of income. For derivative financial instruments that are not designated or that do not qualify as hedges under Financial Accounting Standards Board (or FASB ) Accounting Standards Codification (or ASC ) 815, Derivatives and Hedging , the changes in the fair value of the derivative financial instruments are recognized in earnings. Gains and losses from the Partnership’s non-designated interest rate swaps, non-designated interest rate swaptions, and the Partnership’s agreement with Teekay Corporation for the Suezmax tanker the Toledo Spirit (see Note 12d) are recorded in realized and unrealized loss on non-designated derivative instruments in the Partnership’s consolidated statements of income. Gains and losses from the Partnership’s cross currency swaps are recorded in foreign currency exchange gain (loss) in the Partnership’s consolidated statements of income. Unit-based compensation The Partnership grants restricted unit awards as incentive-based compensation under the Teekay LNG Partners L.P. 2005 Long-Term Incentive Plan to certain of the Partnership’s employees and to certain employees of Teekay Corporation’s subsidiaries that provide services to the Partnership and its subsidiaries. The Partnership measures the cost of such awards using the grant date fair value of the award and recognizes that cost, net of estimated forfeitures, over the requisite service period. The requisite service period consists of the period from the grant date of the award to the earlier of the date of vesting or the date the recipient becomes eligible for retirement. For unit-based compensation awards subject to graded vesting, the Partnership calculates the value of the award as if it was one single award with one expected life and amortizes the calculated expense for the entire award on a straight-line basis over the requisite service period. The compensation cost of the Partnership’s unit-based compensation awards is reflected in general and administrative expenses in the Partnership’s consolidated statements of income. Income taxes The Partnership accounts for 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 consolidated financial statement basis and the tax basis of the Partnership’s assets and liabilities using the applicable jurisdictional tax rates. A valuation allowance for deferred tax assets is recorded when it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized. Three of the five Partnership’s Spanish-flagged vessels are subject to the Spanish Tonnage Tax Regime (or TTR ). Under this regime, the applicable tax is based on the weight (measured as net tonnage) of the vessel and the number of days during the taxable period that the vessel is at the Partnership’s disposal, excluding time required for repairs. The income the Partnership receives with respect to the remaining two Spanish-flagged vessels is taxed in Spain at a rate of 25% . However, these two vessels are registered in the Canary Islands Special Ship Registry. Consequently, the Partnership is allowed a credit, equal to 90% of the tax payable on income from the commercial operation of these vessels, against the tax otherwise payable. This effectively results in an income tax rate of approximately 2.5% on income from the operation of these two Spanish-flagged vessels. The Partnership recognizes the tax benefits of uncertain tax positions only if 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 by the taxing authorities, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefits recognized in the Partnership’s consolidated financial statements from such positions are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Partnership recognizes interest and penalties related to uncertain tax positions in income tax expense in the Partnership’s consolidated statements of income. Guarantees Guarantees issued by the Partnership, excluding those that are guaranteeing its own performance, are recognized at fair value at the time the guarantees are issued and are presented in the Partnership’s consolidated balance sheets as other long-term liabilities. The liability recognized on issuance is amortized to other income on the Partnership’s consolidated statements of income over the term of the guarantee. If it becomes probable that the Partnership will have to perform under a guarantee, the Partnership will recognize an additional liability if the amount of the loss can be reasonably estimated. |
Accounting Pronouncements
Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Pronouncements | Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers , (or ASU 2014-09 ). ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update creates a five-step model that requires entities to exercise judgment when considering the terms of the contract(s) which include (i) identifying the contract(s) with the customer, (ii) identifying the separate performance obligations in the contract, (iii) determining the transaction price, (iv) allocating the transaction price to the separate performance obligations, and (v) recognizing revenue as each performance obligation is satisfied. ASU 2014-09 became effective for the Partnership as of January 1, 2018, and may be applied, at the Partnership’s option, retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Partnership adopted ASU 2014-09 as a cumulative-effect adjustment as of such date. The Partnership has elected to apply ASC 2014-09 only to those contracts that were not completed as of January 1, 2018. The Partnership has identified the following differences on adoption of ASU 2014-09: • In certain cases, the Partnership incurs pre-operational costs relating directly to a specific customer contract, that generate or enhance resources of the Partnership that will be used in satisfying performance obligations in the future, whereby such costs are expected to be recovered via the customer contract. Such costs are deferred and amortized over the duration of the customer contract. The Partnership previously expensed such costs as incurred unless the costs were directly reimbursable by the contract. This change increased net income by $1.1 million for the year ended December 31, 2018 , and increased other assets by $3.5 million , investments in equity-accounted joint ventures by $0.3 million , and total equity by $3.8 million as at December 31, 2018 . The cumulative increase to opening equity as at January 1, 2018 was $2.7 million . • The Partnership previously presented all accrued revenue as a component of accounts receivable. The Partnership has determined that if the right to such consideration is conditional upon something other than the passage of time, such accrued revenue should be presented apart from accounts receivable. This had the impact of increasing other current assets and decreasing accounts receivable by $2.3 million at December 31, 2018 . There was no cumulative impact to opening equity as at January 1, 2018. In February 2016, FASB issued Accounting Standards Update 2016-02, Leases (or ASU 2016-02 ). ASU 2016-02 establishes a right-of-use model that requires a lessee to record a right of use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. For lessees, leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 requires lessors to classify leases as a sales-type, direct financing, or operating lease. A lease is a sales-type lease if any one of five criteria are met, each of which indicate that the lease, in effect, transfers control of the underlying asset to the lessee. If none of those five criteria are met, but two additional criteria are both met, indicating that the lessor has transferred substantially all of the risks and benefits of the underlying asset to the lessee and a third party, the lease is a direct financing lease. All leases that are not sales-type leases or direct financing leases are operating leases. ASU 2016-02 is effective January 1, 2019, with early adoption permitted. FASB issued an additional accounting standards update in July 2018 that made further amendments to accounting for leases, including allowing the use of a transition approach whereby a cumulative effect adjustment is made as of the effective date, with no retrospective effect. The Partnership will adopt ASU 2016-02 on January 1, 2019. To determine the cumulative effect adjustment, the Partnership will no t reassess lease classification, initial direct costs for any existing leases and whether any expired or existing contracts are or contain leases. The Partnership identified the following differences : • The adoption of ASU 2016-02 will result in a change in the accounting method for the lease portion of the daily charter hire accounted for as operating leases with firm periods of greater than one year for certain of the chartered-in vessels of the Partnership and the Partnership's equity-accounted joint ventures. Under ASU 2016-02, one of the Partnership's in-charter contracts currently accounted for as an operating lease will be treated as a right-of-use asset and a lease liability, which will result in an increase of the Partnership's assets and liabilities. The right-of-use asset and lease liability to be recognized on January 1, 2019 is $22.7 million . In addition, certain equity-accounted joint ventures will recognize a right-of-use asset and a lease liability on the balance sheet for these charters based on the present value of future minimum lease payments, whereas currently no right-of-use asset or lease liability is recognized. This will have the result of increasing the equity-accounted joint venture’s assets and liabilities. The pattern of expense recognition of chartered-in vessels is expected to remain substantially unchanged, unless the right-of-use asset becomes impaired. • The adoption of ASU 2016-02 will result in the Partnership's lease classification assessment being determined when a lease commences instead of when the lease is entered into. The Partnership has entered into charters in prior periods for certain of its vessels currently under construction and which are expected to deliver in 2019. Historically, for charters that were negotiated concurrently with the construction of the related vessels, the fair value of the constructed asset was presumed to be its newbuilding cost and no gain or loss was recognized on commencement of the charter if such charters were classified as direct finance leases. Subsequent to the adoption of ASU 2016-02, the fair value of the vessel will be determined based on information available at the lease commencement date and any difference in the fair value of the ship upon commencement of the charter and its carrying value is recognized as a gain or loss upon commencement of the charter. • The adoption of ASU 2016-02 will result in the recognition of revenue from the reimbursement of scheduled dry-dock expenditures, where such charter contract is accounted for as an operating lease, occurring upon completion of the scheduled dry-dock, instead of ratably over the period between the previous scheduled dry-dock and the next scheduled dry-dock. The cumulative decrease to opening equity as at January 1, 2019 was $3.0 million . • In addition, direct financing lease payments received will be presented as an operating cash inflow instead of an investing cash inflow in the consolidated statements of cash flows. In August 2016, the FASB issued Accounting Standards Update 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (or ASU 2016-15 ), which, among other things, provides guidance on two acceptable approaches of classifying distributions received from equity-method investees in the statements of cash flows and application of the predominance principle on the cash flow statement classification of cash receipts and payments that have aspects of more than one class of cash flows. ASU 2016-15 became effective for the Partnership as of January 1, 2018, with a retrospective approach required on adoption. The Partnership has elected to classify distributions received from equity method investees in the consolidated statements of cash flows based on the nature of the distribution. In addition, the adoption of ASU 2016-15 resulted in $25.7 million and $17.7 million of cross currency swap payments that were related to the principal repayment of long-term debt for the years ended December 31, 2017 and December 31, 2016 , respectively, being reclassified from unrealized foreign currency exchange (gain) loss including the effect of the termination of cross currency swaps in net operating cash flow, to scheduled repayments of long-term debt and settlement of related swaps in net financing cash flow for the year ended December 31, 2017 and to prepayments of long-term debt and settlement of related swaps for the year ended December 31, 2016 as the amounts related to the termination of final settlement of the cross currency swaps. In November 2016, the FASB issued Accounting Standards Update 2016-18, Statement of Cash Flows: Restricted Cash ( or ASU 2016-18 ). ASU 2016-18 requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Entities are also required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. ASU 2016-18 became effective for the Partnership as of January 1, 2018. Adoption of ASU 2016-18 resulted in the Partnership including in the consolidated statement of cash flows changes in cash, cash equivalents and restricted cash. In August 2017, the FASB issued Accounting Standards Update 2017-12, Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities ( or ASU 2017-12 ) . ASU 2017-12 eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires, for qualifying hedges, the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The guidance also modifies the accounting for components excluded from the assessment of hedge effectiveness, eases documentation and assessment requirements and modifies certain disclosure requirements. ASU 2017-12 became effective for the Partnership as of January 1, 2019. The Partnership is currently evaluating the effect of adopting this new guidance. In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments ( or ASU 2016-13 ). ASU 2016-13 replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This update is effective for the Partnership January 1, 2020, with a modified-retrospective approach required on adoption. The Partnership is currently evaluating the effect of adopting this new guidance. In October 2017, the FASB issued Accounting Standards Update 2017-04, Simplifying the Test for Goodwill Impairment ( or ASU 2017-04 ) . Pursuant to this update, goodwill impairment is now measured as the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying value of goodwill. This update eliminates previous guidance that required an entity to determine goodwill impairment by calculating the implied fair value of goodwill by hypothetically assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. ASU 2017-04 requires a prospective adoption approach and is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. ASU 2017-04 was adopted by the Partnership on October 1, 2018, and such adoption did not have a material impact on the Partnership's consolidated financial statements and related disclosures. In August 2018, the FASB issued Accounting Standards Update 2018-15, Intangibles-Goodwill and Other-Internal Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract , (or ASU 2018-15 ). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. ASU 2018-15 is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. The Partnership elected to adopt ASU 2018-15 on October 1, 2018, and such adoption did not have a material impact on the Partnership’s consolidated financial statements and related disclosures. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments Fair Value Measurements The following methods and assumptions were used to estimate the fair value of each class of financial instrument: Cash and cash equivalents and restricted cash – The fair value of the Partnership’s cash and cash equivalents and restricted cash approximates its carrying amounts reported in the consolidated balance sheets. Interest rate swap/swaption and cross currency swap agreements – The fair value of these derivative instruments of the Partnership is the estimated amount that the Partnership would receive or pay to terminate the agreements at the reporting date, taking into account current interest rates, foreign exchange rates and the current credit worthiness of both the Partnership and the derivative counterparties. The estimated amount is the present value of future cash flows. The Partnership transacts all of these derivative instruments through investment-grade rated financial institutions at the time of the transaction. The Partnership's interest rate swap agreements do not require the Partnership to provide cash collateral to these institutions; however, cash collateral may be required by certain institutions on some of the Partnership's cross currency swap agreements and as at December 31, 2018 , the Partnership had pledged $6.8 million cash as collateral ( December 31, 2017 – $22.3 million ), which has been recorded as restricted cash – current and long-term on the Partnership's consolidated balance sheets. Given the current volatility in the credit markets, it is reasonably possible that the amount recorded as a derivative asset or liability could vary by a material amount in the near term. Other derivative – The Partnership’s other derivative agreement is between Teekay Corporation and the Partnership and relates to hire payments under the time-charter contract for the Suezmax tanker Toledo Spirit (see Note 12d). The fair value of this derivative agreement is the estimated amount that the Partnership would receive or pay to terminate the agreement at the reporting date, based on the present value of the Partnership’s projection of future spot market tanker rates, which have been derived from current spot market tanker rates and long-term historical average rates. As projections of future spot rates are specific to the Partnership, these are considered Level 3 inputs for the purposes of estimating the fair value. Long-term receivable included in accounts receivable and other assets – The fair value of the Partnership’s long-term loan receivable is estimated using discounted cash flow analysis based on rates currently available for debt with similar terms and remaining maturities and the current credit worthiness of the counterparty. Long-term debt – The fair values of the Partnership’s fixed-rate and variable-rate long-term debt are either based on quoted market prices or estimated using discounted cash flow analyses based on rates currently available for debt with similar terms and remaining maturities and the current credit worthiness of the Partnership. Long-term obligations related to capital leases – The fair values of the Partnership's long-term obligations related to capital leases are estimated using discounted cash flow analyses, based on rates currently available for debt with similar terms and remaining maturities. The Partnership categorizes the fair value estimates by a fair value hierarchy based on the inputs used to measure fair value. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value as follows: Level 1. Observable inputs such as quoted prices in active markets; Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The following table includes the estimated fair value and carrying value of those assets and liabilities that are measured at fair value on a recurring and non-recurring basis, as well as the estimated fair value of the Partnership’s financial instruments that are not accounted for at a fair value on a recurring basis. December 31, 2018 December 31, 2017 Fair Value Carrying Fair Carrying Fair Recurring: Cash and cash equivalents and restricted cash Level 1 222,864 222,864 339,435 339,435 Derivative instruments (note 13) Interest rate swap agreements – assets Level 2 3,341 3,341 878 878 Interest rate swap agreements – liabilities Level 2 (40,958 ) (40,958 ) (73,984 ) (73,984 ) Cross currency swap agreements – assets Level 2 — — 3,758 3,758 Cross currency swap agreements – liabilities Level 2 (29,122 ) (29,122 ) (54,217 ) (54,217 ) Other derivative Level 3 1,061 1,061 1,648 1,648 Non-recurring: Vessels held for sale (notes 19c and 19d) Level 2 — — 16,671 16,671 Other: Advances to equity-accounted joint ventures, current and long-term (note 7) (i) 131,386 (i) 131,685 (i) Long-term receivable included in accounts receivable and other assets (ii) Level 3 175 174 3,476 3,459 Long-term debt – public (note 10) Level 1 (350,813 ) (361,095 ) (376,581 ) (384,820 ) Long-term debt – non-public (note 10) Level 2 (1,618,963 ) (1,604,106 ) (1,421,411 ) (1,391,524 ) Obligations related to capital leases (note 5) Level 2 (1,298,556 ) (1,274,693 ) (1,011,549 ) (1,001,588 ) (i) The advances to equity-accounted joint ventures together with the Partnership’s equity investments in the joint ventures form the net aggregate carrying value of the Partnership’s interests in the joint ventures in these consolidated financial statements. The fair values of the individual components of such aggregate interests are not determinable. (ii) As at December 31, 2018 , the estimated fair value of the non-interest bearing receivable is based on the remaining future fixed payments of $0.2 million , to be received from Royal Dutch Shell Plc (or Shell ) (formerly BG International Limited) as part of the ship construction support agreement, and using an estimated discount rate of 8.0% . As there is no market rate for the equivalent of an unsecured non-interest bearing receivable from Shell, the discount rate is based on unsecured debt instruments of similar maturity held, adjusted for a liquidity premium. A higher or lower discount rate would result in a lower or higher fair value asset. Changes in fair value during the years ended December 31, 2018 and 2017 for the Partnership’s other derivative asset, the Toledo Spirit time-charter derivative, which is described below and is measured at fair value on a recurring basis using significant unobservable inputs (Level 3), are as follows: Year Ended Year Ended Fair value at beginning of year 1,648 2,134 Realized and unrealized gains included in earnings 550 788 Settlements (1,137 ) (1,274 ) Fair value at end of year 1,061 1,648 The Partnership’s Suezmax tanker the Toledo Spirit operates pursuant to a time-charter contract that increases or decreases the otherwise fixed-hire rate established in the charter depending on the spot charter rates that the Partnership would have earned had it traded the vessel in the spot tanker market. The time-charter contract ended in January 2019 upon the charterer, which was also the owner, selling the vessel (see Note 20a). In order to reduce the variability of its revenue under the Toledo Spirit time-charter, the Partnership entered into an agreement with Teekay Corporation under which Teekay Corporation paid the Partnership any amounts payable to the charterer of the Toledo Spirit as a result of spot rates being below the fixed rate, and the Partnership paid Teekay Corporation any amounts payable to the Partnership by the charterer of the Toledo Spirit as a result of spot rates being in excess of the fixed rate. The estimated fair value of this other derivative was based in part upon the Partnership’s projection of future spot market tanker rates, which was derived from current spot market tanker rates and long-term historical average rates as well as an estimated discount rate. The estimated fair value of this other derivative as of December 31, 2018 was based upon an average daily tanker rate of $24,000 ( December 31, 2017 – $17,500 ) over the remaining duration of the charter contract, which ended January 2019, and a discount rate of 9.5% ( December 31, 2017 – 8.7% ). In developing and evaluating this estimate, the Partnership considered the current tanker market fundamentals as well as the short and long-term outlook at that time. A higher or lower average daily tanker rate would result in a higher or lower fair value liability or a lower or higher fair value asset. A higher or lower discount rate would result in a lower or higher fair value asset or liability. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Prior to 2018, the Partnership reported its financial results on the basis of two business segments: a liquefied gas segment and a conventional tanker segment. During 2018, the Partnership’s Teekay Multi-Gas Pool commenced operations. As part of this initiative, the Partnership completed an internal reorganization and revised its reportable segments, as such changes resulted in management viewing the gas fleet and its components differently. As a result, the Partnership’s LPG and multi-gas carriers are reported in a separate segment apart from its LNG carriers. All segment information for comparative periods has been retroactively adjusted to conform with the change in segment presentation adopted in 2018. The Partnership has three reportable segments, its LNG segment, LPG segment and its conventional tanker segment. The Partnership’s LNG segment consists of LNG carriers which generally operate under long-term, fixed-rate charters to international energy companies. The Partnership's LPG segment consists of LPG and multi-gas carriers which generally operate under voyage charters or time-charters. As at December 31, 2018 , the Partnership’s LNG segment consisted of 49 LNG carriers and LNG carrier newbuildings (including 25 LNG carriers and LNG carrier newbuildings included in joint ventures that are accounted for under the equity method). As at December 31, 2018 , the Partnership's LPG segment consisted of 29 LPG/multi-gas carriers and LPG carrier newbuildings (including 22 LPG carriers included in a joint venture that is accounted for under the equity method). As at December 31, 2018 , the Partnership’s conventional tanker segment consisted of one Suezmax-class crude oil tankers and one Handymax product tanker. Segment results are evaluated based on income from vessel operations. The accounting policies applied to the reportable segments are the same as those used in the preparation of the Partnership’s consolidated financial statements. The following table presents voyage revenues and percentage of consolidated voyage revenues for the Partnership’s customers who accounted for 10% or more of the Partnership's consolidated voyage revenues during any of the periods presented. (U.S. Dollars in millions) Year Ended Year Ended Year Ended Royal Dutch Shell Plc. (i) (ii) $115.4 or 23% $53.8 or 12% $48.2 or 12% Ras Laffan Liquefied Natural Gas Company Ltd. (i) $70.6 or 14% $70.3 or 16% $70.3 or 18% Cheniere Marketing International (i) $60.1 or 12% $60.2 or 14% Less than 10% The Tangguh Production Sharing Contractors (i) Less than 10% $49.7 or 11% $44.4 or 11% (i) LNG segment. (ii) Includes its subsidiaries Shell Spain LNG S.A.U. and Shell Tankers (Singapore) Private Ltd. The following tables include results for these segments for the years presented in these consolidated financial statements. Year Ended December 31, 2018 Liquefied Natural Gas Liquefied Petroleum Gas Conventional Total Voyage revenues 454,517 23,922 32,323 510,762 Voyage expenses (2,750 ) (15,907 ) (9,580 ) (28,237 ) Vessel operating expenses (82,952 ) (20,932 ) (13,774 ) (117,658 ) Time-charter hire expense (7,670 ) — — (7,670 ) Depreciation and amortization (111,360 ) (7,748 ) (5,270 ) (124,378 ) General and administrative expenses (i) (23,270 ) (2,932 ) (2,310 ) (28,512 ) Write-down of goodwill and vessels — (33,790 ) (20,863 ) (54,653 ) Restructuring charges — — (1,845 ) (1,845 ) Income (loss) from vessel operations 226,515 (57,387 ) (21,319 ) 147,809 Equity income (loss) 60,228 (6,682 ) — 53,546 Investment in and advances to equity-accounted joint ventures 962,236 153,897 — 1,116,133 Total assets at December 31, 2018 4,861,977 326,111 39,450 5,227,538 Expenditures for vessels and equipment (684,951 ) (1,230 ) (124 ) (686,305 ) Expenditures for dry docking (7,505 ) (5,059 ) (15 ) (12,579 ) Year Ended December 31, 2017 Liquefied Natural Gas Liquefied Petroleum Gas Conventional Total Voyage revenues 365,914 19,769 46,993 432,676 Voyage expenses (1,802 ) (1,218 ) (5,182 ) (8,202 ) Vessel operating expenses (80,245 ) (3,083 ) (18,211 ) (101,539 ) Depreciation and amortization (86,592 ) (8,433 ) (10,520 ) (105,545 ) General and administrative expenses (i) (13,223 ) (2,411 ) (2,507 ) (18,141 ) Write-down of vessels — — (50,600 ) (50,600 ) Income (loss) from vessel operations 184,052 4,624 (40,027 ) 148,649 Equity income (loss) 17,652 (7,863 ) — 9,789 Investment in and advances to equity-accounted joint ventures 933,970 160,626 — 1,094,596 Total assets at December 31, 2017 4,284,767 364,164 118,827 4,767,758 Expenditures for vessels and equipment (701,116 ) (13,412 ) — (714,529 ) Expenditures for dry docking (20,047 ) (107 ) (2,130 ) (22,283 ) Year Ended December 31, 2016 Liquefied Natural Gas Liquefied Petroleum Gas Conventional Total Voyage revenues 314,591 21,939 59,914 396,444 Voyage expenses (449 ) — (1,207 ) (1,656 ) Vessel operating expenses (65,371 ) (16 ) (22,503 ) (87,890 ) Depreciation and amortization (72,190 ) (7,894 ) (15,458 ) (95,542 ) General and administrative expenses (i) (13,955 ) (2,055 ) (3,189 ) (19,199 ) Write-down and loss on sales of vessels — — (38,976 ) (38,976 ) Income (loss) from vessel operations 162,626 11,974 (21,419 ) 153,181 Equity income 48,633 13,674 — 62,307 Expenditures for vessels and equipment (344,924 ) — (63 ) (344,987 ) Expenditures for dry docking (13,944 ) — — (13,944 ) (i) Includes direct general and administrative expenses and indirect general and administrative expenses (allocated to each segment based on estimated use of corporate resources (Note 12a)). A reconciliation of total segment assets presented in the consolidated balance sheets is as follows: December 31, December 31, Total assets of the liquefied natural gas segment 4,861,977 4,284,767 Total assets of the liquefied petroleum gas segment 326,111 364,164 Total assets of the conventional tanker segment 39,450 118,827 Unallocated: Cash and cash equivalents 149,014 244,241 Advances to affiliates 8,229 7,300 Consolidated total assets 5,384,781 5,019,299 |
Chartered-in Vessels
Chartered-in Vessels | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Chartered-in Vessels | Chartered-in Vessels a) Capital Leases December 31, December 31, LNG Carriers 1,274,569 961,711 Suezmax Tanker 23,987 49,838 Total obligations related to capital leases 1,298,556 1,011,549 Less current portion (81,219 ) (106,946 ) Long-term obligations related to capital leases 1,217,337 904,603 LNG Carriers. As at December 31, 2018 , the Partnership was a party to capital leases on eight LNG carriers, the Creole Spirit, the Oak Spirit, the Torben Spirit, the Macoma, the Murex, the Magdala, the Myrina and the Megara . Upon delivery of these eight LNG carriers between February 2016 and July 2018, the Partnership sold these vessels to third parties (or Lessors ) and leased them back under 10 -year bareboat charter contracts ending in 2026 through to 2028. At inception of these leases, the weighted-average interest rate implicit in these leases was 5.1% . The bareboat charter contracts are accounted for as obligations related to capital leases and have purchase obligations at the end of the lease terms. The Partnership understands that these vessels and lease operations are the only assets and operations of the Lessors. The Partnership operates the vessels during the lease term and as a result, is considered to be, under GAAP, the Lessor's primary beneficiary; therefore, the Partnership consolidates the Lessors for financial reporting purposes as VIEs. The liabilities of the Lessors are loans and are non-recourse to the Partnership. The amounts funded to the Lessors in order to purchase the vessels materially match the funding to be paid by the Partnership's subsidiaries under the sale-leaseback transaction. As a result, the amounts due by the Partnership's subsidiaries to the Lessors have been included in obligations related to capital leases as representing the Lessors' loans. The obligations of the Partnership under the bareboat charter contracts are guaranteed by the Partnership. In addition, the guarantee agreements require the Partnership to maintain minimum levels of tangible net worth and aggregate liquidity, and not to exceed a maximum amount of leverage. As at December 31, 2018 , the Partnership was in compliance with all covenants in respect of the obligations related to its capital leases. As at December 31, 2018 , the remaining commitments related to the eight capital leases for the Partnership's LNG carriers, including the related purchase obligations, approximated $1.7 billion , including imputed interest of $435.3 million , repayable from 2019 through 2028, as indicated below: Year Commitment 2019 $ 119,517 2020 $ 118,685 2021 $ 117,772 2022 $ 116,978 2023 $ 116,338 Thereafter $ 1,120,670 Suezmax Tanker. As at December 31, 2018 , the Partnership was a party, as lessee, to a capital lease on one Suezmax tanker, the Toledo Spirit . Under this capital lease, the owner had the option to require the Partnership to purchase the vessel. The charterer, who is also the owner, also had the option to cancel the charter contract and the cancellation option was first exercisable in August 2018. In January 2019, the charterer of the Toledo Spirit sold the vessel and the capital lease was terminated. As at December 31, 2018 , the remaining commitments related to the one capital lease for the Suezmax tanker, including the related purchase obligations, approximated $24.2 million including imputed interest of $0.2 million , repayable in 2019. Upon sale of the vessel in January 2019, the Partnership returned the vessel to the owner and the full amount of the associated obligation related to the capital lease was concurrently extinguished. The Partnership’s capital lease relating to its Suezmax tanker does not contain financial or restrictive covenants other than those relating to operation and maintenance of the vessels. b) Operating Leases The minimum estimated charter hire payments for the following two fiscal years, as at December 31, 2018 , for the Partnership's chartered-in vessel accounted for as an operating lease were as follows: 2019 2020 Vessel Charters $ $ Charters-in – operating leases (i) 23,725 16,055 (i) As at December 31, 2018 , the Partnership was chartering in a vessel at a fixed-rate from its 52% -owned joint venture with Marubeni Corporation (or the Teekay LNG-Marubeni Joint Venture ) for a period of two years until September 2020. The Partnership recognizes the expense from this charter on a straight-line basis over the firm period of the charter and is presented as time-charter hire expense in the Partnership's consolidated statements of income. c) Teekay Tangguh Joint Venture Operating Leases As at December 31, 2018 , the Teekay BLT Corporation (or the Teekay Tangguh Joint Venture ), of which the Partnership has a 69% ownership interest and consolidates, was a party to operating leases (or Head Leases ) whereby it leases its two LNG carriers (or the Tangguh LNG Carriers ) to a third-party company. The Teekay Tangguh Joint Venture then leases back the LNG carriers from the same third-party company (or the Subleases ). Under the terms of these leases, the third-party company claims tax depreciation on the capital expenditures it incurred to lease the vessels. As is typical in these leasing arrangements, tax and change of law risks are assumed by the Teekay Tangguh Joint Venture. Lease payments under the Subleases are based on certain tax and financial assumptions at the commencement of the leases. If an assumption proves to be incorrect, the lease payments are increased or decreased under the Sublease to maintain the agreed after-tax margin. The Teekay Tangguh Joint Venture’s carrying amounts of this estimated tax indemnification guarantee as at December 31, 2018 and 2017 were $ 6.6 million and $7.1 million , respectively, and are included as part of other long-term liabilities in the consolidated balance sheets of the Partnership. The tax indemnification is for the duration of the lease contract with the third party plus the years it would take for the lease payments to be statute barred and ends in 2033. Although there is no maximum potential amount of future payments, the Teekay Tangguh Joint Venture may terminate the lease arrangements on a voluntary basis at any time. If the lease arrangements terminate, the Teekay Tangguh Joint Venture will be required to make termination payments to the third-party company sufficient to repay the third-party company’s investment in the vessels and to compensate it for the tax effect of the terminations, including recapture of any tax depreciation. The Head Leases and the Subleases have 20 -year terms and are classified as operating leases. The Head Leases and the Subleases for the two Tangguh LNG Carriers commenced in November 2008 and March 2009. As at December 31, 2018 , the total estimated future minimum rental payments to be received and paid by the Teekay Tangguh Joint Venture related to the lease contracts are as follows: Year Head Lease Receipts (i) Sublease Payments (i) (ii) 2019 $ 21,242 $ 23,875 2020 $ 21,242 $ 23,875 2021 $ 21,242 $ 23,875 2022 $ 21,242 $ 23,875 2023 $ 21,242 $ 23,875 Thereafter $ 111,611 $ 125,485 Total $ 217,821 $ 244,860 (i) The Head Leases are fixed-rate operating leases while the Subleases have a variable-rate component. As at December 31, 2018 , the Partnership had received $ 292.6 million of aggregate Head Lease receipts and had paid $236.3 million of aggregate Sublease payments. The portion of the Head Lease receipts that has not been recognized into earnings is deferred and amortized on a straight-line basis over the lease terms and, as at December 31, 2018 , $ 3.7 million ( December 31, 2017 – $3.7 million ) and $ 29.3 million ( December 31, 2017 – $33.0 million ) of Head Lease receipts had been deferred and included in unearned revenue and other long-term liabilities, respectively, in the Partnership’s consolidated balance sheets. (ii) The amount of payments related to the Subleases are updated annually to reflect any changes in the lease payments due to changes in tax law. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Partnership’s primary source of revenue is chartering its vessels to customers. The Partnership utilizes three primary forms of contracts, consisting of time-charter contracts, voyage charter contracts and bareboat charter contracts. The Partnership also generates revenue from construction supervision and crew-training for the vessels under construction in its joint venture with China LNG Shipping (Holdings) Limited (or China LNG ), CETS Investment Management (HK) Co. Ltd. and BW Investments Pte. Ltd (or the Pan Union Joint Venture ), in which the Partnership's ownership interests range from 20% to 30% , and from the start-up of an LNG receiving and regasification terminal under construction related to its 30% -owned joint venture with National Oil and Gas Authority 30% ), Gulf Investment Corporation ( 24% ), and Samsung C&T ( 16% ) (or the Bahrain LNG Joint Venture ). Such services may include the procurement of third party goods and services for the asset’s owner. Time Charters Pursuant to a time-charter contract, the Partnership charters a vessel to a customer for a fixed period of time, generally one year or more. The performance obligations of a time-charter contract, which include the lease of the vessel to the charterer as well as the operation of the vessel, are satisfied as services are rendered over the duration of such contract, as measured using the time that has elapsed from commencement of performance. In addition, any expenses unique to a particular voyage, including any fuel expenses, port fees, cargo loading and unloading expenses, canal tolls, agency fees and commissions, are the responsibility of the customer, as long as the vessel is not off-hire. Hire is based on a fixed daily hire amount and is typically invoiced monthly in advance for time-charter contracts. However, certain sources of variability exist, including penalties, such as those that relate to periods the vessels are off-hire and where minimum speed and performance metrics are not met. In addition, certain time-charter contracts contain provisions allowing the Partnership to be compensated for increases in the Partnership's costs during the term of the charter. Such provisions may be in the form of annual hire rate adjustments for changes in inflation indices or interest rates or in the form of cost reimbursements for vessel operating expenditures or dry-docking expenditures. Finally, in a small number of charters, the Partnership may earn a profit share consideration, which occurs when actual spot tanker rates earned by the vessel exceed certain thresholds for a period of time. Variable consideration of the Partnership’s contracts is typically recognized in the period in which the changes in facts and circumstances on which the variable lease payments are based occur as either such revenue is allocated and accounted for under lease accounting requirements or alternatively such consideration is allocated to distinct periods within a contract that such variable consideration was incurred in. The Partnership does not engage in any specific tactics to minimize residual value risk. As at December 31, 2018 , a substantial majority of the Partnership’s consolidated vessels operated under time-charter contracts with the Partnership’s customers. Such contracts are scheduled to expire between 2019 and 2038. The time-charter contracts for many of the Partnership's LNG carriers have options whereby the charterer can extend the contract for periods up to a total extension between three and 15 years. In addition, each of the Partnership's time-charter contracts are subject to certain termination and purchase provisions. As at December 31, 2018 , the Partnership had $ 26.4 million of advanced payments recognized as contract liabilities included in unearned revenue ( December 31, 2017 – $ 22.2 million ) which are expected to be recognized as voyage revenues in 2019 and are included in unearned revenue on the Partnership's consolidated balance sheets. During the year ended December 31, 2018 , the Partnership recognized $22.2 million of revenue that was included in the contract liability balance on transition. Voyage Charters Voyage charters are charters for a specific voyage that are usually priced on a current or “spot” market rate. The performance obligations of a voyage charter contract, which typically include the lease of the vessel to the charterer as well as the operation of the vessel, are satisfied as services are rendered over the duration of the voyage, as measured using the time that has elapsed from commencement of performance. In addition, any expenses that are unique to a particular voyage, including any fuel expenses, port fees, cargo loading and unloading expenses, canal tolls, agency fees and commissions, are the responsibility of the vessel owner. The Partnership’s voyage charters will normally contain a lease; however, judgment is necessary to determine this based upon the decision-making rights of the charterer under the contract. Consideration for such contracts is generally fixed, although certain sources of variability exist - for example, delays caused by the charterer result in additional consideration. Payment for the voyage is not due until the voyage is completed. The duration of a single voyage is typically less than three months. The Partnership does not engage in any specific tactics to minimize residual value risk due to the short-term nature of the contracts. Bareboat Charters Pursuant to a bareboat charter, the Partnership charters a vessel to a customer for a fixed period of time, generally one year or more, at rates that are generally fixed. However, the customer is responsible for operation and maintenance of the vessel with its own crew as well as any expenses that are unique to a particular voyage, including any fuel expenses, port fees, cargo loading and unloading expenses, canal tolls, agency fees and commissions. If the vessel goes off-hire due to a mechanical issue or any other reason, the monthly hire received by the Partnership is normally not impacted. The performance obligations of a bareboat charter, which include the lease of the vessel to the charterer, are satisfied over the duration of such contract, as measured using the time elapsed from commencement of the lease. Hire is typically invoiced monthly in advance for bareboat charters, based on a fixed daily hire amount. Revenue Table The following tables contain the Partnership's revenue for the year ended December 31, 2018 , 2017 and 2016 , by contract type and by segment. Year Ended December 31, 2018 Liquefied Natural Gas Segment $ Liquefied Petroleum Gas Segment $ Conventional Tanker Segment $ Total Time charters 420,262 — 17,405 437,667 Voyage charters — 23,922 14,591 38,513 Bareboat charters 23,820 — — 23,820 Management fees and other income 10,435 — 327 10,762 454,517 23,922 32,323 510,762 Year Ended December 31, 2017 Liquefied Natural Gas Segment $ Liquefied Petroleum Gas Segment $ Conventional Tanker Segment $ Total Time charters 332,751 — 39,171 371,922 Voyage charters — 2,285 6,709 8,994 Bareboat charters 22,574 17,484 — 40,058 Management fees and other income 10,589 — 1,113 11,702 365,914 19,769 46,993 432,676 Year Ended December 31, 2016 Liquefied Natural Gas Segment $ Liquefied Petroleum Gas Segment $ Conventional Tanker Segment $ Total Time charters 283,159 — 58,802 341,961 Bareboat charters 23,824 21,939 — 45,763 Management fees and other income 7,608 — 1,112 8,720 314,591 21,939 59,914 396,444 The following table contains the Partnership’s revenue from contracts that do not contain a lease element and the non-lease element of time-charter contracts accounted for as direct financing leases for the years ended December 31, 2018 , 2017 and 2016 . December 31, December 31, December 31, Non-lease revenue - related to sales type or direct financing leases 18,554 21,228 13,855 Management fees and other income 10,762 11,702 8,720 Total 29,316 32,930 22,575 Net Investments in Direct Financing Leases The Tangguh LNG Carriers commenced their time-charters with their charterers in 2009. Both time-charter contracts are accounted for as direct financing leases with 20 -year terms. In 2013, the Partnership acquired two 155,900 -cubic meter LNG carriers (or Awilco LNG Carriers ) from Norway-based Awilco LNG ASA (or Awilco ) and chartered them back to Awilco on five - and four -year fixed-rate bareboat charter contracts (plus a one -year extension option), respectively, with Awilco holding fixed-price purchase obligations at the end of the charter. The bareboat charters with Awilco were accounted for as direct financing leases. In June 2017, the Partnership agreed to amend the charter contracts with Awilco to defer a portion of charter hire and extend the bareboat charter contracts and related purchase obligations on both vessels to December 2019. The amendments have the effect of deferring charter hire of between $10,600 per day and $20,600 per day per vessel from July 1, 2017 until December 2019, with such deferred amounts added to the purchase obligation amounts. As a result of the contract amendments, both of the charter contracts with Awilco were reclassified as operating leases upon the expiry of its original contract terms in November 2017 and August 2018. In addition, the 21 -year charter contract for the Bahrain Spirit floating storage unit (or FSU ) commenced in September 2018 and is accounted for as a direct finance lease. The following table lists the components of the net investments in direct financing leases: December 31, December 31, Total minimum lease payments to be received 897,130 568,710 Estimated unguaranteed residual value of leased properties 291,098 194,965 Initial direct costs 328 361 Less unearned revenue (613,394 ) (268,046 ) Total net investments in direct financing leases 575,163 495,990 Less current portion (12,635 ) (9,884 ) Net investments in direct financing leases 562,528 486,106 As at December 31, 2018 , estimated minimum lease payments to be received by the Partnership related to its direct financing leases in each of the next five succeeding fiscal years are approximately $ 64.2 million ( 2019 ), $ 64.3 million ( 2020 ), $ 64.2 million ( 2021 ), $ 64.2 million ( 2022 ), $ 64.0 million ( 2023 ) and an aggregate of $ 576.2 million thereafter. The leases are scheduled to end between 2029 and 2039. Operating Leases As at December 31, 2018 , the minimum scheduled future rentals to be received by the Partnership in each of the next five years for the lease and non-lease elements related to charters that were accounted for as operating leases are approximately $482.7 million ( 2019 ), $438.2 million ( 2020 ), $398.3 million ( 2021 ), $321.9 million ( 2022 ), and $278.1 million ( 2023 ). Minimum scheduled future rentals on operating lease contracts do not include rentals generated from new contracts entered into after December 31, 2018 , rentals from vessels in the Partnership’s equity-accounted investments, rentals from unexercised option periods of contracts that existed on December 31, 2018 , variable or contingent rentals, or rentals from contracts which commenced after December 31, 2018 . Therefore, the minimum scheduled future rentals on operating leases should not be construed to reflect total charter hire revenues for any of these five years. The carrying amount of the Partnership's vessels which are employed on these charter contracts as at December 31, 2018 , was $ 3.1 billion ( December 31, 2017 – $ 2.2 billion ). The cost and accumulated depreciation of these vessels employed on these charter contracts as at December 31, 2018 were $ 3.8 billion ( December 31, 2017 – $ 2.9 billion ) and $ 698.5 million ( December 31, 2017 – $ 646.2 million ), respectively. Contract Costs In certain cases, the Partnership incurs pre-operational costs that relate directly to a specific customer contract, that generate or enhance resources of the Partnership that will be used in satisfying performance obligations in the future, whereby such costs are expected to be recovered via the customer contract. Those costs include costs incurred to reposition a vessel to a location where a charterer will take delivery of the vessel. In certain cases, the Partnership must make judgments about whether costs relate directly to a specific customer contract or whether costs were factored into the pricing of a customer contract and thus expected to be recovered. Such deferred costs are amortized on a straight-line basis over the duration of the customer contract. Amortization of such costs for the year ended December 31, 2018 was $ 0.2 million ($ nil during 2017 and 2016). As at December 31, 2018 , repositioning costs of $ 3.5 million ( December 31, 2017 – $ nil ) were included as part of other assets in the Partnership's consolidated balance sheets. |
Equity-Accounted Investments
Equity-Accounted Investments | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity-Accounted Investments | Equity-Accounted Investments a) A summary of the Partnership's investments in and advances to equity-accounted joint ventures are as follows: As at December 31, 2018 As at December 31, Name Ownership Percentage # of Delivered Vessels Newbuildings on order 2018 2017 Bahrain LNG Joint Venture (i) 30% - 1 81,353 77,706 Yamal LNG Joint Venture (ii) 50% 2 4 205,839 193,774 Pan Union Joint Venture (iii) 20%-30% 3 1 73,545 43,538 Exmar LPG Joint Venture (iv) 50% 22 - 153,808 160,626 Teekay LNG-Marubeni Joint Venture (v) 52% 6 - 351,529 341,712 Excalibur Joint Venture (vi) 49% 1 - 32,402 79,915 Angola Joint Venture (vii) 33% 4 - 85,469 74,775 RasGas 3 Joint Venture (viii) 40% 4 - 132,188 122,550 42 6 1,116,133 1,094,596 Less current portion (79,108 ) — Investment in and advances to equity-accounted joint ventures 1,037,025 1,094,596 (i) Bahrain LNG Joint Venture On December 2, 2015, the Partnership ( 30% ) entered into a joint venture agreement with National Oil & Gas Authority (or Nogaholding ) ( 30% ), Gulf Investment Corporation (or GIC ) ( 24% ) and Samsung C&T (or Samsung ) ( 16% ) to form a joint venture, Bahrain LNG W.L.L. (or the Bahrain LNG Joint Venture ), for the development of an LNG receiving and regasification terminal in Bahrain. The project is expected to include an offshore LNG receiving jetty and breakwater, an adjacent regasification platform, subsea gas pipelines from the platform to shore, an onshore gas receiving facility, and an onshore nitrogen production facility with a total LNG terminal capacity of 800 million standard cubic feet per day and will be owned and operated under a 20 -year agreement, which is expected to commence in mid-2019. In addition, the Partnership has supplied an FSU in connection with this project commencing in September 2018 through a 21 -year time-charter contract with the Bahrain LNG Joint Venture. As at December 31, 2018 , the Partnership had advanced $79.1 million ( December 31, 2017 – $79.1 million ) to the Bahrain LNG Joint Venture. These advances bear interest at LIBOR plus 1.25% and as at December 31, 2018 , the interest receivable on these advances was $nil ( December 31, 2017 – $0.1 million ). These amounts are included in the table above. (ii) Yamal LNG Joint Venture The Partnership has a 50 / 50 joint venture agreement with China LNG Shipping (Holdings) Limited (or the Yamal LNG Joint Venture ) and the joint venture had ordered six internationally-flagged icebreaker LNG carriers for a project located on the Yamal Peninsula in Northern Russia (or the Yamal LNG Project ) of which two LNG carrier newbuildings were delivered during 2018. In December 2017, the Yamal LNG Joint Venture secured a $1.6 billion long-term debt facility to finance all six of its ARC7 LNG carrier newbuildings. As part of the completed financing, the Yamal LNG Joint Venture returned a total of $104 million of capital back to the joint venture partners in December 2017, of which the Partnership’s share was $52 million . The Partnership has guaranteed its 50% share of a secured loan facility in the Yamal LNG Joint Venture and, as a result, has recorded a guarantee liability. The carrying value of the guarantee liability as at December 31, 2018 was $0.6 million ( December 31, 2017 – $0.6 million ) and is included as part of other long-term liabilities in the Partnership’s consolidated balance sheets. (iii) Pan Union Joint Venture In June 2014, the Partnership acquired from Shell its ownership interests in four LNG carrier newbuildings. As compensation for Shell’s ownership interests in these four LNG carrier newbuildings, the Partnership assumed Shell’s obligation to provide the shipbuilding supervision and crew training services for the four LNG carrier newbuildings up to their delivery date pursuant to a ship construction support agreement. The Partnership initially estimated it would incur approximately $36.9 million of costs to provide these services, of which Shell has agreed to pay a fixed amount of $20.3 million . The Partnership estimated that the fair value of the service obligation was $33.3 million and the fair value of the amount due from Shell was $16.5 million . As at December 31, 2018 , the carrying value of the service obligation of $nil ( December 31, 2017 – $8.2 million ) is included in in-process contracts and the carrying value of the receivable from Shell of $0.2 million ( December 31, 2017 – $3.5 million ) is included in accounts receivable in the Partnership’s consolidated balance sheets. As at December 31, 2018 , the Partnership has a 30% ownership interest in two LNG carriers, the Pan Asia and the Pan Americas , and a 20% ownership interest in one LNG carrier, the Pan Europe, and one LNG carrier newbuilding (or collectively, the Pan Union Joint Venture ). The Pan Africa was delivered on January 8, 2019 and concurrently commenced its 20 -year charter contract with Shell. On initial acquisition, the basis difference between the Partnership's investment and the carrying value of the Pan Union Joint Venture's net assets was substantially attributed to ship construction support agreements and the time-charter contracts. At December 31, 2018 , the unamortized amount of the basis difference was $11.0 million ( December 31, 2017 - $11.4 million ). (iv) Exmar LPG Joint Venture The Partnership has a 50 / 50 LPG-related joint venture agreement with Exmar NV (or Exmar) (or the Exmar LPG Joint Venture ). The Partnership has guaranteed its 50% share of a secured loan facility and four capital leases in the Exmar LPG Joint Venture and, as a result, has recorded a guarantee liability. The carrying value of the guarantee liability as at December 31, 2018 was $1.3 million ( December 31, 2017 – $1.6 million ) and is included as part of other long-term liabilities in the Partnership’s consolidated balance sheets. As at December 31, 2018 , the Partnership had advanced $52.3 million ( December 31, 2017 – $52.3 million ) to the Exmar LPG Joint Venture, which bears interest at LIBOR plus 0.50% and has no fixed repayment terms. As at December 31, 2018 , the interest receivable on these advances was $nil ( December 31, 2017 – $0.2 million ). These amounts are included in the table above. On initial acquisition, the basis difference between the Partnership's investment and the carrying value of the Exmar LPG Joint Venture's net assets was substantially attributed to the value of the vessels and charter agreements of the Exmar LPG Joint Venture and goodwill in accordance with the finalized purchase price allocation. At December 31, 2018 , the unamortized amount of the basis difference was $24.9 million ( December 31, 2017 – $25.5 million ). (v) Teekay LNG-Marubeni Joint Venture The Partnership has a joint venture agreement with Marubeni Corporation (or the Teekay LNG-Marubeni Joint Ventur e). Since control of the Teekay LNG-Marubeni Joint Venture is shared jointly between Marubeni and the Partnership, the Partnership accounts for its investment in the Teekay LNG-Marubeni Joint Venture using the equity method. In September 2018, the Teekay LNG-Marubeni Joint Venture completed the refinancing of one of its debt facilities maturing in 2019 by entering into a new $306.5 million U.S. Dollar-denominated term loan maturing in December 2023. The Partnership has guaranteed its 52% share of the secured loan facilities of the Teekay LNG-Marubeni Joint Venture and, as a result, has recorded a guarantee liability. The carrying value of the guarantee liability as at December 31, 2018 was $0.4 million ( December 31, 2017 – $0.5 million ) and is included as part of other long-term liabilities in the Partnership’s consolidated balance sheets. (vi) Excalibur and Excelsior Joint Ventures The Partnership has a 50 / 50 LNG-related joint venture with Exmar (or the Excalibur Joint Venture ). On January 31, 2018, the Partnership sold its other 50 / 50 joint venture with Exmar relating to the Excelsior LNG carrier (or the Excelsior Joint Venture ) for gross proceeds of approximately $54 million . As a result of the sale, the Partnership recorded a gain of $5.6 million for the year ended December 31, 2018 , which is included in equity income in the Partnership's consolidated statements of income. The Partnership has guaranteed its ownership share of the secured loan facility of the Excalibur Joint Venture and, as a result, has recorded a guarantee liability. The carrying value of the guarantee liability as of December 31, 2018 was nominal ( December 31, 2017 – $0.2 million ) and is included as part of other long-term liabilities in the Partnership’s consolidated balance sheets. On initial acquisition, the basis difference between the Partnership's investment and the carrying value of the Excalibur Joint Venture's net assets was substantially attributed to an increase to the carrying value of the vessel of the Excalibur Joint Venture in accordance with the finalized purchase price allocation. At December 31, 2018 , the unamortized amount of the basis difference was $13.0 million ( December 31, 2017 – $13.4 million ). (vii) Angola Joint Venture The Partnership has a 33% ownership interest in a joint venture (or the Angola Joint Venture ) that owns four 160,400 -cubic meter LNG carriers (or the Angola LNG Carriers ). The other partners of the Angola Joint Venture are NYK Energy Transport (or NYK ) ( 33% ) and Mitsui & Co. Ltd. ( 34% ). The Partnership has guaranteed its 33% share of the secured loan facilities and interest rate swaps of the Angola Joint Venture and, as a result, has recorded a guarantee liability. The carrying value of the guarantee liability as at December 31, 2018 was $0.6 million ( December 31, 2017 – $0.7 million ) and is included as part of other long-term liabilities in the Partnership’s consolidated balance sheets. (viii) RasGas 3 Joint Venture The Partnership has a 40% ownership interest in Teekay Nakilat (III) Corporation (or the RasGas 3 Joint Venture ), and the remaining 60% is held by Qatar Gas Transport Company Ltd. (Nakilat). b) The RasGas 3 Joint Venture, the Angola Joint Venture, the Yamal LNG Joint Venture, and the Bahrain LNG Joint Venture are considered variable interest entities; however, the Partnership is not the primary beneficiary and therefore, the Partnership has not consolidated these entities. The Partnership’s exposure to loss as a result of its investment in the RasGas 3 Joint Venture, the Angola LNG Joint Venture, the Yamal LNG Joint Venture, and the Bahrain LNG Joint Venture is the amount it has invested in and advanced to these joint ventures, which are $132.2 million , $85.5 million , $205.8 million and $81.4 million , resp ectively, as at December 31, 2018 . In addition, the Partnership guarantees its portion of certain debt and swaps in the Angola Joint Venture and the Yamal LNG Joint Venture totaling $622.0 million ( December 31, 2017 – $304.1 million ). In addition, the Partnership provides an owner's guarantee in respect of the charters for the RasGas 3 Joint Venture, the Angola Joint Venture, the Yamal LNG Joint Venture and the Bahrain LNG Joint Venture. c) The follo wing table presents aggregated summarized financial information reflecting a 100% ownership interest in the Partnership’s equity method investments and excluding the impact from purchase price adjustments arising from the acquisition of Exmar LPG BVBA, the Excalibur Joint Venture and the Pan Union Joint Venture. The results include the Excalibur Joint Venture, the Excelsior Joint Venture up to January 2018, the RasGas 3 Joint Venture, the Angola Joint Venture, the Exmar LPG Joint Venture, the Teekay LNG-Marubeni Joint Venture, the Pan Union Joint Venture, the Yamal LNG Joint Venture, and the Bahrain LNG Joint Venture. December 31, December 31, Cash and restricted cash – current 333,566 281,468 Other assets – current 152,506 97,832 Vessels and equipment, including vessels related to capital leases, right of use assets and advances on newbuilding contracts 2,262,666 3,284,441 Net investments in direct financing leases – non-current 3,000,927 1,961,299 Other assets – non-current 1,406,815 68,728 Current portion of long-term debt and obligations related to capital leases 547,098 168,715 Other liabilities – current 139,194 119,627 Long-term debt and obligations related to capital leases 4,307,278 3,386,800 Other liabilities – non-current 126,905 145,870 Year Ended Year Ended Year Ended Voyage revenues 612,471 477,495 549,646 Income from vessel operations 289,477 178,763 268,049 Realized and unrealized gain (loss) on non-designated derivative instruments 8,825 (2,067 ) (12,277 ) Net income 142,252 54,418 167,052 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill As at December 31, 2018 and 2017 , intangible assets consisted of acquired time-charter contracts with a weighted-average amortization period of 20.7 years from the date of acquisition. The carrying amount of intangible assets for the Partnership’s liquefied natural gas segment is as follows: December 31, December 31, Gross carrying amount 179,813 179,813 Accumulated amortization (127,591 ) (118,735 ) Net carrying amount 52,222 61,078 Amortization expense associated with intangible assets was $8.9 million per year for each of the years ended December 31, 2018 , 2017 and 2016 . Amortization expense associated with intangible assets is expected to be approximately $8.9 million per year in each of the next five years. The Partnership's carrying amount of goodwill as at December 31, 2018 and 2017 is as follows: December 31, December 31, Liquefied natural gas segment 31,921 31,921 Liquefied petroleum gas segment 2,920 3,710 Total 34,841 35,631 In 2018, the Partnership conducted its annual impairment review and concluded that its liquefied petroleum gas segment was impaired and recorded an impairment charge of $0.8 million for the year ended December 31, 2018 . No impairment charges were recognized in either segment prior to this. The amount of the impairment charge was determined using a discounted cash flow valuation approach. The impairment charge is included in write-down of goodwill and write-down and loss on sales of vessels in the Partnership's consolidated statements of income. The impairment charge followed a change in the Partnership’s reporting structure, as discussed in Note 4, combined with a reduction in the near-term hire rate outlook for its multi-gas vessels. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities December 31, December 31, Interest including interest rate swaps 23,083 19,186 Voyage and vessel expenses 34,889 12,476 Payroll and benefits 5,950 3,900 Other general expenses 2,542 3,360 Income and other tax payable 1,864 1,335 Distributions payable on preferred units 6,425 5,500 Total 74,753 45,757 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt December 31, 2018 December 31, 2017 $ $ U.S. Dollar-denominated Revolving Credit Facilities due from 2020 to 2022 225,000 254,275 U.S. Dollar-denominated Term Loans due from 2020 to 2030 1,212,504 935,286 Norwegian Kroner-denominated Bonds due from 2020 to 2023 352,973 377,856 Euro-denominated Term Loans due from 2023 to 2024 193,781 232,957 Other U.S. Dollar-denominated Loans 3,300 10,000 Total principal 1,987,558 1,810,374 Unamortized discount and debt issuance costs (17,782 ) (12,382 ) Total debt 1,969,776 1,797,992 Less current portion (135,901 ) (552,404 ) Long-term debt 1,833,875 1,245,588 As at December 31, 2018 , the Partnership had two revolving credit facilities available, both of which credit facilities were long-term. The two credit facilities, as at such date, provided for borrowings of up to $400.6 million ( December 31, 2017 – $443.7 million ) , of which $175.6 million ( December 31, 2017 – $189.4 million ) was undrawn. Interest payments are based on LIBOR plus margins, which ranged from 1.40% to 2.25% . The amount available under the two revolving credit facilities will be reduced by $22.4 million in 2019, $248.4 million in 2020, $24.4 million in 2021 and $105.4 million in 2022. The revolving credit facilities may be used by the Partnership to fund general partnership purposes. One of the revolving credit facilities is unsecured, while the other revolving credit facility is collateralized by first-priority mortgages granted on two of the Partnership’s vessels, together with other related security, and include a guarantee from two of the Partnership’s subsidiaries. As at December 31, 2018 , the Partnership had seven combined U.S. Dollar-denominated term loans and bonds outstanding which totaled $1.2 billion ( December 31, 2017 – $935.3 million ) in aggregate principal amount. Interest payments on the term loans are based on LIBOR plus a margin, which margins ranged from 0.30% to 3.25% and interest payments on the bonds are fixed at 4.41% . The seven combined term loans and bonds require quarterly interest and principal payments and six have balloon or bullet repayments due at maturity. The term loans and bonds are collateralized by first-priority mortgages on 18 of the Partnership’s vessels to which the loans relate, together with certain other related security. In addition, at December 31, 2018 , all of the outstanding term loans and bonds were guaranteed by either the Partnership or subsidiaries of Teekay Nakilat Corporation (or the Teekay Nakilat Joint Venture ), of which the Partnership has a 70% ownership interest. The Partnership has Norwegian Kroner (or NOK ) 3.1 billion of senior unsecured bonds issued in the Norwegian bond market that mature through 2023. As at December 31, 2018 , the total amount of the bonds, which are listed on the Oslo Stock Exchange, was $353.0 million ( December 31, 2017 – $377.9 million ) . The interest payments on the bonds are based on NIBOR plus a margin, which margins ranged from 3.70% to 6.00% . The Partnership entered into cross currency swaps, to swap all interest and principal payments of the bonds into U.S. Dollars, with the interest payments fixed at rates ranging from 5.92% to 7.89% and the transfer of principal fixed at $382.5 million upon maturity in exchange for NOK 3.1 billion (see Note 13). The Partnership has two Euro-denominated term loans outstanding, which as at December 31, 2018 , totaled 169.0 million Euros ( $193.8 million ) ( December 31, 2017 – 194.1 million Euros ( $233.0 million )) . Interest payments are based on EURIBOR plus margins, which margins ranged from 0.60% to 1.95% as at December 31, 2018 , and the loans require monthly and semi-annual interest and principal payments. The term loans have varying maturities through 2024. The term loans are collateralized by first-priority mortgages on two of the Partnership's vessels to which the loans relate, together with certain other related security and are guaranteed by the Partnership and one of its subsidiaries. As at December 31, 2018 , the Teekay Nakilat Joint Venture, which the Partnership has a 70% ownership interest, has a $3.3 million loan payable to its 30% non-controlling interest owner. The interest is based on LIBOR plus 1.0% and is payable on demand. The weighted-average effective interest rate for the Partnership’s long-term debt outstanding at December 31, 2018 and December 31, 2017 were 4.44% and 3.34% , respectively. These rates do not reflect the effect of related interest rate swaps that the Partnership has used to economically hedge certain of its floating-rate debt (see Note 13). At December 31, 2018 , the margins on the Partnership’s outstanding revolving credit facilities and term loans ranged from 0.30% to 3.25% . All Euro-denominated term loans and NOK-denominated bonds are revalued at the end of each period using the then-prevailing U.S. Dollar exchange rate. Due primarily to the revaluation of the Partnership’s NOK-denominated bonds, the Partnership’s Euro-denominated term loans and restricted cash, the repayment of the Partnership's NOK-denominated bonds and the termination of the associated cross currency swaps, and the change in the valuation of the Partnership’s cross currency swaps, the Partnership incurred foreign exchange gains (losses) of $1.4 million , $(26.9) million , and $5.3 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The aggregate annual long-term debt principal repayments required subsequent to December 31, 2018 are $136.6 million ( 2019 ), $613.0 million ( 2020 ), $404.1 million ( 2021 ), $92.1 million ( 2022 ), $213.3 million ( 2023 ) and $528.5 million ( thereafter ). Certain loan agreements require that (a) the Partnership maintains minimum levels of tangible net worth and aggregate liquidity, (b) the Partnership maintain certain ratios of vessel values related to the relevant outstanding loan principal balance, (c) the Partnership not exceed a maximum amount of leverage, and (d) certain of the Partnership’s subsidiaries maintain restricted cash deposits. As at December 31, 2018 , the Partnership has three facilities with an aggregate outstanding loan balance of $442.2 million that require it to maintain minimum vessel-value-to-outstanding-loan-principal-balance ratios ranging from 115% to 135% , which as at December 31, 2018 ranged from 132% to 198% which exceeded the required ratios for the three facilities. The vessel values used in calculating these ratios are the appraised values provided by third parties where available or prepared by the Partnership based on second-hand sale and purchase market data. Since vessel values can be volatile, the Partnership’s estimates of market value may not be indicative of either the current or future prices that could be obtained if the Partnership sold any of the vessels. The Partnership’s ship-owning subsidiaries may not, among other things, pay dividends or distributions if the Partnership's subsidiaries are in default under their term loans or revolving credit facilities and, in addition, one of the term loans in the Teekay Nakilat Joint Venture requires it to satisfy a minimum vessel value to outstanding loan principal balance ratio to pay dividends. As at December 31, 2018 , the Partnership was in compliance with all covenants relating to the Partnership’s credit facilities and other long-term debt. |
Income Tax
Income Tax | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Income Tax The components of the provision for income taxes were as follows: Year Ended Year Ended Year Ended Current (2,361 ) (3,557 ) (962 ) Deferred (852 ) 2,733 (11 ) Income tax expense (3,213 ) (824 ) (973 ) The Partnership operates in countries that have differing tax laws and rates. Consequently, a consolidated weighted average tax rate will vary from year to year according to the source of earnings or losses by country and the change in applicable tax rates. Reconciliations of the tax charge related to the relevant year at the applicable statutory income tax rates and the actual tax charge related to the relevant year are as follows: Year Ended Year Ended Year Ended Net income before income tax expenses 30,088 49,735 158,938 Net income not subject to taxes (68,675 ) (94,106 ) (138,542 ) Net (loss) income subject to taxes (38,587 ) (44,371 ) 20,396 At applicable statutory tax rates Amount computed using the standard rate of corporate tax 6,833 13,874 (3,338 ) Adjustments to valuation allowance and uncertain tax positions (14,733 ) 324 11,802 Permanent and currency differences 3,257 (12,507 ) (9,125 ) Change in tax rates 1,430 (2,515 ) (312 ) Tax expense related to the current year (3,213 ) (824 ) (973 ) The significant components of the Partnership’s deferred tax assets (liabilities) were as follows: December 31, December 31, Derivative instruments 2,793 3,823 Taxation loss carryforwards and disallowed finance costs 49,298 35,326 Vessels and equipment 4,045 3,936 Capitalized interest (1,853 ) (1,927 ) 54,283 41,158 Valuation allowance (52,570 ) (38,594 ) Net deferred tax assets included in other assets 1,713 2,564 The Partnership had tax losses in the United Kingdom (or UK ) of $15.9 million as at December 31, 2018 ( December 31, 2017 – $7.9 million ) that are available indefinitely for offset against future taxable income in the UK. The Partnership had tax losses and disallowed finance costs in Spain of 110.3 million Euros or approximately $126.3 million ( December 31, 2017 – 110.3 million Euros or approximately $132.5 million ) and 20.7 million Euros or approximately $23.6 million ( December 31, 2017 – 25.2 million Euros or approximately $30.2 million ), respectively, at December 31, 2018 of which the tax losses are available indefinitely and the disallowed finance costs are available for 18 years from the year the costs are incurred for offset against future taxable income in Spain. The Partnership also had tax losses in Luxembourg of 109.9 million Euros or approximately $125.7 million as at December 31, 2018 ( December 31, 2017 – 91.5 million Euros or approximately $109.9 million ) that are available for offset against taxable future income in Luxembourg, either indefinitely for losses arising prior to 2017, or for 17 years for losses arising subsequent to 2016. The Partnership recognizes interest and penalties related to uncertain tax positions in income tax expense. The tax years 2008 through 2018 currently remain open to examination by the major tax jurisdictions to which the Partnership is subject. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions a) The following table and related footnotes provide information about certain of the Partnership's related party transactions for the periods indicated: Year Ended Year Ended Year Ended Voyage revenues (i)(vi) 11,018 36,358 37,336 Vessel operating expenses (ii)(vi) (17,666 ) (23,564 ) (19,738 ) Time-charter hire expense (iii) (7,671 ) — — General and administrative expenses (iv) (15,967 ) (9,434 ) (12,590 ) General and administrative expenses deferred and capitalized (v) (822 ) (859 ) (571 ) (i) Commencing in 2008, the Arctic Spirit and Polar Spirit LNG carriers were time-chartered to Teekay Corporation at fixed-rates for periods of 10 years . The contract periods for the Polar Spirit and for the Arctic Spirit expired in March 2018 and April 2018, respectively. (ii) The Partnership and certain of its operating subsidiaries have entered into service agreements with certain subsidiaries of Teekay Corporation pursuant to which the Teekay Corporation subsidiaries provide to the Partnership and its subsidiaries crew training and technical management services. In addition, as part of the Partnership's acquisition of its ownership interest in the Pan Union Joint Venture in 2014, the Partnership entered into an agreement with a subsidiary of Teekay Corporation whereby Teekay Corporation's subsidiary agreed to provide, on behalf of the Partnership, shipbuilding supervision and crew training services for four LNG carrier newbuildings in the Pan Union Joint Venture, up to their delivery dates from 2017 to 2019. All costs incurred by these Teekay Corporation subsidiaries related to these services are charged to the Partnership and recorded as part of vessel operating expenses. (iii) In September 2018, the Partnership entered into an agreement with its 52% -owned joint venture, the Teekay LNG-Marubeni Joint Venture, to charter in one of Teekay LNG-Marubeni Joint Venture's LNG carriers, the Magellan Spirit , for a period of two years at a fixed-rate. (iv) Includes administrative, advisory, business development, commercial and strategic consulting services charged by Teekay Corporation's subsidiaries and reimbursements to the Partnership's General Partner for costs incurred on the Partnership's behalf for the conduct of the Partnership's business. (v) Includes the Partnership's costs associated with the Bahrain LNG Joint Venture including pre-operation, engineering and financing-related expenses, of which $1.1 million was reimbursed by the Bahrain LNG Joint Venture during 2018 ( December 31, 2017 – $1.1 million ; December 31, 2016 – $0.4 million ). The net costs are recorded as part of investments in and advances to equity-accounted joint ventures in the Partnership's consolidated balance sheets. (vi) The Partnership entered into an operation and maintenance contract with the Bahrain LNG Joint Venture and an operating and maintenance subcontract with Teekay Marine Solutions (Bermuda) Ltd. (or TMS ), an entity wholly-owned by Teekay Tankers Ltd., which is controlled by Teekay Corporation, relating to the LNG regasification terminal in Bahrain. The Partnership, as the contractor, and TMS, as the subcontractor, agreed to provide pre-mobilization services up to August 2018, and mobilization services and other general operational and maintenance services of the facility thereafter. The subcontractor fees from TMS of $ 1.6 million during 2018 ($ nil during 2017 and 2016) are included in vessel operating expenses in the Partnership's consolidated statements of income. Cost recoveries from the Bahrain LNG Joint Venture of $ 1.6 million during 2018 ($ nil during 2017 and 2016) are included in voyage revenues in the Partnership's consolidated statements of income. b) The Partnership entered into services agreements with certain subsidiaries of Teekay Corporation pursuant to which the Teekay Corporation subsidiaries provide the Partnership with shipbuilding and site supervision services related to certain LNG carrier newbuildings the Partnership has ordered. These costs are capitalized and included as part of advances on newbuilding contracts in the Partnership’s consolidated balance sheets. During the years ended 2018 , 2017 and 2016 , the Partnership incurred shipbuilding and site supervision costs with Teekay Corporation subsidiaries of $ 15.3 million , $13.2 million and $8.5 million , respectively. c) As at December 31, 2018 and 2017 , non-interest bearing advances to affiliates totaled $ 8.2 million and $7.3 million , respectively, and non-interest bearing advances from affiliates totaled $ 14.7 million and $12.1 million , respectively. These advances are unsecured and have no fixed repayment terms. Affiliates are entities that are under the same common control. d) The Partnership’s Suezmax tanker the Toledo Spirit operates pursuant to a time-charter contract that increases or decreases the otherwise fixed-hire rate established in the charter depending on the spot charter rates that the Partnership would have earned had it traded the vessel in the spot tanker market. The time-charter contract was terminated in January 2019 upon which the charterer, which is also the owner, sold the vessel to a third party. The Partnership has entered into an agreement with Teekay Corporation under which Teekay Corporation paid the Partnership any amounts payable to the charterer as a result of spot rates being below the fixed rate, and the Partnership paid Teekay Corporation any amounts payable to the Partnership as a result of spot rates being in excess of the fixed rate. The amounts receivable or payable to Teekay Corporation are settled annually (see Notes 3 and 13). |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Partnership uses derivative instruments in accordance with its overall risk management policy. Foreign Exchange Risk The Partnership entered into cross currency swaps concurrently with the issuance of its NOK-denominated senior unsecured bonds (see Note 10), and pursuant to these swaps, the Partnership receives the principal amount in NOK on maturity dates of the swaps in exchange for payments of a fixed U.S. Dollar amount. In addition, the cross currency swaps exchange a receipt of floating interest in NOK based on NIBOR plus a margin for a payment of U.S. Dollar fixed interest. The purpose of the cross currency swaps is to economically hedge the foreign currency exposure on the payment of interest and principal of the Partnership’s NOK-denominated bonds due in 2020, 2021 and 2023, and to economically hedge the interest rate exposure. The following table reflects information relating to the cross currency swaps as at December 31, 2018 . Floating Rate Receivable Principal Principal Reference Margin Fixed Rate Fair Value / Weighted- 1,000,000 134,000 NIBOR 3.70 % 5.92 % (18,315 ) 1.4 1,200,000 146,500 NIBOR 6.00 % 7.72 % (4,727 ) 2.8 850,000 102,000 NIBOR 4.60 % 7.89 % (6,080 ) 4.7 (29,122 ) Interest Rate Risk The Partnership enters into interest rate swaps which exchange a receipt of floating interest for a payment of fixed interest to reduce the Partnership’s exposure to interest rate variability on certain of its outstanding floating-rate debt. As at December 31, 2018 , the Partnership was committed to the following interest rate swap agreements: Interest Principal Fair Value / Weighted- Fixed Interest Rate (i) LIBOR-Based Debt: U.S. Dollar-denominated interest rate swaps LIBOR 30,000 (519 ) 0.5 4.9 % U.S. Dollar-denominated interest rate swaps (ii) LIBOR 131,250 (16,494 ) 10.0 5.2 % U.S. Dollar-denominated interest rate swaps (ii) LIBOR 32,134 (66 ) 2.6 2.8 % U.S. Dollar-denominated interest rate swaps (iii)(iv) LIBOR 336,316 (12,787 ) 2.0 3.4 % U.S. Dollar-denominated interest rate swaps (iv) LIBOR 91,000 174 0.0 1.7 % U.S. Dollar-denominated interest rate swaps (iv) LIBOR 184,005 3,167 8.0 2.3 % EURIBOR-Based Debt: Euro-denominated interest rate swaps EURIBOR 86,477 (11,092 ) 4.7 3.8 % (37,617 ) (i) Excludes the margins the Partnership pays on its floating-rate term loans, which, at December 31, 2018 , ranged from 0.30% to 3.25% . (ii) Principal amount reduces semi-annually. (iii) These interest rate swaps are subject to mandatory early termination in 2020 and 2021, whereby the swaps will be settled based on their fair value at that time. (iv) Principal amount reduces quarterly. As at December 31, 2018 , the Partnership had multiple interest rate swaps and cross currency swaps with the same counterparty that are subject to the same master agreement. Each of these master agreements provide for the net settlement of all swaps subject to that master agreement through a single payment in the event of default or termination of any one swap. The fair value of these derivative instruments is presented on a gross basis in the Partnership’s consolidated balance sheets. As at December 31, 2018 , these interest rate swaps and cross currency swaps had an aggregate fair value asset of $3.2 million (December 31, 2017 – $4.5 million ) and an aggregate fair value liability of $ 53.6 million (December 31, 2017 – $81.5 million ) . As at December 31, 2018 , the Partnership had $6.8 million ( December 31, 2017 – $22.3 million ) on deposit as security for swap liabilities under certain master agreements. The deposit is presented in restricted cash – current and long-term on the Partnership’s consolidated balance sheets. Credit Risk The Partnership is exposed to credit loss in the event of non-performance by the counterparties to the interest rate swap agreements. In order to minimize counterparty risk, the Partnership only enters into derivative transactions with counterparties that are rated A- or better by Standard & Poor’s or A3 or better by Moody’s at the time of the transactions. In addition, to the extent practical, interest rate swaps are entered into with different counterparties to reduce concentration risk. Other Derivatives In order to reduce the variability of its revenue, the Partnership has entered into an agreement with Teekay Corporation under which Teekay Corporation pays the Partnership any amounts payable to the charterer of the Toledo Spirit as a result of spot rates being below the fixed rate, and the Partnership pays Teekay Corporation any amounts payable to the Partnership by the charterer of the Toledo Spirit as a result of spot rates being in excess of the fixed rate. The fair value of the derivative asset at December 31, 2018 was $1.1 million ( December 31, 2017 – an asset of $1.6 million ). The following table presents the location and fair value amounts of derivative instruments, segregated by type of contract, on the Partnership’s consolidated balance sheets. Accounts receivable/Advances to affiliates $ Current portion of derivative assets Derivative assets Accrued liabilities Current portion of derivative liabilities Derivative liabilities As at December 31, 2018 Interest rate swap agreements 188 795 2,362 (2,729 ) (6,875 ) (31,358 ) Cross currency swap agreements — — — (713 ) (4,729 ) (23,680 ) Toledo Spirit time-charter derivative 1,021 40 — — — — 1,209 835 2,362 (3,442 ) (11,604 ) (55,038 ) As at December 31, 2017 Interest rate swap agreements — 108 1,130 (4,101 ) (34,614 ) (35,629 ) Interest rate swaption agreements — — — — (2 ) — Cross currency swap agreements — — 5,042 (810 ) (44,523 ) (10,168 ) Toledo Spirit time-charter derivative 678 970 — — — — 678 1,078 6,172 (4,911 ) (79,139 ) (45,797 ) Realized and unrealized gains (losses) relating to non-designated interest rate swap agreements, interest rate swaption agreements, and the Toledo Spirit time-charter derivative are recognized in earnings and reported in realized and unrealized gain (loss) on non-designated derivative instruments in the Partnership’s consolidated statements of income. The effect of the gain (loss) on these derivatives on the Partnership’s consolidated statements of income is as follows: Year Ended December 31, 2018 $ 2017 $ 2016 $ Realized gains (losses) Unrealized gains (losses) Total Realized gains (losses) Unrealized gains (losses) Total Realized gains (losses) Unrealized gains (losses) Total Interest rate swap agreements (14,654 ) 31,061 16,407 (18,825 ) 12,393 (6,432 ) (25,940 ) 15,627 (10,313 ) Interest rate swaption agreements — 2 2 — 945 945 — (164 ) (164 ) Interest rate swap and swaption agreements termination (13,681 ) — (13,681 ) (610 ) — (610 ) — — — Toledo Spirit time-charter derivative 1,480 (930 ) 550 678 110 788 (654 ) 3,970 3,316 (26,855 ) 30,133 3,278 (18,757 ) 13,448 (5,309 ) (26,594 ) 19,433 (7,161 ) Unrealized and realized gains (losses) relating to cross currency swap agreements are recognized in earnings and reported in foreign currency exchange gain (loss) in the Partnership’s consolidated statements of income. The effect of the gain (loss) on these derivatives on the Partnership's consolidated statements of income is as follows: Year Ended December 31, 2018 $ 2017 $ 2016 $ Realized Unrealized Total Realized Unrealized Total Realized Unrealized Total Cross currency swap agreements (6,533 ) 21,240 14,707 (9,344 ) 49,047 39,703 (9,063 ) 28,905 19,842 Cross currency swap agreements termination (42,271 ) — (42,271 ) (25,733 ) — (25,733 ) (17,711 ) — (17,711 ) (48,804 ) 21,240 (27,564 ) (35,077 ) 49,047 13,970 (26,774 ) 28,905 2,131 For the years ended December 31, 2018 , 2017 and 2016 , the following tables present the effective and ineffective portion of losses on interest rate swap agreements designated and qualifying as cash flow hedges. The following tables exclude any interest rate swap agreements designated and qualifying as cash flow hedges in the Partnership’s equity-accounted joint ventures. Year Ended December 31, 2018 Effective Portion Recognized in AOCI (i) $ Effective Portion Reclassified from AOCI (ii) $ Ineffective Portion (iii) $ 2,128 (152) 740 Interest expense 2,128 (152) 740 Year Ended December 31, 2017 Effective Portion Recognized in AOCI (i) $ Effective Portion Reclassified from AOCI (ii) $ Ineffective Portion (iii) $ 429 (427) (740) Interest expense 429 (427) (740) Year Ended December 31, 2016 Effective Portion Recognized in AOCI (i) $ Effective Portion Reclassified from AOCI (ii) $ Ineffective Portion (iii) $ 590 — — Interest expense 590 — — (i) Effective portion of designated and qualifying cash flow hedges recognized in other comprehensive (loss) income. (ii) Effective portion of designated and qualifying cash flow hedges recorded in accumulated other comprehensive income (or AOCI ) during the term of the hedging relationship and reclassified to earnings. (iii) Ineffective portion of designated and qualifying cash flow hedges. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies a) The Partnership’s share of commitments to fund newbuilding and other construction contract costs as at December 31, 2018 is as follows: 2019 Hyundai Samho Heavy Industries Co. (i) 120,413 Yamal LNG Joint Venture (ii) 436,100 Pan Union Joint Venture (iii) 29,200 Bahrain LNG Joint Venture (iv) 66,509 652,222 (i) As at December 31, 2018 , the Partnership had one remaining 100% -owned LNG carrier newbuilding on order with Hyundai Samho Heavy Industries Co. (or HHI ). The vessel delivered on January 31, 2019. As at December 31, 2018 , costs incurred under this newbuilding contract totaled $ 86.9 million . In January 2019, the Partnership secured $ 159 million of financing through a sale-leaseback agreement for this remaining HHI LNG carrier newbuilding. (ii) The Partnership, through the Yamal LNG Joint Venture, has a 50% ownership interest in four 172,000 -cubic meter ARC7 LNG carrier newbuildings that have an estimated total fully built-up cost of approximately $1.4 billion . As at December 31, 2018 , the Partnership’s proportionate costs incurred under these newbuilding contracts totaled $255.8 million . The Yamal LNG Joint Venture has secured debt financing of $1.1 billion for the four LNG carrier newbuildings, of which $395 million was undrawn at December 31, 2018 , related to the Partnership's proportionate share of the commitments included in the table above. (iii) Through the Pan Union Joint Venture, the Partnership has a 20% ownership interest in one LNG carrier newbuilding which delivered on January 8, 2019 (see Note 20a). The Pan Union Joint Venture has secured financing of $24 million related to the Partnership's proportionate share of the commitments included in the table above and the Partnership received $0.2 million of reimbursement directly from Shell in 2019 (see Note 7a iii). (iv) The Partnership has a 30% ownership interest in the Bahrain LNG Joint Venture for the development of an LNG receiving and regasification terminal in Bahrain. The project will include an FSU, which will be modified from one of the Partnership’s existing MEGI LNG carrier newbuildings, an offshore gas receiving facility, and an onshore nitrogen production facility. The terminal will have a capacity of 800 million standard cubic feet per day and will be owned and operated under a 20 -year agreement commencing mid-2019. The receiving and regasification terminal is expected to have a fully-built up cost of approximately $ 903 million . The Bahrain LNG Joint Venture has secured undrawn debt financing of $195 million , of which $ 58 million relates to the Partnership's proportionate share of the commitments included in the table above. b) Following the termination of the capital lease arrangements for the three LNG carriers in the Teekay Nakilat Joint Venture in 2014, the lessor made a determination that additional rentals were due under the leases following a challenge by the UK taxing authority. As a result, in 2018 the Teekay Nakilat Joint Venture recognized an additional liability of $53.0 million , which was included as part of other (expense) income in the Partnership's consolidated statements of income, and paid this liability by releasing a $7.0 million cash deposit it had made with the lessor and making a $56.0 million cash payment for the balance, which was based on the GBP/USD foreign currency exchange rates at the time the payments were made. c) The Teekay Tangguh Joint Venture is currently undergoing a tax audit related to its tax returns filed for the 2010 and subsequent fiscal years . The UK taxing authority has challenged the deductibility of certain transactions not directly related to the long funding lease and the Teekay Tangguh Joint Venture has recorded a provision of $1.6 million (of which the Partnership’s 69% share is $1.1 million ) in December 2017 which is included in income tax expense in the Partnership’s consolidated statements of income for the year ended December 31, 2017 . d) In May 2016, the Teekay LNG-Marubeni Joint Venture reached a settlement agreement with a charterer relating to a disputed charter contract termination for one of its LNG carriers that occurred in 2015. The charterer paid $39.0 million to the Teekay LNG-Marubeni Joint Venture in June 2016 for lost revenues, of which the Partnership’s share of $20.3 million was recorded in equity income for the year ended December 31, 2016 . e) Management is required to assess whether the Partnership will have sufficient liquidity to continue as a going concern for the one-year period following the issuance of its financial statements. The Partnership completed a number of financings and re-financings over the past 12 months, including the Partnership's refinancing and up-sizing of its $190 million revolving credit facility with a new $225 million revolving credit facility in early-November 2018 and the Partnership securing $159 million financing on its one remaining LNG carrier newbuilding in our consolidated fleet in January 2019. Based on the Partnership’s liquidity at the date these consolidated financial statements were issued and the liquidity it expects to generate from operations over the following year, the Partnership estimates that it will have sufficient liquidity to continue as a going concern for at least the one-year period following the issuance of these consolidated financial statements. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information a) The following is a tabular reconciliation of the Partnership's cash, cash equivalents and restricted cash balances for the periods presented in the Partnership's consolidated statements of cash flows: December 31, 2018 $ December 31, 2017 $ December 31, 2016 $ December 31, 2015 $ Cash and cash equivalents 149,014 244,241 126,146 102,481 Restricted cash - current 38,329 22,326 10,145 6,600 Restricted cash - long-term 35,521 72,868 106,882 104,919 Total 222,864 339,435 243,173 214,000 The Partnership maintains restricted cash deposits relating to certain term loans, collateral for cross currency swaps, project tenders and amounts received from charterers to be used only for dry-docking expenditures and emergency repairs. b) The changes in operating assets and liabilities for years ended December 31, 2018 , 2017 and 2016 are as follows: Year Ended Year Ended Year Ended Accounts receivable 3,542 1,620 5,494 Prepaid expenses and other current assets (3,843 ) (2,815 ) 745 Accounts payable 274 (2,053 ) 2,791 Accrued liabilities and other long-term liabilities 13,958 2,449 (1,572 ) Unearned revenue and long-term unearned revenue 4,234 (1,456 ) (3,218 ) Advances to and from affiliates 2,183 (913 ) (9,699 ) Other operating assets and liabilities (1,130 ) 772 (4,402 ) Total 19,218 (2,396 ) (9,861 ) c) Cash interest paid (including realized losses on interest rate swaps) on long-term debt, advances from affiliates and obligations related to capital leases, net of amounts capitalized, during the years ended December 31, 2018 , 2017 and 2016 totaled $167.8 million , $122.7 million and $100.9 million , respectively. d) During the years ended December 31, 2018 , 2017 and 2016 , cash paid for corporate income taxes was $6.0 million , $2.9 million and $4.9 million , respectively. e) During the year ended December 31, 2017 , the Partnership acquired a 100% ownership interest in Skaugen Gulf Petchem Carriers B.S.C.(c) (or the Skaugen LPG Joint Venture ), which owned the LPG carrier Norgas Sonoma , from I.M. Skaugen SE (or Skaugen ) ( 35% ), The Oil & Gas Holding Company B.S.C.(c) ( 35% ) and Suffun Bahrain W.L.L. ( 30% ) for $13.2 million . The Partnership applied $4.6 million of the outstanding hire owed by Skaugen to the Partnership as a portion of the purchase price to acquire the Skaugen LPG Joint Venture, which was treated as a non-cash transaction in the Partnership’s consolidated statements of cash flows. |
Total Capital and Net Income Pe
Total Capital and Net Income Per Common Unit | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Total Capital and Net Income Per Common Unit | Total Capital and Net Income Per Common Unit As at December 31, 2018 , a total of 68.2% of the Partnership's common units outstanding were held by the public. The remaining common units, as well as the 2% general partner interest, were held by subsidiaries of Teekay Corporation. All of the Partnership's outstanding Series A Cumulative Redeemable Perpetual Preferred Units (or the Series A Preferred Units ) and Series B Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (or the Series B Preferred Units ) are held by the public. Limited Partners’ Rights Significant rights of the Partnership’s limited partners include the following: • Right of common unitholders to receive distribution of Available Cash (as defined in the partnership agreement and which takes into account cash reserves for, among other things, future capital expenditures and future credit needs of the Partnership) within approximately 45 days after the end of each quarter. • No limited partner shall have any management power over the Partnership’s business and affairs; the General Partner is responsible for the conduct, directions and management of the Partnership’s activities. • The General Partner may be removed if such removal is approved by common unitholders holding at least 66-2/3% of the outstanding units voting as a single class, including units held by our General Partner and its affiliates. Incentive Distribution Rights The General Partner is entitled to incentive distributions if the amount the Partnership distributes to common unitholders with respect to any quarter exceeds specified target levels shown below: Quarterly Distribution Target Amount (per unit) Unitholders General Partner Minimum quarterly distribution of $0.4125 98 % 2 % Up to $0.4625 98 % 2 % Above $0.4625 up to $0.5375 85 % 15 % Above $0.5375 up to $0.6500 75 % 25 % Above $0.6500 50 % 50 % During 2018 , 2017 , and 2016 , the quarterly cash distributions were below $0.4625 per common unit and, consequently, the assumed distribution of net income was based on the limited partners' and General Partner’s ownership percentage for the purposes of the net income per common unit calculation. In the event of a liquidation, all property and cash in excess of that required to discharge all liabilities and liquidation amounts on the Series A Preferred Units and Series B Preferred Units will be distributed to the common unitholders and the General Partner in proportion to their capital account balances, as adjusted to reflect any gain or loss upon the sale or other disposition of the Partnership’s assets in liquidation in accordance with the partnership agreement. Net Income Per Common Unit Limited partners' interest in net income per common unit is determined by dividing net income, after deducting the amount of net income attributable to the non-controlling interests, the General Partner’s interest and the distributions on the Series A and Series B Preferred Units by the weighted-average number of common units outstanding during the period. The distributions payable on the Series A and Series B Preferred Units for the year ended December 31, 2018 were $25.7 million ( December 31, 2017 – $14.0 million , December 31, 2016 – $2.7 million ). Year Ended Year Ended Year Ended Limited partners' interest in net income for basic net income per common unit 2,615 19,586 134,977 Weighted average number of common units 79,672,435 79,617,778 79,568,352 Dilutive effect of unit-based compensation 169,893 173,263 103,506 Common units and common unit equivalents 79,842,328 79,791,041 79,671,858 Limited partner's interest in net income per common unit: Basic 0.03 0.25 1.70 Diluted 0.03 0.25 1.69 The General Partner’s and common unitholders’ interests in net income are calculated as if all net income was distributed according to the terms of the Partnership’s partnership agreement, regardless of whether those earnings would or could be distributed. The partnership agreement does not provide for the distribution of net income; rather, it provides for the distribution of available cash, which is a contractually defined term that generally means all cash on hand at the end of each quarter after establishment of cash reserves determined by the Partnership’s Board of Directors to provide for the proper conduct of the Partnership’s business, including reserves for maintenance and replacement capital expenditure and anticipated credit needs. In addition, the General Partner is entitled to incentive distributions if the amount the Partnership distributes to common unitholders with respect to any quarter exceeds specified target levels. Unlike available cash, net income is affected by non-cash items, such as depreciation and amortization, unrealized gains or losses on non-designated derivative instruments and foreign currency translation gains (losses). Pursuant to the Partnership agreement, allocations to partners are made on a quarterly basis. Equity Offerings The following table summarizes the issuances of common and preferred units over the three years ended December 31, 2018 : Date Units Type of Units Offering Gross Proceeds (i) $ Net Proceeds $ Teekay Corporation’s Ownership After the Offering (ii) Use of Proceeds October 2016 Public Offering 2016 (iii) 5,000,000 Preferred $ 25.00 125,000 120,707 33.02 % General partnership purposes, including debt repayments and funding newbuilding installments October 2017 Public Offering (iv) 6,800,000 Preferred $ 25.00 170,000 164,411 33.02 % General partnership purposes, including debt repayments and funding newbuilding installments (i) Including the General Partner’s proportionate capital contribution. (ii) Including Teekay Corporation’s indirect general partner interest relating to common unit offerings. (iii) On October 5, 2016, the Partnership issued Series A Preferred Units having a distribution rate of 9.0% per annum of the stated liquidation preference of $25.00 per unit. At any time on or after October 5, 2021, the Partnership may redeem the Series A Preferred Units, in whole or in part, at a redemption price of $25.00 per unit plus all accumulated and unpaid distributions to the date of redemption, whether or not declared. (iv) On October 23, 2017, the Partnership issued Series B Preferred Units having a distribution rate of 8.5% per annum of the stated liquidation preference of $25.00 per unit up to October 15, 2027, at which point the rate moves to a floating rate equal to three-month LIBOR plus a margin of 6.241% . At any time on or after October 15, 2027, the Partnership may redeem the Series B Preferred Units, in whole or in part, at a redemption price of $25.00 per unit plus all accumulated and unpaid distributions thereon to the date of redemption, whether or not declared. Common Unit Repurchases In December 2018, the Partnership announced that its Board of Directors had authorized a common unit repurchase program for the repurchase of up to $100 million of the Partnership's common units. As at December 31, 2018, the Partnership had repurchased approximately 0.3 million units for $ 3.7 million (see Note 20d). |
Unit-Based Compensation
Unit-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Unit-Based Compensation | Unit-Based Compensation In March 2018 , a total of 17,498 common units, with an aggregate value of $0.3 million , were granted to the non-management directors of the General Partner as part of their annual compensation for 2018 . These common units were fully vested upon grant. During 2017 and 2016 , the Partnership awarded 17,345 and 32,723 common units, respectively, as compensation to non-management directors. The awards were fully vested in March 2017 and March 2016 , respectively. The compensation to the non-management directors is included in general and administrative expenses on the Partnership’s consolidated statements of income. During March 2018 , 2017 and 2016 , the Partnership granted 62,283 , 60,809 and 132,582 restricted units, respectively, with grant date fair values of $1.2 million $1.0 million and $1.5 million , respectively, to certain of the Partnership’s employees and to certain employees of Teekay Corporation’s subsidiaries who provide services to the Partnership, based on the Partnership’s closing common unit price on the grant date. Each restricted unit is equal in value to one of the Partnership's common units plus reinvested distributions from the grant date to the vesting date. The restricted units vest equally over three years from the grant date. Any portion of a restricted unit award that is not vested on the date of a recipient’s termination of service is canceled, unless their termination arises as a result of the recipient’s retirement, and in this case, the restricted unit award will continue to vest in accordance with the vesting schedule. Upon vesting, the value of the restricted unit awards is paid to each recipient in the form of common units, net of withholding tax. During the years ended December 31, 2018 , 2017 and 2016 , the Partnership recorded an expense of $1.3 million , $1.0 million , and $1.3 million , respectively, related to the restricted units and common units. |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges During 2018, as a result of the sale of the Teide Spirit (see Note 19e), the Partnership incurred seafarer severance payments for the year ended December 31, 2018 of $1.8 million and presented as restructuring charges in the Partnership's consolidated statements of income. As at December 31, 2018, the remaining balance of unpaid restructuring charges of $0.5 million is included in accrued liabilities in the Partnership's consolidated balance sheets. |
Write-Down and Loss on Sale of
Write-Down and Loss on Sale of Vessels | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Write-Down and Loss on Sale of Vessels | Write-Down and Loss on Sales of Vessels a) During February and March 2016, Centrofin Management Inc. (or Centrofin ), the charterer for both the Bermuda Spirit and Hamilton Spirit Suezmax tankers, exercised its option under the charter contracts to purchase both vessels. As a result of Centrofin’s acquisition of the vessels, the Partnership recorded a $27.4 million loss on the sale of the vessels and associated charter contracts in the year ended December 31, 2016 in the Partnership's consolidated statements of income. The Bermuda Spirit was sold on April 15, 2016 and the Hamilton Spirit was sold on May 17, 2016. The Partnership used the total proceeds of $94.3 million from the sales primarily to repay existing term loans associated with these vessels. b) In November 2016, the Partnership reached an agreement to sell the Asian Spirit Suezmax tanker for net proceeds of $20.6 million and as a result, recorded an $11.5 million impairment charge on the write-down of the vessel for the year ended December 31, 2016 in the Partnership's consolidated statements of income. The vessel delivered to the new owner on March 21, 2017. The Partnership used the net proceeds from the sale primarily to repay its existing term loan associated with the vessel. c) In June 2017, the charterer for the European Spirit Suezmax tanker gave formal notice to the Partnership that it would not exercise its one -year extension option under the charter contract and the charterer redelivered the vessel to the Partnership in August 2017. Upon receiving this notification, the Partnership commenced marketing the vessel for sale. As a result, the Partnership wrote-down the vessel to its estimated resale value, based on second-hand market comparable values and recorded a $12.6 million write-down of the vessel for the year ended December 31, 2017 in the Partnership's consolidated statements of income. The vessel was presented as held for sale in the Partnership's consolidated balance sheets as of December 31, 2017. The Partnership recorded a further write-down on this vessel of $4.0 million for the year ended December 31, 2018 in the Partnership's consolidated statements of income. On December 6, 2018 the European Spirit Suezmax tanker was sold for net proceeds of $15.7 million . The Partnership used the net proceeds from the sale primarily to repay its existing term loan associated with the vessel. d) In August 2017, the charterer for the African Spirit Suezmax tanker gave formal notice to the Partnership that it will not exercise its one -year extension option under the charter contract and the charterer redelivered the vessel to the Partnership in November 2017. As a result, the Partnership wrote-down the vessel to its estimated resale value, based on second-hand market comparable values, and recorded a $12.5 million write-down of the vessel for the year ended December 31, 2017 in the Partnership's consolidated statements of income. The vessel was presented as held for sale in the Partnership's consolidated balance sheets as of December 31, 2017. The Partnership recorded a further write-down on this vessel of $3.9 million for the year ended December 31, 2018 in the Partnership's consolidated statements of income. On October 9, 2018 the African Spirit Suezmax tanker was sold for net proceeds of $12.8 million . The Partnership used the net proceeds from the sale primarily to repay its existing term loan associated with the vessel. e) Under the Partnership' s charter contracts for the Teide Spirit and Toledo Spirit Suezmax tankers, the charterer, who is also the owner of the vessels, has the option to cancel the charter contracts 13 years following commencement of the respective charter contracts. In August 2017, the charterer of the Teide Spirit gave formal notification to the Partnership of its intention to terminate its charter contract subject to certain conditions being met and third-party approvals being received. In February 2018, the charterer, sold the Teide Spirit to a third party. On May 20, 2018, the charterer of the Toledo Spirit gave formal notification to the Partnership of its intention to terminate its charter contract subject to certain conditions being met and the receipt of certain third-party approvals. On November 20, 2018, the owner and charterer of the Toledo Spirit , reached an agreement to sell the vessel and delivered the vessel to the buyer in January 2019 (see Note 20b). The Partnership wrote-down the vessels to their estimated fair values based on their expected future discounted cash flows and recorded an aggregated write-down of $25.5 million for the year ended December 31, 2017 in the Partnership's consolidated statements of income. f) In March 2018, the carrying value of the Alexander Spirit conventional tanker was written down to its estimated fair value, using an appraised value, as a result of changes in the Partnership's expectations of the vessel's future opportunities once its current charter contract ends in 2019. The impairment charge of $13.0 million is included in write-down of goodwill and write-down and loss on sales of vessels for the year ended December 31, 2018 in the Partnership's consolidated statements of income. g) In June 2018, the carrying values for four of the Partnership's seven wholly-owned multi-gas carriers (the Napa Spirit , Pan Spirit , Camilla Spirit and Cathinka Spirit ), were written down to their estimated fair values, taking into consideration vessel appraised values, as a result of the Partnership's evaluation of alternative strategies for these assets, the current charter rate environment and the outlook for charter rates for these vessels at that time. The total impairment charge of $33.0 million is included in write-down of goodwill and write-down and loss on sales of vessels for the year ended December 31, 2018 in the Partnership's consolidated statements of income. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events a) On January 8, 2019, the Pan Union Joint Venture took delivery of its fourth LNG carrier newbuilding, the Pan Africa , in which the Partnership has a 20% ownership interest. The vessel concurrently commenced its 20 -year charter contract with Shell. b) On January 23, 2019, the Toledo Spirit Suezmax tanker was delivered to the owner of the vessel. Upon delivery, the charterer, who is also the owner of the vessel, terminated its time-charter contract with the Partnership and sold the vessel to a third-party. c) On January 31, 2019, the Yamal Spirit LNG carrier newbuilding was delivered and concurrently commenced its 15 -year charter time-contract with Yamal Trade Pte. Ltd . Upon delivery of the vessel, the Partnership sold and leased back the vessel under a sale-leaseback financing transaction, which the Partnership secured on January 18, 2019 prior to the delivery of the Yamal Spirit . d) During January 2019, the Partnership repurchased 0.8 million of its common units for $9.3 million . e) On February 25, 2019, the Partnership entered into a commercial management agreement (or CMA ) with a third-party commercial manager (or the Manager ) whereby the Manager agreed to commercially manage and employ the Partnership's seven multi-gas vessels, with such transition to occur over a period between February 2019 and April 2019. The Partnership has the ability to withdraw its vessels from the Manager at any time subject to the requirements provided in the CMA. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation These consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (or GAAP ). They include the accounts of Teekay LNG Partners L.P., which is a limited partnership organized under the laws of the Republic of The Marshall Islands, its wholly-owned or controlled subsidiaries and any variable interest entities (or VIEs ) of which it is the primary beneficiary (collectively, the Partnership ) . The preparation of these consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. Significant intercompany balances and transactions have been eliminated upon consolidation. In addition, certain comparative figures have been reclassified to conform to the presentation adopted in the current period relating to a change in the Partnership's reportable segments (see Note 4) and to reclassifications of certain related party transactions between vessel operating expenses and general and administrative expenses in the Partnership's consolidated statements of income that resulted in a decrease in vessel operating expenses and an offsetting increase in general and administrative expenses of $1.6 million and $0.7 million for the years ended December 31, 2017 and December 31, 2016, respectively. |
Foreign currency | Foreign currency The consolidated financial statements are stated in U.S. Dollars and the functional currency of the Partnership is the U.S. Dollar. Transactions involving other currencies during the year are converted into U.S. Dollars using the exchange rates in effect at the time of the transactions. At the balance sheet date, 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 in foreign currency exchange gain (loss) in the accompanying consolidated statements of income. |
Revenues | Revenues Time charters Revenues from time-charters accounted for as operating leases are recognized by the Partnership on a straight-line basis daily over the term of the charter. Upon commencement of a time charter accounted for as a direct financing lease, the carrying value of the vessel is derecognized and the net investment in the lease is recognized. The lease element of time-charter hire receipts is allocated to the lease receivable and voyage revenues over the term of the lease using the effective interest rate method. The non-lease element of time-charter hire receipts is recognized by the Partnership on a straight-line basis daily over the term of the charter. For time-charter contracts where the charterer is responsible for the operation of the vessel, the Partnership offsets any vessel operating expenses it incurs against reimbursements from the charterer. The Partnership does not recognize revenues during days that the vessel is off-hire or if collectability of receipts of charter payments from charterers is not reasonably assured. When the time charter contains a profit-sharing agreement, the Partnership recognizes the profit-sharing or contingent revenues when the contingency is resolved. Voyage charters Revenues from voyage charters are recognized on a proportionate performance method. The Partnership uses a discharge-to-discharge basis in determining proportionate performance for all spot voyages that contain a lease and a load-to-discharge basis in determining proportionate performance for all spot voyages that do not contain a lease. The Partnership does not begin recognizing revenue until a charter has been agreed to by the customer, even if the vessel has discharged its cargo and is sailing to the anticipated load port on its next voyage. The consolidated balance sheets reflect, in other current assets, the accrued portion of revenues for those voyages that commence prior to balance sheet date and complete after the balance sheet date. Bareboat charters Revenues from bareboat charters accounted for as operating leases are recognized by the Partnership on a straight-line basis daily over the term of the charter. Upon commencement of a bareboat charter accounted for as a direct financing lease, the carrying value of the vessel is derecognized and the net investment in the lease is recognized. Bareboat hire receipts are allocated to the lease receivable and voyage revenues over the term of the lease using the effective interest rate method. The Partnership does not recognize revenues if collectability of charter hire payments is not reasonably assured. Operating expenses Voyage expenses include all expenses unique to a particular voyage, including fuel expenses, port fees, cargo loading and unloading expenses, canal tolls, agency fees and commissions. The Partnership, as shipowner, pays voyage expenses under voyage charters. The Partnership’s customers pay voyage expenses under time charters, except when the vessel is off-hire during the term of a time-charter, in which case the Partnership pays voyage expenses. Vessel operating expenses include crewing, ship management services, repairs and maintenance, insurance, stores, lube oils and communication expenses. Voyage expenses and vessel operating expenses are recognized when incurred except when the Partnership incurs pre-operational costs related to the repositioning of a vessel (i) that relates directly to a specific customer contract, (ii) that generates or enhances resources of the Partnership that will be used in satisfying performance obligations in the future; and (iii) where such costs are expected to be recovered via the customer contract. In this case, such costs are deferred and amortized over the duration of the customer contract. The Partnership recognizes the expense from vessels accounted for as operating leases, which is included in time-charter hire expense, on a straight-line basis over the firm period of the charters. |
Cash and cash equivalents | Cash and cash equivalents The Partnership classifies all highly liquid investments with an original maturity date of three months or less as cash and cash equivalents. |
Restricted cash | Restricted cash The Partnership maintains restricted cash deposits relating to certain term loans, collateral for derivatives, project tenders, leasing arrangements, amounts received from charterers to be used only for dry-docking expenditures and emergency repairs and other obligations. |
Accounts receivable and allowance for doubtful accounts | Accounts receivable and allowance for doubtful accounts Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Partnership’s best estimate of the amount of probable credit losses in existing accounts receivable. The Partnership determines the allowance based on historical write-off experience and customer economic data. The Partnership reviews the allowance for doubtful accounts regularly and past due balances are reviewed for collectability. Account balances are charged against the allowance when the Partnership believes that the receivable will not be recovered. The consolidated balance sheets reflect amounts where the right to consideration is conditioned upon the passage of time as "accounts receivable," and reflect accrued revenue where the right to consideration is conditioned upon something other than the passage of time as "other current assets." |
Other loan receivables | Other loan receivables The Partnership’s advances to equity-accounted joint ventures and any other investments in loan receivables are recorded at cost. The Partnership analyzes its loans for collectability during each reporting period. A loan loss provision is recognized, based on current information and events, if it is probable that the Partnership will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors the Partnership considers in determining if a loan loss provision is required include, among other things, an assessment of the financial condition of the debtor , payment history of the debtor, general economic conditions, the credit rating of the debtor (when available), any information provided by the debtor regarding its ability to repay the loan, and the fair value of the underlying collateral. When a loan loss provision is recognized, the Partnership measures the amount of the loss provision based on the present value of expected future cash flows discounted at the loan’s effective interest rate and recognizes the resulting loss in the consolidated statements of income. The carrying value of the loan is adjusted each subsequent period to reflect any changes in the present value of the expected future cash flows, which may result in increases or decreases to the loan loss provision. |
Vessels and equipment | Vessels and equipment All pre-delivery costs incurred during the construction of newbuildings, including interest and supervision and technical costs, are capitalized. The acquisition cost and all costs incurred to restore used vessels purchased by the Partnership to the standards required to properly service the Partnership’s customers are capitalized. Interest costs capitalized to vessels and equipment for the years ended December 31, 2018 , 2017 and 2016 aggregated $14.8 million , $13.9 million and $9.9 million , respectively. Vessel capital modifications include the addition of new equipment or certain modifications to the vessel which are aimed at improving or increasing the operational efficiency and functionality of the asset. This type of expenditure is capitalized and depreciated over the estimated useful life of the modification. Expenditures covering recurring routine repairs and maintenance are expensed as incurred. Depreciation is calculated on a straight-line basis over a vessel’s estimated useful life, less an estimated residual value. Depreciation is calculated using an estimated useful life of 25 years for conventional tankers, 30 years for liquefied petroleum gas (or LPG ) carriers and 35 years for liquefied natural gas (or LNG ) carriers, from the date the vessel is delivered from the shipyard, or a shorter period if regulations prevent the Partnership from operating the vessels for 25 years , 30 years , or 35 years , respectively. Depreciation of vessels and equipment, excluding amortization of dry-docking expenditures, for the years ended December 31, 2018 , 2017 and 2016 aggregated $115.5 million , $96.7 million and $86.6 million , respectively. Depreciation and amortization includes depreciation on all owned vessels and amortization of vessels accounted for as capital leases. Generally, the Partnership dry docks each of its vessels every two and a half to five years. The Partnership capitalizes certain costs incurred during dry docking and amortizes those costs on a straight-line basis from the completion of a dry docking to the estimated completion of the next dry docking. The Partnership includes in capitalized dry docking those costs incurred as part of the dry docking to meet classification and regulatory requirements. The Partnership expenses costs related to routine repairs and maintenance performed during dry docking. The following table summarizes the change in the Partnership’s capitalized dry docking costs, from January 1, 2016 to December 31, 2018 : Year Ended Year Ended Year Ended Balance at January 1, 39,144 33,538 33,916 Cost incurred for dry docking 15,259 22,283 13,944 Write-downs and sales of vessels (2,448 ) (2,782 ) (2,886 ) Dry-dock amortization (11,590 ) (13,895 ) (11,436 ) Balance at December 31, 40,365 39,144 33,538 Vessels and equipment that are intended to be held and used in the Partnership's business are assessed for impairment when events or circumstances indicate the carrying amount of the asset may not be recoverable. If the asset’s net carrying value exceeds the net undiscounted cash flows expected to be generated over its remaining useful life, the carrying amount of the asset is reduced to its estimated fair value. The estimated fair value for the Partnership’s impaired vessels is determined using discounted cash flows or appraised values. In cases where an active second-hand sale and purchase market does not exist, the Partnership uses a discounted cash flow approach to estimate the fair value of an impaired vessel. In cases where an active second-hand sale and purchase market exists, an appraised value is used to estimate the fair value of an impaired vessel. An appraised value is generally the amount the Partnership would expect to receive if it were to sell the vessel. Such appraisal is normally completed by the Partnership and is based on second-hand sale and purchase data. Vessels and equipment that are "held for sale" are measured at the lower of their carrying amount or fair value less costs to sell and are not depreciated while classified as held for sale. Interest and other expenses and related liabilities attributable to vessels and equipment classified as held for sale continue to be recognized as incurred. Gains on vessels sold and leased back under capital leases are deferred and amortized over the remaining term of the capital lease. Losses on vessels sold and leased back under capital leases are recognized immediately when the fair value of the vessel at the time of a sale-leaseback transaction is less than its book value. In such case, the Partnership would recognize a loss in the amount by which book value exceeds fair value. |
Equity-accounted investments | Equity-accounted investments The Partnership’s investments in certain joint ventures, in which the Partnership has the ability to exercise significant influence over the operating and financial policies of the entity, are accounted for using the equity method of accounting. Under the equity method of accounting, investments are stated at initial cost and are adjusted for subsequent additional investments and the Partnership’s proportionate share of earnings or losses and distributions. The Partnership evaluates its equity-accounted investments for impairment when events or circumstances indicate that the carrying value of such investments may have experienced an other-than-temporary decline in value below its carrying value. If an equity-accounted investment is impaired and if the estimated fair value is less than its carrying value, the carrying value is written down to its estimated fair value and the resulting impairment is recorded in the Partnership’s consolidated statements of income. The Partnership’s maximum exposure to loss is the amount it has invested in its equity-accounted for investments. |
Debt issuance costs | Debt issuance costs Debt issuance costs related to a recognized debt liability, including fees, commissions and legal expenses, are deferred and presented as a direct reduction from the carrying amount of that debt liability and amortized on an effective interest rate method over the term of the relevant loan. Debt issuance costs that are not attributable to a specific debt liability or where the debt issuance costs exceed the carrying value of the related debt liability (primarily undrawn revolving credit facilities) are deferred and presented as other non-current assets in the Partnership's consolidated balance sheets. Amortization of debt issuance costs is included in interest expense in the Partnership’s consolidated statements of income. Fees paid to substantially amend a non-revolving credit facility are associated with the extinguishment of the old debt instrument and included in determining the debt extinguishment gain or loss to be recognized. In addition, any unamortized debt issuance costs are written off. If the amendment is considered not to be a substantial amendment, then the fees would be associated with the replacement or modified debt instrument and, along with any existing unamortized premium, discount and unamortized debt issuance costs, would be amortized as an adjustment of interest expense over the remaining term of the replacement or modified debt instrument using the effective interest method. Other related costs incurred with third parties directly related to the modification, other than the loan amendment fee, are expensed as incurred. Fees paid to amend a revolving credit facility are deferred and amortized over the term of the modified revolving credit facility. If the borrowing capacity of the revolving credit facility increases as a result of the amendment, unamortized debt issuance costs of the original revolving credit facility are amortized over the remaining term of the modified revolving credit facility. If the borrowing capacity of the revolving credit facility decreases as a result of the amendment, a proportionate amount, based on the reduction in borrowing capacity, of the unamortized debt issuance costs of the original revolving credit facility are written off and the remaining amount is amortized over the remaining term of the modified revolving credit facility. |
Goodwill and intangible assets | Goodwill and intangible assets Goodwill is not amortized but is reviewed for impairment at the reporting unit level on an annual basis or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. A reporting unit is a component of the Partnership that constitutes a business for which discrete financial information is available and regularly reviewed by management. When goodwill is reviewed for impairment, the Partnership may elect to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. Alternatively, the Partnership may bypass this step and use a fair value approach to identify potential goodwill impairment and, when necessary, measure the amount of impairment. The Partnership uses a discounted cash flow model to determine the fair value of reporting units, unless there is a readily determinable fair market value. The Partnership adopted ASU 2017-04, Simplifying the Test for Goodwill Impairment, effective October 1, 2018. Consequently, goodwill impairment is measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill. Customer-related intangible assets are amortized over the expected life of a customer contract. The amount amortized each year is weighted based on the projected revenue to be earned under the contracts. Intangible assets are assessed for impairment when and if impairment indicators exist. An impairment loss is recognized if the carrying amount of an intangible asset is not recoverable and its carrying amount exceeds its fair value. |
Derivative instruments | Derivative instruments All derivative instruments are initially recorded at fair value as either assets or liabilities in the accompanying consolidated balance sheets and subsequently remeasured to fair value each period end, regardless of the purpose or intent for holding the derivative. The method of recognizing the resulting gain or loss is dependent on whether the derivative contract is designed to hedge a specific risk and whether the contract qualifies for hedge accounting. When a derivative is designated as a cash flow hedge, the Partnership formally documents the relationship between the derivative and the hedged item. This documentation includes the strategy and risk management objective for undertaking the hedge and the method that will be used to assess the effectiveness of the hedge. Any hedge ineffectiveness is recognized immediately in earnings, as are any gains and losses on the derivative that are excluded from the assessment of hedge effectiveness. The Partnership does not apply hedge accounting if it is determined that the hedge was not effective or will no longer be effective, the derivative was sold or exercised, or the hedged item was sold, repaid or no longer probable of occurring. For derivative financial instruments designated and qualifying as cash flow hedges, changes in the fair value of the effective portion of the derivative financial instruments are initially recorded as a component of accumulated other comprehensive income in total equity. In the periods when the hedged items affect earnings, the associated fair value changes on the hedging derivatives are transferred from total equity to the corresponding earnings line item (e.g. interest expense) in the Partnership’s consolidated statements of income. The ineffective portion of the change in fair value of the derivative financial instruments is immediately recognized in the corresponding earnings line item in the Partnership’s consolidated statements of income. If a cash flow hedge is terminated and the originally hedged item is still considered probable of occurring, the gains and losses initially recognized in total equity remain there until the hedged item impacts earnings, at which point they are transferred to the corresponding earnings line item in the Partnership’s consolidated statements of income. If the hedged items are no longer probable of occurring, amounts recognized in total equity are immediately transferred to the earnings item in the Partnership’s consolidated statements of income. For derivative financial instruments that are not designated or that do not qualify as hedges under Financial Accounting Standards Board (or FASB ) Accounting Standards Codification (or ASC ) 815, Derivatives and Hedging , the changes in the fair value of the derivative financial instruments are recognized in earnings. Gains and losses from the Partnership’s non-designated interest rate swaps, non-designated interest rate swaptions, and the Partnership’s agreement with Teekay Corporation for the Suezmax tanker the Toledo Spirit (see Note 12d) are recorded in realized and unrealized loss on non-designated derivative instruments in the Partnership’s consolidated statements of income. Gains and losses from the Partnership’s cross currency swaps are recorded in foreign currency exchange gain (loss) in the Partnership’s consolidated statements of income. |
Unit-based compensation | Unit-based compensation The Partnership grants restricted unit awards as incentive-based compensation under the Teekay LNG Partners L.P. 2005 Long-Term Incentive Plan to certain of the Partnership’s employees and to certain employees of Teekay Corporation’s subsidiaries that provide services to the Partnership and its subsidiaries. The Partnership measures the cost of such awards using the grant date fair value of the award and recognizes that cost, net of estimated forfeitures, over the requisite service period. The requisite service period consists of the period from the grant date of the award to the earlier of the date of vesting or the date the recipient becomes eligible for retirement. For unit-based compensation awards subject to graded vesting, the Partnership calculates the value of the award as if it was one single award with one expected life and amortizes the calculated expense for the entire award on a straight-line basis over the requisite service period. The compensation cost of the Partnership’s unit-based compensation awards is reflected in general and administrative expenses in the Partnership’s consolidated statements of income. |
Income taxes | Income taxes The Partnership accounts for 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 consolidated financial statement basis and the tax basis of the Partnership’s assets and liabilities using the applicable jurisdictional tax rates. A valuation allowance for deferred tax assets is recorded when it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized. Three of the five Partnership’s Spanish-flagged vessels are subject to the Spanish Tonnage Tax Regime (or TTR ). Under this regime, the applicable tax is based on the weight (measured as net tonnage) of the vessel and the number of days during the taxable period that the vessel is at the Partnership’s disposal, excluding time required for repairs. The income the Partnership receives with respect to the remaining two Spanish-flagged vessels is taxed in Spain at a rate of 25% . However, these two vessels are registered in the Canary Islands Special Ship Registry. Consequently, the Partnership is allowed a credit, equal to 90% of the tax payable on income from the commercial operation of these vessels, against the tax otherwise payable. This effectively results in an income tax rate of approximately 2.5% on income from the operation of these two Spanish-flagged vessels. The Partnership recognizes the tax benefits of uncertain tax positions only if 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 by the taxing authorities, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefits recognized in the Partnership’s consolidated financial statements from such positions are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Partnership recognizes interest and penalties related to uncertain tax positions in income tax expense in the Partnership’s consolidated statements of income. |
Guarantees | Guarantees Guarantees issued by the Partnership, excluding those that are guaranteeing its own performance, are recognized at fair value at the time the guarantees are issued and are presented in the Partnership’s consolidated balance sheets as other long-term liabilities. The liability recognized on issuance is amortized to other income on the Partnership’s consolidated statements of income over the term of the guarantee. If it becomes probable that the Partnership will have to perform under a guarantee, the Partnership will recognize an additional liability if the amount of the loss can be reasonably estimated. |
Accounting Pronouncements | Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers , (or ASU 2014-09 ). ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update creates a five-step model that requires entities to exercise judgment when considering the terms of the contract(s) which include (i) identifying the contract(s) with the customer, (ii) identifying the separate performance obligations in the contract, (iii) determining the transaction price, (iv) allocating the transaction price to the separate performance obligations, and (v) recognizing revenue as each performance obligation is satisfied. ASU 2014-09 became effective for the Partnership as of January 1, 2018, and may be applied, at the Partnership’s option, retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Partnership adopted ASU 2014-09 as a cumulative-effect adjustment as of such date. The Partnership has elected to apply ASC 2014-09 only to those contracts that were not completed as of January 1, 2018. The Partnership has identified the following differences on adoption of ASU 2014-09: • In certain cases, the Partnership incurs pre-operational costs relating directly to a specific customer contract, that generate or enhance resources of the Partnership that will be used in satisfying performance obligations in the future, whereby such costs are expected to be recovered via the customer contract. Such costs are deferred and amortized over the duration of the customer contract. The Partnership previously expensed such costs as incurred unless the costs were directly reimbursable by the contract. This change increased net income by $1.1 million for the year ended December 31, 2018 , and increased other assets by $3.5 million , investments in equity-accounted joint ventures by $0.3 million , and total equity by $3.8 million as at December 31, 2018 . The cumulative increase to opening equity as at January 1, 2018 was $2.7 million . • The Partnership previously presented all accrued revenue as a component of accounts receivable. The Partnership has determined that if the right to such consideration is conditional upon something other than the passage of time, such accrued revenue should be presented apart from accounts receivable. This had the impact of increasing other current assets and decreasing accounts receivable by $2.3 million at December 31, 2018 . There was no cumulative impact to opening equity as at January 1, 2018. In February 2016, FASB issued Accounting Standards Update 2016-02, Leases (or ASU 2016-02 ). ASU 2016-02 establishes a right-of-use model that requires a lessee to record a right of use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. For lessees, leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 requires lessors to classify leases as a sales-type, direct financing, or operating lease. A lease is a sales-type lease if any one of five criteria are met, each of which indicate that the lease, in effect, transfers control of the underlying asset to the lessee. If none of those five criteria are met, but two additional criteria are both met, indicating that the lessor has transferred substantially all of the risks and benefits of the underlying asset to the lessee and a third party, the lease is a direct financing lease. All leases that are not sales-type leases or direct financing leases are operating leases. ASU 2016-02 is effective January 1, 2019, with early adoption permitted. FASB issued an additional accounting standards update in July 2018 that made further amendments to accounting for leases, including allowing the use of a transition approach whereby a cumulative effect adjustment is made as of the effective date, with no retrospective effect. The Partnership will adopt ASU 2016-02 on January 1, 2019. To determine the cumulative effect adjustment, the Partnership will no t reassess lease classification, initial direct costs for any existing leases and whether any expired or existing contracts are or contain leases. The Partnership identified the following differences : • The adoption of ASU 2016-02 will result in a change in the accounting method for the lease portion of the daily charter hire accounted for as operating leases with firm periods of greater than one year for certain of the chartered-in vessels of the Partnership and the Partnership's equity-accounted joint ventures. Under ASU 2016-02, one of the Partnership's in-charter contracts currently accounted for as an operating lease will be treated as a right-of-use asset and a lease liability, which will result in an increase of the Partnership's assets and liabilities. The right-of-use asset and lease liability to be recognized on January 1, 2019 is $22.7 million . In addition, certain equity-accounted joint ventures will recognize a right-of-use asset and a lease liability on the balance sheet for these charters based on the present value of future minimum lease payments, whereas currently no right-of-use asset or lease liability is recognized. This will have the result of increasing the equity-accounted joint venture’s assets and liabilities. The pattern of expense recognition of chartered-in vessels is expected to remain substantially unchanged, unless the right-of-use asset becomes impaired. • The adoption of ASU 2016-02 will result in the Partnership's lease classification assessment being determined when a lease commences instead of when the lease is entered into. The Partnership has entered into charters in prior periods for certain of its vessels currently under construction and which are expected to deliver in 2019. Historically, for charters that were negotiated concurrently with the construction of the related vessels, the fair value of the constructed asset was presumed to be its newbuilding cost and no gain or loss was recognized on commencement of the charter if such charters were classified as direct finance leases. Subsequent to the adoption of ASU 2016-02, the fair value of the vessel will be determined based on information available at the lease commencement date and any difference in the fair value of the ship upon commencement of the charter and its carrying value is recognized as a gain or loss upon commencement of the charter. • The adoption of ASU 2016-02 will result in the recognition of revenue from the reimbursement of scheduled dry-dock expenditures, where such charter contract is accounted for as an operating lease, occurring upon completion of the scheduled dry-dock, instead of ratably over the period between the previous scheduled dry-dock and the next scheduled dry-dock. The cumulative decrease to opening equity as at January 1, 2019 was $3.0 million . • In addition, direct financing lease payments received will be presented as an operating cash inflow instead of an investing cash inflow in the consolidated statements of cash flows. In August 2016, the FASB issued Accounting Standards Update 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (or ASU 2016-15 ), which, among other things, provides guidance on two acceptable approaches of classifying distributions received from equity-method investees in the statements of cash flows and application of the predominance principle on the cash flow statement classification of cash receipts and payments that have aspects of more than one class of cash flows. ASU 2016-15 became effective for the Partnership as of January 1, 2018, with a retrospective approach required on adoption. The Partnership has elected to classify distributions received from equity method investees in the consolidated statements of cash flows based on the nature of the distribution. In addition, the adoption of ASU 2016-15 resulted in $25.7 million and $17.7 million of cross currency swap payments that were related to the principal repayment of long-term debt for the years ended December 31, 2017 and December 31, 2016 , respectively, being reclassified from unrealized foreign currency exchange (gain) loss including the effect of the termination of cross currency swaps in net operating cash flow, to scheduled repayments of long-term debt and settlement of related swaps in net financing cash flow for the year ended December 31, 2017 and to prepayments of long-term debt and settlement of related swaps for the year ended December 31, 2016 as the amounts related to the termination of final settlement of the cross currency swaps. In November 2016, the FASB issued Accounting Standards Update 2016-18, Statement of Cash Flows: Restricted Cash ( or ASU 2016-18 ). ASU 2016-18 requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Entities are also required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. ASU 2016-18 became effective for the Partnership as of January 1, 2018. Adoption of ASU 2016-18 resulted in the Partnership including in the consolidated statement of cash flows changes in cash, cash equivalents and restricted cash. In August 2017, the FASB issued Accounting Standards Update 2017-12, Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities ( or ASU 2017-12 ) . ASU 2017-12 eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires, for qualifying hedges, the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The guidance also modifies the accounting for components excluded from the assessment of hedge effectiveness, eases documentation and assessment requirements and modifies certain disclosure requirements. ASU 2017-12 became effective for the Partnership as of January 1, 2019. The Partnership is currently evaluating the effect of adopting this new guidance. In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments ( or ASU 2016-13 ). ASU 2016-13 replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This update is effective for the Partnership January 1, 2020, with a modified-retrospective approach required on adoption. The Partnership is currently evaluating the effect of adopting this new guidance. In October 2017, the FASB issued Accounting Standards Update 2017-04, Simplifying the Test for Goodwill Impairment ( or ASU 2017-04 ) . Pursuant to this update, goodwill impairment is now measured as the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying value of goodwill. This update eliminates previous guidance that required an entity to determine goodwill impairment by calculating the implied fair value of goodwill by hypothetically assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. ASU 2017-04 requires a prospective adoption approach and is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. ASU 2017-04 was adopted by the Partnership on October 1, 2018, and such adoption did not have a material impact on the Partnership's consolidated financial statements and related disclosures. In August 2018, the FASB issued Accounting Standards Update 2018-15, Intangibles-Goodwill and Other-Internal Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract , (or ASU 2018-15 ). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. ASU 2018-15 is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. The Partnership elected to adopt ASU 2018-15 on October 1, 2018, and such adoption did not have a material impact on the Partnership’s consolidated financial statements and related disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Partnership's Loan Receivables and Other Financing Receivables | The following table contains a summary of the carrying value of the Partnership’s financing receivables by type of borrower, the method by which the Partnership monitors the credit quality of its financing receivables on a quarterly basis and the grade as at December 31, 2018 . Class of Financing Receivable Credit Quality Indicator Grade December 31, December 31, Direct financing leases Payment activity Performing 575,163 495,990 Other receivables: Long-term receivable and accrued revenue included in accounts receivable and other assets Payment activity Performing 5,694 5,476 Advances to equity-accounted joint ventures (note 7) Other internal metrics Performing 131,386 131,685 712,243 633,151 |
Changes in Partnership's Capitalized Dry Docking Costs | The following table summarizes the change in the Partnership’s capitalized dry docking costs, from January 1, 2016 to December 31, 2018 : Year Ended Year Ended Year Ended Balance at January 1, 39,144 33,538 33,916 Cost incurred for dry docking 15,259 22,283 13,944 Write-downs and sales of vessels (2,448 ) (2,782 ) (2,886 ) Dry-dock amortization (11,590 ) (13,895 ) (11,436 ) Balance at December 31, 40,365 39,144 33,538 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Estimated Fair Value of Partnership's Financial Instruments on Recurring Basis | The following table includes the estimated fair value and carrying value of those assets and liabilities that are measured at fair value on a recurring and non-recurring basis, as well as the estimated fair value of the Partnership’s financial instruments that are not accounted for at a fair value on a recurring basis. December 31, 2018 December 31, 2017 Fair Value Carrying Fair Carrying Fair Recurring: Cash and cash equivalents and restricted cash Level 1 222,864 222,864 339,435 339,435 Derivative instruments (note 13) Interest rate swap agreements – assets Level 2 3,341 3,341 878 878 Interest rate swap agreements – liabilities Level 2 (40,958 ) (40,958 ) (73,984 ) (73,984 ) Cross currency swap agreements – assets Level 2 — — 3,758 3,758 Cross currency swap agreements – liabilities Level 2 (29,122 ) (29,122 ) (54,217 ) (54,217 ) Other derivative Level 3 1,061 1,061 1,648 1,648 Non-recurring: Vessels held for sale (notes 19c and 19d) Level 2 — — 16,671 16,671 Other: Advances to equity-accounted joint ventures, current and long-term (note 7) (i) 131,386 (i) 131,685 (i) Long-term receivable included in accounts receivable and other assets (ii) Level 3 175 174 3,476 3,459 Long-term debt – public (note 10) Level 1 (350,813 ) (361,095 ) (376,581 ) (384,820 ) Long-term debt – non-public (note 10) Level 2 (1,618,963 ) (1,604,106 ) (1,421,411 ) (1,391,524 ) Obligations related to capital leases (note 5) Level 2 (1,298,556 ) (1,274,693 ) (1,011,549 ) (1,001,588 ) (i) The advances to equity-accounted joint ventures together with the Partnership’s equity investments in the joint ventures form the net aggregate carrying value of the Partnership’s interests in the joint ventures in these consolidated financial statements. The fair values of the individual components of such aggregate interests are not determinable. (ii) As at December 31, 2018 , the estimated fair value of the non-interest bearing receivable is based on the remaining future fixed payments of $0.2 million , to be received from Royal Dutch Shell Plc (or Shell ) (formerly BG International Limited) as part of the ship construction support agreement, and using an estimated discount rate of 8.0% . As there is no market rate for the equivalent of an unsecured non-interest bearing receivable from Shell, the discount rate is based on unsecured debt instruments of similar maturity held, adjusted for a liquidity premium. A higher or lower discount rate would result in a lower or higher fair value asset. |
Changes in Fair Value of Assets Measured on Recurring Basis Using Significant Unobservable Inputs (Level 3) | Changes in fair value during the years ended December 31, 2018 and 2017 for the Partnership’s other derivative asset, the Toledo Spirit time-charter derivative, which is described below and is measured at fair value on a recurring basis using significant unobservable inputs (Level 3), are as follows: Year Ended Year Ended Fair value at beginning of year 1,648 2,134 Realized and unrealized gains included in earnings 550 788 Settlements (1,137 ) (1,274 ) Fair value at end of year 1,061 1,648 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Revenues and Percentage of Consolidated Voyage Revenues from Top Customers | The following table presents voyage revenues and percentage of consolidated voyage revenues for the Partnership’s customers who accounted for 10% or more of the Partnership's consolidated voyage revenues during any of the periods presented. (U.S. Dollars in millions) Year Ended Year Ended Year Ended Royal Dutch Shell Plc. (i) (ii) $115.4 or 23% $53.8 or 12% $48.2 or 12% Ras Laffan Liquefied Natural Gas Company Ltd. (i) $70.6 or 14% $70.3 or 16% $70.3 or 18% Cheniere Marketing International (i) $60.1 or 12% $60.2 or 14% Less than 10% The Tangguh Production Sharing Contractors (i) Less than 10% $49.7 or 11% $44.4 or 11% (i) LNG segment. (ii) Includes its subsidiaries Shell Spain LNG S.A.U. and Shell Tankers (Singapore) Private Ltd. |
Segment Reporting Information | The following tables include results for these segments for the years presented in these consolidated financial statements. Year Ended December 31, 2018 Liquefied Natural Gas Liquefied Petroleum Gas Conventional Total Voyage revenues 454,517 23,922 32,323 510,762 Voyage expenses (2,750 ) (15,907 ) (9,580 ) (28,237 ) Vessel operating expenses (82,952 ) (20,932 ) (13,774 ) (117,658 ) Time-charter hire expense (7,670 ) — — (7,670 ) Depreciation and amortization (111,360 ) (7,748 ) (5,270 ) (124,378 ) General and administrative expenses (i) (23,270 ) (2,932 ) (2,310 ) (28,512 ) Write-down of goodwill and vessels — (33,790 ) (20,863 ) (54,653 ) Restructuring charges — — (1,845 ) (1,845 ) Income (loss) from vessel operations 226,515 (57,387 ) (21,319 ) 147,809 Equity income (loss) 60,228 (6,682 ) — 53,546 Investment in and advances to equity-accounted joint ventures 962,236 153,897 — 1,116,133 Total assets at December 31, 2018 4,861,977 326,111 39,450 5,227,538 Expenditures for vessels and equipment (684,951 ) (1,230 ) (124 ) (686,305 ) Expenditures for dry docking (7,505 ) (5,059 ) (15 ) (12,579 ) Year Ended December 31, 2017 Liquefied Natural Gas Liquefied Petroleum Gas Conventional Total Voyage revenues 365,914 19,769 46,993 432,676 Voyage expenses (1,802 ) (1,218 ) (5,182 ) (8,202 ) Vessel operating expenses (80,245 ) (3,083 ) (18,211 ) (101,539 ) Depreciation and amortization (86,592 ) (8,433 ) (10,520 ) (105,545 ) General and administrative expenses (i) (13,223 ) (2,411 ) (2,507 ) (18,141 ) Write-down of vessels — — (50,600 ) (50,600 ) Income (loss) from vessel operations 184,052 4,624 (40,027 ) 148,649 Equity income (loss) 17,652 (7,863 ) — 9,789 Investment in and advances to equity-accounted joint ventures 933,970 160,626 — 1,094,596 Total assets at December 31, 2017 4,284,767 364,164 118,827 4,767,758 Expenditures for vessels and equipment (701,116 ) (13,412 ) — (714,529 ) Expenditures for dry docking (20,047 ) (107 ) (2,130 ) (22,283 ) Year Ended December 31, 2016 Liquefied Natural Gas Liquefied Petroleum Gas Conventional Total Voyage revenues 314,591 21,939 59,914 396,444 Voyage expenses (449 ) — (1,207 ) (1,656 ) Vessel operating expenses (65,371 ) (16 ) (22,503 ) (87,890 ) Depreciation and amortization (72,190 ) (7,894 ) (15,458 ) (95,542 ) General and administrative expenses (i) (13,955 ) (2,055 ) (3,189 ) (19,199 ) Write-down and loss on sales of vessels — — (38,976 ) (38,976 ) Income (loss) from vessel operations 162,626 11,974 (21,419 ) 153,181 Equity income 48,633 13,674 — 62,307 Expenditures for vessels and equipment (344,924 ) — (63 ) (344,987 ) Expenditures for dry docking (13,944 ) — — (13,944 ) (i) Includes direct general and administrative expenses and indirect general and administrative expenses (allocated to each segment based on estimated use of corporate resources (Note 12a)). |
Reconciliation of Total Segment Assets | A reconciliation of total segment assets presented in the consolidated balance sheets is as follows: December 31, December 31, Total assets of the liquefied natural gas segment 4,861,977 4,284,767 Total assets of the liquefied petroleum gas segment 326,111 364,164 Total assets of the conventional tanker segment 39,450 118,827 Unallocated: Cash and cash equivalents 149,014 244,241 Advances to affiliates 8,229 7,300 Consolidated total assets 5,384,781 5,019,299 |
Chartered-in Vessels (Tables)
Chartered-in Vessels (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Capital Lease Obligations | Capital Leases December 31, December 31, LNG Carriers 1,274,569 961,711 Suezmax Tanker 23,987 49,838 Total obligations related to capital leases 1,298,556 1,011,549 Less current portion (81,219 ) (106,946 ) Long-term obligations related to capital leases 1,217,337 904,603 |
Commitment Under Capital Leases | As at December 31, 2018 , the remaining commitments related to the eight capital leases for the Partnership's LNG carriers, including the related purchase obligations, approximated $1.7 billion , including imputed interest of $435.3 million , repayable from 2019 through 2028, as indicated below: Year Commitment 2019 $ 119,517 2020 $ 118,685 2021 $ 117,772 2022 $ 116,978 2023 $ 116,338 Thereafter $ 1,120,670 |
Schedule of Operating Leases | Operating Leases The minimum estimated charter hire payments for the following two fiscal years, as at December 31, 2018 , for the Partnership's chartered-in vessel accounted for as an operating lease were as follows: 2019 2020 Vessel Charters $ $ Charters-in – operating leases (i) 23,725 16,055 (i) As at December 31, 2018 , the Partnership was chartering in a vessel at a fixed-rate from its 52% -owned joint venture with Marubeni Corporation (or the Teekay LNG-Marubeni Joint Venture ) for a period of two years until September 2020. The Partnership recognizes the expense from this charter on a straight-line basis over the firm period of the charter and is presented as time-charter hire expense in the Partnership's consolidated statements of income. |
Estimated Future Minimum Rental Payments to be Received and Paid Under the Lease Contracts | As at December 31, 2018 , the total estimated future minimum rental payments to be received and paid by the Teekay Tangguh Joint Venture related to the lease contracts are as follows: Year Head Lease Receipts (i) Sublease Payments (i) (ii) 2019 $ 21,242 $ 23,875 2020 $ 21,242 $ 23,875 2021 $ 21,242 $ 23,875 2022 $ 21,242 $ 23,875 2023 $ 21,242 $ 23,875 Thereafter $ 111,611 $ 125,485 Total $ 217,821 $ 244,860 (i) The Head Leases are fixed-rate operating leases while the Subleases have a variable-rate component. As at December 31, 2018 , the Partnership had received $ 292.6 million of aggregate Head Lease receipts and had paid $236.3 million of aggregate Sublease payments. The portion of the Head Lease receipts that has not been recognized into earnings is deferred and amortized on a straight-line basis over the lease terms and, as at December 31, 2018 , $ 3.7 million ( December 31, 2017 – $3.7 million ) and $ 29.3 million ( December 31, 2017 – $33.0 million ) of Head Lease receipts had been deferred and included in unearned revenue and other long-term liabilities, respectively, in the Partnership’s consolidated balance sheets. (ii) The amount of payments related to the Subleases are updated annually to reflect any changes in the lease payments due to changes in tax law. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables contain the Partnership's revenue for the year ended December 31, 2018 , 2017 and 2016 , by contract type and by segment. Year Ended December 31, 2018 Liquefied Natural Gas Segment $ Liquefied Petroleum Gas Segment $ Conventional Tanker Segment $ Total Time charters 420,262 — 17,405 437,667 Voyage charters — 23,922 14,591 38,513 Bareboat charters 23,820 — — 23,820 Management fees and other income 10,435 — 327 10,762 454,517 23,922 32,323 510,762 Year Ended December 31, 2017 Liquefied Natural Gas Segment $ Liquefied Petroleum Gas Segment $ Conventional Tanker Segment $ Total Time charters 332,751 — 39,171 371,922 Voyage charters — 2,285 6,709 8,994 Bareboat charters 22,574 17,484 — 40,058 Management fees and other income 10,589 — 1,113 11,702 365,914 19,769 46,993 432,676 Year Ended December 31, 2016 Liquefied Natural Gas Segment $ Liquefied Petroleum Gas Segment $ Conventional Tanker Segment $ Total Time charters 283,159 — 58,802 341,961 Bareboat charters 23,824 21,939 — 45,763 Management fees and other income 7,608 — 1,112 8,720 314,591 21,939 59,914 396,444 The following table contains the Partnership’s revenue from contracts that do not contain a lease element and the non-lease element of time-charter contracts accounted for as direct financing leases for the years ended December 31, 2018 , 2017 and 2016 . December 31, December 31, December 31, Non-lease revenue - related to sales type or direct financing leases 18,554 21,228 13,855 Management fees and other income 10,762 11,702 8,720 Total 29,316 32,930 22,575 |
Schedule of Capital Leased Assets | The following table lists the components of the net investments in direct financing leases: December 31, December 31, Total minimum lease payments to be received 897,130 568,710 Estimated unguaranteed residual value of leased properties 291,098 194,965 Initial direct costs 328 361 Less unearned revenue (613,394 ) (268,046 ) Total net investments in direct financing leases 575,163 495,990 Less current portion (12,635 ) (9,884 ) Net investments in direct financing leases 562,528 486,106 |
Equity-Accounted Investments (T
Equity-Accounted Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Financial Information of Joint Ventures | A summary of the Partnership's investments in and advances to equity-accounted joint ventures are as follows: As at December 31, 2018 As at December 31, Name Ownership Percentage # of Delivered Vessels Newbuildings on order 2018 2017 Bahrain LNG Joint Venture (i) 30% - 1 81,353 77,706 Yamal LNG Joint Venture (ii) 50% 2 4 205,839 193,774 Pan Union Joint Venture (iii) 20%-30% 3 1 73,545 43,538 Exmar LPG Joint Venture (iv) 50% 22 - 153,808 160,626 Teekay LNG-Marubeni Joint Venture (v) 52% 6 - 351,529 341,712 Excalibur Joint Venture (vi) 49% 1 - 32,402 79,915 Angola Joint Venture (vii) 33% 4 - 85,469 74,775 RasGas 3 Joint Venture (viii) 40% 4 - 132,188 122,550 42 6 1,116,133 1,094,596 Less current portion (79,108 ) — Investment in and advances to equity-accounted joint ventures 1,037,025 1,094,596 (i) Bahrain LNG Joint Venture On December 2, 2015, the Partnership ( 30% ) entered into a joint venture agreement with National Oil & Gas Authority (or Nogaholding ) ( 30% ), Gulf Investment Corporation (or GIC ) ( 24% ) and Samsung C&T (or Samsung ) ( 16% ) to form a joint venture, Bahrain LNG W.L.L. (or the Bahrain LNG Joint Venture ), for the development of an LNG receiving and regasification terminal in Bahrain. The project is expected to include an offshore LNG receiving jetty and breakwater, an adjacent regasification platform, subsea gas pipelines from the platform to shore, an onshore gas receiving facility, and an onshore nitrogen production facility with a total LNG terminal capacity of 800 million standard cubic feet per day and will be owned and operated under a 20 -year agreement, which is expected to commence in mid-2019. In addition, the Partnership has supplied an FSU in connection with this project commencing in September 2018 through a 21 -year time-charter contract with the Bahrain LNG Joint Venture. As at December 31, 2018 , the Partnership had advanced $79.1 million ( December 31, 2017 – $79.1 million ) to the Bahrain LNG Joint Venture. These advances bear interest at LIBOR plus 1.25% and as at December 31, 2018 , the interest receivable on these advances was $nil ( December 31, 2017 – $0.1 million ). These amounts are included in the table above. (ii) Yamal LNG Joint Venture The Partnership has a 50 / 50 joint venture agreement with China LNG Shipping (Holdings) Limited (or the Yamal LNG Joint Venture ) and the joint venture had ordered six internationally-flagged icebreaker LNG carriers for a project located on the Yamal Peninsula in Northern Russia (or the Yamal LNG Project ) of which two LNG carrier newbuildings were delivered during 2018. In December 2017, the Yamal LNG Joint Venture secured a $1.6 billion long-term debt facility to finance all six of its ARC7 LNG carrier newbuildings. As part of the completed financing, the Yamal LNG Joint Venture returned a total of $104 million of capital back to the joint venture partners in December 2017, of which the Partnership’s share was $52 million . The Partnership has guaranteed its 50% share of a secured loan facility in the Yamal LNG Joint Venture and, as a result, has recorded a guarantee liability. The carrying value of the guarantee liability as at December 31, 2018 was $0.6 million ( December 31, 2017 – $0.6 million ) and is included as part of other long-term liabilities in the Partnership’s consolidated balance sheets. (iii) Pan Union Joint Venture In June 2014, the Partnership acquired from Shell its ownership interests in four LNG carrier newbuildings. As compensation for Shell’s ownership interests in these four LNG carrier newbuildings, the Partnership assumed Shell’s obligation to provide the shipbuilding supervision and crew training services for the four LNG carrier newbuildings up to their delivery date pursuant to a ship construction support agreement. The Partnership initially estimated it would incur approximately $36.9 million of costs to provide these services, of which Shell has agreed to pay a fixed amount of $20.3 million . The Partnership estimated that the fair value of the service obligation was $33.3 million and the fair value of the amount due from Shell was $16.5 million . As at December 31, 2018 , the carrying value of the service obligation of $nil ( December 31, 2017 – $8.2 million ) is included in in-process contracts and the carrying value of the receivable from Shell of $0.2 million ( December 31, 2017 – $3.5 million ) is included in accounts receivable in the Partnership’s consolidated balance sheets. As at December 31, 2018 , the Partnership has a 30% ownership interest in two LNG carriers, the Pan Asia and the Pan Americas , and a 20% ownership interest in one LNG carrier, the Pan Europe, and one LNG carrier newbuilding (or collectively, the Pan Union Joint Venture ). The Pan Africa was delivered on January 8, 2019 and concurrently commenced its 20 -year charter contract with Shell. On initial acquisition, the basis difference between the Partnership's investment and the carrying value of the Pan Union Joint Venture's net assets was substantially attributed to ship construction support agreements and the time-charter contracts. At December 31, 2018 , the unamortized amount of the basis difference was $11.0 million ( December 31, 2017 - $11.4 million ). (iv) Exmar LPG Joint Venture The Partnership has a 50 / 50 LPG-related joint venture agreement with Exmar NV (or Exmar) (or the Exmar LPG Joint Venture ). The Partnership has guaranteed its 50% share of a secured loan facility and four capital leases in the Exmar LPG Joint Venture and, as a result, has recorded a guarantee liability. The carrying value of the guarantee liability as at December 31, 2018 was $1.3 million ( December 31, 2017 – $1.6 million ) and is included as part of other long-term liabilities in the Partnership’s consolidated balance sheets. As at December 31, 2018 , the Partnership had advanced $52.3 million ( December 31, 2017 – $52.3 million ) to the Exmar LPG Joint Venture, which bears interest at LIBOR plus 0.50% and has no fixed repayment terms. As at December 31, 2018 , the interest receivable on these advances was $nil ( December 31, 2017 – $0.2 million ). These amounts are included in the table above. On initial acquisition, the basis difference between the Partnership's investment and the carrying value of the Exmar LPG Joint Venture's net assets was substantially attributed to the value of the vessels and charter agreements of the Exmar LPG Joint Venture and goodwill in accordance with the finalized purchase price allocation. At December 31, 2018 , the unamortized amount of the basis difference was $24.9 million ( December 31, 2017 – $25.5 million ). (v) Teekay LNG-Marubeni Joint Venture The Partnership has a joint venture agreement with Marubeni Corporation (or the Teekay LNG-Marubeni Joint Ventur e). Since control of the Teekay LNG-Marubeni Joint Venture is shared jointly between Marubeni and the Partnership, the Partnership accounts for its investment in the Teekay LNG-Marubeni Joint Venture using the equity method. In September 2018, the Teekay LNG-Marubeni Joint Venture completed the refinancing of one of its debt facilities maturing in 2019 by entering into a new $306.5 million U.S. Dollar-denominated term loan maturing in December 2023. The Partnership has guaranteed its 52% share of the secured loan facilities of the Teekay LNG-Marubeni Joint Venture and, as a result, has recorded a guarantee liability. The carrying value of the guarantee liability as at December 31, 2018 was $0.4 million ( December 31, 2017 – $0.5 million ) and is included as part of other long-term liabilities in the Partnership’s consolidated balance sheets. (vi) Excalibur and Excelsior Joint Ventures The Partnership has a 50 / 50 LNG-related joint venture with Exmar (or the Excalibur Joint Venture ). On January 31, 2018, the Partnership sold its other 50 / 50 joint venture with Exmar relating to the Excelsior LNG carrier (or the Excelsior Joint Venture ) for gross proceeds of approximately $54 million . As a result of the sale, the Partnership recorded a gain of $5.6 million for the year ended December 31, 2018 , which is included in equity income in the Partnership's consolidated statements of income. The Partnership has guaranteed its ownership share of the secured loan facility of the Excalibur Joint Venture and, as a result, has recorded a guarantee liability. The carrying value of the guarantee liability as of December 31, 2018 was nominal ( December 31, 2017 – $0.2 million ) and is included as part of other long-term liabilities in the Partnership’s consolidated balance sheets. On initial acquisition, the basis difference between the Partnership's investment and the carrying value of the Excalibur Joint Venture's net assets was substantially attributed to an increase to the carrying value of the vessel of the Excalibur Joint Venture in accordance with the finalized purchase price allocation. At December 31, 2018 , the unamortized amount of the basis difference was $13.0 million ( December 31, 2017 – $13.4 million ). (vii) Angola Joint Venture The Partnership has a 33% ownership interest in a joint venture (or the Angola Joint Venture ) that owns four 160,400 -cubic meter LNG carriers (or the Angola LNG Carriers ). The other partners of the Angola Joint Venture are NYK Energy Transport (or NYK ) ( 33% ) and Mitsui & Co. Ltd. ( 34% ). The Partnership has guaranteed its 33% share of the secured loan facilities and interest rate swaps of the Angola Joint Venture and, as a result, has recorded a guarantee liability. The carrying value of the guarantee liability as at December 31, 2018 was $0.6 million ( December 31, 2017 – $0.7 million ) and is included as part of other long-term liabilities in the Partnership’s consolidated balance sheets. (viii) RasGas 3 Joint Venture The Partnership has a 40% ownership interest in Teekay Nakilat (III) Corporation (or the RasGas 3 Joint Venture ), and the remaining 60% is held by Qatar Gas Transport Company Ltd. (Nakilat). The follo wing table presents aggregated summarized financial information reflecting a 100% ownership interest in the Partnership’s equity method investments and excluding the impact from purchase price adjustments arising from the acquisition of Exmar LPG BVBA, the Excalibur Joint Venture and the Pan Union Joint Venture. The results include the Excalibur Joint Venture, the Excelsior Joint Venture up to January 2018, the RasGas 3 Joint Venture, the Angola Joint Venture, the Exmar LPG Joint Venture, the Teekay LNG-Marubeni Joint Venture, the Pan Union Joint Venture, the Yamal LNG Joint Venture, and the Bahrain LNG Joint Venture. December 31, December 31, Cash and restricted cash – current 333,566 281,468 Other assets – current 152,506 97,832 Vessels and equipment, including vessels related to capital leases, right of use assets and advances on newbuilding contracts 2,262,666 3,284,441 Net investments in direct financing leases – non-current 3,000,927 1,961,299 Other assets – non-current 1,406,815 68,728 Current portion of long-term debt and obligations related to capital leases 547,098 168,715 Other liabilities – current 139,194 119,627 Long-term debt and obligations related to capital leases 4,307,278 3,386,800 Other liabilities – non-current 126,905 145,870 Year Ended Year Ended Year Ended Voyage revenues 612,471 477,495 549,646 Income from vessel operations 289,477 178,763 268,049 Realized and unrealized gain (loss) on non-designated derivative instruments 8,825 (2,067 ) (12,277 ) Net income 142,252 54,418 167,052 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying Amount of Intangible Assets for Partnership's Reportable Segments | The carrying amount of intangible assets for the Partnership’s liquefied natural gas segment is as follows: December 31, December 31, Gross carrying amount 179,813 179,813 Accumulated amortization (127,591 ) (118,735 ) Net carrying amount 52,222 61,078 |
Schedule of Goodwill | The Partnership's carrying amount of goodwill as at December 31, 2018 and 2017 is as follows: December 31, December 31, Liquefied natural gas segment 31,921 31,921 Liquefied petroleum gas segment 2,920 3,710 Total 34,841 35,631 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | December 31, December 31, Interest including interest rate swaps 23,083 19,186 Voyage and vessel expenses 34,889 12,476 Payroll and benefits 5,950 3,900 Other general expenses 2,542 3,360 Income and other tax payable 1,864 1,335 Distributions payable on preferred units 6,425 5,500 Total 74,753 45,757 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt | December 31, 2018 December 31, 2017 $ $ U.S. Dollar-denominated Revolving Credit Facilities due from 2020 to 2022 225,000 254,275 U.S. Dollar-denominated Term Loans due from 2020 to 2030 1,212,504 935,286 Norwegian Kroner-denominated Bonds due from 2020 to 2023 352,973 377,856 Euro-denominated Term Loans due from 2023 to 2024 193,781 232,957 Other U.S. Dollar-denominated Loans 3,300 10,000 Total principal 1,987,558 1,810,374 Unamortized discount and debt issuance costs (17,782 ) (12,382 ) Total debt 1,969,776 1,797,992 Less current portion (135,901 ) (552,404 ) Long-term debt 1,833,875 1,245,588 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Provision for Income Taxes | The components of the provision for income taxes were as follows: Year Ended Year Ended Year Ended Current (2,361 ) (3,557 ) (962 ) Deferred (852 ) 2,733 (11 ) Income tax expense (3,213 ) (824 ) (973 ) |
Reconciliations of Tax Charge | Reconciliations of the tax charge related to the relevant year at the applicable statutory income tax rates and the actual tax charge related to the relevant year are as follows: Year Ended Year Ended Year Ended Net income before income tax expenses 30,088 49,735 158,938 Net income not subject to taxes (68,675 ) (94,106 ) (138,542 ) Net (loss) income subject to taxes (38,587 ) (44,371 ) 20,396 At applicable statutory tax rates Amount computed using the standard rate of corporate tax 6,833 13,874 (3,338 ) Adjustments to valuation allowance and uncertain tax positions (14,733 ) 324 11,802 Permanent and currency differences 3,257 (12,507 ) (9,125 ) Change in tax rates 1,430 (2,515 ) (312 ) Tax expense related to the current year (3,213 ) (824 ) (973 ) |
Components of Partnership's Deferred Tax Assets (Liabilities) | The significant components of the Partnership’s deferred tax assets (liabilities) were as follows: December 31, December 31, Derivative instruments 2,793 3,823 Taxation loss carryforwards and disallowed finance costs 49,298 35,326 Vessels and equipment 4,045 3,936 Capitalized interest (1,853 ) (1,927 ) 54,283 41,158 Valuation allowance (52,570 ) (38,594 ) Net deferred tax assets included in other assets 1,713 2,564 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following table and related footnotes provide information about certain of the Partnership's related party transactions for the periods indicated: Year Ended Year Ended Year Ended Voyage revenues (i)(vi) 11,018 36,358 37,336 Vessel operating expenses (ii)(vi) (17,666 ) (23,564 ) (19,738 ) Time-charter hire expense (iii) (7,671 ) — — General and administrative expenses (iv) (15,967 ) (9,434 ) (12,590 ) General and administrative expenses deferred and capitalized (v) (822 ) (859 ) (571 ) (i) Commencing in 2008, the Arctic Spirit and Polar Spirit LNG carriers were time-chartered to Teekay Corporation at fixed-rates for periods of 10 years . The contract periods for the Polar Spirit and for the Arctic Spirit expired in March 2018 and April 2018, respectively. (ii) The Partnership and certain of its operating subsidiaries have entered into service agreements with certain subsidiaries of Teekay Corporation pursuant to which the Teekay Corporation subsidiaries provide to the Partnership and its subsidiaries crew training and technical management services. In addition, as part of the Partnership's acquisition of its ownership interest in the Pan Union Joint Venture in 2014, the Partnership entered into an agreement with a subsidiary of Teekay Corporation whereby Teekay Corporation's subsidiary agreed to provide, on behalf of the Partnership, shipbuilding supervision and crew training services for four LNG carrier newbuildings in the Pan Union Joint Venture, up to their delivery dates from 2017 to 2019. All costs incurred by these Teekay Corporation subsidiaries related to these services are charged to the Partnership and recorded as part of vessel operating expenses. (iii) In September 2018, the Partnership entered into an agreement with its 52% -owned joint venture, the Teekay LNG-Marubeni Joint Venture, to charter in one of Teekay LNG-Marubeni Joint Venture's LNG carriers, the Magellan Spirit , for a period of two years at a fixed-rate. (iv) Includes administrative, advisory, business development, commercial and strategic consulting services charged by Teekay Corporation's subsidiaries and reimbursements to the Partnership's General Partner for costs incurred on the Partnership's behalf for the conduct of the Partnership's business. (v) Includes the Partnership's costs associated with the Bahrain LNG Joint Venture including pre-operation, engineering and financing-related expenses, of which $1.1 million was reimbursed by the Bahrain LNG Joint Venture during 2018 ( December 31, 2017 – $1.1 million ; December 31, 2016 – $0.4 million ). The net costs are recorded as part of investments in and advances to equity-accounted joint ventures in the Partnership's consolidated balance sheets. (vi) The Partnership entered into an operation and maintenance contract with the Bahrain LNG Joint Venture and an operating and maintenance subcontract with Teekay Marine Solutions (Bermuda) Ltd. (or TMS ), an entity wholly-owned by Teekay Tankers Ltd., which is controlled by Teekay Corporation, relating to the LNG regasification terminal in Bahrain. The Partnership, as the contractor, and TMS, as the subcontractor, agreed to provide pre-mobilization services up to August 2018, and mobilization services and other general operational and maintenance services of the facility thereafter. The subcontractor fees from TMS of $ 1.6 million during 2018 ($ nil during 2017 and 2016) are included in vessel operating expenses in the Partnership's consolidated statements of income. Cost recoveries from the Bahrain LNG Joint Venture of $ 1.6 million during 2018 ($ nil during 2017 and 2016) are included in voyage revenues in the Partnership's consolidated statements of income. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Cross Currency Swap Agreements | The following table reflects information relating to the cross currency swaps as at December 31, 2018 . Floating Rate Receivable Principal Principal Reference Margin Fixed Rate Fair Value / Weighted- 1,000,000 134,000 NIBOR 3.70 % 5.92 % (18,315 ) 1.4 1,200,000 146,500 NIBOR 6.00 % 7.72 % (4,727 ) 2.8 850,000 102,000 NIBOR 4.60 % 7.89 % (6,080 ) 4.7 (29,122 ) |
Interest Rate Swap Agreements | As at December 31, 2018 , the Partnership was committed to the following interest rate swap agreements: Interest Principal Fair Value / Weighted- Fixed Interest Rate (i) LIBOR-Based Debt: U.S. Dollar-denominated interest rate swaps LIBOR 30,000 (519 ) 0.5 4.9 % U.S. Dollar-denominated interest rate swaps (ii) LIBOR 131,250 (16,494 ) 10.0 5.2 % U.S. Dollar-denominated interest rate swaps (ii) LIBOR 32,134 (66 ) 2.6 2.8 % U.S. Dollar-denominated interest rate swaps (iii)(iv) LIBOR 336,316 (12,787 ) 2.0 3.4 % U.S. Dollar-denominated interest rate swaps (iv) LIBOR 91,000 174 0.0 1.7 % U.S. Dollar-denominated interest rate swaps (iv) LIBOR 184,005 3,167 8.0 2.3 % EURIBOR-Based Debt: Euro-denominated interest rate swaps EURIBOR 86,477 (11,092 ) 4.7 3.8 % (37,617 ) (i) Excludes the margins the Partnership pays on its floating-rate term loans, which, at December 31, 2018 , ranged from 0.30% to 3.25% . (ii) Principal amount reduces semi-annually. (iii) These interest rate swaps are subject to mandatory early termination in 2020 and 2021, whereby the swaps will be settled based on their fair value at that time. (iv) Principal amount reduces quarterly. |
Location and Fair Value Amounts of Derivative Instruments | The following table presents the location and fair value amounts of derivative instruments, segregated by type of contract, on the Partnership’s consolidated balance sheets. Accounts receivable/Advances to affiliates $ Current portion of derivative assets Derivative assets Accrued liabilities Current portion of derivative liabilities Derivative liabilities As at December 31, 2018 Interest rate swap agreements 188 795 2,362 (2,729 ) (6,875 ) (31,358 ) Cross currency swap agreements — — — (713 ) (4,729 ) (23,680 ) Toledo Spirit time-charter derivative 1,021 40 — — — — 1,209 835 2,362 (3,442 ) (11,604 ) (55,038 ) As at December 31, 2017 Interest rate swap agreements — 108 1,130 (4,101 ) (34,614 ) (35,629 ) Interest rate swaption agreements — — — — (2 ) — Cross currency swap agreements — — 5,042 (810 ) (44,523 ) (10,168 ) Toledo Spirit time-charter derivative 678 970 — — — — 678 1,078 6,172 (4,911 ) (79,139 ) (45,797 ) |
Gain (Loss) for Derivative Instruments Not Designated or Qualifying as Hedging Instruments | The effect of the gain (loss) on these derivatives on the Partnership’s consolidated statements of income is as follows: Year Ended December 31, 2018 $ 2017 $ 2016 $ Realized gains (losses) Unrealized gains (losses) Total Realized gains (losses) Unrealized gains (losses) Total Realized gains (losses) Unrealized gains (losses) Total Interest rate swap agreements (14,654 ) 31,061 16,407 (18,825 ) 12,393 (6,432 ) (25,940 ) 15,627 (10,313 ) Interest rate swaption agreements — 2 2 — 945 945 — (164 ) (164 ) Interest rate swap and swaption agreements termination (13,681 ) — (13,681 ) (610 ) — (610 ) — — — Toledo Spirit time-charter derivative 1,480 (930 ) 550 678 110 788 (654 ) 3,970 3,316 (26,855 ) 30,133 3,278 (18,757 ) 13,448 (5,309 ) (26,594 ) 19,433 (7,161 ) The effect of the gain (loss) on these derivatives on the Partnership's consolidated statements of income is as follows: Year Ended December 31, 2018 $ 2017 $ 2016 $ Realized Unrealized Total Realized Unrealized Total Realized Unrealized Total Cross currency swap agreements (6,533 ) 21,240 14,707 (9,344 ) 49,047 39,703 (9,063 ) 28,905 19,842 Cross currency swap agreements termination (42,271 ) — (42,271 ) (25,733 ) — (25,733 ) (17,711 ) — (17,711 ) (48,804 ) 21,240 (27,564 ) (35,077 ) 49,047 13,970 (26,774 ) 28,905 2,131 |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The following tables exclude any interest rate swap agreements designated and qualifying as cash flow hedges in the Partnership’s equity-accounted joint ventures. Year Ended December 31, 2018 Effective Portion Recognized in AOCI (i) $ Effective Portion Reclassified from AOCI (ii) $ Ineffective Portion (iii) $ 2,128 (152) 740 Interest expense 2,128 (152) 740 Year Ended December 31, 2017 Effective Portion Recognized in AOCI (i) $ Effective Portion Reclassified from AOCI (ii) $ Ineffective Portion (iii) $ 429 (427) (740) Interest expense 429 (427) (740) Year Ended December 31, 2016 Effective Portion Recognized in AOCI (i) $ Effective Portion Reclassified from AOCI (ii) $ Ineffective Portion (iii) $ 590 — — Interest expense 590 — — (i) Effective portion of designated and qualifying cash flow hedges recognized in other comprehensive (loss) income. (ii) Effective portion of designated and qualifying cash flow hedges recorded in accumulated other comprehensive income (or AOCI ) during the term of the hedging relationship and reclassified to earnings. (iii) Ineffective portion of designated and qualifying cash flow hedges. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Partnership’s Share of Commitments to Fund Newbuilding and Other Construction Contract Costs | The Partnership’s share of commitments to fund newbuilding and other construction contract costs as at December 31, 2018 is as follows: 2019 Hyundai Samho Heavy Industries Co. (i) 120,413 Yamal LNG Joint Venture (ii) 436,100 Pan Union Joint Venture (iii) 29,200 Bahrain LNG Joint Venture (iv) 66,509 652,222 (i) As at December 31, 2018 , the Partnership had one remaining 100% -owned LNG carrier newbuilding on order with Hyundai Samho Heavy Industries Co. (or HHI ). The vessel delivered on January 31, 2019. As at December 31, 2018 , costs incurred under this newbuilding contract totaled $ 86.9 million . In January 2019, the Partnership secured $ 159 million of financing through a sale-leaseback agreement for this remaining HHI LNG carrier newbuilding. (ii) The Partnership, through the Yamal LNG Joint Venture, has a 50% ownership interest in four 172,000 -cubic meter ARC7 LNG carrier newbuildings that have an estimated total fully built-up cost of approximately $1.4 billion . As at December 31, 2018 , the Partnership’s proportionate costs incurred under these newbuilding contracts totaled $255.8 million . The Yamal LNG Joint Venture has secured debt financing of $1.1 billion for the four LNG carrier newbuildings, of which $395 million was undrawn at December 31, 2018 , related to the Partnership's proportionate share of the commitments included in the table above. (iii) Through the Pan Union Joint Venture, the Partnership has a 20% ownership interest in one LNG carrier newbuilding which delivered on January 8, 2019 (see Note 20a). The Pan Union Joint Venture has secured financing of $24 million related to the Partnership's proportionate share of the commitments included in the table above and the Partnership received $0.2 million of reimbursement directly from Shell in 2019 (see Note 7a iii). (iv) The Partnership has a 30% ownership interest in the Bahrain LNG Joint Venture for the development of an LNG receiving and regasification terminal in Bahrain. The project will include an FSU, which will be modified from one of the Partnership’s existing MEGI LNG carrier newbuildings, an offshore gas receiving facility, and an onshore nitrogen production facility. The terminal will have a capacity of 800 million standard cubic feet per day and will be owned and operated under a 20 -year agreement commencing mid-2019. The receiving and regasification terminal is expected to have a fully-built up cost of approximately $ 903 million . The Bahrain LNG Joint Venture has secured undrawn debt financing of $195 million , of which $ 58 million relates to the Partnership's proportionate share of the commitments included in the table above. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following is a tabular reconciliation of the Partnership's cash, cash equivalents and restricted cash balances for the periods presented in the Partnership's consolidated statements of cash flows: December 31, 2018 $ December 31, 2017 $ December 31, 2016 $ December 31, 2015 $ Cash and cash equivalents 149,014 244,241 126,146 102,481 Restricted cash - current 38,329 22,326 10,145 6,600 Restricted cash - long-term 35,521 72,868 106,882 104,919 Total 222,864 339,435 243,173 214,000 |
Changes in Operating Assets and Liabilities | The changes in operating assets and liabilities for years ended December 31, 2018 , 2017 and 2016 are as follows: Year Ended Year Ended Year Ended Accounts receivable 3,542 1,620 5,494 Prepaid expenses and other current assets (3,843 ) (2,815 ) 745 Accounts payable 274 (2,053 ) 2,791 Accrued liabilities and other long-term liabilities 13,958 2,449 (1,572 ) Unearned revenue and long-term unearned revenue 4,234 (1,456 ) (3,218 ) Advances to and from affiliates 2,183 (913 ) (9,699 ) Other operating assets and liabilities (1,130 ) 772 (4,402 ) Total 19,218 (2,396 ) (9,861 ) |
Total Capital and Net Income _2
Total Capital and Net Income Per Common Unit (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Incentive Distributions | The General Partner is entitled to incentive distributions if the amount the Partnership distributes to common unitholders with respect to any quarter exceeds specified target levels shown below: Quarterly Distribution Target Amount (per unit) Unitholders General Partner Minimum quarterly distribution of $0.4125 98 % 2 % Up to $0.4625 98 % 2 % Above $0.4625 up to $0.5375 85 % 15 % Above $0.5375 up to $0.6500 75 % 25 % Above $0.6500 50 % 50 % |
Schedule of Net Income Per Common Unit | Year Ended Year Ended Year Ended Limited partners' interest in net income for basic net income per common unit 2,615 19,586 134,977 Weighted average number of common units 79,672,435 79,617,778 79,568,352 Dilutive effect of unit-based compensation 169,893 173,263 103,506 Common units and common unit equivalents 79,842,328 79,791,041 79,671,858 Limited partner's interest in net income per common unit: Basic 0.03 0.25 1.70 Diluted 0.03 0.25 1.69 |
Issuances of Common Units | The following table summarizes the issuances of common and preferred units over the three years ended December 31, 2018 : Date Units Type of Units Offering Gross Proceeds (i) $ Net Proceeds $ Teekay Corporation’s Ownership After the Offering (ii) Use of Proceeds October 2016 Public Offering 2016 (iii) 5,000,000 Preferred $ 25.00 125,000 120,707 33.02 % General partnership purposes, including debt repayments and funding newbuilding installments October 2017 Public Offering (iv) 6,800,000 Preferred $ 25.00 170,000 164,411 33.02 % General partnership purposes, including debt repayments and funding newbuilding installments (i) Including the General Partner’s proportionate capital contribution. (ii) Including Teekay Corporation’s indirect general partner interest relating to common unit offerings. (iii) On October 5, 2016, the Partnership issued Series A Preferred Units having a distribution rate of 9.0% per annum of the stated liquidation preference of $25.00 per unit. At any time on or after October 5, 2021, the Partnership may redeem the Series A Preferred Units, in whole or in part, at a redemption price of $25.00 per unit plus all accumulated and unpaid distributions to the date of redemption, whether or not declared. (iv) On October 23, 2017, the Partnership issued Series B Preferred Units having a distribution rate of 8.5% per annum of the stated liquidation preference of $25.00 per unit up to October 15, 2027, at which point the rate moves to a floating rate equal to three-month LIBOR plus a margin of 6.241% . At any time on or after October 15, 2027, the Partnership may redeem the Series B Preferred Units, in whole or in part, at a redemption price of $25.00 per unit plus all accumulated and unpaid distributions thereon to the date of redemption, whether or not declared. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Basis of Presentation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Vessel operating expenses (note 12a) | $ (117,658) | $ (101,539) | $ (87,890) |
Increase in general administrative expenses | $ 28,512 | 18,141 | 19,199 |
Restatement Adjustment | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Vessel operating expenses (note 12a) | 1,600 | 700 | |
Increase in general administrative expenses | $ 1,600 | $ 700 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Financing Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Direct financing leases | $ 575,163 | $ 495,990 |
Total loans receivables and other financing receivables | 712,243 | 633,151 |
Performing | Payment activity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Direct financing leases | 575,163 | 495,990 |
Long-term receivable and accrued revenue included in accounts receivable and other assets | 5,694 | 5,476 |
Performing | Credit Quality Indicator Other Internal Metrics | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Due from joint ventures | $ 131,386 | $ 131,685 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Vessels and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Interest costs capitalized to vessels and equipment | $ 14.8 | $ 13.9 | $ 9.9 |
Property, Plant and Equipment [Line Items] | |||
Depreciation of vessels and equipment | $ 115.5 | $ 96.7 | $ 86.6 |
Conventional Tankers Segment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life in years | 25 years | ||
Liquefied Petroleum Gas Segment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life in years | 30 years | ||
Liquefied Natural Gas | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life in years | 35 years | ||
Minimum | Dry-docking Activity | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life in years | 2 years 6 months | ||
Maximum | Dry-docking Activity | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life in years | 5 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Changes in Partnership's Capitalized Dry Docking Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Roll Forward] | |||
Beginning balance | $ 2,905,712 | ||
Cost incurred for dry docking | 12,579 | $ 22,283 | $ 13,944 |
Ending balance | 3,329,523 | 2,905,712 | |
Dry-docking Activity | |||
Property, Plant and Equipment [Roll Forward] | |||
Beginning balance | 39,144 | 33,538 | 33,916 |
Cost incurred for dry docking | 15,259 | 22,283 | 13,944 |
Write-downs and sales of vessels | (2,448) | (2,782) | (2,886) |
Dry-dock amortization | (11,590) | (13,895) | (11,436) |
Ending balance | $ 40,365 | $ 39,144 | $ 33,538 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Income Taxes (Details) - Spain | 12 Months Ended |
Dec. 31, 2018vessel | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Number of vessels | 2 |
Tax rate in Spain | 25.00% |
Effective income tax rate on revenue by Spanish vessels tax credit | 90.00% |
Effective tax rate on revenues by Spanish vessels | 2.50% |
Accounting Pronouncements (Deta
Accounting Pronouncements (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2019 | Jan. 01, 2018 | Dec. 31, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Net income | $ 26,875,000 | $ 48,911,000 | $ 157,965,000 | |||
Current portion of advances to equity-accounted joint ventures (note 7) | 1,116,133,000 | 1,094,596,000 | ||||
Total equity | 1,882,597,000 | 1,931,423,000 | 1,777,412,000 | $ 1,543,679,000 | ||
Change in accounting policy | $ 2,739,000 | |||||
Other assets – current | 2,306,000 | 0 | ||||
Net operating cash flow | (131,198,000) | (218,750,000) | (194,362,000) | |||
ASU 2014-09 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Net income | 1,100,000 | |||||
Other assets – current | 2,300,000 | |||||
Decrease in accounts receivable | 2,300,000 | |||||
ASU 2016-15 | Restatement Adjustment | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Net operating cash flow | $ 25,700,000 | $ 17,700,000 | ||||
Subsequent Event | ASU 2016-02 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Change in accounting policy | $ 3,000,000 | |||||
Lease liability | 22,700,000 | |||||
Right-of-use asset | $ 22,700,000 | |||||
Difference between Revenue Guidance in Effect before and after Topic 606 | ASU 2014-09 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Increase in other assets | 3,500,000 | |||||
Current portion of advances to equity-accounted joint ventures (note 7) | 300,000 | |||||
Change in accounting policy | 2,700,000 | |||||
Calculated under Revenue Guidance in Effect before Topic 606 | ASU 2014-09 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total equity | $ 3,800,000 | |||||
Accounts Receivable | Difference between Revenue Guidance in Effect before and after Topic 606 | ASU 2014-09 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Change in accounting policy | $ 0 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Interest rate swaps and swaptions and cross currency swaps agreement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted cash - current and - long-term | $ 6,800,000 | $ 22,300,000 |
Toledo Spirit time-charter derivative | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Average daily tanker rate | $ 24,000 | $ 17,500 |
Measurement Input, Discount Rate | Toledo Spirit time-charter derivative | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount rate over remaining duration of contract | 9.50% | 8.70% |
Financial Instruments - Schedul
Financial Instruments - Schedule of Estimated Fair Value of Partnership's Financial Instruments on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Vessels held for sale (notes 19c and 19d) | $ 0 | $ 33,671 |
Long-term debt | (1,969,776) | (1,797,992) |
Obligations related to capital leases (note 5) | (1,298,556) | (1,011,549) |
Carrying Amount Asset (Liability) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Advances to equity-accounted joint ventures (note 6) | 131,386 | 131,685 |
Carrying Amount Asset (Liability) | Level 1 | Public | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | (350,813) | (376,581) |
Carrying Amount Asset (Liability) | Level 1 | Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents and restricted cash | 222,864 | 339,435 |
Carrying Amount Asset (Liability) | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Obligations related to capital leases (note 5) | (1,298,556) | (1,011,549) |
Carrying Amount Asset (Liability) | Level 2 | Non-public | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | (1,618,963) | (1,421,411) |
Carrying Amount Asset (Liability) | Level 2 | Recurring | Interest rate swap agreements | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap agreements – assets | 3,341 | 878 |
Interest rate swap agreements – liabilities | (40,958) | (73,984) |
Carrying Amount Asset (Liability) | Level 2 | Recurring | Cross-currency swap agreements | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cross currency swap agreements – assets | 0 | 3,758 |
Cross currency swap agreements – liabilities | (29,122) | (54,217) |
Carrying Amount Asset (Liability) | Level 2 | Non-recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Vessels held for sale (notes 19c and 19d) | 0 | 16,671 |
Carrying Amount Asset (Liability) | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivable included in accounts receivable and other assets | 175 | 3,476 |
Carrying Amount Asset (Liability) | Level 3 | Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other derivative | 1,061 | 1,648 |
Fair Value Asset (Liability) | Level 1 | Public | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | (361,095) | (384,820) |
Fair Value Asset (Liability) | Level 1 | Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents and restricted cash | 222,864 | 339,435 |
Fair Value Asset (Liability) | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Obligations related to capital leases (note 5) | (1,274,693) | (1,001,588) |
Fair Value Asset (Liability) | Level 2 | Non-public | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | (1,604,106) | (1,391,524) |
Fair Value Asset (Liability) | Level 2 | Recurring | Interest rate swap agreements | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap agreements – assets | 3,341 | 878 |
Interest rate swap agreements – liabilities | (40,958) | (73,984) |
Fair Value Asset (Liability) | Level 2 | Recurring | Cross-currency swap agreements | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cross currency swap agreements – assets | 0 | 3,758 |
Cross currency swap agreements – liabilities | (29,122) | (54,217) |
Fair Value Asset (Liability) | Level 2 | Non-recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Vessels held for sale (notes 19c and 19d) | 0 | 16,671 |
Fair Value Asset (Liability) | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivable included in accounts receivable and other assets | 174 | 3,459 |
Fair Value Asset (Liability) | Level 3 | Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other derivative | $ 1,061 | $ 1,648 |
Financial Instruments - Sched_2
Financial Instruments - Schedule of Estimated Fair Value of Partnership's Financial Instruments on Recurring Basis (Footnotes) (Details) $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Fair Value Asset (Liability) | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivable and accrued revenue included in accounts receivable and other assets | $ 174 | $ 3,459 |
Royal Dutch Shell Plc. | Shipbuilding supervision and crew training services | Fair Value Asset (Liability) | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivable and accrued revenue included in accounts receivable and other assets | $ 200 | |
Measurement Input, Discount Rate | Royal Dutch Shell Plc. | Shipbuilding supervision and crew training services | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input | 0.080 |
Financial Instruments - Changes
Financial Instruments - Changes in Fair Value of Asset Measured on Recurring Basis Using Significant Unobservable Inputs (Level 3) (Details) - Toledo Spirit time-charter derivative - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Fair value at beginning of year | $ 1,648 | $ 2,134 |
Realized and unrealized gains included in earnings | 550 | 788 |
Settlements | (1,137) | (1,274) |
Fair value at end of year | $ 1,061 | $ 1,648 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2018vesselsegment | |
Segment Reporting [Abstract] | |
Number of reportable segments | segment | 3 |
Liquefied Natural Gas Segment | |
Segment Reporting Information [Line Items] | |
Number of vessels | 49 |
Liquefied Natural Gas Segment | Corporate Joint Venture | |
Segment Reporting Information [Line Items] | |
Number of vessels | 25 |
Liquefied Petroleum Gas Segment | |
Segment Reporting Information [Line Items] | |
Number of vessels | 29 |
Liquefied Petroleum Gas Segment | Corporate Joint Venture | |
Segment Reporting Information [Line Items] | |
Number of vessels | 22 |
Conventional Tankers Segment | Suezmax Tanker | |
Segment Reporting Information [Line Items] | |
Number of vessels | 1 |
Conventional Tankers Segment | Handymax Product | |
Segment Reporting Information [Line Items] | |
Number of vessels | 1 |
Segment Reporting - Revenues an
Segment Reporting - Revenues and Percentage of Consolidated Voyage Revenues from Top Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue, Major Customer [Line Items] | |||
Voyage revenues from major customers | $ 510,762 | $ 432,676 | $ 396,444 |
Customer Concentration Risk | Sales Revenue, Net | Ras Laffan Liquefied Natural Gas Company Ltd. | |||
Revenue, Major Customer [Line Items] | |||
Voyage revenues from major customers | $ 70,600 | $ 70,300 | $ 70,300 |
Percentage of voyage revenues from major customers (less than) | 14.00% | 16.00% | 18.00% |
Customer Concentration Risk | Sales Revenue, Net | Cheniere Marketing International LLP | |||
Revenue, Major Customer [Line Items] | |||
Voyage revenues from major customers | $ 60,100 | $ 60,200 | |
Percentage of voyage revenues from major customers (less than) | 12.00% | 14.00% | 10.00% |
Customer Concentration Risk | Sales Revenue, Net | Royal Dutch Shell Plc. | |||
Revenue, Major Customer [Line Items] | |||
Voyage revenues from major customers | $ 115,400 | $ 53,800 | $ 48,200 |
Percentage of voyage revenues from major customers (less than) | 23.00% | 12.00% | 12.00% |
Customer Concentration Risk | Sales Revenue, Net | The Tangguh Production Sharing Contractors | |||
Revenue, Major Customer [Line Items] | |||
Voyage revenues from major customers | $ 49,700 | $ 44,400 | |
Percentage of voyage revenues from major customers (less than) | 10.00% | 11.00% | 11.00% |
Segment Reporting - Segment Rep
Segment Reporting - Segment Reporting Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Voyage revenues | $ 510,762 | $ 432,676 | $ 396,444 |
Voyage expenses | (28,237) | (8,202) | (1,656) |
Vessel operating expenses | (117,658) | (101,539) | (87,890) |
Time-charter hire expense | (7,670) | 0 | 0 |
Depreciation and amortization | (124,378) | (105,545) | (95,542) |
General and administrative expenses | (28,512) | (18,141) | (19,199) |
Write-down and loss on sale of vessels | (54,653) | (50,600) | (38,976) |
Restructuring charges | (1,845) | 0 | 0 |
Income from vessel operations | 147,809 | 148,649 | 153,181 |
Equity income (loss) | 53,546 | 9,789 | 62,307 |
Investment in and advances to equity-accounted joint ventures | 1,116,133 | 1,094,596 | |
Total assets | 5,384,781 | 5,019,299 | |
Expenditures for vessels and equipment | (686,305) | (714,529) | (344,987) |
Expenditures for dry docking | (12,579) | (22,283) | (13,944) |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total assets | 5,227,538 | 4,767,758 | |
Liquefied Natural Gas Segment | |||
Segment Reporting Information [Line Items] | |||
Voyage revenues | 454,517 | 365,914 | 314,591 |
Voyage expenses | (2,750) | (1,802) | (449) |
Vessel operating expenses | (82,952) | (80,245) | (65,371) |
Time-charter hire expense | (7,670) | ||
Depreciation and amortization | (111,360) | (86,592) | (72,190) |
General and administrative expenses | (23,270) | (13,223) | (13,955) |
Write-down and loss on sale of vessels | 0 | 0 | 0 |
Restructuring charges | 0 | ||
Income from vessel operations | 226,515 | 184,052 | 162,626 |
Equity income (loss) | 60,228 | 17,652 | 48,633 |
Investment in and advances to equity-accounted joint ventures | 962,236 | 933,970 | |
Expenditures for vessels and equipment | (684,951) | (701,116) | (344,924) |
Expenditures for dry docking | (7,505) | (20,047) | (13,944) |
Liquefied Natural Gas Segment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Voyage revenues | 454,517 | 365,914 | 314,591 |
Total assets | 4,861,977 | 4,284,767 | |
Liquefied Petroleum Gas Segment | |||
Segment Reporting Information [Line Items] | |||
Voyage revenues | 23,922 | 19,769 | 21,939 |
Voyage expenses | (15,907) | (1,218) | 0 |
Vessel operating expenses | (20,932) | (3,083) | (16) |
Time-charter hire expense | 0 | ||
Depreciation and amortization | (7,748) | (8,433) | (7,894) |
General and administrative expenses | (2,932) | (2,411) | (2,055) |
Write-down and loss on sale of vessels | (33,790) | 0 | 0 |
Restructuring charges | 0 | ||
Income from vessel operations | (57,387) | 4,624 | 11,974 |
Equity income (loss) | (6,682) | (7,863) | 13,674 |
Investment in and advances to equity-accounted joint ventures | 153,897 | 160,626 | |
Expenditures for vessels and equipment | (1,230) | (13,412) | 0 |
Expenditures for dry docking | (5,059) | (107) | 0 |
Liquefied Petroleum Gas Segment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Voyage revenues | 23,922 | 19,769 | 21,939 |
Total assets | 326,111 | 364,164 | |
Conventional Tankers Segment | |||
Segment Reporting Information [Line Items] | |||
Voyage revenues | 32,323 | 46,993 | 59,914 |
Voyage expenses | (9,580) | (5,182) | (1,207) |
Vessel operating expenses | (13,774) | (18,211) | (22,503) |
Time-charter hire expense | 0 | ||
Depreciation and amortization | (5,270) | (10,520) | (15,458) |
General and administrative expenses | (2,310) | (2,507) | (3,189) |
Write-down and loss on sale of vessels | (20,863) | (50,600) | (38,976) |
Restructuring charges | (1,845) | ||
Income from vessel operations | (21,319) | (40,027) | (21,419) |
Equity income (loss) | 0 | 0 | 0 |
Investment in and advances to equity-accounted joint ventures | 0 | 0 | |
Expenditures for vessels and equipment | (124) | 0 | (63) |
Expenditures for dry docking | (15) | (2,130) | 0 |
Conventional Tankers Segment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Voyage revenues | 32,323 | 46,993 | $ 59,914 |
Total assets | $ 39,450 | $ 118,827 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Total Segment Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 5,384,781 | $ 5,019,299 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total assets | 5,227,538 | 4,767,758 |
Operating Segments | Liquefied Natural Gas Segment | ||
Segment Reporting Information [Line Items] | ||
Total assets | 4,861,977 | 4,284,767 |
Operating Segments | Liquefied Petroleum Gas Segment | ||
Segment Reporting Information [Line Items] | ||
Total assets | 326,111 | 364,164 |
Operating Segments | Conventional Tankers Segment | ||
Segment Reporting Information [Line Items] | ||
Total assets | 39,450 | 118,827 |
Unallocated | Cash and cash equivalents | ||
Segment Reporting Information [Line Items] | ||
Total assets | 149,014 | 244,241 |
Unallocated | Advances to affiliates | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 8,229 | $ 7,300 |
Chartered-in Vessels - Capital
Chartered-in Vessels - Capital Lease Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Capital Leased Assets [Line Items] | ||
Total obligations related to capital leases | $ 1,298,556 | $ 1,011,549 |
Less current portion | (81,219) | (106,946) |
Long-term obligations related to capital leases | 1,217,337 | 904,603 |
LNG Carriers | ||
Capital Leased Assets [Line Items] | ||
Total obligations related to capital leases | 1,274,569 | 961,711 |
Suezmax Tanker | ||
Capital Leased Assets [Line Items] | ||
Total obligations related to capital leases | $ 23,987 | $ 49,838 |
Chartered-in Vessels - Capita_2
Chartered-in Vessels - Capital Lease Obligations - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)vessellease | Dec. 31, 2017USD ($) | |
Capital Leased Assets [Line Items] | ||
Capital lease obligation | $ 1,298,556 | $ 1,011,549 |
Suezmax Tanker | ||
Capital Leased Assets [Line Items] | ||
Number of capital leases | vessel | 1 | |
LNG Carriers | ||
Capital Leased Assets [Line Items] | ||
Number of capital leases | lease | 8 | |
Term of contract (in years) | 10 years | |
Weighted-average interest rate on lease | 5.10% | |
Related purchase obligations | $ 1,700,000 | |
Interest included in payments | 435,300 | |
Suezmax Tanker | ||
Capital Leased Assets [Line Items] | ||
Related purchase obligations | 24,200 | |
Interest included in payments | $ 200 | |
Teekay Tangguh Joint Venture | ||
Capital Leased Assets [Line Items] | ||
Number of vessels | vessel | 2 |
Chartered-in Vessels - Commitme
Chartered-in Vessels - Commitment Under Capital Leases (Details) - LNG Carriers $ in Thousands | Dec. 31, 2018USD ($) |
Commitment | |
2019 | $ 119,517 |
2020 | 118,685 |
2021 | 117,772 |
2022 | 116,978 |
2023 | 116,338 |
Thereafter | $ 1,120,670 |
Chartered-in Vessels - Operatin
Chartered-in Vessels - Operating Lease Obligations (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
Charters-in - operating leases, 2019 | $ 23,725 |
Charters-in - operating leases, 2020 | $ 16,055 |
Chartered-in Vessels - Operat_2
Chartered-in Vessels - Operating Lease Obligations - Additional Information (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)vessel | Dec. 31, 2017USD ($) | |
Property Subject to or Available for Operating Lease [Line Items] | ||
Ownership percentage | 100.00% | |
Teekay LNG-Marubeni Joint Venture | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Ownership percentage | 52.00% | |
Teekay Tangguh Joint Venture | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Partnership interest owned | 69.00% | |
Number of vessels | vessel | 2 | |
Tax indemnification | $ | $ 6.6 | $ 7.1 |
Operating lease arrangement period, lessor (in years) | 20 years |
Chartered-in Vessels - Estimate
Chartered-in Vessels - Estimated Future Minimum Rental Payments to be Received and Paid Under the Lease Contracts (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Sublease Payments | |
2019 | $ 23,725 |
2020 | 16,055 |
Head Lease Receipts | |
Head Lease Receipts | |
2019 | 21,242 |
2020 | 21,242 |
2021 | 21,242 |
2022 | 21,242 |
2023 | 21,242 |
Thereafter | 111,611 |
Total | 217,821 |
Sublease Payments | |
Sublease Payments | |
2019 | 23,875 |
2020 | 23,875 |
2021 | 23,875 |
2022 | 23,875 |
2023 | 23,875 |
Thereafter | 125,485 |
Total | $ 244,860 |
Chartered-in Vessels - Estima_2
Chartered-in Vessels - Estimated Future Minimum Rental Payments to be Received and Paid Under the Lease Contracts (Footnotes) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Operating Leased Assets [Line Items] | ||
Deferred head lease receipts, unearned revenue | $ 30,108 | $ 25,873 |
Teekay Tangguh Joint Venture | ||
Operating Leased Assets [Line Items] | ||
Head lease receipts | 292,600 | |
Sublease payments made | 236,300 | |
Deferred head lease receipts, unearned revenue | 3,700 | 3,700 |
Deferred head lease receipts, long-term liabilities | $ 29,300 | $ 33,000 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Ownership percentage | 100.00% | |
Contract with customer, liability, advance payments | $ 26.4 | $ 22.2 |
Contract with customer, liability, revenue recognized | $ 22.2 | |
Pan Union Joint Venture | Minimum | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Ownership percentage | 20.00% | |
Pan Union Joint Venture | Maximum | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Ownership percentage | 30.00% | |
Bahrain LNG Joint Venture | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Ownership percentage | 30.00% | |
National Oil and Gas Authority | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Ownership percentage | 30.00% | |
GIC | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Ownership percentage | 24.00% | |
Samsung C&T | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Ownership percentage | 16.00% |
Revenue - Disaggregation (Detai
Revenue - Disaggregation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Voyage revenues (notes 6 and 12a) | $ 510,762 | $ 432,676 | $ 396,444 |
Conventional Tankers Segment | |||
Segment Reporting Information [Line Items] | |||
Voyage revenues (notes 6 and 12a) | 32,323 | 46,993 | 59,914 |
Conventional Tankers Segment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Voyage revenues (notes 6 and 12a) | 32,323 | 46,993 | 59,914 |
Liquefied Petroleum Gas Segment | |||
Segment Reporting Information [Line Items] | |||
Voyage revenues (notes 6 and 12a) | 23,922 | 19,769 | 21,939 |
Liquefied Petroleum Gas Segment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Voyage revenues (notes 6 and 12a) | 23,922 | 19,769 | 21,939 |
Liquefied Natural Gas Segment | |||
Segment Reporting Information [Line Items] | |||
Voyage revenues (notes 6 and 12a) | 454,517 | 365,914 | 314,591 |
Liquefied Natural Gas Segment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Voyage revenues (notes 6 and 12a) | 454,517 | 365,914 | 314,591 |
Time charters | |||
Segment Reporting Information [Line Items] | |||
Voyage revenues (notes 6 and 12a) | 437,667 | 371,922 | 341,961 |
Time charters | Conventional Tankers Segment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Voyage revenues (notes 6 and 12a) | 17,405 | 39,171 | 58,802 |
Time charters | Liquefied Petroleum Gas Segment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Voyage revenues (notes 6 and 12a) | 0 | 0 | 0 |
Time charters | Liquefied Natural Gas Segment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Voyage revenues (notes 6 and 12a) | 420,262 | 332,751 | 283,159 |
Voyage charters | |||
Segment Reporting Information [Line Items] | |||
Voyage revenues (notes 6 and 12a) | 38,513 | 8,994 | |
Voyage charters | Conventional Tankers Segment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Voyage revenues (notes 6 and 12a) | 14,591 | 6,709 | |
Voyage charters | Liquefied Petroleum Gas Segment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Voyage revenues (notes 6 and 12a) | 23,922 | 2,285 | |
Voyage charters | Liquefied Natural Gas Segment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Voyage revenues (notes 6 and 12a) | 0 | 0 | |
Bareboat charters | |||
Segment Reporting Information [Line Items] | |||
Voyage revenues (notes 6 and 12a) | 23,820 | 40,058 | 45,763 |
Bareboat charters | Conventional Tankers Segment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Voyage revenues (notes 6 and 12a) | 0 | 0 | 0 |
Bareboat charters | Liquefied Petroleum Gas Segment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Voyage revenues (notes 6 and 12a) | 0 | 17,484 | 21,939 |
Bareboat charters | Liquefied Natural Gas Segment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Voyage revenues (notes 6 and 12a) | 23,820 | 22,574 | 23,824 |
Management fees and other | |||
Segment Reporting Information [Line Items] | |||
Voyage revenues (notes 6 and 12a) | 10,762 | 11,702 | 8,720 |
Management fees and other | Conventional Tankers Segment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Voyage revenues (notes 6 and 12a) | 327 | 1,113 | 1,112 |
Management fees and other | Liquefied Petroleum Gas Segment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Voyage revenues (notes 6 and 12a) | 0 | 0 | 0 |
Management fees and other | Liquefied Natural Gas Segment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Voyage revenues (notes 6 and 12a) | 10,435 | 10,589 | 7,608 |
Non-lease revenue | |||
Segment Reporting Information [Line Items] | |||
Voyage revenues (notes 6 and 12a) | 18,554 | 21,228 | 13,855 |
Non-lease | |||
Segment Reporting Information [Line Items] | |||
Voyage revenues (notes 6 and 12a) | $ 29,316 | $ 32,930 | $ 22,575 |
Revenue - Net Investments in Di
Revenue - Net Investments in Direct Financing Leases (Details) | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2013vesselm³ | Dec. 31, 2019USD ($) | Dec. 31, 2017USD ($) | |
Capital Leased Assets [Line Items] | ||||
Total minimum lease payments to be received | $ 897,130,000 | $ 568,710,000 | ||
Estimated unguaranteed residual value of leased properties | 291,098,000 | 194,965,000 | ||
Initial direct costs | 328,000 | 361,000 | ||
Less unearned revenue | (613,394,000) | (268,046,000) | ||
Total net investments in direct financing leases | 575,163,000 | 495,990,000 | ||
Less current portion | (12,635,000) | (9,884,000) | ||
Net investments in direct financing leases | 562,528,000 | $ 486,106,000 | ||
2019 | 64,200,000 | |||
2020 | 64,300,000 | |||
2021 | 64,200,000 | |||
2022 | 64,200,000 | |||
2023 | 64,000,000 | |||
Thereafter | $ 576,200,000 | |||
Teekay Tangguh Joint Venture | ||||
Capital Leased Assets [Line Items] | ||||
Term of charter contract (in years) | 20 years | |||
Awilco LNG Carriers | ||||
Capital Leased Assets [Line Items] | ||||
Charter contract extension, period (in years) | 1 year | |||
Bahrain Spirit | ||||
Capital Leased Assets [Line Items] | ||||
Term of charter contract (in years) | 21 years | |||
Awilco LNG Carriers | ||||
Capital Leased Assets [Line Items] | ||||
Number of vessels | vessel | 2 | |||
Volume of vessels (in cubic meter) | m³ | 155,900 | |||
Vessel One | Awilco LNG Carriers | ||||
Capital Leased Assets [Line Items] | ||||
Operating lease arrangement period, lessor (in years) | 5 years | |||
Vessel Two | Awilco LNG Carriers | ||||
Capital Leased Assets [Line Items] | ||||
Operating lease arrangement period, lessor (in years) | 4 years | |||
Minimum | ||||
Capital Leased Assets [Line Items] | ||||
Charter contract extension, period (in years) | 3 years | |||
Minimum | Forecast | Awilco LNG Carriers | ||||
Capital Leased Assets [Line Items] | ||||
Deferred rent receivables, net (per day) | $ 10,600 | |||
Maximum | ||||
Capital Leased Assets [Line Items] | ||||
Charter contract extension, period (in years) | 15 years | |||
Maximum | Forecast | Awilco LNG Carriers | ||||
Capital Leased Assets [Line Items] | ||||
Deferred rent receivables, net (per day) | $ 20,600 |
Revenue - Operating leases (Det
Revenue - Operating leases (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Property Subject to Operating Lease [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Operating leases, future minimum payments receivable, current | $ 482.7 | |
Property Available for Operating Lease | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Operating leases, future minimum payments receivable, in two years | 438.2 | |
Operating leases, future minimum payments receivable, in three years | 398.3 | |
Operating leases, future minimum payments receivable, in four years | 321.9 | |
Operating leases, future minimum payments receivable, in five years | 278.1 | |
Property subject to or available for operating lease, net | 3,100 | $ 2,200 |
Property subject to or available for operating lease, gross | 3,800 | 2,900 |
Property subject to or available for operating lease, accumulated depreciation | $ 698.5 | $ 646.2 |
Revenue - Contract costs (Detai
Revenue - Contract costs (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Capitalized Contract Cost [Line Items] | |||
Capitalized contract cost, amortization | $ 200,000 | $ 0 | $ 0 |
Other Noncurrent Assets | |||
Capitalized Contract Cost [Line Items] | |||
Capitalized contract cost | $ 3,500,000 | $ 0 |
Equity-Accounted Investments -
Equity-Accounted Investments - Investments in and Advances to Equity Accounted Investees (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018USD ($)vessel | Dec. 31, 2017USD ($)vessel | Sep. 30, 2018 | Dec. 02, 2015 | Jun. 30, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 100.00% | ||||
Equity method investments | $ 1,116,133 | $ 1,094,596 | |||
Current portion of advances to equity-accounted joint ventures (note 7) | (79,108) | 0 | |||
Investment in and advances to equity-accounted joint ventures | $ 1,037,025 | $ 1,094,596 | |||
Bahrain LNG Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 30.00% | 30.00% | |||
Current portion of advances to equity-accounted joint ventures (note 7) | $ (79,100) | ||||
Yamal LNG Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 50.00% | ||||
Exmar LPG Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 50.00% | 50.00% | |||
Teekay LNG-Marubeni Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 52.00% | 52.00% | |||
Excalibur Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 50.00% | ||||
Angola Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 33.00% | ||||
Number of vessels | vessel | 4 | ||||
RasGas 3 Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 40.00% | ||||
Newbuildings on order | Yamal LNG Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of vessels | vessel | 6 | ||||
Equity Method Investments | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of vessels | vessel | 42 | ||||
Equity method investments | $ 1,116,133 | $ 1,094,596 | |||
Current portion of advances to equity-accounted joint ventures (note 7) | (79,108) | 0 | |||
Investment in and advances to equity-accounted joint ventures | $ 1,037,025 | 1,094,596 | |||
Equity Method Investments | Bahrain LNG Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 30.00% | ||||
Equity method investments | $ 81,353 | 77,706 | |||
Equity Method Investments | Yamal LNG Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 50.00% | ||||
Number of vessels | vessel | 2 | ||||
Equity method investments | $ 205,839 | 193,774 | |||
Equity Method Investments | Pan Union Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of vessels | vessel | 3 | ||||
Equity method investments | $ 73,545 | 43,538 | |||
Equity Method Investments | Exmar LPG Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 50.00% | ||||
Number of vessels | vessel | 22 | ||||
Equity method investments | $ 153,808 | 160,626 | |||
Equity Method Investments | Teekay LNG-Marubeni Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 52.00% | ||||
Number of vessels | vessel | 6 | ||||
Equity method investments | $ 351,529 | 341,712 | |||
Equity Method Investments | Excalibur Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 49.00% | ||||
Number of vessels | vessel | 1 | ||||
Equity method investments | $ 32,402 | 79,915 | |||
Equity Method Investments | Angola Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 33.00% | ||||
Number of vessels | vessel | 4 | ||||
Equity method investments | $ 85,469 | 74,775 | |||
Equity Method Investments | RasGas 3 Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 40.00% | ||||
Number of vessels | vessel | 4 | ||||
Equity method investments | $ 132,188 | $ 122,550 | |||
Equity Method Investments | Newbuildings on order | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of vessels | vessel | 6 | ||||
Equity Method Investments | Newbuildings on order | Bahrain LNG Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of vessels | vessel | 1 | ||||
Equity Method Investments | Newbuildings on order | Yamal LNG Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of vessels | vessel | 4 | ||||
Equity Method Investments | Newbuildings on order | Pan Union Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of vessels | vessel | 1 | ||||
Equity Method Investments | Minimum | Pan Union Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 20.00% | ||||
Equity Method Investments | Maximum | Pan Union Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 30.00% |
Equity-Accounted Investments _2
Equity-Accounted Investments - Bahrain LNG Joint Venture - Additional Information (Details) $ in Thousands | Dec. 02, 2015ft³ | Dec. 31, 2018USD ($)ft³ | Dec. 31, 2017USD ($) |
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 100.00% | ||
Current portion of advances to equity-accounted joint ventures (note 7) | $ 79,108 | $ 0 | |
Maximum | |||
Schedule of Equity Method Investments [Line Items] | |||
Basis spread on variable rate (as a percent) | 3.25% | ||
Nogaholding | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 30.00% | ||
GIC | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 24.00% | ||
Bahrain LNG Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 30.00% | 30.00% | |
Current portion of advances to equity-accounted joint ventures (note 7) | $ 79,100 | ||
Investment in and advances to equity-accounted joint ventures (note 7) | 79,100 | ||
Interest accrued on advances | $ 0 | $ 100 | |
Bahrain LNG Joint Venture | LIBOR | |||
Schedule of Equity Method Investments [Line Items] | |||
Basis spread on variable rate (as a percent) | 1.25% | ||
Bahrain LNG Joint Venture | Daewoo Shipbuilding & Marine Engineering Co. Ltd. | Modified Vessel | |||
Schedule of Equity Method Investments [Line Items] | |||
Term of charter contract (in years) | 21 years | ||
Bahrain LNG Joint Venture | LNG Receiving and Regasification Terminal | |||
Schedule of Equity Method Investments [Line Items] | |||
Capacity of production facility, per day (in cubic feet) | ft³ | 800,000,000 | ||
Length of charter contract (in years) | 20 years | 20 years | |
Bahrain LNG Joint Venture | LNG Receiving and Regasification Terminal | Maximum | |||
Schedule of Equity Method Investments [Line Items] | |||
Capacity of production facility, per day (in cubic feet) | ft³ | 800,000,000 | ||
Bahrain LNG Joint Venture | Nogaholding | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 30.00% | ||
Bahrain LNG Joint Venture | GIC | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 24.00% | ||
Bahrain LNG Joint Venture | Samsung C&T | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 16.00% |
Equity-Accounted Investments _3
Equity-Accounted Investments - Yamal LNG Joint Venture - Additional Information (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)vessel | Dec. 31, 2016USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 100.00% | |||
Return of capital and repayment of advances from equity-accounted joint ventures | $ 0 | $ 92,320 | $ 5,500 | |
Yamal LNG Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Total capital returned to joint venture partners | $ 104,000 | |||
Yamal LNG Joint Venture | Newbuildings | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Secured financing | 1,600,000 | 1,600,000 | ||
Yamal LNG Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 50.00% | |||
Return of capital and repayment of advances from equity-accounted joint ventures | 52,000 | |||
Carrying value of guarantee liability | $ 600 | $ 600 | $ 600 | |
Yamal LNG Joint Venture | Newbuildings | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of vessels | vessel | 6 | |||
Yamal LNG Joint Venture | China LNG | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 50.00% |
Equity-Accounted Investments _4
Equity-Accounted Investments - Pan Union Joint Venture - Additional Information (Details) $ in Millions | Jan. 08, 2019 | Jun. 30, 2014USD ($)vessel | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 100.00% | |||
Pan Union Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Difference between carrying amount and book value | $ 11 | $ 11.4 | ||
Pan Union Joint Venture | Shipbuilding supervision and crew training services | Newbuildings | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of vessels | vessel | 4 | |||
Value of service obligation | $ 36.9 | 0 | 8.2 | |
Reimbursement from Shell | $ 0.2 | |||
Long-term receivable and accrued revenue included in accounts receivable and other assets | 20.3 | $ 3.5 | ||
Pan Union Joint Venture | Shipbuilding supervision and crew training services | Newbuildings | 30% Ownership | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 30.00% | |||
Pan Union Joint Venture | Shipbuilding supervision and crew training services | Newbuildings | 20% Ownership | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 20.00% | |||
Pan Union Joint Venture | Shipbuilding supervision and crew training services | Newbuildings | Fair Value Asset (Liability) | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Value of service obligation | 33.3 | |||
Long-term receivable and accrued revenue included in accounts receivable and other assets | $ 16.5 | |||
Subsequent Event | Pan Union Joint Venture | Pan Africa | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 20.00% | |||
Term of charter contract (in years) | 20 years | |||
Subsequent Event | Pan Union Joint Venture | 20% Ownership | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 20.00% | |||
Term of charter contract (in years) | 20 years |
Equity-Accounted Investments _5
Equity-Accounted Investments - Exmar LPG Joint Venture - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)lease | Dec. 31, 2017USD ($) | Jun. 30, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 100.00% | ||
Exmar LPG Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% | 50.00% | |
Number of capital leases | lease | 4 | ||
Carrying value of guarantee liability | $ 1,300,000 | $ 1,600,000 | |
Investment in and advances to equity-accounted joint ventures (note 7) | 52,300,000 | 52,300,000 | |
Interest accrued on advances | 0 | 200,000 | |
Difference between carrying amount and book value | $ 24,900,000 | $ 25,500,000 | |
Exmar LPG Joint Venture | LIBOR | |||
Schedule of Equity Method Investments [Line Items] | |||
Basis spread on variable rate (as a percent) | 0.50% | ||
Exmar LPG Joint Venture | Exmar NV | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% |
Equity-Accounted Investments _6
Equity-Accounted Investments - Teekay LNG-Marubeni Joint Venture - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 100.00% | ||
Teekay LNG-Marubeni Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 52.00% | 52.00% | |
Carrying value of guarantee liability | $ 0.4 | $ 0.5 | |
Secured debt | US Dollar Denominated Term Loans Maturing in December 2023 | Teekay LNG-Marubeni Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Amount of new debt facility | $ 306.5 |
Equity-Accounted Investments _7
Equity-Accounted Investments - Excalibur and Excelsior Joint Ventures - Additional Information (Details) - USD ($) $ in Thousands | Jan. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 100.00% | |||
Proceeds from sale of equity-accounted joint venture | $ 54,438 | $ 0 | $ 0 | |
Excelsior Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Proceeds from sale of equity-accounted joint venture | $ 54,000 | |||
Gain on sale of joint venture | $ 5,600 | |||
Excalibur Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Carrying value of guarantee liability | 200 | |||
Ownership percentage | 50.00% | |||
Difference between carrying amount and book value | $ 13,000 | $ 13,400 | ||
Exmar NV | Excelsior Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 50.00% | |||
Exmar NV | Excalibur Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 50.00% |
Equity-Accounted Investments _8
Equity-Accounted Investments - Angola Joint Venture - Additional Information (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)vesselm³ | Dec. 31, 2017USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||
Percentage of ownership in joint venture | 100.00% | |
Angola Joint Venture | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of ownership in joint venture | 33.00% | |
Number of vessels | vessel | 4 | |
Volume of vessels (in cubic meter) | m³ | 160,400 | |
Carrying value of guarantee liability | $ | $ 0.6 | $ 0.7 |
Angola Joint Venture | NYK Energy Transport | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of ownership in joint venture | 33.00% | |
Angola Joint Venture | Mitsui & Co. Ltd | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of ownership in joint venture | 34.00% |
Equity-Accounted Investments _9
Equity-Accounted Investments - RasGas 3 Joint Venture - Additional Information (Details) | Dec. 31, 2018 |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 100.00% |
RasGas 3 Joint Venture | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 40.00% |
RasGas 3 Joint Venture | Qatar Gas Transport Company Ltd | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 60.00% |
Equity-Accounted Investments_10
Equity-Accounted Investments - Other - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 02, 2015 |
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 100.00% | ||
Equity method investments | $ 1,116,133 | $ 1,094,596 | |
Long-term debt | 1,969,776 | 1,797,992 | |
Equity Method Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | $ 1,116,133 | 1,094,596 | |
RasGas 3 Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 40.00% | ||
RasGas 3 Joint Venture | Equity Method Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 40.00% | ||
Equity method investments | $ 132,188 | 122,550 | |
RasGas 3 Joint Venture | Qatar Gas Transport Company Ltd | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 60.00% | ||
Angola LNG Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 33.00% | ||
Angola LNG Joint Venture | Equity Method Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 33.00% | ||
Equity method investments | $ 85,469 | 74,775 | |
Yamal LNG Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% | ||
Yamal LNG Joint Venture | Equity Method Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% | ||
Equity method investments | $ 205,839 | 193,774 | |
Bahrain LNG Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 30.00% | 30.00% | |
Bahrain LNG Joint Venture | Equity Method Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 30.00% | ||
Equity method investments | $ 81,353 | 77,706 | |
Angola and Yamal LNG Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Long-term debt | $ 622,000 | $ 304,100 |
Equity-Accounted Investments_11
Equity-Accounted Investments - Financial Information of Joint Ventures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 100.00% | ||
Other assets – current | $ 2,306 | $ 0 | |
Vessels and equipment, including vessels related to capital leases, right of use assets and advances on newbuilding contracts | 3,329,523 | 2,905,712 | |
Net investments in direct financing leases – non-current | 575,163 | 495,990 | |
Other assets – non-current | 11,432 | 8,043 | |
Other liabilities – non-current | 43,788 | 58,174 | |
Voyage revenues | 510,762 | 432,676 | $ 396,444 |
Income from vessel operations | 147,809 | 148,649 | 153,181 |
Realized and unrealized gain (loss) on non-designated derivative instruments | 3,278 | (5,309) | (7,161) |
Net income | 26,875 | 48,911 | 157,965 |
Equity Method Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Cash and restricted cash – current | 333,566 | 281,468 | |
Other assets – current | 152,506 | 97,832 | |
Vessels and equipment, including vessels related to capital leases, right of use assets and advances on newbuilding contracts | 2,262,666 | 3,284,441 | |
Net investments in direct financing leases – non-current | 3,000,927 | 1,961,299 | |
Other assets – non-current | 1,406,815 | 68,728 | |
Current portion of long-term debt and obligations related to capital leases | 547,098 | 168,715 | |
Other liabilities – current | 139,194 | 119,627 | |
Long-term debt and obligations related to capital leases | 4,307,278 | 3,386,800 | |
Other liabilities – non-current | 126,905 | 145,870 | |
Voyage revenues | 612,471 | 477,495 | 549,646 |
Income from vessel operations | 289,477 | 178,763 | 268,049 |
Realized and unrealized gain (loss) on non-designated derivative instruments | 8,825 | (2,067) | (12,277) |
Net income | $ 142,252 | $ 54,418 | $ 167,052 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Weighted-average amortization period of intangible assets consisted of time-charter contracts | 20 years 8 months 12 days | 20 years 8 months 12 days | |
Amortization of intangible assets | $ 8,900,000 | $ 8,900,000 | $ 8,900,000 |
Amortization expense of intangible assets, 2019 | 8,900,000 | ||
Amortization expense of intangible assets, 2020 | 8,900,000 | ||
Amortization expense of intangible assets, 2021 | 8,900,000 | ||
Amortization expense of intangible assets, 2022 | 8,900,000 | ||
Amortization expense of intangible assets, 2023 | 8,900,000 | ||
Carrying amount of goodwill | 34,841,000 | 35,631,000 | |
Goodwill impairment | $ 800,000 | $ 0 | $ 0 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Carrying Amount of Intangible Assets for Partnership's Reportable Segments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Net carrying amount | $ 52,222 | $ 61,078 |
Liquefied Natural Gas Segment | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 179,813 | 179,813 |
Accumulated amortization | (127,591) | (118,735) |
Net carrying amount | $ 52,222 | $ 61,078 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Schedule of Goodwill (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill [Line Items] | ||
Goodwill | $ 34,841 | $ 35,631 |
Operating Segments | ||
Goodwill [Line Items] | ||
Goodwill | 34,841 | 35,631 |
Operating Segments | Liquefied Natural Gas Segment | ||
Goodwill [Line Items] | ||
Goodwill | 31,921 | 31,921 |
Operating Segments | Liquefied Petroleum Gas Segment | ||
Goodwill [Line Items] | ||
Goodwill | $ 2,920 | $ 3,710 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Interest including interest rate swaps | $ 23,083 | $ 19,186 |
Voyage and vessel expenses | 34,889 | 12,476 |
Payroll and benefits | 5,950 | 3,900 |
Other general expenses | 2,542 | 3,360 |
Income and other tax payable | 1,864 | 1,335 |
Distributions payable on preferred units | 6,425 | 5,500 |
Total | $ 74,753 | $ 45,757 |
Long-Term Debt - Components of
Long-Term Debt - Components of Long-Term Debt (Details) $ in Thousands, € in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) |
Debt Instrument [Line Items] | ||||
Total principal | $ 1,987,558 | $ 1,810,374 | ||
Unamortized discount and debt issuance costs | (17,782) | (12,382) | ||
Total debt | 1,969,776 | 1,797,992 | ||
Less current portion | (135,901) | (552,404) | ||
Long-term debt | 1,833,875 | 1,245,588 | ||
U.S. Dollar-denominated Revolving Credit Facilities due from 2020 to 2022 | ||||
Debt Instrument [Line Items] | ||||
Total principal | 225,000 | 254,275 | ||
U.S. Dollar-denominated Term Loans due from 2020 to 2030 | ||||
Debt Instrument [Line Items] | ||||
Total principal | 1,212,504 | 935,286 | ||
Norwegian Kroner-denominated Bonds due from 2020 to 2023 | ||||
Debt Instrument [Line Items] | ||||
Total principal | 352,973 | 377,856 | ||
Euro-denominated Term Loans due from 2023 to 2024 | ||||
Debt Instrument [Line Items] | ||||
Total principal | 193,781 | € 169 | 232,957 | € 194.1 |
Other U.S. Dollar-denominated Loans | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 3,300 | $ 10,000 |
Long-Term Debt - Revolving Cred
Long-Term Debt - Revolving Credit Facilities - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)credit_facility | Nov. 01, 2018USD ($) | Dec. 31, 2017USD ($)credit_facility | |
Debt Instrument [Line Items] | |||
Aggregate principal amount | $ 1,987,558 | $ 1,810,374 | |
Reduction in 2019 | 136,600 | ||
Reduction in 2020 | 613,000 | ||
Reduction in 2021 | 404,100 | ||
Reduction in 2022 | 92,100 | ||
Reduction in 2023 | $ 213,300 | ||
Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 0.30% | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 3.25% | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Borrowings provided under revolving credit facilities | $ 225,000 | 190,000 | |
Reduction in 2020 | $ 22,400 | ||
Reduction in 2021 | 248,400 | ||
Reduction in 2022 | 24,400 | ||
Reduction in 2023 | 105,400 | ||
Line of Credit | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Borrowings provided under revolving credit facilities | 400,600 | 443,700 | |
Undrawn amount of revolving credit facilities | $ 175,600 | 189,400 | |
Line of Credit | Revolving Credit Facility | LIBOR | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 1.40% | ||
Line of Credit | Revolving Credit Facility | LIBOR | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 2.25% | ||
Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Number of credit facilities | credit_facility | 1 | ||
Aggregate principal amount | $ 352,973 | $ 377,856 | |
Collateralized Mortgage Backed Securities | |||
Debt Instrument [Line Items] | |||
Number of credit facilities | credit_facility | 2 | ||
Line of Credit | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Number of credit facilities | credit_facility | 2 |
Long-Term Debt - U.S. Dollar-de
Long-Term Debt - U.S. Dollar-denominated Term Loans - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)vesselterm_loan | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | ||
Number of term loans | term_loan | 7 | |
Aggregate principal amount | $ 1,987,558 | $ 1,810,374 |
Teekay Nakilat Joint Venture | ||
Debt Instrument [Line Items] | ||
Partnership interest owned | 70.00% | |
Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 0.30% | |
Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 3.25% | |
Long-term Debt | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 1,212,504 | $ 935,286 |
Fixed interest rate | 4.41% | |
Number of vessels | vessel | 18 | |
Long-term Debt | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 0.30% | |
Long-term Debt | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 3.25% |
Long-Term Debt - NOK Senior Uns
Long-Term Debt - NOK Senior Unsecured Bonds - Additional Information (Details) $ in Thousands, kr in Billions | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2018NOK (kr) | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | |||
Carrying amount of bonds | $ 1,987,558 | $ 1,810,374 | |
Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 0.30% | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 3.25% | ||
Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Senior unsecured bonds issued | kr | kr 3.1 | ||
Carrying amount of bonds | $ 352,973 | $ 377,856 | |
Unsecured Debt | Foreign Exchange Contract | |||
Debt Instrument [Line Items] | |||
Transfer of principal amount | $ 382,500 | ||
Unsecured Debt | Minimum | Foreign Exchange Contract | |||
Debt Instrument [Line Items] | |||
Fixed interest rate | 5.92% | 5.92% | |
Unsecured Debt | Maximum | Foreign Exchange Contract | |||
Debt Instrument [Line Items] | |||
Fixed interest rate | 7.89% | 7.89% | |
Unsecured Debt | NIBOR | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 3.70% | ||
Unsecured Debt | NIBOR | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 6.00% |
Long-Term Debt - Euro-denominat
Long-Term Debt - Euro-denominated term loans- Additional Information (Details) $ in Thousands, € in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($)vesselsubsidiarycredit_facilityterm_loan | Dec. 31, 2018EUR (€)credit_facilityterm_loan | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | |
Debt Instrument [Line Items] | ||||
Number of term loans | term_loan | 7 | 7 | ||
Aggregate principal amount | $ | $ 1,987,558 | $ 1,810,374 | ||
Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate (as a percent) | 0.30% | |||
Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate (as a percent) | 3.25% | |||
Euro-denominated Term Loans | ||||
Debt Instrument [Line Items] | ||||
Number of term loans | credit_facility | 2 | 2 | ||
Aggregate principal amount | $ 193,781 | € 169 | $ 232,957 | € 194.1 |
Number of vessels | vessel | 2 | |||
Number of subsidiaries | subsidiary | 1 | |||
Euro-denominated Term Loans | EURIBOR | Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate (as a percent) | 0.60% | |||
Euro-denominated Term Loans | EURIBOR | Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate (as a percent) | 1.95% |
Long-Term Debt - Other - Additi
Long-Term Debt - Other - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)credit_facilityterm_loan | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | |||
Aggregate principal amount | $ 1,987,558 | $ 1,810,374 | |
Weighted-average interest rate for the Partnership's long-term debt outstanding | 4.44% | 3.34% | |
Foreign exchange (losses) gains | $ 1,371 | $ (26,933) | $ 5,335 |
Aggregate annual long-term debt principal repayments, 2019 | 136,600 | ||
Aggregate annual long-term debt principal repayments, 2020 | 613,000 | ||
Aggregate annual long-term debt principal repayments, 2021 | 404,100 | ||
Aggregate annual long-term debt principal repayments, 2022 | 92,100 | ||
Aggregate annual long-term debt principal repayments, 2023 | 213,300 | ||
Aggregate annual long-term debt principal repayments, thereafter | $ 528,500 | ||
Number of term loans | term_loan | 7 | ||
Long-term debt | $ 1,969,776 | 1,797,992 | |
Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 0.30% | ||
Minimum | Vessel | |||
Debt Instrument [Line Items] | |||
Percentage of vessel value to outstanding loan principal balance | 132.00% | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 3.25% | ||
Maximum | Vessel | |||
Debt Instrument [Line Items] | |||
Percentage of vessel value to outstanding loan principal balance | 198.00% | ||
Other U.S. Dollar-denominated Loans | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | $ 3,300 | 10,000 | |
Long-term Debt | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | $ 1,212,504 | $ 935,286 | |
Long-term Debt | LIBOR | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 0.30% | ||
Long-term Debt | LIBOR | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 3.25% | ||
Require Minimum Vessel Value to Outstanding Loan Principal Balance Ratios | |||
Debt Instrument [Line Items] | |||
Number of term loans | credit_facility | 3 | ||
Long-term debt | $ 442,200 | ||
Require Minimum Vessel Value to Outstanding Loan Principal Balance Ratios | Minimum | |||
Debt Instrument [Line Items] | |||
Percentage of vessel value to outstanding loan principal balance | 115.00% | ||
Require Minimum Vessel Value to Outstanding Loan Principal Balance Ratios | Maximum | |||
Debt Instrument [Line Items] | |||
Percentage of vessel value to outstanding loan principal balance | 135.00% | ||
Teekay Nakilat Joint Venture | |||
Debt Instrument [Line Items] | |||
Partnership interest owned | 70.00% | ||
Noncontrolling ownership percentage | 30.00% | ||
Teekay Nakilat Joint Venture Loan | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 1.00% |
Income Tax - Components of Prov
Income Tax - Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Current | $ (2,361) | $ (3,557) | $ (962) |
Deferred | (852) | 2,733 | (11) |
Income tax expense | $ (3,213) | $ (824) | $ (973) |
Income Tax - Reconciliations of
Income Tax - Reconciliations of Tax Charge (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Net income before income tax expense | $ 30,088 | $ 49,735 | $ 158,938 |
Net income not subject to taxes | (68,675) | (94,106) | (138,542) |
Net (loss) income subject to taxes | (38,587) | (44,371) | 20,396 |
At applicable statutory tax rates | |||
Amount computed using the standard rate of corporate tax | 6,833 | 13,874 | (3,338) |
Adjustments to valuation allowance and uncertain tax positions | (14,733) | 324 | 11,802 |
Permanent and currency differences | 3,257 | (12,507) | (9,125) |
Change in tax rates | 1,430 | (2,515) | (312) |
Income tax expense | $ (3,213) | $ (824) | $ (973) |
Income Tax - Components of Part
Income Tax - Components of Partnership's Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Derivative instruments | $ 2,793 | $ 3,823 |
Taxation loss carryforwards and disallowed finance costs | 49,298 | 35,326 |
Vessels and equipment | 4,045 | 3,936 |
Capitalized interest | (1,853) | (1,927) |
Gross deferred tax assets | 54,283 | 41,158 |
Valuation allowance | (52,570) | (38,594) |
Net deferred tax assets included in other assets | $ 1,713 | $ 2,564 |
Income Tax - Additional Informa
Income Tax - Additional Information (Details) € in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | |
United Kingdom | ||||
Operating Loss Carryforwards [Line Items] | ||||
Taxation loss carryforwards | $ 15.9 | $ 7.9 | ||
Spain | ||||
Operating Loss Carryforwards [Line Items] | ||||
Taxation loss carryforwards | 126.3 | € 110.3 | 132.5 | € 110.3 |
Disallowed costs carried forward | $ 23.6 | 20.7 | 30.2 | 25.2 |
Carryforward limitation (in years) | P18Y | |||
Luxembourg | ||||
Operating Loss Carryforwards [Line Items] | ||||
Taxation loss carryforwards | $ 125.7 | € 109.9 | $ 109.9 | € 91.5 |
Carryforward limitation (in years) | P17Y |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Voyage revenues | $ 510,762 | $ 432,676 | $ 396,444 |
Vessel operating expenses | (117,658) | (101,539) | (87,890) |
Time-charter hire expense | (7,670) | 0 | 0 |
General and administrative expenses | (28,512) | (18,141) | (19,199) |
Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Voyage revenues | 11,018 | 36,358 | 37,336 |
Vessel operating expenses | (17,666) | (23,564) | (19,738) |
Time-charter hire expense | (7,671) | 0 | 0 |
General and administrative expenses | (15,967) | (9,434) | (12,590) |
Affiliated Entity | Deferred and Capitalized Expenses | |||
Related Party Transaction [Line Items] | |||
General and administrative expenses | $ (822) | $ (859) | $ (571) |
Related Party Transactions - _2
Related Party Transactions - Schedule of Related Party Transactions - Additional Information (Details) | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Dec. 31, 2018USD ($)vessel | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 02, 2015 | |
Related Party Transaction [Line Items] | |||||
Ownership percentage | 100.00% | ||||
General and administrative expenses deferred and capitalized | $ 28,512,000 | $ 18,141,000 | $ 19,199,000 | ||
Teekay LNG-Marubeni Joint Venture | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage | 52.00% | 52.00% | |||
Bahrain LNG Joint Venture | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage | 30.00% | 30.00% | |||
Bahrain LNG Joint Venture | Deferred and Capitalized Expenses | |||||
Related Party Transaction [Line Items] | |||||
General and administrative expenses deferred and capitalized | $ 1,100,000 | 1,100,000 | 400,000 | ||
Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
General and administrative expenses deferred and capitalized | 15,967,000 | 9,434,000 | 12,590,000 | ||
Affiliated Entity | Deferred and Capitalized Expenses | |||||
Related Party Transaction [Line Items] | |||||
General and administrative expenses deferred and capitalized | $ 822,000 | 859,000 | 571,000 | ||
Affiliated Entity | Teekay Corporation | |||||
Related Party Transaction [Line Items] | |||||
Operating lease arrangement period, lessor (in years) | 10 years | ||||
Teekay Marine Solutions (Bermuda) Ltd. | Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
General and administrative expenses deferred and capitalized | $ 1,600,000 | 0 | 0 | ||
Bahrain LNG Joint Venture | Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Recovery of direct costs | $ 1,600,000 | $ 0 | $ 0 | ||
Newbuildings | Affiliated Entity | Pan Union Joint Venture | |||||
Related Party Transaction [Line Items] | |||||
Number of vessels | vessel | 4 | ||||
Magellan Spirit | Teekay LNG-Marubeni Joint Venture | |||||
Related Party Transaction [Line Items] | |||||
Operating lease term (in years) | 2 years |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Advances from affiliates | $ 8,229 | $ 7,300 | |
Due to Affiliate, Current | 14,731 | 12,140 | |
Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Advances from affiliates | 8,200 | 7,300 | |
Due to Affiliate, Current | 14,700 | 12,100 | |
Affiliated Entity | Liquefied Natural Gas | Newbuildings | |||
Related Party Transaction [Line Items] | |||
Shipbuilding and site supervision costs | $ 15,300 | $ 13,200 | $ 8,500 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Summary of Cross Currency Swap Agreements (Details) - Cross-currency swap agreements | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2018NOK (kr) | |
Derivative [Line Items] | ||
Fair Value / Carrying Amount of Asset (Liability) | $ (29,122,000) | |
NIBOR | 3.70% Margin | ||
Derivative [Line Items] | ||
Principal Amount | $ 134,000,000 | kr 1,000,000,000 |
Margin (as a percent) | 3.70% | 3.70% |
Fixed Rate Payable | 5.92% | 5.92% |
Fair Value / Carrying Amount of Asset (Liability) | $ (18,315,000) | |
Weighted- Average Remaining Term (Years) | 1 year 4 months 24 days | |
NIBOR | 6.00% Margin | ||
Derivative [Line Items] | ||
Principal Amount | $ 146,500,000 | kr 1,200,000,000 |
Margin (as a percent) | 6.00% | 6.00% |
Fixed Rate Payable | 7.72% | 7.72% |
Fair Value / Carrying Amount of Asset (Liability) | $ (4,727,000) | |
Weighted- Average Remaining Term (Years) | 2 years 9 months 18 days | |
NIBOR | 4.60% Margin | ||
Derivative [Line Items] | ||
Principal Amount | $ 102,000,000 | kr 850,000,000 |
Margin (as a percent) | 4.60% | 4.60% |
Fixed Rate Payable | 7.89% | 7.89% |
Fair Value / Carrying Amount of Asset (Liability) | $ (6,080,000) | |
Weighted- Average Remaining Term (Years) | 4 years 8 months 12 days |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Interest Rate Swap Agreements (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Minimum | |
Derivative [Line Items] | |
Basis spread on variable rate (as a percent) | 0.30% |
Maximum | |
Derivative [Line Items] | |
Basis spread on variable rate (as a percent) | 3.25% |
U.S. Dollar-denominated interest rate swaps | LIBOR | |
Derivative [Line Items] | |
Principal Amount | $ 30,000 |
Fair Value/Carrying Amount of Asset (Liability) | $ (519) |
Weighted- Average Remaining Term (Years) | 6 months |
Fixed Interest Rate (%) | 4.90% |
U.S. Dollar-denominated interest rate swaps | LIBOR | |
Derivative [Line Items] | |
Principal Amount | $ 131,250 |
Fair Value/Carrying Amount of Asset (Liability) | $ (16,494) |
Weighted- Average Remaining Term (Years) | 10 years |
Fixed Interest Rate (%) | 5.20% |
U.S. Dollar-denominated interest rate swaps | LIBOR | |
Derivative [Line Items] | |
Principal Amount | $ 32,134 |
Fair Value/Carrying Amount of Asset (Liability) | $ (66) |
Weighted- Average Remaining Term (Years) | 2 years 7 months 6 days |
Fixed Interest Rate (%) | 2.80% |
U.S. Dollar-denominated interest rate swaps | LIBOR | |
Derivative [Line Items] | |
Principal Amount | $ 336,316 |
Fair Value/Carrying Amount of Asset (Liability) | $ (12,787) |
Weighted- Average Remaining Term (Years) | 2 years |
Fixed Interest Rate (%) | 3.40% |
U.S. Dollar-denominated interest rate swaps | LIBOR | |
Derivative [Line Items] | |
Principal Amount | $ 91,000 |
Fair Value/Carrying Amount of Asset (Liability) | $ 174 |
Weighted- Average Remaining Term (Years) | 0 days |
Fixed Interest Rate (%) | 1.70% |
U.S. Dollar-denominated interest rate swaps | LIBOR | |
Derivative [Line Items] | |
Principal Amount | $ 184,005 |
Fair Value/Carrying Amount of Asset (Liability) | $ 3,167 |
Weighted- Average Remaining Term (Years) | 8 years |
Fixed Interest Rate (%) | 2.30% |
Euro-denominated interest rate swaps | EURIBOR | |
Derivative [Line Items] | |
Principal Amount | $ 86,477 |
Fair Value/Carrying Amount of Asset (Liability) | $ (11,092) |
Weighted- Average Remaining Term (Years) | 4 years 8 months 12 days |
Fixed Interest Rate (%) | 3.80% |
Interest rate swap agreements | |
Derivative [Line Items] | |
Interest rate swap agreements – liabilities | $ (37,617) |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Interest rate swaps and swaptions and cross currency swaps agreement | ||
Derivative [Line Items] | ||
Fair value, asset | $ 3.2 | $ 4.5 |
Fair value, liability | 53.6 | 81.5 |
Restricted cash - current and - long-term | 6.8 | 22.3 |
Toledo Spirit time-charter derivative | ||
Derivative [Line Items] | ||
Derivative fair value, net | $ 1.1 | $ 1.6 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Location and Fair Value Amounts of Derivative Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Current portion of derivative assets $ | $ 835 | $ 1,078 |
Derivative assets $ | 2,362 | 6,172 |
Accrued liabilities $ | (74,753) | (45,757) |
Current portion of derivative liabilities $ | (11,604) | (79,139) |
Derivative liabilities $ | (55,038) | (45,797) |
Advances from affiliates | 8,229 | 7,300 |
Interest rate swap agreements | ||
Derivatives, Fair Value [Line Items] | ||
Accounts receivable/Advances to affiliates $ | 188 | 0 |
Current portion of derivative assets $ | 795 | 108 |
Derivative assets $ | 2,362 | 1,130 |
Accrued liabilities $ | (2,729) | (4,101) |
Current portion of derivative liabilities $ | (6,875) | (34,614) |
Derivative liabilities $ | (31,358) | (35,629) |
Interest rate swaption agreements | ||
Derivatives, Fair Value [Line Items] | ||
Accounts receivable/Advances to affiliates $ | 0 | |
Current portion of derivative assets $ | 0 | |
Derivative assets $ | 0 | |
Accrued liabilities $ | 0 | |
Current portion of derivative liabilities $ | (2) | |
Derivative liabilities $ | 0 | |
Cross currency swap agreements | ||
Derivatives, Fair Value [Line Items] | ||
Accounts receivable/Advances to affiliates $ | 0 | 0 |
Current portion of derivative assets $ | 0 | 0 |
Derivative assets $ | 0 | 5,042 |
Accrued liabilities $ | (713) | (810) |
Current portion of derivative liabilities $ | (4,729) | (44,523) |
Derivative liabilities $ | (23,680) | (10,168) |
Toledo Spirit time-charter derivative | ||
Derivatives, Fair Value [Line Items] | ||
Current portion of derivative assets $ | 40 | 970 |
Derivative assets $ | 0 | 0 |
Accrued liabilities $ | 0 | 0 |
Current portion of derivative liabilities $ | 0 | 0 |
Derivative liabilities $ | 0 | 0 |
Advances from affiliates | 1,021 | 678 |
Derivative | ||
Derivatives, Fair Value [Line Items] | ||
Current portion of derivative assets $ | 835 | 1,078 |
Derivative assets $ | 2,362 | 6,172 |
Accrued liabilities $ | (3,442) | (4,911) |
Current portion of derivative liabilities $ | (11,604) | (79,139) |
Derivative liabilities $ | (55,038) | (45,797) |
Advances from affiliates | $ 1,209 | $ 678 |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Gain (Loss) for Derivative Instruments Not Designated or Qualifying as Hedging Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Realized gains (losses) | $ (26,855) | $ (18,757) | $ (26,594) |
Unrealized gains (losses) | 30,133 | 13,448 | 19,433 |
Unrealized gains (losses) | 7,525 | (23,153) | 15,345 |
Total | 3,278 | (5,309) | (7,161) |
Interest rate swap agreements | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Realized gains (losses) | (14,654) | (18,825) | (25,940) |
Unrealized gains (losses) | 31,061 | 12,393 | 15,627 |
Total | 16,407 | (6,432) | (10,313) |
Interest rate swaption agreements | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Realized gains (losses) | 0 | 0 | 0 |
Unrealized gains (losses) | 2 | 945 | (164) |
Total | 2 | 945 | (164) |
Interest rate swap and swaption agreements termination | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Realized gains (losses) | (13,681) | (610) | 0 |
Unrealized gains (losses) | 0 | 0 | 0 |
Total | (13,681) | (610) | 0 |
Toledo Spirit time-charter derivative | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Realized gains (losses) | 1,480 | 678 | (654) |
Unrealized gains (losses) | (930) | 110 | 3,970 |
Total | 550 | 788 | 3,316 |
Cross currency swap agreements | Foreign currency gain (loss) | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Realized gains (losses) | (6,533) | (9,344) | (9,063) |
Unrealized gains (losses) | 21,240 | 49,047 | 28,905 |
Total | 14,707 | 39,703 | 19,842 |
Cross currency swap agreements termination | Foreign currency gain (loss) | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Realized gains (losses) | (42,271) | (25,733) | (17,711) |
Unrealized gains (losses) | 0 | 0 | 0 |
Total | (42,271) | (25,733) | (17,711) |
Cross-currency swap agreements | Foreign currency gain (loss) | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Realized gains (losses) | (48,804) | (35,077) | (26,774) |
Unrealized gains (losses) | 21,240 | 49,047 | 28,905 |
Total | $ (27,564) | $ 13,970 | $ 2,131 |
Derivative Instruments and He_8
Derivative Instruments and Hedging Activities - Effective Portion of Gains (Losses) on Interest Rate Swap Agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Effective portion recognized in AOCI | $ 2,128 | $ 429 | $ 590 |
Effective portion reclassified from AOCI | (152) | (427) | 0 |
Ineffective portion | 740 | (740) | 0 |
Interest Expense | |||
Derivative [Line Items] | |||
Effective portion recognized in AOCI | 2,128 | 429 | 590 |
Effective portion reclassified from AOCI | (152) | (427) | 0 |
Ineffective portion | $ 740 | $ (740) | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Commitments to Fund Newbuilding and Other Construction Contract Costs (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
2019 | $ 652,222 |
Hyundai Samho Heavy Industries Co Ltd | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
2019 | 120,413 |
Yamal LNG Joint Venture | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
2019 | 436,100 |
Pan Union Joint Venture | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
2019 | 29,200 |
Bahrain LNG Joint Venture | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
2019 | $ 66,509 |
Commitments and Contingencies_2
Commitments and Contingencies - Commitments to Fund Newbuilding and Other Construction Contract Costs - Additional Information (Details) | Dec. 02, 2015 | Jan. 31, 2019USD ($) | Jun. 30, 2014vessel | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($)vessel | Dec. 31, 2018USD ($)lease | Dec. 31, 2018USD ($)ft³ | Dec. 31, 2018USD ($)m³ | Dec. 31, 2017USD ($)vessel | Dec. 31, 2016USD ($) | Jan. 08, 2019 |
Property, Plant and Equipment [Line Items] | ||||||||||||
Ownership percentage | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | ||||||
Proceeds from financing related to sales and leaseback of vessels | $ 370,050,000 | $ 656,935,000 | $ 355,306,000 | |||||||||
Payments made to commitments | $ 86,942,000 | $ 86,942,000 | $ 86,942,000 | $ 86,942,000 | $ 86,942,000 | $ 86,942,000 | $ 444,493,000 | |||||
Yamal LNG Joint Venture | Newbuildings | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Number of vessels | 4 | 4 | ||||||||||
Ownership percentage | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | ||||||
Payments made to commitments | $ 255,800,000 | $ 255,800,000 | $ 255,800,000 | $ 255,800,000 | $ 255,800,000 | $ 255,800,000 | ||||||
Secured financing | 1,100,000,000 | 1,100,000,000 | 1,100,000,000 | 1,100,000,000 | 1,100,000,000 | $ 1,100,000,000 | ||||||
Volume of vessels (in cubic meter) | m³ | 172,000 | |||||||||||
Cost of construction | 1,400,000,000 | |||||||||||
Undrawn debt financing | $ 395,000,000 | $ 395,000,000 | $ 395,000,000 | $ 395,000,000 | $ 395,000,000 | $ 395,000,000 | ||||||
Hyundai Samho Heavy Industries Co Ltd | Newbuildings | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Number of vessels | vessel | 1 | |||||||||||
Ownership percentage | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | ||||||
Payments made to commitments | $ 86,900,000 | $ 86,900,000 | $ 86,900,000 | $ 86,900,000 | $ 86,900,000 | $ 86,900,000 | ||||||
Bahrain LNG Joint Venture | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Ownership percentage | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |||||
Bahrain LNG Joint Venture | LNG Receiving and Regasification Terminal | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Secured financing | $ 194,800,000 | $ 194,800,000 | $ 194,800,000 | $ 194,800,000 | $ 194,800,000 | $ 194,800,000 | ||||||
Cost of construction | 903,100,000 | |||||||||||
Capacity of production facility, per day (in cubic feet) | ft³ | 800,000,000 | |||||||||||
Operating lease arrangement period, lessor (in years) | 20 years | 20 years | ||||||||||
Undrawn debt financing | $ 58,000,000 | $ 58,000,000 | $ 58,000,000 | $ 58,000,000 | $ 58,000,000 | $ 58,000,000 | ||||||
Yamal LNG Joint Venture | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Ownership percentage | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | ||||||
Yamal LNG Joint Venture | Newbuildings | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Number of vessels | vessel | 6 | |||||||||||
Modified Vessel | Bahrain LNG Joint Venture | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Number of floating storage units | vessel | 1 | |||||||||||
Subsequent Event | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Proceeds from financing related to sales and leaseback of vessels | $ 159,000,000 | |||||||||||
Subsequent Event | Pan Africa | Pan Union Joint Venture | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Ownership percentage | 20.00% | |||||||||||
January 2019 Sale Leaseback | Capital Lease Obligations | Subsequent Event | Hyundai Samho Heavy Industries Co Ltd | Newbuildings | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Proceeds from financing related to sales and leaseback of vessels | $ 159,000,000 | |||||||||||
Shipbuilding supervision and crew training services | Pan Union Joint Venture | Newbuildings | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Number of vessels | vessel | 4 | |||||||||||
Reimbursement from Shell | $ 200,000 | $ 200,000 | $ 200,000 | $ 200,000 | $ 200,000 | $ 200,000 | ||||||
Secured financing | $ 24,000,000 | $ 24,000,000 | $ 24,000,000 | $ 24,000,000 | $ 24,000,000 | $ 24,000,000 |
Commitments and Contingencies_3
Commitments and Contingencies - Additional Information (Details) | Dec. 02, 2015 | Jan. 31, 2019USD ($) | May 31, 2016USD ($)vessel | Dec. 31, 2018USD ($)vesselft³ | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Nov. 01, 2018USD ($) | Sep. 30, 2018 | Dec. 31, 2015USD ($) |
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership percentage | 100.00% | ||||||||
Other (expense) income (note 14b) | $ (51,373,000) | $ 1,561,000 | $ 1,537,000 | ||||||
Restricted cash - current | 38,329,000 | 22,326,000 | 10,145,000 | $ 6,600,000 | |||||
Equity income (loss) | 53,546,000 | 9,789,000 | 62,307,000 | ||||||
Financing secured | $ 370,050,000 | $ 656,935,000 | 355,306,000 | ||||||
Teekay LNG-Marubeni Joint Venture | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership percentage | 52.00% | 52.00% | |||||||
Bahrain LNG Joint Venture | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership percentage | 30.00% | 30.00% | |||||||
Bahrain LNG Joint Venture | Modified Vessel | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Number of floating storage units | vessel | 1 | ||||||||
Bahrain LNG Joint Venture | LNG Receiving and Regasification Terminal | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Capacity of production facility, per day (in cubic feet) | ft³ | 800,000,000 | ||||||||
Operating lease arrangement period, lessor (in years) | 20 years | 20 years | |||||||
Cost of construction | $ 903,100,000 | ||||||||
Undrawn debt financing | 58,000,000 | ||||||||
Borrowings provided under revolving credit facilities | 194,800,000 | ||||||||
Teekay Tangguh Joint Venture | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Partnership interest owned | 69.00% | ||||||||
Teekay Nakilat Joint Venture | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Other (expense) income (note 14b) | 53,000,000 | ||||||||
Restricted cash - current | 7,000,000 | ||||||||
Cash payment for lease liability balance | $ 56,000,000 | ||||||||
Partnership interest owned | 70.00% | ||||||||
Settlement Proposal With HMRC Related To Deductibility Of Certain Related Party Transactions In 2010 [Member] | Teekay Tangguh Joint Venture | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Provision | $ 1,100,000 | ||||||||
Teekay Tangguh Joint Venture | Settlement Proposal With HMRC Related To Deductibility Of Certain Related Party Transactions In 2010 [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Provision | 1,600,000 | ||||||||
Settled Litigation | Teekay LNG-Marubeni Joint Venture | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Number of vessels | vessel | 1 | ||||||||
Settlement amount paid | $ 39,000,000 | ||||||||
Equity income (loss) | $ 20,300,000 | ||||||||
U.S. Dollar-denominated Revolving Credit Facilities due from 2020 to 2022 | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Borrowings provided under revolving credit facilities | $ 190,000,000 | $ 225,000,000 | |||||||
Subsequent Event | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Financing secured | $ 159,000,000 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 149,014 | $ 244,241 | $ 126,146 | $ 102,481 |
Restricted cash - current | 38,329 | 22,326 | 10,145 | 6,600 |
Restricted cash - long-term | 35,521 | 72,868 | 106,882 | 104,919 |
Total | $ 222,864 | $ 339,435 | $ 243,173 | $ 214,000 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Changes in Operating Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |||
Accounts receivable | $ 3,542 | $ 1,620 | $ 5,494 |
Prepaid expenses and other current assets | (3,843) | (2,815) | 745 |
Accounts payable | 274 | (2,053) | 2,791 |
Accrued liabilities and other long-term liabilities | 13,958 | 2,449 | (1,572) |
Unearned revenue and long-term unearned revenue | 4,234 | (1,456) | (3,218) |
Advances to and from affiliates | 2,183 | (913) | (9,699) |
Other operating assets and liabilities | (1,130) | 772 | (4,402) |
Total | $ 19,218 | $ (2,396) | $ (9,861) |
Supplemental Cash Flow Inform_5
Supplemental Cash Flow Information - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule Of Supplemental Cash Flow [Line Items] | |||
Cash interest paid on long-term debt, advances from affiliates and capital lease obligations | $ 167.8 | $ 122.7 | $ 100.9 |
Income taxes paid | $ 6 | $ 2.9 | $ 4.9 |
Skaugen Gulf Petchem Carriers B.S.C | |||
Schedule Of Supplemental Cash Flow [Line Items] | |||
Ownership interest acquired (as a percent) | 100.00% | ||
Purchase price of ownership interest acquired | $ 13.2 | ||
Skaugen Gulf Petchem Carriers B.S.C | Skaugen | |||
Schedule Of Supplemental Cash Flow [Line Items] | |||
Ownership interest acquired (as a percent) | 35.00% | ||
Noncash portion of the consideration paid | $ 4.6 | ||
Skaugen Gulf Petchem Carriers B.S.C | The Oil & Gas Holding Company B.S.C. | |||
Schedule Of Supplemental Cash Flow [Line Items] | |||
Ownership interest acquired (as a percent) | 35.00% | ||
Skaugen Gulf Petchem Carriers B.S.C | Suffun Bahrain W.L.L. | |||
Schedule Of Supplemental Cash Flow [Line Items] | |||
Ownership interest acquired (as a percent) | 30.00% |
Total Capital and Net Income _3
Total Capital and Net Income Per Common Unit - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Capital Unit [Line Items] | |||
Days after year-end where limited partner's have right to receive cash distribution | 45 days | ||
Minimum percentage of holding by unitholders to remove general partner | 66.67% | ||
Distributions payable | $ 71,229 | $ 62,150 | $ 45,467 |
Repurchase of common units | $ 3,786 | $ 0 | $ 0 |
Common Units | |||
Capital Unit [Line Items] | |||
Cash distributions (USD per unit) | $ 0.4625 | $ 0.4625 | $ 0.4625 |
Teekay Corporation | |||
Capital Unit [Line Items] | |||
General partner interest percentage | 2.00% | ||
Public | |||
Capital Unit [Line Items] | |||
General partner's proportionate contribution | 68.20% | ||
Limited Partners | Preferred Units | |||
Capital Unit [Line Items] | |||
Distributions payable | $ 25,700 | $ 14,000 | $ 2,700 |
Limited Partners | Common Units | |||
Capital Unit [Line Items] | |||
Distributions payable | $ 44,617 | 44,584 | $ 44,557 |
Number of common units repurchased | 327 | ||
Limited Partners | Preferred Units | |||
Capital Unit [Line Items] | |||
Distributions payable | $ 25,701 | $ 16,657 | |
Common Unit Repurchase Program 2018 | |||
Capital Unit [Line Items] | |||
Authorized common units to repurchase (up to) | $ 100,000 | ||
Number of common units repurchased | 300 | ||
Repurchase of common units | $ 3,700 |
Total Capital and Net Income _4
Total Capital and Net Income Per Common Unit - Incentive Distributions (Details) | 12 Months Ended |
Dec. 31, 2018$ / shares | |
Minimum quarterly distribution of $0.4125 | Minimum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Incentive distribution, distribution (USD per unit) | $ 0.4125 |
Up to $0.4625 | Maximum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Incentive distribution, distribution (USD per unit) | 0.4625 |
Above $0.4625 up to $0.5375 | Minimum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Incentive distribution, distribution (USD per unit) | 0.4625 |
Above $0.4625 up to $0.5375 | Maximum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Incentive distribution, distribution (USD per unit) | 0.5375 |
Above $0.5375 up to $0.6500 | Minimum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Incentive distribution, distribution (USD per unit) | 0.5375 |
Above $0.5375 up to $0.6500 | Maximum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Incentive distribution, distribution (USD per unit) | 0.6500 |
Above $0.6500 | Minimum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Incentive distribution, distribution (USD per unit) | $ 0.6500 |
Unitholders | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Minimum quarterly distribution of $0.4125 | 98.00% |
Up to $0.4625 | 98.00% |
Above $0.4625 up to $0.5375 | 85.00% |
Above $0.5375 up to $0.6500 | 75.00% |
Above $0.6500 | 50.00% |
General Partner | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Minimum quarterly distribution of $0.4125 | 2.00% |
Up to $0.4625 | 2.00% |
Above $0.4625 up to $0.5375 | 15.00% |
Above $0.5375 up to $0.6500 | 25.00% |
Above $0.6500 | 50.00% |
Total Capital and Net Income _5
Total Capital and Net Income Per Common Unit - Net Income Per Common Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity [Abstract] | |||
Limited partners' interest in net income for basic net income per common unit | $ 2,615 | $ 19,586 | $ 134,977 |
Weighted average number of common units | 79,672,435 | 79,617,778 | 79,568,352 |
Dilutive effect of unit-based compensation | 169,893 | 173,263 | 103,506 |
Common units and common unit equivalents | 79,842,328 | 79,791,041 | 79,671,858 |
Limited partner's interest in net income per common unit: | |||
Basic (USD per unit) | $ 0.03 | $ 0.25 | $ 1.70 |
Diluted (USD per unit) | $ 0.03 | $ 0.25 | $ 1.69 |
Total Capital and Net Income _6
Total Capital and Net Income Per Common Unit - Issuances of Common Units (Details) - Preferred - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | |
Oct. 31, 2017 | Oct. 31, 2016 | |
Capital Unit [Line Items] | ||
Units Issued | 6,800,000 | 5,000,000 |
Offering Price (USD per unit) | $ 25 | $ 25 |
Gross Proceeds | $ 170,000 | $ 125,000 |
Net Proceeds | $ 164,411 | $ 120,707 |
Teekay Corporation's Ownership After the Offering (as a percent) | 33.02% | 33.02% |
Total Capital and Net Income _7
Total Capital and Net Income Per Common Unit - Issuances of Common Units (Footnotes) (Details) - $ / shares | Oct. 23, 2017 | Oct. 05, 2016 | Dec. 31, 2018 |
Series A Preferred Units | |||
Capital Unit [Line Items] | |||
Dividend rate, percentage | 9.00% | ||
Redemption price (USD per unit) | $ 25 | ||
Series B Preferred Units | |||
Capital Unit [Line Items] | |||
Dividend rate, percentage | 8.50% | ||
Redemption price (USD per unit) | $ 25 | ||
Liquidation preference (USD per unit) | $ 25 | ||
Series B Preferred Units | LIBOR | |||
Capital Unit [Line Items] | |||
Basis spread on variable rate (as a percent) | 6.241% | ||
Teekay Corporation | |||
Capital Unit [Line Items] | |||
General partner interest percentage | 2.00% |
Unit-Based Compensation (Detail
Unit-Based Compensation (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restricted Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted unit-based compensation granted to Partnership's employee (in units) | 62,283 | 60,809 | 132,582 | |||
Fair values of units granted | $ 1.2 | $ 1 | $ 1.5 | |||
Restricted units, vesting period (in years) | 3 years | |||||
Restricted units expense | $ 1.3 | $ 1 | $ 1.3 | |||
Non-management Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common units granted | 17,498 | 17,345 | 32,723 | |||
Aggregate value of units issued | $ 0.3 |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges (note 18) | $ 1,845 | $ 0 | $ 0 |
Employee severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges (note 18) | 1,800 | ||
Unpaid restructuring charges | $ 500 |
Write-Down and Loss on Sale o_2
Write-Down and Loss on Sale of Vessels (Details) - USD ($) $ in Thousands | Dec. 06, 2018 | Oct. 09, 2018 | Aug. 31, 2017 | Jun. 30, 2017 | Nov. 30, 2016 | May 17, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | |||||||||
Write-down of goodwill and write-down and loss on sales of vessels | $ 54,653 | $ 50,600 | $ 38,976 | ||||||
Proceeds from sale of vessels | 28,518 | 20,580 | 94,311 | ||||||
Centrofin | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Write-down of goodwill and write-down and loss on sales of vessels | 27,400 | ||||||||
Proceeds from sale of vessels | $ 94,300 | ||||||||
Asian Spirit | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Write-down of goodwill and write-down and loss on sales of vessels | $ 11,500 | ||||||||
Proceeds from sale of vessels | $ 20,600 | ||||||||
European Spirit | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Write-down of goodwill and write-down and loss on sales of vessels | 4,000 | 12,600 | |||||||
Proceeds from sale of vessels | $ 15,700 | ||||||||
Extension option period (in years) | 1 year | ||||||||
African Spirit | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Write-down of goodwill and write-down and loss on sales of vessels | 3,900 | 12,500 | |||||||
Proceeds from sale of vessels | $ 12,800 | ||||||||
Extension option period (in years) | 1 year | ||||||||
Teide Spirit and Toledo Spirit | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Write-down of goodwill and write-down and loss on sales of vessels | $ 25,500 | ||||||||
Cancellation option period (in years) | 13 years | ||||||||
Alexander Spirit | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Write-down of goodwill and write-down and loss on sales of vessels | 13,000 | ||||||||
Napa Spirit, Pan Spirit, Camilla Spirit and Cathinka Spirit | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Write-down of goodwill and write-down and loss on sales of vessels | $ 33,000 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands, shares in Millions | Feb. 25, 2019vessel | Jan. 31, 2019 | Jan. 08, 2019 | Jan. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Subsequent Event [Line Items] | |||||||
Ownership percentage | 100.00% | ||||||
Repurchase of common units | $ 3,786 | $ 0 | $ 0 | ||||
Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Number of common units repurchased | shares | 0.8 | ||||||
Repurchase of common units | $ 9,300 | ||||||
Subsequent Event | Yamal Spirit | |||||||
Subsequent Event [Line Items] | |||||||
Term of charter contract (in years) | 15 years | ||||||
20% Ownership | Subsequent Event | Pan Union Joint Venture | |||||||
Subsequent Event [Line Items] | |||||||
Ownership percentage | 20.00% | ||||||
Term of charter contract (in years) | 20 years | ||||||
Liquefied Petroleum Gas | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Number of vessels | vessel | 7 |
Uncategorized Items - tgp-20181
Label | Element | Value |
General Partner [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 41,000 |
Noncontrolling Interest [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 739,000 |
Common Stock [Member] | Limited Partner [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,959,000 |