Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2014 | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | FALSE |
Document Period End Date | 31-Dec-14 |
Document Fiscal Year Focus | 2014 |
Document Fiscal Period Focus | FY |
Trading Symbol | TNK |
Entity Registrant Name | TEEKAY TANKERS LTD. |
Entity Central Index Key | 1419945 |
Current Fiscal Year End Date | -19 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Class A [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 95,343,091 |
Class B [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 16,720,945 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
REVENUES | |||
Time charter revenues (note 13e) | $79,804 | $88,320 | $123,364 |
Net pool revenues (note 13e and 13h) | 138,631 | 69,675 | 62,328 |
Voyage charter revenues | 8,040 | 4,415 | 238 |
Interest income from investment in term loans (note 5) | 9,118 | 7,677 | 11,499 |
Total revenues | 235,593 | 170,087 | 197,429 |
Voyage expenses (note 13e) | -9,984 | -8,337 | -4,618 |
Vessel operating expenses (notes 13e and 13f) | -93,022 | -91,667 | -96,160 |
Time-charter hire expense (note 15) | -22,160 | -6,174 | -3,950 |
Depreciation and amortization | -50,152 | -47,833 | -72,365 |
General and administrative (notes 13e and 13g) | -11,959 | -12,594 | -7,985 |
Gain (loss) on sale of vessels (note 18) | 9,955 | -71 | |
Vessel impairment (note 18) | -352,546 | ||
Income (loss) from operations | 58,271 | 3,411 | -340,195 |
Interest expense (note 13e) | -8,741 | -10,023 | -20,009 |
Interest income | 287 | 158 | 50 |
Realized and unrealized loss on derivative instruments (note 9) | -1,712 | -1,524 | -7,963 |
Equity income (loss) (note 6) | 5,228 | 854 | -1 |
Other income (expenses) (note 14) | 3,809 | -1,014 | -2,063 |
Net income (loss) | $57,142 | ($8,138) | ($370,181) |
Per common share amounts | |||
• Basic earnings (loss) per share (note 17) | $0.67 | ($0.10) | ($4.54) |
• Diluted earnings (loss) per share (note 17) | $0.66 | ($0.10) | ($4.54) |
• Cash dividends declared | $0.12 | $0.12 | $0.40 |
Weighted-average number of Class A and Class B common shares outstanding | |||
• Basic (note 17) | 85,882,685 | 83,591,030 | 79,539,605 |
• Diluted (note 17) | 86,247,137 | 83,591,030 | 79,539,605 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current | ||
Cash and cash equivalents | $162,797 | $25,646 |
Pool receivables from affiliates, net (note 13h) | 35,254 | 10,765 |
Accounts receivable | 4,178 | 4,247 |
Due from affiliates (note 13f) | 42,502 | 27,991 |
Prepaid expenses | 8,883 | 10,361 |
Investment in term loans (note 5) | 0 | 136,061 |
Total current assets | 253,614 | 215,071 |
Vessels and equipment At cost, less accumulated depreciation of $301.6 million (2013 - $251.4 million) (note 18) | 828,291 | 859,308 |
Investment in and advances to equity accounted investments (note 6) | 73,397 | 18,196 |
Derivative asset (note 9) | 4,657 | |
Other non-current assets (note 18) | 5,400 | 4,954 |
Total assets | 1,165,359 | 1,097,529 |
Current | ||
Accounts payable | 1,899 | 2,251 |
Accrued liabilities (notes 7 and 13f) | 17,565 | 21,069 |
Current portion of long-term debt (note 8) | 41,959 | 25,246 |
Current portion of derivative liabilities (note 9) | 7,263 | 7,344 |
Deferred revenue | 637 | 2,961 |
Due to affiliates (note 13f) | 10,395 | 11,323 |
Total current liabilities | 79,718 | 70,194 |
Long-term debt (note 8) | 614,104 | 719,388 |
Derivative liabilities (note 9) | 10,962 | 17,924 |
Other long-term liabilities (note 10) | 4,852 | 5,351 |
Total liabilities | 709,636 | 812,857 |
Commitments and contingencies (notes 6, 9, 15 and 18) | ||
Equity | ||
Common stock and additional paid-in capital (300 million shares authorized, 95.3 million Class A and 16.7 million class B shares issued and outstanding as of December 31, 2014 (2013 - 71.1 million Class A and 12.5 million Class B shares issued and outstanding) (notes 3 and 12) | 802,650 | 673,217 |
Accumulated deficit | -346,927 | -388,545 |
Total equity | 455,723 | 284,672 |
Total liabilities and equity | $1,165,359 | $1,097,529 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Accumulated depreciation on vessels | $301.60 | $251.40 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Class A [Member] | ||
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 95,300,000 | 71,100,000 |
Common stock, shares outstanding | 95,300,000 | 71,100,000 |
Class B [Member] | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 16,700,000 | 12,500,000 |
Common stock, shares outstanding | 16,700,000 | 12,500,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATING ACTIVITIES | |||
Net income (loss) | $57,142 | ($8,138) | ($370,181) |
Non-cash items: | |||
Depreciation and amortization | 50,152 | 47,833 | 72,365 |
Unrealized gain on derivative instruments | -8,281 | -8,363 | -1,580 |
Equity (income) loss | -5,228 | -854 | 1 |
(Gain) loss on sale of vessels (note 18) | -9,955 | 71 | |
Vessel impairment (note 18) | 352,546 | ||
Other | -1,476 | 1,484 | 1,188 |
Change in operating assets and liabilities (note 16) | -51,679 | -6,586 | -19,794 |
Expenditures for dry docking | -17,072 | -19,245 | -7,003 |
Net operating cash flow | 13,603 | 6,202 | 27,542 |
FINANCING ACTIVITIES | |||
Proceeds from long-term debt | 98,796 | 59,179 | 32,226 |
Repayments of long-term debt | -20,367 | -25,246 | -13,522 |
Prepayment of long-term debt | -167,000 | -25,000 | -60,000 |
Proceeds from issuance of common stock, net of share issuance costs (note 3) | 111,190 | 65,771 | |
Equity contribution from Teekay Corporation (note 13c) | 1,267 | ||
Cash dividends paid | -10,165 | -10,030 | -32,231 |
Net advances from affiliates (note 1) | 16,913 | ||
Net financing cash flow | 13,721 | -1,097 | -13,905 |
INVESTING ACTIVITIES | |||
Proceeds from the sale of vessels and equipment (note 18) | 154,000 | 9,114 | |
Expenditures for vessels and equipment | -2,063 | -1,904 | -2,518 |
Deposit for vessel purchase (note 18) | -3,700 | ||
Investment in term loans (note 5) | 1,179 | -9,120 | |
Net investing cash flow | 109,827 | -5,800 | -5,862 |
Increase (decrease) in cash and cash equivalents | 137,151 | -695 | 7,775 |
Cash and cash equivalents, beginning of the year | 25,646 | 26,341 | 18,566 |
Cash and cash equivalents, end of the year | 162,797 | 25,646 | 26,341 |
High-Q Joint Venture [Member] | |||
INVESTING ACTIVITIES | |||
Investment in and advances | 1,950 | -3,890 | -3,344 |
Teekay Tankers Operations Ltd [Member] | |||
INVESTING ACTIVITIES | |||
Investment in and advances | -6,494 | ||
Tanker Investments Ltd [Member] | |||
INVESTING ACTIVITIES | |||
Investment in and advances | -35,045 | ||
Dropdown Predecessor [Member] | |||
OPERATING ACTIVITIES | |||
Net income (loss) | -9,163 | ||
FINANCING ACTIVITIES | |||
Proceeds from long-term debt | 2,312 | ||
Repayment from long-term debt (note 1) | -10,372 | ||
Prepayment of long-term debts (note 1) | -15,000 | ||
Acquisition of 13 vessels from Teekay Corporation (note 1) | -9,509 | ||
Contribution of capital from Teekay Corporation to Dropdown Predecessor (note 1) | $9,507 |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical) (Dropdown Predecessor [Member]) | 0 Months Ended | 1 Months Ended | 12 Months Ended | |
Jun. 26, 2012 | Jun. 15, 2012 | Jun. 30, 2012 | Dec. 31, 2012 | |
Vessel | Vessel | Vessel | Vessel | |
Dropdown Predecessor [Member] | ||||
Number of vessels | 3 | 10 | 13 | 13 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Equity (USD $) | Total | Dropdown Predecessor [Member] | Common Stock and Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Class A [Member] | Class B [Member] |
In Thousands, except Share data | USD ($) | USD ($) | USD ($) | Common Stock and Additional Paid-in Capital [Member] | Common Stock and Additional Paid-in Capital [Member] | |
USD ($) | USD ($) | |||||
Beginning Balance at Dec. 31, 2011 | $578,164 | $88,793 | ($99,070) | $588,316 | $125 | |
Beginning Balance, shares at Dec. 31, 2011 | 61,877,000 | |||||
Net income loss | -370,181 | -9,163 | -361,018 | |||
Net change in parent's equity from Dropdown Predecessor (note 1) | 70,404 | 70,404 | ||||
Proceeds from issuance of Class A common shares, net of offering costs (note 3) | 65,771 | 65,771 | ||||
Proceeds from issuance of Class A common shares, net of offering costs, shares (note 3) | 17,250,000 | |||||
Acquisition of interest in 13 vessels from Teekay Corporation (note 1) | -9,744 | -150,034 | 121,942 | 18,348 | ||
Acquisition of interest in 13 vessels from Teekay Corporation, shares (note 1) | 4,464,286 | |||||
Dividends declared | -32,231 | -32,231 | ||||
Ending Balance at Dec. 31, 2012 | 302,183 | -370,377 | 672,435 | 125 | ||
Ending Balance , shares at Dec. 31, 2012 | 83,591,000 | |||||
Net income loss | -8,138 | -8,138 | ||||
Dividends declared | -10,030 | -10,030 | ||||
Equity-based compensation (note 12) | 657 | 657 | ||||
Ending Balance at Dec. 31, 2013 | 284,672 | -388,545 | 673,092 | 125 | ||
Beginning Balance, shares at Dec. 31, 2013 | 83,591,000 | |||||
Net income loss | 57,142 | 57,142 | ||||
Proceeds from issuance of Class A common shares, net of offering costs (note 3) | 111,190 | 111,190 | ||||
Proceeds from issuance of Class A common shares, net of offering costs, shares (note 3) | 24,166,666 | |||||
Acquisition of interest in 13 vessels from Teekay Corporation (note 1) | 17,010 | 17,010 | ||||
Acquisition of interest in 13 vessels from Teekay Corporation, shares (note 1) | 4,220,945 | |||||
Purchase of TTOL from Teekay Corporation (note 6) | -6,626 | -6,626 | ||||
Equity contribution from Teekay Corporation (note 13c) | 1,267 | 1,267 | ||||
Dividends declared | -10,165 | -10,165 | ||||
Equity-based compensation (note 12) | 1,233 | 1,233 | ||||
Equity-based compensation (note 12), shares | 85,000 | |||||
Ending Balance at Dec. 31, 2014 | $455,723 | ($346,927) | $785,515 | $17,135 | ||
Ending Balance , shares at Dec. 31, 2014 | 112,064,000 |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Equity (Parenthetical) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2012 |
Stock issuance offering costs | $4.80 | $3.30 |
Dropdown Predecessor [Member] | ||
Number of vessels | 13 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Summary of Significant Accounting Policies | 1 | Summary of Significant Accounting Policies | |||||||||||
Nature of operations | |||||||||||||
The Company (as defined below) is engaged in the international marine transportation of crude oil and refined petroleum products through the operation of its oil and product tankers. The Company’s revenues are earned in international markets. | |||||||||||||
Basis of presentation and consolidation principles | |||||||||||||
During October 2007, Teekay Corporation (Teekay) formed Teekay Tankers Ltd., a Marshall Islands corporation (together with its wholly-owned subsidiaries and the Dropdown Predecessor, as described below, collectively the Company), to acquire from Teekay a fleet of nine double-hull Aframax-class oil tankers in connection with the Company’s initial public offering (or IPO). As of December 31, 2014, the Company’s fleet included a total of 40 vessels, of which 12 were chartered-in and one was 50%-owned through the High-Q joint venture. | |||||||||||||
The consolidated financial statements reflect the financial position, results of operations and cash flows of Teekay Tankers Ltd., its wholly-owned subsidiaries, equity accounted investments and the Dropdown Predecessor. The consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles (GAAP) and all significant intercompany balances and transactions have been eliminated upon consolidation. | |||||||||||||
Dropdown Predecessor | |||||||||||||
The Company accounts for the acquisition of interests in vessels from Teekay as a transfer of a business between entities under common control. The method of accounting for such transfers is similar to the pooling of interests method of accounting. Under this method, the carrying amount of net assets recognized in the balance sheets of each combining entity are carried forward to the balance sheet of the combined entity, and no other assets or liabilities are recognized as a result of the combination. The proceeds paid by the Company over or under Teekay’s historical cost in the acquired vessels are accounted for as a return of capital to or contribution of capital from Teekay. In addition, transfers of net assets between entities under common control are accounted for as if the transfer occurred from the date that the Company and the acquired vessels were both under the common control of Teekay and had begun operations. As a result, the Company’s financial statements prior to the date the interests in these vessels were actually acquired by the Company are retroactively adjusted to reflect these vessels and their related operations and cash flows (referred to herein, collectively, as the Dropdown Predecessor) during the periods under common control of Teekay. | |||||||||||||
During June 2012, the Company acquired from Teekay seven conventional oil tankers and six product tankers and related time-charter contracts, debt facilities and an interest rate swap, for an aggregate price of approximately $454.2 million, including the assumption of outstanding debt of approximately $428.1 million (or the 2012 Acquired Business). Ten of the vessels were acquired on June 15, 2012 and the remaining three were acquired on June 26, 2012. As consideration for this acquisition, the Company issued to Teekay 4.5 million Class A common shares and made a cash payment of $1.1 million to Teekay. The 4.5 million Class A common shares had an approximate value of $25.0 million, or $5.60 per share, when the purchase price was agreed to between the parties and a value of $18.3 million, or $4.11 per share, on the acquisition closing date. The purchase price, for accounting purposes, is based upon the value of the Class A common shares on the acquisition closing date. Consequently, common stock and additional paid in capital and accumulated deficit are both $6.7 million lower than if the value of the shares had remained unchanged from when the purchase price was agreed to between the parties. In addition, the Company reimbursed Teekay for $8.4 million of working capital it assumed from Teekay in connection with the 2012 Acquired Business. Teekay has granted the Company a right of first refusal on certain conventional tanker opportunities Teekay may develop prior to June 15, 2015. Teekay prepaid $106.9 million of long term debt of the 2012 Acquired Business on the date of acquisition. The acquisition of the 2012 Acquired Business was accounted for as a reorganization between entities under common control. As a result, the Company’s consolidated statements of loss, cash flows and changes in equity for the year ended December 31, 2012 reflect the 2012 Acquired Business as if the Company had acquired the 2012 Acquired Business when the 13 vessels began their respective operations under the ownership of Teekay. All 13 vessels began operations prior to the periods covered by these consolidated financial statements and, consequently, are reflected in all periods presented. | |||||||||||||
The effect of adjusting the Company’s financial statements to account for these common control exchanges decreased the Company’s net income for the year ended December 31, 2012 by $9.2 million. The adjustments for the Dropdown Predecessor increased the Company’s revenues for the year ended December 31, 2012 by $42.2 million. | |||||||||||||
In the preparation of these consolidated financial statements, general and administrative expenses, cost of ship management services and interest expense of the Dropdown Predecessor were not identifiable as relating solely to the each specific vessel. General and administrative expenses (consisting primarily of salaries, share-based compensation, and other employee-related costs, office rent, legal and professional fees, and travel and entertainment) were allocated based on the Dropdown Predecessor’s proportionate share of Teekay’s total ship-operating (calendar) days for the period presented. During the year ended December 31, 2012, $2.6 million of ship management services costs were attributable to the Dropdown Predecessor. In addition, the Dropdown Predecessor includes debt of Teekay which was recorded on a pushed-down basis in the amount of $108.7 million as at December 31, 2012. This debt was assumed by the Company concurrently with the dropdown transaction. Interest expense includes the allocation of interest to the Dropdown Predecessor from Teekay based upon the weighted-average outstanding balance of the push-down debt and the weighted-average interest rate outstanding on Teekay’s loan facilities that were used to finance these loans. During the year ended December 31, 2012, $11.7 million of interest expense was attributable to the Dropdown Predecessor. Management believes these allocations reasonably present the interest expense and the general and administrative expenses of the Dropdown Predecessor. | |||||||||||||
Use of estimates | |||||||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. In addition, estimates have been made when allocating expenses from Teekay to the Dropdown Predecessor and such estimates may not be reflective of what actual results would have been if the Dropdown Predecessor had operated independently. | |||||||||||||
Currency translation | |||||||||||||
The Company’s functional currency 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 other expenses in the accompanying consolidated statements of income (loss). | |||||||||||||
Operating revenues and expenses | |||||||||||||
The Company recognizes revenues from time charters daily over the term of the charter as the applicable vessel operates under the charter. The Company does not recognize revenues during days that the vessel is off hire. When the time charter contains a profit-sharing agreement, the Company recognizes the profit-sharing or contingent revenues when the contingency is resolved. All revenues from voyage charters are recognized on a proportionate performance method. The Company uses a discharge-to-discharge basis in determining proportionate performance for all spot voyages. The Company does not begin recognizing revenue until a charter has been agreed to by the customer and the Company, 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 the deferred portion of revenues and expenses, which will be earned in subsequent periods. | |||||||||||||
Voyage expenses are all expenses unique to a particular voyage, including bunker fuel expenses, port fees, cargo loading and unloading expenses, canal tolls, agency fees and commissions. The Company, as shipowner, pays voyage expenses under voyage charters, its customers pay voyage expenses under time charters. Vessel operating expenses include crewing, repairs and maintenance, insurance, stores, lube oils and communication expenses. The Company pays vessel operating expenses under both voyage and time charters and for vessels which earn net pool revenue, as described below. Voyage expenses and vessel operating expenses are recognized when incurred. | |||||||||||||
Revenues and voyage expenses of the vessels operating in pool arrangements are pooled and the resulting net pool revenues, calculated on a time charter equivalent basis, are allocated to the pool participants according to an agreed formula. The agreed formula used to allocate net pool revenues varies between pools; however, the formula generally allocates revenues to pool participants on the basis of the number of days a vessel operates in the pool with weighting adjustments made to reflect vessels’ differing capacities and performance capabilities. The same revenue and expense recognition principles stated above are applied in determining the net pool revenues of the pool. The pools are responsible for paying voyage expenses and distribute net pool revenues to the participants. The Company accounts for the net allocation from the pool as revenues and amounts due from the pool are included in pool receivables from affiliates, net. | |||||||||||||
Share-based compensation | |||||||||||||
The Company grants stock options and restricted stock units as incentive-based compensation to certain employees of Teekay who support the operations of the Company. The Company 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, which generally equals the vesting period. For stock-based compensation awards subject to graded vesting, the Company calculates the value for the award as if it is a single award with one expected life and amortizes the calculated expense for the entire award on a straight-line basis over the vesting period of the award. The Company also grants common stock and fully vested stock options as incentive-based compensation to non-management directors, which are expensed immediately (see note 12). | |||||||||||||
Cash and cash equivalents | |||||||||||||
The Company classifies all highly liquid investments with an original maturity date of three months or less as cash and cash equivalents. | |||||||||||||
Accounts receivable, allowance for doubtful accounts, and investment in term loans and other loan receivables | |||||||||||||
Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in existing accounts receivable. The Company determines the allowance based on historical write-off experience and customer economic data. The Company reviews the allowance for doubtful accounts regularly and past due balances are reviewed for collectability. Account balances are charged off against the allowance when the Company believes that the receivable will not be recovered. There are no significant amounts recorded as allowance for doubtful accounts as at December 31, 2014, 2013 and 2012. | |||||||||||||
The Company’s investment in term loans and advances to equity accounted investments are recorded at cost. The premium paid over the outstanding principal amount was amortized to interest income over the term of the loan using the effective interest rate method. The Company analyzes its loans for collectability during each reporting period. A loan provision is recorded, based on current information and events, if it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors the Company considers in determining that a loan provision is required, 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 their ability to repay the loan, and the fair value of the underlying collateral. When a loan provision is recorded, the Company measures the amount of the provision based on the present value of expected future cash flows discounted at the loan’s effective interest rate and recognizes the resulting provision in the statement of income (loss). The carrying value of the loans 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 provision. | |||||||||||||
The following table contains a summary of the Company’s financing receivables by type and the method by which the Company monitors the credit quality of its financing receivables on a quarterly basis. | |||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||
Class of Financing Receivable | Credit Quality Indicator | Grade | $ | $ | |||||||||
Investment in term loans and interest receivable | Collateral | Non-performing (1) | — | 136,061 | |||||||||
Advances to equity accounted investments | Other internal metrics | Performing | 14,980 | 16,930 | |||||||||
14,980 | 152,991 | ||||||||||||
-1 | The borrowers under the term loans had been in default on their interest payment obligations since the first quarter of 2013, and subsequently, in default of the repayment of the loan principal from the loan maturity date in July 2013. On March 21, 2014, the Company took ownership of the vessels held as collateral in satisfaction of the loans and accrued interest (see note 5). | ||||||||||||
Equity accounted investments | |||||||||||||
The Company’s has investments in the High-Q joint venture, Teekay Tanker Operations Ltd. (or TTOL) and Tanker Investments Ltd. (or TIL) all of which 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 Company’s proportionate share of earnings or losses and distributions. The Company evaluates its equity accounted investment for impairment when events or circumstances indicate that the carrying value of such investment may have experienced an other-than-temporary decline in value below its carrying value. If the estimated fair value is less than the carrying value, the carrying value is written down to its estimated fair value and the resulting impairment is recorded in the Company’s statement of income. The Company’s maximum exposure to loss is the amount it has invested in its equity accounted investments. | |||||||||||||
Vessels and equipment | |||||||||||||
All pre-delivery costs incurred during the construction of newbuildings, including interest, supervision and technical costs, are capitalized. The acquisition cost and all costs incurred to restore used vessels purchased by the Company to the standard required to properly service the Company’s customers are capitalized. | |||||||||||||
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, or a shorter period if regulations prevent the Company from operating the vessels for 25 years. Depreciation of vessels and equipment (including depreciation attributable to the Dropdown Predecessor and excluding amortization of dry-docking costs) for the years ended December 31, 2014, 2013 and 2012 totaled $39.4 million, $39.2 million, and $63.4 million, respectively. | |||||||||||||
Vessel capital modifications include the addition of new equipment or can encompass various 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 or maintenance are expensed as incurred. | |||||||||||||
Generally, the Company dry docks each vessel every two and a half to five years. The Company capitalizes a substantial portion of the costs incurred during dry docking and amortizes those costs on a straight-line basis over its estimated useful life, which typically is from the completion of a dry docking or intermediate survey to the estimated completion of the next dry docking. The Company includes in capitalized dry docking those costs incurred as part of the dry dock to meet classification and regulatory requirements. The Company expenses costs related to routine repairs and maintenance performed during dry docking that do not improve or extend the useful lives of the assets. When significant dry-docking expenditures occur prior to the expiration of the original amortization period, the remaining unamortized balance of the original dry-docking cost is expensed in the month of the subsequent dry docking. | |||||||||||||
The following table summarizes the change in the Company’s capitalized dry docking costs, from January 1, 2012 to December 31, 2014: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
$ | $ | $ | |||||||||||
Balance at the beginning of the year | 29,269 | 18,672 | 20,945 | ||||||||||
Cost incurred for dry docking | 17,072 | 19,245 | 7,003 | ||||||||||
Dry-dock amortization | (10,832 | ) | (8,648 | ) | (8,959 | ) | |||||||
Vessel sales/held for sale (note 18) | — | — | (317 | ) | |||||||||
Balance at the end of the year | 35,509 | 29,269 | 18,672 | ||||||||||
Vessels and equipment that are “held and used” are assessed for impairment when events or circumstances indicate the carrying amount of the asset may not be recoverable. If the asset’s net carrying value exceeds the net undiscounted cash flows expected to be generated over its remaining useful life, the carrying amount of the asset is reduced to its estimated fair value. Estimated fair value is determined based on discounted cash flows or appraised values. In cases where an active second hand sale and purchase market does not exist, the Company 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 generally used to estimate the amount the Company would expect to receive if it were to sell the vessel. Such appraisal is normally completed by the Company. | |||||||||||||
Debt issuance costs | |||||||||||||
Debt issuance costs, including fees, commissions and legal expenses, are capitalized and presented as other non-current assets. Debt issuance costs of revolving credit facilities and term loans are amortized using the effective interest rate method over the term of the relevant loan. Amortization of debt issuance costs is included in interest expense. | |||||||||||||
Income taxes | |||||||||||||
The Company recognizes the tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the Company’s 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. | |||||||||||||
Excluding freight taxes, the Company incurred no income taxes for the years ended December 31, 2014, 2013 and 2012. The Company believes that it and its subsidiaries are not subject to taxation under the laws of the Republic of The Marshall Islands and qualify for the Section 883 exemption under U.S. federal income tax purposes. | |||||||||||||
Ship management fees | |||||||||||||
In order to more closely align the Company’s presentation to that of many of its peers, the cost of ship management activities of $5.6 million for year ended December 31, 2014 has been presented in vessel operating expenses. Prior to 2013, the Company included these amounts in general and administrative expenses. All such costs incurred in comparative periods have been reclassified from general and administrative expenses to vessel operating expenses to conform to the presentation adopted in the current period. The amounts reclassified for the years ended December 31, 2013 and 2012 were $5.6 million and $6.9 million, respectively (see note 13e). | |||||||||||||
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 quarter, regardless of the purpose or intent for holding the derivative. The method of recognizing the resulting gains or losses are dependent on whether the derivative contracts are designed to hedge a specific risk and whether the contracts qualify for hedge accounting. The Company does not apply hedge accounting to its derivative instruments, except for certain types of interest rate swaps that it may enter into in the future. | |||||||||||||
When a derivative is designated as a cash flow hedge, the Company 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 Company 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 possible 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 in the consolidated statements of loss. The ineffective portion of the change in fair value of the derivative financial instruments is immediately recognized in earnings in the consolidated statements of loss. If a cash flow hedge is terminated and the originally hedged item is still considered possible 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 consolidated statements of loss. If the hedged items are no longer possible of occurring, amounts recognized in total equity are immediately transferred to the earnings item in the consolidated statements of loss. | |||||||||||||
For derivative financial instruments that are not designated or that do not qualify as hedges under Financial Accounting Standards Board (or FASB) 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 Company’s non-designated derivatives are recorded in realized and unrealized loss on derivative instruments in the Company’s consolidated statements of income (loss). | |||||||||||||
Earnings (loss) per share | |||||||||||||
Earnings (loss) per share is determined by dividing (a) net income (loss) of the Company after (deducting) adding the amount of net income (loss) attributable to the Dropdown Predecessor by (b) the weighted-average number of shares outstanding during the applicable period. The calculation of weighted-average number of shares includes the total Class A and total Class B shares outstanding during the applicable period. The computation of diluted earnings per share assumes the exercise of all dilutive stock options and restricted stock units using the treasury stock method. The computation of diluted loss per share does not assume such exercises. |
Accounting_Pronouncements_Not_
Accounting Pronouncements Not Yet Adopted | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Changes and Error Corrections [Abstract] | ||
Accounting Pronouncements Not Yet Adopted | 2 | Accounting Pronouncements Not Yet Adopted |
In May 2014, the Financial Accounting Standards Board (or FASB) issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers, (or ASU 2014-09). ASU 2014-09 will require companies to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This update creates a five-step model that requires companies 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 when each performance obligation is satisfied. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2016 and shall be applied at the Company’s option retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. Early adoption is not permitted. The Company is evaluating the effect of adopting this new accounting guidance. | ||
In April 2014, FASB issued Accounting Standards Update 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (or ASU 2014-08) which raises the threshold for disposals to qualify as discontinued operations. A discontinued operation is defined now as: (i) a component of an entity or group of components that has been disposed of or classified as held for sale and represents a strategic shift that has or will have a major effect on an entity’s operations and financial results; or (ii) an acquired business that is classified as held for sale on the acquisition date. ASU 2014-08 also requires additional disclosures regarding discontinued operations, as well as material disposals that do not meet the definition of discontinued operations. ASU 2014-08 is effective for fiscal years beginning on or after December 15, 2014, and interim periods within those years. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in the financial statements previously issued or available for issuance. The impact, if any, of adopting ASU 2014-08 on the Company’s financial statements will depend on the occurrence and nature of disposals that occur after ASU 2014-08 is adopted. |
Public_Offerings_and_Private_P
Public Offerings and Private Placements | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||
Public Offerings and Private Placements | 3 | Public Offerings and Private Placements | |||||||||||||||||||||
The following table summarizes the issuances of common shares over the three years ending December 31, 2014: | |||||||||||||||||||||||
Date | Number of | Offering | Gross | Net | Teekay’s | Use of Proceeds | |||||||||||||||||
Common | Price | Proceeds | Proceeds | Ownership | |||||||||||||||||||
Shares | (Per Share) | After the | |||||||||||||||||||||
Issued | Offering | ||||||||||||||||||||||
Feb-12 | 17,250,000 | $ | 4 | 69,000 | 65,771 | 20.4 | % | Prepayment of revolving credit facilities | |||||||||||||||
Jun-12 | 4,464,286 | (1) | $ | 4.11 | 18,348 | 18,348 | 24.6 | % | Acquisition of conventional tankers | ||||||||||||||
Aug-14 | 4,220,945 | (2) | $ | 4.03 | 17,010 | 17,010 | 28.7 | % | Acquisition of interest in TTOL | ||||||||||||||
Dec-14 | 24,166,666 | (3) | $ | 4.8 | 116,000 | 111,190 | 26.2 | % | Acquisition of conventional tankers | ||||||||||||||
-1 | Represents Class A common shares issued to Teekay as partial consideration for the Company’s acquisition of the 2012 Acquired Business, which shares had an approximate value of $25.0 million, or $5.60 per share when the purchase price was agreed between the parties. | ||||||||||||||||||||||
-2 | Represents Class B common shares issued to Teekay as partial consideration for the Company’s acquisition of the 50% interest in TTOL, which shares had an approximate value of $15.6 million, or $3.70 per share when the purchase price was agreed between the parties. | ||||||||||||||||||||||
-3 | Represents 20.0 million Class A common shares issued to the public and 4.2 million common shares issued to Teekay in a concurrent private placement. The proceeds from the issuance will be used to acquire modern second hand tankers (see note 18) and for general corporate purposes. The portion of the Company’s voting power held by Teekay at December 31, 2014 was 53.8%. Please refer to Item 7 – Major Shareholders and Related Parties. Subsequent to December 31, 2014, the Company issued an additional 3 million shares of Class A common stock upon the exercise by the underwriters’ of an option to acquire additional shares from the December 2014 public offering (see note 20b). | ||||||||||||||||||||||
Business_Operations
Business Operations | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||
Business Operations | 4 | Business Operations | |||||||||||
Significant Customers | |||||||||||||
The following table presents consolidated revenues and percentage of consolidated revenues for customers that accounted for more than 10% of the Company’s consolidated revenues for its sole operating segment during the periods presented. Revenues from customers attributable to the Dropdown Predecessor are included in the table. | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Statoil ASA | $ | 32.4 million | $ | 33.7 million | $ | 27.3 million | |||||||
ConocoPhillips | -1 | $ | 18.1 million | $ | 31.8 million | ||||||||
-1 | Less than 10% of the consolidated revenues | ||||||||||||
Concentration of Credit Risk | |||||||||||||
There is a concentration of credit risk with respect to the total amounts due from affiliates and pool receivables from affiliates with these amounts being due from affiliates of Teekay as at December 31, 2014 (see note 13h). The Company also relies on Teekay Chartering Ltd., a wholly-owned subsidiary of Teekay, to actively manage and administer all voyage-related functions for vessels on time charter contracts and for vessels trading in the Teekay Aframax Pool (a vessel pooling arrangement of Aframax tankers), the Teekay Classic Aframax Pool (a vessel pooling arrangement for Aframax tankers older than 15 years), the Gemini Suezmax Pool (a vessel pooling arrangement of Suezmax tankers), and the Taurus Tankers LR2 Pool (a vessel pooling arrangement of product tankers). |
Investment_in_Term_Loans
Investment in Term Loans | 12 Months Ended | |
Dec. 31, 2014 | ||
Receivables [Abstract] | ||
Investment in Term Loans | 5 | Investment in Term Loans |
In July 2010, the Company invested in two term loans for a total cost of $115.6 million (or the Loans) which were scheduled to mature in July 2013. The Loans were secured by first priority mortgages registered on two 2010-built Very Large Crude Carriers (or VLCCs). The Loans had an annual interest rate of 9% per annum and included a repayment premium feature that was to provide a total investment yield of approximately 10% per annum. | ||
The borrowers under the Loans had been in default on their interest payment obligations since the first quarter of 2013, and subsequently, in default of the repayment of the loan principal from the loan maturity date in July 2013. On March 21, 2014, the Company took ownership of the VLCCs and the Loans were concurrently discharged. The VLCCs had an estimated fair value of $144 million on that date, which approximated all amounts owing under the Loans, including $9.1 million of accrued interest. The transfer of ownership of the VLCCs and concurrent discharging of the Loans has been treated as a non-cash transaction in the Company’s consolidated statement of cash flows. | ||
In May, the Company sold the two wholly-owned subsidiaries, each of which owns one VLCC, to TIL (see note 18). |
Investments_in_and_advances_to
Investments in and advances to Equity Accounted Investments | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||
Investments in and advances to Equity Accounted Investments | 6 | Investments in and advances to Equity Accounted Investments | |||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
$ | $ | ||||||||||||
High-Q Joint Venture (High-Q) | 18,948 | 18,196 | |||||||||||
Tanker Investments Ltd. (TIL) | 36,915 | — | |||||||||||
Teekay Tanker Operations Ltd. (TTOL) | 17,534 | — | |||||||||||
Total | 73,397 | 18,196 | |||||||||||
a. | The Company has a joint venture arrangement with Wah Kwong Maritime Transport Holdings Limited (or Wah Kwong), whereby the Company has a 50% economic interest in the High-Q joint venture, which is jointly controlled by the Company and Wah Kwong. The High-Q joint venture owns one VLCC, which is trading on a fixed time charter-out contract expiring in 2018. Under the contract, the vessel earns a fixed daily rate and an additional amount if the daily rate of any sub-charter earned exceeds a certain threshold. | ||||||||||||
In March 2012, the joint venture entered into a $68.6 million loan with a financial institution. As at December 31, 2014, the loan had an outstanding balance of $60.0 million (December 31, 2013 - $64.7 million). The loan is secured by a first-priority mortgage on the VLCC owned by the joint venture and 50% of the outstanding loan balance is guaranteed by the Company. The joint venture has an interest rate swap agreement with a notional amount of $60.0 million that expires in June 2018, 50% of which is guaranteed by the Company. The interest rate swap exchanges a receipt of floating interest based on 3-months LIBOR for a payment of a fixed rate of 1.47% every three months. | |||||||||||||
b. | In January 2014, the Company and Teekay formed TIL, which seeks to opportunistically acquire, operate and sell modern second-hand tankers to benefit from an expected recovery of the tanker market. The Company purchased 2.5 million shares of common stock for $25.0 million and received a stock purchase warrant entitling it to purchase up to 750,000 additional shares of common stock of TIL (see note 9). The stock purchase warrant is a derivative instrument, which had a value of $3.4 million on issuance which is reflected in the other income (expenses) in the Company’s consolidated statements of income (loss) for the year ended December 31, 2014. The Company also received one preferred share, which entitles the Company to elect one Board member of TIL. The preferred share does not give the Company a right to any dividends or distributions of TIL. The Company accounts for its investment in TIL using the equity method. In October 2014, the Company purchased an additional 0.9 million common shares of TIL on the open market. The common shares were acquired at a price of NOK 69 per share, or a purchase price of $10.0 million. | ||||||||||||
In May 2014, the Company sold two wholly-owned subsidiaries, each of which owns one VLCC, to TIL (see note 18). | |||||||||||||
c. | On August 1, 2014, the Company purchased from Teekay a 50% interest in TTOL, which owns conventional tanker commercial management and technical management operations, including the direct ownership in three commercially managed tanker pools, for an aggregate price of approximately $23.5 million, including net working capital. Teekay retained the remaining 50% interest in TTOL. | ||||||||||||
As consideration for this acquisition, the Company issued to Teekay 4.2 million Class B common shares. The 4.2 million Class B common shares had an approximate value of $15.6 million, or $3.70 per share, when the purchase price was agreed to between the parties and a value of $17.0 million, or $4.03 per share, on the acquisition closing date. The purchase price, for accounting purposes, is based upon the value of the Class B common shares on the acquisition closing date. In addition, the Company reimbursed Teekay for $6.5 million of working capital it assumed from Teekay in connection with the purchase. The book value of the assets acquired, including working capital, was $16.9 million on the date of acquisition. The excess of the purchase price over the Company’s proportionate interest in the book value of the net assets acquired, which amounted to $6.6 million, is accounted for as an equity distribution to Teekay. The portion of the purchase price paid with the 4.2 million of Class B common shares is reflected in the statement of cash flow as a non-cash transaction. The Company accounts for its ownership interest in TTOL using the equity method. | |||||||||||||
A condensed summary of the Company’s financial information for equity accounted investments (9.29% to 50% owned) shown on a 100% basis are as follows: | |||||||||||||
As at December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
$ | $ | ||||||||||||
Cash and restricted cash | 97,758 | 2,897 | |||||||||||
Other assets- current | 66,473 | 270 | |||||||||||
Vessels and equipment | 715,360 | 99,526 | |||||||||||
Other assets - non-current | 26,446 | 1,001 | |||||||||||
Current portion of long-term debt | 33,992 | 5,750 | |||||||||||
Other liabilities – current | 47,275 | 1,387 | |||||||||||
Long-term debt | 359,980 | 59,975 | |||||||||||
Other liabilities - non-current | 31,787 | 35,000 | |||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
$ | $ | $ | |||||||||||
Revenues | 94,244 | 7,325 | — | ||||||||||
Income from vessel operations | 16,460 | 3,256 | (3 | ) | |||||||||
Realized and unrealized loss on derivative instruments | (831 | ) | — | — | |||||||||
Net income (loss) | 3,598 | 1,686 | (3 | ) | |||||||||
For the year ended December 31, 2014, the Company recorded equity income (loss) of $5.2 million (2013 - $0.9 million and 2012 – $(1) thousand). The income or loss was primarily comprised of the Company’s share of net income (loss) from High-Q joint venture, TIL, and TTOL. |
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accrued Liabilities | 7 | Accrued Liabilities | |||||||
Year Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
$ | $ | ||||||||
Voyage and vessel | 7,358 | 10,692 | |||||||
Corporate accruals | 366 | 528 | |||||||
Interest | 3,947 | 3,999 | |||||||
Payroll and benefits to related parties | 5,894 | 5,850 | |||||||
Total | 17,565 | 21,069 |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Long-Term Debt | 8 | Long-Term Debt | |||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
$ | $ | ||||||||
Revolving Credit Facilities due through 2018 | 508,593 | 580,593 | |||||||
Term Loans due through 2021 | 147,470 | 164,041 | |||||||
656,063 | 744,634 | ||||||||
Current portion | (41,959 | ) | (25,246 | ) | |||||
Total | 614,104 | 719,388 | |||||||
As at December 31, 2014, the Company had three revolving credit facilities (or the Revolvers), which, as at such date provided for aggregate borrowings of up to $634.8 million, of which $126.2 million was undrawn (December 31, 2013 - $728.8 million, of which $148.2 million was undrawn). Interest payments are based on LIBOR plus margins, which at December 31, 2014, ranged between 0.45% and 0.60% (December 31, 2013: 0.45% and 0.60%). The total amount available under the Revolvers reduces by $120.9 million (2015), $89.1 million (2016), $395.9 million (2017) and $28.9 million (2018). As at December 31, 2014, the Revolvers were collateralized by 21 of the Company’s vessels, together with other related security. One of the Revolvers requires that the Company’s applicable subsidiary maintain a minimum hull coverage ratio of 105% of the total outstanding balance for the facility period. As at December 31, 2014, this ratio was 153%. The vessel value used in this ratio is an appraised value prepared by the Company based on second-hand sale and purchase market data. A decline in the tanker market could negatively affect the ratio. In addition, one of the Revolvers requires the Company and certain of its subsidiaries to maintain a minimum liquidity (cash, cash equivalents and undrawn committed revolving credit lines with at least six months to maturity) of $35.0 million and at least 5.0% of the Company’s total debt. The remaining two Revolvers are guaranteed by Teekay and contain covenants that require Teekay to maintain the greater of free cash (cash and cash equivalents) of at least $100.0 million and an aggregate of free cash and undrawn committed revolving credit lines with at least six months to maturity of at least 7.5% of Teekay’s total consolidated debt which has recourse to Teekay. As at December 31, 2014, the Company and Teekay were in compliance with all their covenants in respect of the Revolvers. | |||||||||
As at December 31, 2014, the Company had three term loans outstanding, which totaled $147.5 million (December 31, 2013—$164.0 million). Interest payments on the term loans are based on a combination of fixed and variable rates where fixed rates range from 4.06% to 4.90% and variable rates are based on LIBOR plus a margin. At December 31, 2014, the margins ranged from 0.30% to 1.0% (December 31, 2013 - 0.30% to 1.0%). The term loan repayments are made in quarterly or semi-annual payments and two of the term loans have balloon or bullet repayments due at maturity in 2019 and 2021. The term loans are collateralized by first-priority mortgages on six of the Company’s vessels, together with certain other related security. Two of the term loans require that the Company’s subsidiaries maintain minimum hull coverage ratios of 120% and 130%, respectively, of the total outstanding balance for the facility period. As at December 31, 2014, the loan to value ratios ranged from 212% to 676%. The vessel values used in these ratios are appraised values prepared by the Company based on second-hand sale and purchase market data. A decline in the tanker market could negatively affect the ratios. The term loans are guaranteed by Teekay and contain covenants that require Teekay to maintain the greater of free cash (cash and cash equivalents) of at least $100.0 million and an aggregate of free cash and undrawn committed revolving credit lines with at least six months to maturity of at least 7.5% of Teekay’s total consolidated debt which has recourse to Teekay. As at December 31, 2014, the Company and Teekay were in compliance with all their covenants in respect of these term loans. | |||||||||
The Company and certain other subsidiaries of Teekay are borrowers under one term loan arrangement and one revolving credit facility. Under these arrangements, each of the borrowers is obligated on a joint and several basis. For accounting purposes, obligations resulting from long-term debt joint and several liability arrangements are measured at the sum of the amount the Company agreed to pay, on the basis of its arrangement with its co-obligor, and any additional amount the Company expects to pay on behalf of its co-obligor. As of December 31, 2014, the term loan arrangement had an outstanding balance of $188.3 million, of which $92.8 million was the Company’s share. As of December 31, 2014, the revolving credit facility had an outstanding balance of $89.3 million, of which $35.0 million was the Company’s share. The Company does not expect to pay any amount on behalf of its co-obligors. Teekay has agreed to indemnify the Company in respect of any losses and expenses arising from any breach by the co-obligors of the terms and conditions of the term loan or revolving credit facility. | |||||||||
The weighted-average effective interest rate on the Company’s long-term debt as at December 31, 2014 was 1.1% (December 31, 2013 – 1.1%). This rate does not reflect the effect of the Company’s interest rate swap agreements (see note 9). | |||||||||
The aggregate annual long-term principal repayments required to be made by the Company under the Revolvers and term loans subsequent to December 31, 2014 are $42.0 million (2015), $82.6 million (2016), $415.3 million (2017), $53.2 million (2018), $23.2 million (2019) and $39.8 million (thereafter). |
Derivative_Instruments
Derivative Instruments | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||
Derivative Instruments | 9 | Derivative Instruments | |||||||||||||||||
The Company uses interest rate swaps in accordance with its overall risk management policies. The Company enters into interest rate swap agreements which exchange a receipt of floating interest for a payment of fixed interest to reduce the Company’s exposure to interest rate variability on its outstanding floating-rate debt. The Company has not designated, for accounting purposes, its interest rate swaps as cash flow hedges of its U.S. Dollar denominated LIBOR borrowings. | |||||||||||||||||||
Realized and unrealized gains or losses relating to the Company’s interest rate swaps have been reported in realized and unrealized loss on non-designated derivative instruments in the consolidated statements of income (loss). During the year ended December 31, 2014, the Company recognized a realized loss of $10.0 million and an unrealized gain of $7.1 million relating to its interest rate swaps. During the year ended December 31, 2013, the Company recognized a realized loss of $9.9 million and an unrealized gain of $8.4 million relating to its interest rate swaps. During the year ended December 31, 2012, the Company recognized a realized loss of $9.6 million and an unrealized gain of $1.6 million relating to its interest rate swaps. | |||||||||||||||||||
The following summarizes the Company’s interest rate swap positions as at December 31, 2014: | |||||||||||||||||||
Interest Rate | Principal | Fair Value / | Remaining | Fixed Interest | |||||||||||||||
Index | Amount | Carrying Amount of | Term | Rate | |||||||||||||||
$ | Asset (Liability) | (years) | (%) (1) | ||||||||||||||||
$ | |||||||||||||||||||
LIBOR-Based Debt: | |||||||||||||||||||
U.S. Dollar-denominated interest rate swap (1) | USD LIBOR 6M | 200,000 | (6,160 | ) | 1.8 | 2.61 | |||||||||||||
U.S. Dollar-denominated interest rate swap (1) | USD LIBOR 3M | 100,000 | (12,065 | ) | 2.8 | 5.55 | |||||||||||||
-1 | Excludes the margin the Company pays on its variable-rate debt, which, as of December 31, 2014 ranged from 0.3% to 1.0%. | ||||||||||||||||||
The Company is potentially exposed to credit loss in the event of non-performance by the counterparty to the interest rate swap agreements in the event that the fair value results in an asset being recorded. In order to minimize counterparty risk, the Company only enters into interest rate swap agreements with counterparties that are rated A- or better by Standard & Poor’s or A3 or better by Moody’s at the time transactions are entered into. | |||||||||||||||||||
The Company has a stock purchase warrant entitling it to purchase up to 750,000 shares of common stock of TIL at a fixed price of $10 per share. Alternatively, if the shares of TIL’s common stock trade on a National Stock Exchange or over-the-counter market denominated in Norwegian Kroner, the Company may also exercise the stock purchase warrant at 61.67 Norwegian Kroner (or NOK) per share. The stock purchase warrant expires on January 23, 2019. For purposes of vesting, the stock purchase warrant is divided into four equally sized tranches. If the shares of TIL’s common stock trade on a National Stock Exchange or over-the-counter market denominated in Norwegian Kroner, each tranche will vest and become exercisable when and if the fair market value of a share of the TIL common stock equals or exceeds 77.08 NOK, 92.50 NOK, 107.91 NOK and 123.33 NOK, respectively, for such tranche for any ten consecutive trading days, subject to certain trading value requirements. As of December 31, 2014, the fair value of the stock purchase warrant was $4.7 million, which is reflected in derivative assets on the Company’s consolidated balance sheet. The stock purchase warrant had a value of $3.4 million on issuance in January 2014 and such amount is reflected in the other income (expenses) in the Company’s consolidated statements of income (loss). During the year ended December 31, 2014, the Company also recognized an unrealized gain of $1.2 million relating to the changes in the value of the warrant. Unrealized gains and losses are reflected in realized and unrealized loss on derivative instruments in the Company’s consolidated statements of income (loss). |
Other_LongTerm_Liabilities
Other Long-Term Liabilities | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other Liabilities Disclosure [Abstract] | |||||||||||||
Other Long-Term Liabilities | 10 | Other Long-Term Liabilities | |||||||||||
The Company recognizes freight tax expenses in other income (expenses) in its consolidated statements of income (loss). The Company does not presently anticipate its uncertain tax positions will significantly increase or decrease in the next 12 months; however, actual developments could differ from those currently expected. | |||||||||||||
The following is a roll-forward of the Company’s freight tax expenses which are recorded in its consolidated balance sheets in other long-term liabilities, from January 1, 2012 to December 31, 2014: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
$ | $ | $ | |||||||||||
Balance at the beginning of the year | 5,351 | 4,757 | 5,449 | ||||||||||
Freight tax (recovery) expense | (499 | ) | 594 | (692 | ) | ||||||||
Balance at the end of the year | 4,852 | 5,351 | 4,757 | ||||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Fair Value Measurements | 11 | 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 – The fair value of the Company’s cash and cash equivalents approximates its carrying amounts reported in the consolidated balance sheets. | |||||||||||||||||||||
Investment in term loans and interest receivable – The fair value of the Company’s investment in term loans and interest receivable is estimated using a discounted cash flow analysis, based on current rates currently available for debt with similar terms and remaining maturities. In addition, the value of the collateral and an assessment of the credit worthiness of the borrower is taken into account when determining the fair value. | |||||||||||||||||||||
Long-term debt – The fair values of the Company’s fixed-rate and variable-rate long-term debt is 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 Company. | |||||||||||||||||||||
Derivative instruments – The fair value of the Company’s interest rate swap agreements are the estimated amounts that the Company would receive or pay to terminate the agreements at the reporting date, taking into account current interest rates, and if the swap is not collateralized, the current credit worthiness of either the Company or the swap counterparties. The estimated amount is the present value of future cash flows. The inputs used to determine the future cash flows include the fixed interest rate of the swaps and market interest rates. Given the current volatility in the credit markets, it is reasonably possible that the amounts recorded as derivative assets and liabilities could vary by material amounts in the near term. | |||||||||||||||||||||
During January 2014, the Company received a stock purchase warrant entitling it to purchase up to 750,000 shares of the common stock of TIL (see note 9). The estimated fair value of the stock purchase warrant was determined using a Monte-Carlo simulation and is based, in part, on the historical price of common shares of TIL, the risk-free interest rate, vesting conditions and the historical volatility of comparable companies. The estimated fair value of the stock purchase warrant as of December 31, 2014 is based on the historical volatility of comparable companies of 61.54%. A higher or lower volatility would result in a higher or lower fair value of this derivative asset. | |||||||||||||||||||||
Changes in fair value during the year ended December 31, 2014 for the TIL stock purchase warrant is as follows: | |||||||||||||||||||||
Year Ended | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2014 | |||||||||||||||||||||
$ | |||||||||||||||||||||
Fair value at the beginning of the period | — | ||||||||||||||||||||
Fair value on issuance | 3,420 | ||||||||||||||||||||
Unrealized gain included in earnings | 1,237 | ||||||||||||||||||||
Fair value at the end of the period | 4,657 | ||||||||||||||||||||
The Company categorizes its fair value estimates using a fair value hierarchy based on the inputs used to measure fair value. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value as follows: | |||||||||||||||||||||
Level 1. Observable inputs such as quoted prices in active markets; | |||||||||||||||||||||
Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and | |||||||||||||||||||||
Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. | |||||||||||||||||||||
The following table includes the estimated fair value, carrying value and categorization using the fair value hierarchy of those assets and liabilities that are measured at their estimated fair value on a recurring and non-recurring basis, as well as certain financial instruments that are not measured at fair value. | |||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||
Fair Value | Carrying Amount | Fair Value Asset/ | Carrying Amount | Fair Value Asset/ | |||||||||||||||||
Hierarchy | Asset/ (Liability) | (Liability) | Asset/ (Liability) | (Liability) | |||||||||||||||||
Level | $ | $ | $ | $ | |||||||||||||||||
Recurring: | |||||||||||||||||||||
Cash and cash equivalents | Level 1 | 162,797 | 162,797 | 25,646 | 25,646 | ||||||||||||||||
Derivative instruments | |||||||||||||||||||||
Interest rate swap agreements (note 9) | Level 2 | (18,225 | ) | (18,225 | ) | (25,268 | ) | (25,268 | ) | ||||||||||||
Stock purchase warrant (note 9) | Level 3 | 4,657 | 4,657 | — | — | ||||||||||||||||
Other: | |||||||||||||||||||||
Investment in term loans and | |||||||||||||||||||||
interest receivable (note 5) | Level 3 | — | — | 136,061 | 134,857 | ||||||||||||||||
Advances to equity accounted investments | Note (1) | 14,980 | Note (1) | 16,930 | Note (1) | ||||||||||||||||
Long-term debt, including current portion | Level 2 | (656,063 | ) | (617,761 | ) | (744,634 | ) | (679,910 | ) | ||||||||||||
-1 | The advances to equity accounted investments together with the Company’s investments in the equity accounted investments form the net aggregate carrying value of the Company’s interests in the equity accounted investments in these consolidated financial statements. The fair values of the individual components of such aggregate interests are not determinable. |
Capital_Stock
Capital Stock | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Capital Stock | 12 | Capital Stock | |||||||
The authorized capital stock of Teekay Tankers Ltd. at December 31, 2014 and 2013, was 100,000,000 shares of preferred stock, with a par value of $0.01 per share, 200,000,000 shares of Class A common stock, with a par value of $0.01 per share, and 100,000,000 shares of Class B common stock, with a par value of $0.01 per share. The shares of Class A common stock entitle the holder to one vote per share while the shares of Class B common stock entitle the holder to five votes per share, subject to a 49% aggregate Class B common stock voting power maximum. As at December 31, 2014, the Company had 95.3 million shares of Class A common stock (2013 – 71.1 million), 16.7 million shares of Class B common stock (2013 – 12.5 million) and no shares of Preferred Stock issued and outstanding (2013 – nil). Subsequent to December 31, 2014, the Company issued an additional 3 million shares of Class A common stock (see note 20b). | |||||||||
Commencing in 2013, the Company adopted a fixed dividend policy. The annual dividend was set at an amount of $0.12 per share, payable quarterly. Subject to preferences that may apply to any shares of preferred stock outstanding at the time, the holders of Class A common stock and Class B common stock are entitled to share equally in any dividends that the Board of Directors declares from time to time out of funds legally available for dividends. | |||||||||
Upon the Company’s liquidation, dissolution or winding-up, the holders of Class A common stock and Class B common stock shall be entitled to share equally in all assets remaining after the payment of any liabilities and the liquidation preferences on any outstanding preferred stock. Shares of the Company’s Class A common stock are not convertible into any other shares of the Company’s capital stock. Each share of Class B common stock is convertible at any time at the option of the holder thereof into one share of Class A common stock. Upon any transfer of shares of Class B common stock to a holder other than Teekay (or any of its affiliates or any successor to Teekay’s business or to all or substantially all of its assets), such shares of Class B common stock shall automatically convert into Class A common stock upon such transfer. In addition, all shares of Class B common stock will automatically convert into shares of Class A common stock if the aggregate number of outstanding shares of Class A common stock and Class B common stock beneficially owned by Teekay and its affiliates falls below 15% of the aggregate number of outstanding shares of common stock. All such conversions will be effected on a one-for-one basis. | |||||||||
Stock-based compensation | |||||||||
As at December 31, 2014, the Company had reserved under its 2007 Long-Term Incentive Plan a total of 4,000,000 shares of Class A common stock for issuance pursuant to awards to be granted (2013 – 1,000,000 Class A common stock). For the year ended December 31, 2014, a total of 17,073 shares were granted and issued to the Company’s non-management directors as part of their annual compensation. For the years ended December 31, 2013 and 2012, 142,157 shares and 82,573 shares of Class A common stock, respectively, have been granted and delivered to non-management Directors as part of the Directors’ annual compensation. These Class A common shares were purchased on the open market rather than issuing shares from authorized capital. The compensation relating to the granting of such stock has been included in general and administrative expenses in the amounts of $0.1 million, $0.4 million and $0.4 million for the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||
The Company also grants options and restricted stock units as incentive-based compensation under the Teekay Tankers Ltd. 2007 Long-Term Incentive Plan to certain non-management directors of the Company and to certain employees of Teekay subsidiaries that provide services to the Company. The Company 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 stock-based compensation awards subject to graded vesting, the Company calculates the value for 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 Company‘s stock-based compensation awards is reflected in general and administrative expenses in the Company’s consolidated statements of income (loss). | |||||||||
In June 2014, the Company granted 0.1 million stock options with an exercise price of $4.25 per share to an officer of the Company. These stock options have a ten-year term and vest equally over three years from the grant date. In March 2014, the Company granted 0.2 million stock options with an exercise price of $4.10 per share to non-management directors of the Company. These stock options have a ten-year term and vest immediately. | |||||||||
The weighted-average grant-date fair value of stock options granted in June 2014 and March 2014 was $1.38 per option and $1.37 per option, respectively, estimated on the grant date using the Black-Scholes option pricing model. The following assumptions were used in computing the fair value of the stock options granted: expected volatility of 46.0% for the June 2014 grant and 47.7% for the March 2014 grant; expected life of five years; dividend yield of 2.8% for the June 2014 grant and 2.9% for the March 2014 grant; and risk-free interest rate of 1.6%. The expected life of the stock options granted was estimated using the historical exercise behavior of employees of Teekay that receive stock options from Teekay. The expected volatility was based on historical volatility as calculated using historical data during the five years prior to the grant date. | |||||||||
A summary of the Company’s stock option information for the year ended December 31, 2014 is as follows: | |||||||||
December 31, 2014 | |||||||||
Options (#) | Weighted-Average | ||||||||
Exercise Price ($) | |||||||||
Outstanding - beginning of year | — | — | |||||||
Granted | 263,175 | 4.16 | |||||||
Outstanding - end of year | 263,175 | 4.16 | |||||||
Exercisable - end of year | 152,346 | 4.1 | |||||||
A summary of the Company’s non-vested stock option activity and related information for the year ended December 31, 2014 is as follows: | |||||||||
December 31, 2014 | |||||||||
Options (#) | Weighted-Average | ||||||||
Grant Date Fair | |||||||||
Value ($) | |||||||||
Outstanding non-vested stock options - beginning of year | — | — | |||||||
Granted | 110,829 | 4.25 | |||||||
Outstanding non-vested stock options - end of year | 110,829 | 4.25 | |||||||
As of December 31, 2014, there was $0.1 million of total unrecognized compensation cost related to non-vested stock options granted during the year. During the year ended December 31, 2014, the Company recognized $0.2 million (2013 - $nil, 2012 - $nil) of expenses related to the stock options. | |||||||||
As at December 31, 2014, the intrinsic value of the outstanding in-the-money stock options was $0.2 million and the intrinsic value of the exercisable stock options was $0.1 million. As at December 31, 2014, the weighted-average remaining life of options vested and expected to vest was 9.2 years, weighted-average remaining life of the 152,346 exercisable stock options was 9.2 years and the weighted-average exercise price was $4.10. | |||||||||
During 2014, the Company granted 0.6 million restricted stock units to an officer of the Company and to certain employees of Teekay subsidiaries that provide services to the Company, with an aggregate fair value of $2.3 million. During 2013, the Company granted 0.4 million restricted stock units to certain employees of Teekay subsidiaries that provide services to the Company with an aggregate fair value of $1.0 million. Each restricted stock unit is equal in value to one share of the Company’s common shares plus reinvested dividends from the grant date to the vesting date. The restricted stock units vest equally over three years from the grant date. Any portion of a restricted stock unit award that is not vested on the date of a recipient’s termination of service is cancelled, unless their termination arises as a result of the recipient’s retirement and, in that case, the restricted stock unit award will continue to vest in accordance with the vesting schedule. Upon vesting, the value of the restricted stock unit awards, net of withholding taxes, is paid to each recipient in the form of common shares. | |||||||||
For the year ended December 31, 2014, the Company recorded an expense of $1.2 million (2013 - $0.7 million, 2012 - $nil) related to the restricted stock units. During the year ended December 31, 2014, 122,146 restricted stock units with a market value of $0.6 million vested and that amount, net of withholding taxes, was paid to the grantees by issuing 68,322 shares of Class A common stock. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Related Party Transactions [Abstract] | |||||||||||||
Related Party Transactions | 13 | Related Party Transactions | |||||||||||
Acquisitions and Dropdown Acquisitions | |||||||||||||
a. | In August 2014, the Company purchased from Teekay a 50% ownership in TTOL, which owns conventional tanker commercial management and technical management operations, including the direct ownership in three commercially managed tanker pools, for an aggregate price of $23.5 million, including $6.5 million in net working capital (see note 6c). | ||||||||||||
b. | In January 2014, the Company and Teekay formed TIL. The Company purchase 2.5 million shares of common stock of TIL for $25.0 million and received a stock purchase warrant. In October 2014, the Company purchased an additional 0.9 million common shares of TIL on the open market for a purchase price of $10.0 million USD (see note 6b). | ||||||||||||
In May 2014, the Company sold two wholly-owned subsidiaries, each of which owns one VLCC, to TIL for the aggregate proceeds of $154 million plus related working capital on closing of $1.7 million (see note 18). | |||||||||||||
c. | In April 2010, when the Company purchased the Kaveri Spirit Suezmax tanker from Teekay, Teekay provided indemnification to the Company for the costs required to repair heating coils on the Suezmax tanker. During the first quarter of 2014, the repairs were performed to coincide with the scheduled drydocking of the vessel. The Company received a $1.3 million indemnification payment from Teekay, which was treated as a reduction to the purchase price originally paid by the Company for the vessel. | ||||||||||||
d. | During June 2012, the Company acquired from Teekay a fleet of 13 double-hull conventional oil and product tankers and related time-charter contracts, debt facilities and other assets and rights, for an aggregate purchase price of approximately $454.2 million (see note 1). | ||||||||||||
Management Fee – Related and Other | |||||||||||||
e. | Prior to 2015, the Company chartered two vessels to Teekay. In addition, Teekay and its wholly owned subsidiary and the Company’s manager, Teekay Tankers Management Services Ltd. (the Manager), provide commercial, technical, strategic and administrative services to the Company pursuant to a long-term management agreement (the Management Agreement). In addition, certain of the Company’s vessels participate in pooling arrangements that, with the exception of a Medium Range pool, are managed by entities owned in whole or in part by subsidiaries of Teekay (collectively the Pool Managers). Such related party transactions were as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
$ | $ | $ | |||||||||||
Time-charter revenues(i) | 13,728 | 13,506 | 14,604 | ||||||||||
Pool management fees and commissions(ii) | (5,292 | ) | (4,043 | ) | (3,565 | ) | |||||||
Commercial management fees(iii) | (1,117 | ) | (1,079 | ) | (1,118 | ) | |||||||
Vessel operating expenses - crew training | (1,757 | ) | (1,163 | ) | (2,870 | ) | |||||||
Vessel operating expenses - technical management fee(iv) | (5,613 | ) | (5,637 | ) | (4,379 | ) | |||||||
Strategic and administrative service fees(v) | (8,676 | ) | (10,783 | ) | (5,492 | ) | |||||||
Vessel operating expenses - technical management fee - Dropdown Predecessor(note 1) | — | — | (2,566 | ) | |||||||||
Interest expense - Dropdown Predecessor (note 1) | — | — | (11,660 | ) | |||||||||
(i) | The Company had chartered-out the Pinnacle Spirit and Summit Spirit to Teekay under fixed-rate time-charter contracts, which expired in the fourth quarter of 2014. | ||||||||||||
(ii) | The Company’s share of the Pool Managers’ fees are reflected as a reduction to net pool revenues from affiliates on the Company’s consolidated statements of income (loss). | ||||||||||||
(iii) | The Manager’s commercial management fees for vessels on time-charter out contracts and spot-traded vessels not included in the pooling arrangement, which are reflected in voyage expenses on the Company’s consolidated statements of income (loss). | ||||||||||||
(iv) | The cost of ship management services provided by the Manager has been presented as vessel operating expenses on the Company’s consolidated statements of income (loss). | ||||||||||||
(v) | The Manager’s strategic and administrative service fees have been presented in general and administrative fees on the Company’s consolidated statements of income (loss). The Company’s executive officers are employees of Teekay or subsidiaries thereof, and their compensation (other than any awards under the Company’s long-term incentive plan described in note 12) is set and paid by Teekay or such other subsidiaries. The Company reimburses Teekay for time spent by its executive officers on the Company’s management matters through the strategic portion of the management fee. | ||||||||||||
f. | The Manager and other subsidiaries of Teekay collect revenues and remit payments for expenses incurred by the Company’s vessels. Such amounts, which are presented in the consolidated balance sheets in due from affiliates or due to affiliates, are without interest or stated terms of repayment. In addition, $5.9 million and $5.8 million were payable to the Manager as at December 31, 2014 and December 31, 2013, respectively, for reimbursement of the Manager’s crewing and manning costs to operate the Company’s vessels and such amounts are included in accrued liabilities in the consolidated balance sheets. The amounts owing from the Pool Managers, which are reflected in the consolidated balance sheets as pool receivables from affiliates, are without interest and are repayable upon the terms contained within the applicable pool agreement. In addition, the Company had advanced $36.2 million and $20.3 million as at December 31, 2014 and December 31, 2013, respectively, to the Pool Managers for working capital purposes. The Company may be required to advance additional working capital funds from time to time. Working capital advances will be returned to the Company when a vessel no longer participates in the applicable pooling arrangement, less any set-offs for outstanding liabilities or contingencies. These activities, which are reflected in the consolidated balance sheets as due from affiliates, are without interest or stated terms of repayment. | ||||||||||||
g. | The Management Agreement provides for payment to the Manager of a performance fee in certain circumstances. If Gross Cash Available for Distribution for a given fiscal year exceeds $3.20 per share of the Company’s weighted average outstanding common stock (or the Incentive Threshold), the Company is generally required to pay a performance fee equal to 20% of all Gross Cash Available for Distribution for such year in excess of the Incentive Threshold. The Company did not incur any performance fees for the years ended December 31, 2014, 2013 and 2012. Cash Available for Distribution represents net income (loss) plus depreciation and amortization, unrealized losses from derivatives, non-cash items and any write-offs or other non-recurring items, less unrealized gains from derivatives and net income attributable to the historical results of vessels acquired by the Company from Teekay, prior to their acquisition by us, for the period when these vessels were owned and operated by Teekay. Gross Cash Available for Distribution represents Cash Available for Distribution without giving effect to any deductions for performance fees and reduced by the amount of any reserves the Company’s Board of Directors may establish during the applicable fiscal period that have not already reduced the Cash Available for Distribution. | ||||||||||||
h. | Pursuant to certain pooling arrangements (see Note 4), the Pool Managers provide certain commercial services to the pool participants and administer the pools in exchange for a fee currently equal to 1.25% of the gross revenues attributable to each pool participant’s vessels and a fixed amount per vessel per day which ranges from $275 to $350. Voyage revenues and voyage expenses of the Company’s vessels operating in these pool arrangements are pooled with the voyage revenues and voyage expenses of other pool participants. The resulting net pool revenues, calculated on a time-charter equivalent basis, are allocated to the pool participants according to an agreed formula. The Company accounts for the net allocation from the pools as “net pool revenues from affiliates” on the consolidated statements of income. The pool receivable from affiliates as at December 31, 2014 and December 31, 2013 were $35.3 million and $10.8 million, respectively. |
Other_Income_Expense
Other Income (Expense) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||
Other Income (Expense) | 14 | Other Income (Expense) | |||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
$ | $ | $ | |||||||||||
Freight tax recovery (expense) | 154 | (594 | ) | (1,530 | ) | ||||||||
Gain on initial recognition of stock purchase warrant(Note 6b) | 3,420 | — | — | ||||||||||
Foreign exchange gain (loss) | 138 | (107 | ) | (428 | ) | ||||||||
Other | 97 | (313 | ) | (105 | ) | ||||||||
Total | 3,809 | (1,014 | ) | (2,063 | ) | ||||||||
Operating_Leases
Operating Leases | 12 Months Ended | |
Dec. 31, 2014 | ||
Leases [Abstract] | ||
Operating Leases | 15 | Operating Leases |
Charters-in | ||
As at December 31, 2014, minimum commitments to be incurred by the Company under vessel operating leases by which the Company charters-in 12 vessels were approximately $49.0 million (2015), $8.5 million (2016) and $4.8 million (2017). The Company recognizes the expense from these charters, which is included in time-charter hire expense, on a straight-line basis over the firm period of the charters. | ||
Charters-out | ||
As at December 31, 2014, eight of the Company’s vessels operated under fixed-rate time charter contracts with the Company’s customers, of which five contracts are scheduled to expire in 2015 and three contracts are scheduled to expire in 2016. As at December 31, 2014, minimum scheduled future revenues to be received by the Company under time charters then in place were approximately $44.5 million, comprised of $36.3 million (2015) and $8.2 million (2016). The carrying amount of the vessels employed on these time charters at December 31, 2014, was $224.8 million (2013 - $431.1 million). The cost and accumulated depreciation of the vessels employed on these time charters as at December 31, 2014 were $352.4 million (2013 - $598.1 million) and $127.6 million (2013 - $167.0 million), respectively. | ||
The minimum scheduled future revenues should not be construed to reflect total charter hire revenues for any of the years. Minimum scheduled future revenues do not include revenue generated from new contracts entered into after December 31, 2014, revenue from unexercised option periods of contracts that existed on December 31, 2014, or variable or contingent revenues. In addition, minimum scheduled future revenues presented above have been reduced by estimated off-hire time for period maintenance. Actual amounts may vary given unscheduled future events such as vessel maintenance. |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||
Supplemental Cash Flow Information | 16 | Supplemental Cash Flow Information | |||||||||||
a. | The changes in non-cash working capital items related to operating activities for the years ended December 31, 2014, 2013, and 2012 are as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
$ | $ | $ | |||||||||||
Accounts receivable and interest receivable | (9,049 | ) | (9,150 | ) | (3,317 | ) | |||||||
Pool receivables from affiliates | (24,489 | ) | (1,664 | ) | (4,741 | ) | |||||||
Due from affiliates | (14,511 | ) | (3,204 | ) | (12,177 | ) | |||||||
Prepaid expenses and other current assets | 1,478 | (647 | ) | (3,147 | ) | ||||||||
Accounts payable and accrued liabilities | (3,856 | ) | 2,092 | 2,337 | |||||||||
Due to affiliates | (928 | ) | 7,731 | (1,204 | ) | ||||||||
Deferred revenue | (2,324 | ) | (1,603 | ) | 855 | ||||||||
Other | 2,000 | (141 | ) | 1,600 | |||||||||
(51,679 | ) | (6,586 | ) | (19,794 | ) | ||||||||
b. | Cash interest paid for the year ended December 31, 2014 was $17.9 million (2013 - $18.9 million). Cash interest paid (including interest paid by the Dropdown Predecessor) during the year ended December 31, 2012 totalled $29.3 million including realized loss of $1.8 million on the interest rate swaps agreements relating to the 2012 Acquired Business. | ||||||||||||
c. | The portion of the consideration paid to Teekay for the acquisition of a 50% interest in TTOL consisting of 4.2 million of Class B common shares was treated as a non-cash transaction in the Company’s statements of cash flows (see note 6c). | ||||||||||||
d. | Increases and decreases in the amount of debt allocated to Dropdown Predecessor from Teekay have been treated as non-cash transactions in the Company’s statement of cash flows. Such repayments for the year ended December 31, 2012 were $108.7 million. |
Earnings_Loss_Per_Share
Earnings (Loss) Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings (Loss) Per Share | 17 | Earnings (Loss) Per Share | |||||||||||
The income (loss) available for common stockholders and earnings (loss) per common share presented in the table below excludes the results of operations of the Dropdown Predecessor (see note 1). | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
$ | $ | $ | |||||||||||
Net income (loss) | 57,142 | (8,138 | ) | (370,181 | ) | ||||||||
Net loss attributable to the Dropdown Predecessor (note 1) | — | — | 9,163 | ||||||||||
Net income (loss) available for common stockholders | 57,142 | (8,138 | ) | (361,018 | ) | ||||||||
Weighted-average number of common shares—basic | 85,882,685 | 83,591,030 | 79,539,605 | ||||||||||
Dilutive effect of stock-based compensation | 364,452 | — | — | ||||||||||
Weighted average number of common shares—diluted | 86,247,137 | 83,591,030 | 79,539,605 | ||||||||||
Earnings (loss) per common share: | |||||||||||||
- Basic | 0.67 | (0.10 | ) | (4.54 | ) | ||||||||
- Diluted | 0.66 | (0.10 | ) | (4.54 | ) |
Vessel_Sales_Vessel_Acquisitio
Vessel Sales, Vessel Acquisitions and Vessel Impairments | 12 Months Ended | |
Dec. 31, 2014 | ||
Property, Plant and Equipment [Abstract] | ||
Vessel Sales, Vessel Acquisitions and Vessel Impairments | 18 | Vessel Sales, Vessel Acquisitions and Vessel Impairments |
In December 2014, the Company signed an agreement to acquire one 2008-built Aframax tanker for a purchase price of $37.0 million and placed $3.7 million in an escrow fund related to this purchase, which is recorded in other non-current assets in the Company’s consolidated balance sheet as of December 31, 2014. In December 2014, the Company also signed agreements to acquire four modern LR2 vessels for a total purchase price of $193.3 million. The Company took delivery of three and two of these vessels in February and March 2015, respectively (see note 20). | ||
In May 2014, the Company sold two wholly-owned subsidiaries, each of which owned one VLCC, to TIL for aggregate proceeds of $154 million plus related working capital on closing of $1.7 million. The Company used $152 million of the sale proceeds to prepay one of the Company’s revolving credit facilities and the remainder of the proceeds for general corporate purposes. The Company recognized a $10.0 million gain on the sale of the two subsidiaries to TIL for the year ended December 31, 2014, which is reflected in the Company’s consolidated statements of income (loss). | ||
In January 2013, the Company sold one Aframax tanker for aggregate proceeds of $9.1 million. The Company recognized a loss on sale of the vessel of $0.1 million in the year ended December 31, 2013. | ||
The Company’s consolidated statement of loss for the year ended December 31, 2012 includes a $352.5 million write down of seven Suezmax tankers ($305.6 million), four Aframax tankers ($44.5 million), and one product tanker ($2.4 million). When comparing the seven Suezmax tankers to each other, the vessels have a similar age, a similar carrying value and were all being employed in the spot market or on short term time-charters. The primary factors that caused the write downs were a delay in the expected timing of a recovery of the crude tanker market and the expected discrimination impact from more fuel efficient vessels being constructed. One of the four Aframax tankers was held for sale at December 31, 2012 and was subsequently sold in January 2013. All of the vessels were written down to their estimated fair values, using an internally appraised value based on second hand sale and purchase market data. | ||
Shipbuilding_Contracts
Shipbuilding Contracts | 12 Months Ended | |
Dec. 31, 2014 | ||
Commitments and Contingencies Disclosure [Abstract] | ||
Shipbuilding Contracts | 19 | Shipbuilding Contracts |
On April 8, 2013, the Company entered into agreements with STX Offshore & Shipbuilding Co., Ltd (or STX) of South Korea to construct four, fuel-efficient 113,000 dead-weight tonne Long Range 2 (or LR2) product tanker newbuildings plus options to order up to an additional 12 vessels. The payment of the Company’s first shipyard installment was contingent on the Company receiving acceptable refund guarantees for the shipyard installment payments. In May 2013, STX commenced a voluntary financial restructuring with its lenders, and as a result, STX’s refund guarantee applications were temporarily suspended. In October and November 2013, the Company exercised its options to order eight additional newbuildings, in aggregate, under option agreements relating to the original STX LR2 shipbuilding agreements signed in April 2013. STX did not produce shipbuilding contracts within the specified timeframe of the option declarations and informed the Company that there was no prospect of the refund guarantees being provided under any of the firm or option agreements. Therefore, STX is in breach of the option agreements. In December 2013, the Company terminated the newbuilding agreements and in February 2014, the Company terminated the option agreements. In February 2014, the Company commenced a legal action against STX for damages. In November 2014, the Company placed $0.6 million in an escrow account as cash security pending the resolution of this matter. These funds are classified as cash and cash equivalents in the Company’s consolidated balance sheets as of December 31, 2014. |
Subsequent_Events
Subsequent Events | 12 Months Ended | ||
Dec. 31, 2014 | |||
Subsequent Events [Abstract] | |||
Subsequent Events | 20 | Subsequent Events | |
a. | In December 2014, the Company signed an agreement to acquire one 2008-built Aframax tanker for a purchase price of $37.0 million and placed $3.7 million in an escrow fund related to this purchase. In December 2014, the Company also signed agreements to acquire four modern LR2 vessels for a total purchase price of $193.3 million. The Company took delivery of three and two of these vessels in February and March 2015, respectively (see note 20c). | ||
b. | In December 2014, the Company granted the underwriters for its follow-on public offering of Class A common stock a 30-day option to purchase up to an additional 3 million shares of Class A common stock (see note 3). The underwriters exercised this option and on January 2, 2015, the Company issued 3 million shares of Class A common stock for net proceeds of $13.7 million. | ||
c. | In January 2015, the Company secured a loan facility in the amount of $126.6 million with a maturity date of January 30, 2016, which was fully drawn in March 2015. This loan facility is secured by the Aframax tanker and the four modern LR2 vessels which delivered in February and March 2015. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Nature of operations | Nature of operations | ||||||||||||||||
The Company (as defined below) is engaged in the international marine transportation of crude oil and refined petroleum products through the operation of its oil and product tankers. The Company’s revenues are earned in international markets. | |||||||||||||||||
Basis of presentation and consolidation principles | Basis of presentation and consolidation principles | ||||||||||||||||
During October 2007, Teekay Corporation (Teekay) formed Teekay Tankers Ltd., a Marshall Islands corporation (together with its wholly owned subsidiaries and the Dropdown Predecessor, as described below, collectively the Company), to acquire from Teekay a fleet of nine double-hull Aframax-class oil tankers in connection with the Company’s initial public offering (or IPO). As of December 31, 2014, the Company’s fleet included a total of 40 vessels, of which 12 were chartered-in and one was 50%-owned through the High-Q joint venture. | |||||||||||||||||
The consolidated financial statements reflect the financial position, results of operations and cash flows of Teekay Tankers Ltd., its wholly-owned subsidiaries, equity accounted investments and the Dropdown Predecessor. The consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles (GAAP) and all significant intercompany balances and transactions have been eliminated upon consolidation. | |||||||||||||||||
Dropdown Predecessor | Dropdown Predecessor | ||||||||||||||||
The Company accounts for the acquisition of interests in vessels from Teekay as a transfer of a business between entities under common control. The method of accounting for such transfers is similar to the pooling of interests method of accounting. Under this method, the carrying amount of net assets recognized in the balance sheets of each combining entity are carried forward to the balance sheet of the combined entity, and no other assets or liabilities are recognized as a result of the combination. The proceeds paid by the Company over or under Teekay’s historical cost in the acquired vessels are accounted for as a return of capital to or contribution of capital from Teekay. In addition, transfers of net assets between entities under common control are accounted for as if the transfer occurred from the date that the Company and the acquired vessels were both under the common control of Teekay and had begun operations. As a result, the Company’s financial statements prior to the date the interests in these vessels were actually acquired by the Company are retroactively adjusted to reflect these vessels and their related operations and cash flows (referred to herein, collectively, as the Dropdown Predecessor) during the periods under common control of Teekay. | |||||||||||||||||
During June 2012, the Company acquired from Teekay seven conventional oil tankers and six product tankers and related time-charter contracts, debt facilities and an interest rate swap, for an aggregate price of approximately $454.2 million, including the assumption of outstanding debt of approximately $428.1 million (or the 2012 Acquired Business). Ten of the vessels were acquired on June 15, 2012 and the remaining three were acquired on June 26, 2012. As consideration for this acquisition, the Company issued to Teekay 4.5 million Class A common shares and made a cash payment of $1.1 million to Teekay. The 4.5 million Class A common shares had an approximate value of $25.0 million, or $5.60 per share, when the purchase price was agreed to between the parties and a value of $18.3 million, or $4.11 per share, on the acquisition closing date. The purchase price, for accounting purposes, is based upon the value of the Class A common shares on the acquisition closing date. Consequently, common stock and additional paid in capital and accumulated deficit are both $6.7 million lower than if the value of the shares had remained unchanged from when the purchase price was agreed to between the parties. In addition, the Company reimbursed Teekay for $8.4 million of working capital it assumed from Teekay in connection with the 2012 Acquired Business. Teekay has granted the Company a right of first refusal on certain conventional tanker opportunities Teekay may develop prior to June 15, 2015. Teekay prepaid $106.9 million of long term debt of the 2012 Acquired Business on the date of acquisition. The acquisition of the 2012 Acquired Business was accounted for as a reorganization between entities under common control. As a result, the Company’s consolidated statements of loss, cash flows and changes in equity for the year ended December 31, 2012 reflect the 2012 Acquired Business as if the Company had acquired the 2012 Acquired Business when the 13 vessels began their respective operations under the ownership of Teekay. All 13 vessels began operations prior to the periods covered by these consolidated financial statements and, consequently, are reflected in all periods presented. | |||||||||||||||||
The effect of adjusting the Company’s financial statements to account for these common control exchanges decreased the Company’s net income for the year ended December 31, 2012 by $9.2 million. The adjustments for the Dropdown Predecessor increased the Company’s revenues for the year ended December 31, 2012 by $42.2 million. | |||||||||||||||||
In the preparation of these consolidated financial statements, general and administrative expenses, cost of ship management services and interest expense of the Dropdown Predecessor were not identifiable as relating solely to the each specific vessel. General and administrative expenses (consisting primarily of salaries, share-based compensation, and other employee-related costs, office rent, legal and professional fees, and travel and entertainment) were allocated based on the Dropdown Predecessor’s proportionate share of Teekay’s total ship-operating (calendar) days for the period presented. During the year ended December 31, 2012, $2.6 million of ship management services costs were attributable to the Dropdown Predecessor. In addition, the Dropdown Predecessor includes debt of Teekay which was recorded on a pushed-down basis in the amount of $108.7 million as at December 31, 2012. This debt was assumed by the Company concurrently with the dropdown transaction. Interest expense includes the allocation of interest to the Dropdown Predecessor from Teekay based upon the weighted-average outstanding balance of the push-down debt and the weighted-average interest rate outstanding on Teekay’s loan facilities that were used to finance these loans. During the year ended December 31, 2012, $11.7 million of interest expense was attributable to the Dropdown Predecessor. Management believes these allocations reasonably present the interest expense and the general and administrative expenses of the Dropdown Predecessor. | |||||||||||||||||
Use of estimates | Use of estimates | ||||||||||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. In addition, estimates have been made when allocating expenses from Teekay to the Dropdown Predecessor and such estimates may not be reflective of what actual results would have been if the Dropdown Predecessor had operated independently. | |||||||||||||||||
Currency translation | Currency translation | ||||||||||||||||
The Company’s functional currency 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 other expenses in the accompanying consolidated statements of income (loss). | |||||||||||||||||
Operating revenues and expenses | Operating revenues and expenses | ||||||||||||||||
The Company recognizes revenues from time charters daily over the term of the charter as the applicable vessel operates under the charter. The Company does not recognize revenues during days that the vessel is off hire. When the time charter contains a profit-sharing agreement, the Company recognizes the profit-sharing or contingent revenues when the contingency is resolved. All revenues from voyage charters are recognized on a proportionate performance method. The Company uses a discharge-to-discharge basis in determining proportionate performance for all spot voyages. The Company does not begin recognizing revenue until a charter has been agreed to by the customer and the Company, 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 the deferred portion of revenues and expenses, which will be earned in subsequent periods. | |||||||||||||||||
Voyage expenses are all expenses unique to a particular voyage, including bunker fuel expenses, port fees, cargo loading and unloading expenses, canal tolls, agency fees and commissions. The Company, as shipowner, pays voyage expenses under voyage charters, its customers pay voyage expenses under time charters. Vessel operating expenses include crewing, repairs and maintenance, insurance, stores, lube oils and communication expenses. The Company pays vessel operating expenses under both voyage and time charters and for vessels which earn net pool revenue, as described below. Voyage expenses and vessel operating expenses are recognized when incurred. | |||||||||||||||||
Revenues and voyage expenses of the vessels operating in pool arrangements are pooled and the resulting net pool revenues, calculated on a time charter equivalent basis, are allocated to the pool participants according to an agreed formula. The agreed formula used to allocate net pool revenues varies between pools; however, the formula generally allocates revenues to pool participants on the basis of the number of days a vessel operates in the pool with weighting adjustments made to reflect vessels’ differing capacities and performance capabilities. The same revenue and expense recognition principles stated above are applied in determining the net pool revenues of the pool. The pools are responsible for paying voyage expenses and distribute net pool revenues to the participants. The Company accounts for the net allocation from the pool as revenues and amounts due from the pool are included in pool receivables from affiliates, net. | |||||||||||||||||
Share-based compensation | Share-based compensation | ||||||||||||||||
The Company grants stock options and restricted stock units as incentive-based compensation to certain employees of Teekay who support the operations of the Company. The Company 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, which generally equals the vesting period. For stock-based compensation awards subject to graded vesting, the Company calculates the value for the award as if it is a single award with one expected life and amortizes the calculated expense for the entire award on a straight-line basis over the vesting period of the award. The Company also grants common stock and fully vested stock options as incentive-based compensation to non-management directors, which are expensed immediately (see note 12). | |||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | ||||||||||||||||
The Company classifies all highly liquid investments with an original maturity date of three months or less as cash and cash equivalents. | |||||||||||||||||
Accounts receivable, allowance for doubtful accounts, and investment in term loans and other loan receivables | Accounts receivable, allowance for doubtful accounts, and investment in term loans and other loan receivables | ||||||||||||||||
Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in existing accounts receivable. The Company determines the allowance based on historical write-off experience and customer economic data. The Company reviews the allowance for doubtful accounts regularly and past due balances are reviewed for collectability. Account balances are charged off against the allowance when the Company believes that the receivable will not be recovered. There are no significant amounts recorded as allowance for doubtful accounts as at December 31, 2014, 2013 and 2012. | |||||||||||||||||
Investment in term loans and other loan receivables | The Company’s investment in term loans and advances to equity accounted investments are recorded at cost. The premium paid over the outstanding principal amount was amortized to interest income over the term of the loan using the effective interest rate method. The Company analyzes its loans for collectability during each reporting period. A loan provision is recorded, based on current information and events, if it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors the Company considers in determining that a loan provision is required, 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 their ability to repay the loan, and the fair value of the underlying collateral. When a loan provision is recorded, the Company measures the amount of the provision based on the present value of expected future cash flows discounted at the loan’s effective interest rate and recognizes the resulting provision in the statement of income (loss). The carrying value of the loans 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 provision. | ||||||||||||||||
The following table contains a summary of the Company’s financing receivables by type and the method by which the Company monitors the credit quality of its financing receivables on a quarterly basis. | |||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
Class of Financing Receivable | Credit Quality Indicator | Grade | $ | $ | |||||||||||||
Investment in term loans and interest receivable | Collateral | Non-performing (1) | — | 136,061 | |||||||||||||
Advances to equity accounted investments | Other internal metrics | Performing | 14,980 | 16,930 | |||||||||||||
14,980 | 152,991 | ||||||||||||||||
-1 | The borrowers under the term loans had been in default on their interest payment obligations since the first quarter of 2013, and subsequently, in default of the repayment of the loan principal from the loan maturity date in July 2013. On March 21, 2014, the Company took ownership of the vessels held as collateral in satisfaction of the loans and accrued interest (see note 5). | ||||||||||||||||
Equity accounted investments | Equity accounted investments | ||||||||||||||||
The Company’s has investments in the High-Q joint venture, Teekay Tanker Operations Ltd. (or TTOL) and Tanker Investments Ltd. (or TIL) all of which 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 Company’s proportionate share of earnings or losses and distributions. The Company evaluates its equity accounted investment for impairment when events or circumstances indicate that the carrying value of such investment may have experienced an other-than-temporary decline in value below its carrying value. If the estimated fair value is less than the carrying value, the carrying value is written down to its estimated fair value and the resulting impairment is recorded in the Company’s statement of income. The Company’s maximum exposure to loss is the amount it has invested in its equity accounted investments. | |||||||||||||||||
Vessels and equipment | Vessels and equipment | ||||||||||||||||
All pre-delivery costs incurred during the construction of newbuildings, including interest, supervision and technical costs, are capitalized. The acquisition cost and all costs incurred to restore used vessels purchased by the Company to the standard required to properly service the Company’s customers are capitalized. | |||||||||||||||||
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, or a shorter period if regulations prevent the Company from operating the vessels for 25 years. Depreciation of vessels and equipment (including depreciation attributable to the Dropdown Predecessor and excluding amortization of dry-docking costs) for the years ended December 31, 2014, 2013 and 2012 totaled $39.4 million, $39.2 million, and $63.4 million, respectively. | |||||||||||||||||
Vessel capital modifications include the addition of new equipment or can encompass various 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 or maintenance are expensed as incurred. | |||||||||||||||||
Generally, the Company dry docks each vessel every two and a half to five years. The Company capitalizes a substantial portion of the costs incurred during dry docking and amortizes those costs on a straight-line basis over its estimated useful life, which typically is from the completion of a dry docking or intermediate survey to the estimated completion of the next dry docking. The Company includes in capitalized dry docking those costs incurred as part of the dry dock to meet classification and regulatory requirements. The Company expenses costs related to routine repairs and maintenance performed during dry docking that do not improve or extend the useful lives of the assets. When significant dry-docking expenditures occur prior to the expiration of the original amortization period, the remaining unamortized balance of the original dry-docking cost is expensed in the month of the subsequent dry docking. | |||||||||||||||||
The following table summarizes the change in the Company’s capitalized dry docking costs, from January 1, 2012 to December 31, 2014: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
$ | $ | $ | |||||||||||||||
Balance at the beginning of the year | 29,269 | 18,672 | 20,945 | ||||||||||||||
Cost incurred for dry docking | 17,072 | 19,245 | 7,003 | ||||||||||||||
Dry-dock amortization | (10,832 | ) | (8,648 | ) | (8,959 | ) | |||||||||||
Vessel sales/held for sale (note 18) | — | — | (317 | ) | |||||||||||||
Balance at the end of the year | 35,509 | 29,269 | 18,672 | ||||||||||||||
Vessels and equipment that are “held and used” are assessed for impairment when events or circumstances indicate the carrying amount of the asset may not be recoverable. If the asset’s net carrying value exceeds the net undiscounted cash flows expected to be generated over its remaining useful life, the carrying amount of the asset is reduced to its estimated fair value. Estimated fair value is determined based on discounted cash flows or appraised values. In cases where an active second hand sale and purchase market does not exist, the Company 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 generally used to estimate the amount the Company would expect to receive if it were to sell the vessel. Such appraisal is normally completed by the Company. | |||||||||||||||||
Debt issuance costs | Debt issuance costs | ||||||||||||||||
Debt issuance costs, including fees, commissions and legal expenses, are capitalized and presented as other non-current assets. Debt issuance costs of revolving credit facilities and term loans are amortized using the effective interest rate method over the term of the relevant loan. Amortization of debt issuance costs is included in interest expense. | |||||||||||||||||
Income taxes | Income taxes | ||||||||||||||||
The Company recognizes the tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the Company’s 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. | |||||||||||||||||
Excluding freight taxes, the Company incurred no income taxes for the years ended December 31, 2014, 2013 and 2012. The Company believes that it and its subsidiaries are not subject to taxation under the laws of the Republic of The Marshall Islands and qualify for the Section 883 exemption under U.S. federal income tax purposes. | |||||||||||||||||
Ship management fees | Ship management fees | ||||||||||||||||
In order to more closely align the Company’s presentation to that of many of its peers, the cost of ship management activities of $5.6 million for year ended December 31, 2014 has been presented in vessel operating expenses. Prior to 2013, the Company included these amounts in general and administrative expenses. All such costs incurred in comparative periods have been reclassified from general and administrative expenses to vessel operating expenses to conform to the presentation adopted in the current period. The amounts reclassified for the years ended December 31, 2013 and 2012 were $5.6 million and $6.9 million, respectively (see note 13e). | |||||||||||||||||
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 quarter, regardless of the purpose or intent for holding the derivative. The method of recognizing the resulting gains or losses are dependent on whether the derivative contracts are designed to hedge a specific risk and whether the contracts qualify for hedge accounting. The Company does not apply hedge accounting to its derivative instruments, except for certain types of interest rate swaps that it may enter into in the future. | |||||||||||||||||
When a derivative is designated as a cash flow hedge, the Company 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 Company 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 possible 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 in the consolidated statements of loss. The ineffective portion of the change in fair value of the derivative financial instruments is immediately recognized in earnings in the consolidated statements of loss. If a cash flow hedge is terminated and the originally hedged item is still considered possible 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 consolidated statements of loss. If the hedged items are no longer possible of occurring, amounts recognized in total equity are immediately transferred to the earnings item in the consolidated statements of loss. | |||||||||||||||||
For derivative financial instruments that are not designated or that do not qualify as hedges under Financial Accounting Standards Board (or FASB) 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 Company’s non-designated derivatives are recorded in realized and unrealized loss on derivative instruments in the Company’s consolidated statements of income (loss). | |||||||||||||||||
Earnings (loss) per share | Earnings (loss) per share | ||||||||||||||||
Earnings (loss) per share is determined by dividing (a) net income (loss) of the Company after (deducting) adding the amount of net income (loss) attributable to the Dropdown Predecessor by (b) the weighted-average number of shares outstanding during the applicable period. The calculation of weighted-average number of shares includes the total Class A and total Class B shares outstanding during the applicable period. The computation of diluted earnings per share assumes the exercise of all dilutive stock options and restricted stock units using the treasury stock method. The computation of diluted loss per share does not assume such exercises. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Summary of Financing Receivables | The following table contains a summary of the Company’s financing receivables by type and the method by which the Company monitors the credit quality of its financing receivables on a quarterly basis. | ||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||
Class of Financing Receivable | Credit Quality Indicator | Grade | $ | $ | |||||||||
Investment in term loans and interest receivable | Collateral | Non-performing (1) | — | 136,061 | |||||||||
Advances to equity accounted investments | Other internal metrics | Performing | 14,980 | 16,930 | |||||||||
14,980 | 152,991 | ||||||||||||
-1 | The borrowers under the term loans had been in default on their interest payment obligations since the first quarter of 2013, and subsequently, in default of the repayment of the loan principal from the loan maturity date in July 2013. On March 21, 2014, the Company took ownership of the vessels held as collateral in satisfaction of the loans and accrued interest (see note 5). | ||||||||||||
Summarizes Change in Capitalized Dry-Docking Activity | The following table summarizes the change in the Company’s capitalized dry docking costs, from January 1, 2012 to December 31, 2014: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
$ | $ | $ | |||||||||||
Balance at the beginning of the year | 29,269 | 18,672 | 20,945 | ||||||||||
Cost incurred for dry docking | 17,072 | 19,245 | 7,003 | ||||||||||
Dry-dock amortization | (10,832 | ) | (8,648 | ) | (8,959 | ) | |||||||
Vessel sales/held for sale (note 18) | — | — | (317 | ) | |||||||||
Balance at the end of the year | 35,509 | 29,269 | 18,672 | ||||||||||
Public_Offerings_and_Private_P1
Public Offerings and Private Placements (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||
Summary of Issuances of Common Shares | The following table summarizes the issuances of common shares over the three years ending December 31, 2014: | ||||||||||||||||||||||
Date | Number of | Offering | Gross | Net | Teekay’s | Use of Proceeds | |||||||||||||||||
Common | Price | Proceeds | Proceeds | Ownership | |||||||||||||||||||
Shares | (Per Share) | After the | |||||||||||||||||||||
Issued | Offering | ||||||||||||||||||||||
Feb-12 | 17,250,000 | $ | 4 | 69,000 | 65,771 | 20.4 | % | Prepayment of revolving credit facilities | |||||||||||||||
Jun-12 | 4,464,286 | (1) | $ | 4.11 | 18,348 | 18,348 | 24.6 | % | Acquisition of conventional tankers | ||||||||||||||
Aug-14 | 4,220,945 | (2) | $ | 4.03 | 17,010 | 17,010 | 28.7 | % | Acquisition of interest in TTOL | ||||||||||||||
Dec-14 | 24,166,666 | (3) | $ | 4.8 | 116,000 | 111,190 | 26.2 | % | Acquisition of conventional tankers | ||||||||||||||
-1 | Represents Class A common shares issued to Teekay as partial consideration for the Company’s acquisition of the 2012 Acquired Business, which shares had an approximate value of $25.0 million, or $5.60 per share when the purchase price was agreed between the parties. | ||||||||||||||||||||||
-2 | Represents Class B common shares issued to Teekay as partial consideration for the Company’s acquisition of the 50% interest in TTOL, which shares had an approximate value of $15.6 million, or $3.70 per share when the purchase price was agreed between the parties. | ||||||||||||||||||||||
-3 | Represents 20.0 million Class A common shares issued to the public and 4.2 million common shares issued to Teekay in a concurrent private placement. The proceeds from the issuance will be used to acquire modern second hand tankers (see note 18) and for general corporate purposes. The portion of the Company’s voting power held by Teekay at December 31, 2014 was 53.8%. Please refer to Item 7 – Major Shareholders and Related Parties. Subsequent to December 31, 2014, the Company issued an additional 3 million shares of Class A common stock upon the exercise by the underwriters’ of an option to acquire additional shares from the December 2014 public offering (see note 20b). | ||||||||||||||||||||||
Business_Operations_Tables
Business Operations (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||
Revenues and Percentage of Consolidated Revenues | The following table presents consolidated revenues and percentage of consolidated revenues for customers that accounted for more than 10% of the Company’s consolidated revenues for its sole operating segment during the periods presented. Revenues from customers attributable to the Dropdown Predecessor are included in the table. | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Statoil ASA | $ | 32.4 million | $ | 33.7 million | $ | 27.3 million | |||||||
ConocoPhillips | -1 | $ | 18.1 million | $ | 31.8 million | ||||||||
-1 | Less than 10% of the consolidated revenues |
Investments_in_and_advances_to1
Investments in and advances to Equity Accounted Investments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||
Schedule of Investments in and Advances to Equity Accounted Investments | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
$ | $ | ||||||||||||
High-Q Joint Venture (High-Q) | 18,948 | 18,196 | |||||||||||
Tanker Investments Ltd. (TIL) | 36,915 | — | |||||||||||
Teekay Tanker Operations Ltd. (TTOL) | 17,534 | — | |||||||||||
Total | 73,397 | 18,196 | |||||||||||
A condensed summary of the Company’s financial information for equity accounted investments (9.29% to 50% owned) shown on a 100% basis are as follows: | |||||||||||||
As at December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
$ | $ | ||||||||||||
Cash and restricted cash | 97,758 | 2,897 | |||||||||||
Other assets- current | 66,473 | 270 | |||||||||||
Vessels and equipment | 715,360 | 99,526 | |||||||||||
Other assets - non-current | 26,446 | 1,001 | |||||||||||
Current portion of long-term debt | 33,992 | 5,750 | |||||||||||
Other liabilities – current | 47,275 | 1,387 | |||||||||||
Long-term debt | 359,980 | 59,975 | |||||||||||
Other liabilities - non-current | 31,787 | 35,000 | |||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
$ | $ | $ | |||||||||||
Revenues | 94,244 | 7,325 | — | ||||||||||
Income from vessel operations | 16,460 | 3,256 | (3 | ) | |||||||||
Realized and unrealized loss on derivative instruments | (831 | ) | — | — | |||||||||
Net income (loss) | 3,598 | 1,686 | (3 | ) |
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accrued Liabilities | |||||||||
Year Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
$ | $ | ||||||||
Voyage and vessel | 7,358 | 10,692 | |||||||
Corporate accruals | 366 | 528 | |||||||
Interest | 3,947 | 3,999 | |||||||
Payroll and benefits to related parties | 5,894 | 5,850 | |||||||
Total | 17,565 | 21,069 | |||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Summary of Long-Term Debt | Year Ended December 31, | ||||||||
2014 | 2013 | ||||||||
$ | $ | ||||||||
Revolving Credit Facilities due through 2018 | 508,593 | 580,593 | |||||||
Term Loans due through 2021 | 147,470 | 164,041 | |||||||
656,063 | 744,634 | ||||||||
Current portion | (41,959 | ) | (25,246 | ) | |||||
Total | 614,104 | 719,388 | |||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||
Summary of Interest Rate Swap Positions | The following summarizes the Company’s interest rate swap positions as at December 31, 2014: | ||||||||||||||||||
Interest Rate | Principal | Fair Value / | Remaining | Fixed Interest | |||||||||||||||
Index | Amount | Carrying Amount of | Term | Rate | |||||||||||||||
$ | Asset (Liability) | (years) | (%) (1) | ||||||||||||||||
$ | |||||||||||||||||||
LIBOR-Based Debt: | |||||||||||||||||||
U.S. Dollar-denominated interest rate swap (1) | USD LIBOR 6M | 200,000 | (6,160 | ) | 1.8 | 2.61 | |||||||||||||
U.S. Dollar-denominated interest rate swap (1) | USD LIBOR 3M | 100,000 | (12,065 | ) | 2.8 | 5.55 | |||||||||||||
-1 | Excludes the margin the Company pays on its variable-rate debt, which, as of December 31, 2014 ranged from 0.3% to 1.0%. |
Other_LongTerm_Liabilities_Tab
Other Long-Term Liabilities (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other Liabilities Disclosure [Abstract] | |||||||||||||
Summary of Freight Tax Expenses Recorded in Other Long-Term Liabilities | The following is a roll-forward of the Company’s freight tax expenses which are recorded in its consolidated balance sheets in other long-term liabilities, from January 1, 2012 to December 31, 2014: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
$ | $ | $ | |||||||||||
Balance at the beginning of the year | 5,351 | 4,757 | 5,449 | ||||||||||
Freight tax (recovery) expense | (499 | ) | 594 | (692 | ) | ||||||||
Balance at the end of the year | 4,852 | 5,351 | 4,757 | ||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Summary of Changes in Fair Value of Stock Purchase Warrant | Changes in fair value during the year ended December 31, 2014 for the TIL stock purchase warrant is as follows: | ||||||||||||||||||||
Year Ended | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2014 | |||||||||||||||||||||
$ | |||||||||||||||||||||
Fair value at the beginning of the period | — | ||||||||||||||||||||
Fair value on issuance | 3,420 | ||||||||||||||||||||
Unrealized gain included in earnings | 1,237 | ||||||||||||||||||||
Fair value at the end of the period | 4,657 | ||||||||||||||||||||
Summary of Fair Value and Carrying Value of Assets and Liabilities Measured on Recurring and Non-recurring Basis | The following table includes the estimated fair value, carrying value and categorization using the fair value hierarchy of those assets and liabilities that are measured at their estimated fair value on a recurring and non-recurring basis, as well as certain financial instruments that are not measured at fair value. | ||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||
Fair Value | Carrying Amount | Fair Value Asset/ | Carrying Amount | Fair Value Asset/ | |||||||||||||||||
Hierarchy | Asset/ (Liability) | (Liability) | Asset/ (Liability) | (Liability) | |||||||||||||||||
Level | $ | $ | $ | $ | |||||||||||||||||
Recurring: | |||||||||||||||||||||
Cash and cash equivalents | Level 1 | 162,797 | 162,797 | 25,646 | 25,646 | ||||||||||||||||
Derivative instruments | |||||||||||||||||||||
Interest rate swap agreements (note 9) | Level 2 | (18,225 | ) | (18,225 | ) | (25,268 | ) | (25,268 | ) | ||||||||||||
Stock purchase warrant (note 9) | Level 3 | 4,657 | 4,657 | — | — | ||||||||||||||||
Other: | |||||||||||||||||||||
Investment in term loans and | |||||||||||||||||||||
interest receivable (note 5) | Level 3 | — | — | 136,061 | 134,857 | ||||||||||||||||
Advances to equity accounted investments | Note (1) | 14,980 | Note (1) | 16,930 | Note (1) | ||||||||||||||||
Long-term debt, including current portion | Level 2 | (656,063 | ) | (617,761 | ) | (744,634 | ) | (679,910 | ) | ||||||||||||
-1 | The advances to equity accounted investments together with the Company’s investments in the equity accounted investments form the net aggregate carrying value of the Company’s interests in the equity accounted investments in these consolidated financial statements. The fair values of the individual components of such aggregate interests are not determinable. |
Capital_Stock_Tables
Capital Stock (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Summary of Stock Option Information | A summary of the Company’s stock option information for the year ended December 31, 2014 is as follows: | ||||||||
December 31, 2014 | |||||||||
Options (#) | Weighted-Average | ||||||||
Exercise Price ($) | |||||||||
Outstanding - beginning of year | — | — | |||||||
Granted | 263,175 | 4.16 | |||||||
Outstanding - end of year | 263,175 | 4.16 | |||||||
Exercisable - end of year | 152,346 | 4.1 | |||||||
Summary of Non-Vested Stock Option Activity and Related Information | A summary of the Company’s non-vested stock option activity and related information for the year ended December 31, 2014 is as follows: | ||||||||
December 31, 2014 | |||||||||
Options (#) | Weighted-Average | ||||||||
Grant Date Fair | |||||||||
Value ($) | |||||||||
Outstanding non-vested stock options - beginning of year | — | — | |||||||
Granted | 110,829 | 4.25 | |||||||
Outstanding non-vested stock options - end of year | 110,829 | 4.25 | |||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Related Party Transactions [Abstract] | |||||||||||||
Summary of Related Party Transactions | e. | Prior to 2015, the Company chartered two vessels to Teekay. In addition, Teekay and its wholly owned subsidiary and the Company’s manager, Teekay Tankers Management Services Ltd. (the Manager), provide commercial, technical, strategic and administrative services to the Company pursuant to a long-term management agreement (the Management Agreement). In addition, certain of the Company’s vessels participate in pooling arrangements that, with the exception of a Medium Range pool, are managed by entities owned in whole or in part by subsidiaries of Teekay (collectively the Pool Managers). Such related party transactions were as follows: | |||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
$ | $ | $ | |||||||||||
Time-charter revenues(i) | 13,728 | 13,506 | 14,604 | ||||||||||
Pool management fees and commissions(ii) | (5,292 | ) | (4,043 | ) | (3,565 | ) | |||||||
Commercial management fees(iii) | (1,117 | ) | (1,079 | ) | (1,118 | ) | |||||||
Vessel operating expenses - crew training | (1,757 | ) | (1,163 | ) | (2,870 | ) | |||||||
Vessel operating expenses - technical management fee(iv) | (5,613 | ) | (5,637 | ) | (4,379 | ) | |||||||
Strategic and administrative service fees(v) | (8,676 | ) | (10,783 | ) | (5,492 | ) | |||||||
Vessel operating expenses - technical management fee - Dropdown Predecessor(note 1) | — | — | (2,566 | ) | |||||||||
Interest expense - Dropdown Predecessor (note 1) | — | — | (11,660 | ) | |||||||||
(i) | The Company had chartered-out the Pinnacle Spirit and Summit Spirit to Teekay under fixed-rate time-charter contracts, which expired in the fourth quarter of 2014. | ||||||||||||
(ii) | The Company’s share of the Pool Managers’ fees are reflected as a reduction to net pool revenues from affiliates on the Company’s consolidated statements of income (loss). | ||||||||||||
(iii) | The Manager’s commercial management fees for vessels on time-charter out contracts and spot-traded vessels not included in the pooling arrangement, which are reflected in voyage expenses on the Company’s consolidated statements of income (loss). | ||||||||||||
(iv) | The cost of ship management services provided by the Manager has been presented as vessel operating expenses on the Company’s consolidated statements of income (loss). | ||||||||||||
(v) | The Manager’s strategic and administrative service fees have been presented in general and administrative fees on the Company’s consolidated statements of income (loss). The Company’s executive officers are employees of Teekay or subsidiaries thereof, and their compensation (other than any awards under the Company’s long-term incentive plan described in note 12) is set and paid by Teekay or such other subsidiaries. The Company reimburses Teekay for time spent by its executive officers on the Company’s management matters through the strategic portion of the management fee. |
Other_Income_Expense_Tables
Other Income (Expense) (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||
Summary of Other Income (Expense) | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
$ | $ | $ | |||||||||||
Freight tax recovery (expense) | 154 | (594 | ) | (1,530 | ) | ||||||||
Gain on initial recognition of stock purchase warrant(Note 6b) | 3,420 | — | — | ||||||||||
Foreign exchange gain (loss) | 138 | (107 | ) | (428 | ) | ||||||||
Other | 97 | (313 | ) | (105 | ) | ||||||||
Total | 3,809 | (1,014 | ) | (2,063 | ) | ||||||||
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||
Changes in Operating Assets and Liabilities | a. | The changes in non-cash working capital items related to operating activities for the years ended December 31, 2014, 2013, and 2012 are as follows: | |||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
$ | $ | $ | |||||||||||
Accounts receivable and interest receivable | (9,049 | ) | (9,150 | ) | (3,317 | ) | |||||||
Pool receivables from affiliates | (24,489 | ) | (1,664 | ) | (4,741 | ) | |||||||
Due from affiliates | (14,511 | ) | (3,204 | ) | (12,177 | ) | |||||||
Prepaid expenses and other current assets | 1,478 | (647 | ) | (3,147 | ) | ||||||||
Accounts payable and accrued liabilities | (3,856 | ) | 2,092 | 2,337 | |||||||||
Due to affiliates | (928 | ) | 7,731 | (1,204 | ) | ||||||||
Deferred revenue | (2,324 | ) | (1,603 | ) | 855 | ||||||||
Other | 2,000 | (141 | ) | 1,600 | |||||||||
(51,679 | ) | (6,586 | ) | (19,794 | ) | ||||||||
Earnings_Loss_Per_Share_Tables
Earnings (Loss) Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Schedule of Income (Loss) Per Share | The income (loss) available for common stockholders and earnings (loss) per common share presented in the table below excludes the results of operations of the Dropdown Predecessor (see note 1). | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
$ | $ | $ | |||||||||||
Net income (loss) | 57,142 | (8,138 | ) | (370,181 | ) | ||||||||
Net loss attributable to the Dropdown Predecessor (note 1) | — | — | 9,163 | ||||||||||
Net income (loss) available for common stockholders | 57,142 | (8,138 | ) | (361,018 | ) | ||||||||
Weighted-average number of common shares—basic | 85,882,685 | 83,591,030 | 79,539,605 | ||||||||||
Dilutive effect of stock-based compensation | 364,452 | — | — | ||||||||||
Weighted average number of common shares—diluted | 86,247,137 | 83,591,030 | 79,539,605 | ||||||||||
Earnings (loss) per common share: | |||||||||||||
- Basic | 0.67 | (0.10 | ) | (4.54 | ) | ||||||||
- Diluted | 0.66 | (0.10 | ) | (4.54 | ) | ||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | |||
Share data in Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 26, 2012 | Jun. 15, 2012 | Jun. 30, 2012 |
Vessel | Vessel | Vessel | ||||
Business Acquisition [Line Items] | ||||||
Net income (loss) | $57,142,000 | ($8,138,000) | ($370,181,000) | |||
Revenue | 235,593,000 | 170,087,000 | 197,429,000 | |||
Vessel operating expenses | 93,022,000 | 91,667,000 | 96,160,000 | |||
Long-term debt | 614,104,000 | 719,388,000 | ||||
Interest expense | 8,741,000 | 10,023,000 | 20,009,000 | |||
Period to dry dock | 25 years | |||||
Depreciation of vessels and equipment excluding amortization of dry-docking expenditure | 39,400,000 | 39,200,000 | 63,400,000 | |||
Minimum [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Ownership percentage | 9.29% | |||||
Maximum [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Ownership percentage | 50.00% | |||||
Company's Fleet [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Number of vessels | 40 | |||||
Technical management fee [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Vessel operating expenses | 5,613,000 | 5,637,000 | 4,379,000 | |||
Charters In [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Number of vessels | 12 | |||||
Prior period reclassification from general and administrative expense [Member] | Technical management fee [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Vessel operating expenses | 5,637,000 | 6,900,000 | ||||
High-Q Joint Venture [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Number of vessels | 1 | |||||
Ownership percentage | 50.00% | |||||
Dropdown Predecessor [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Number of vessels | 13 | 3 | 10 | 13 | ||
Aggregate purchase price | 454,200,000 | |||||
Assumption of outstanding debt | 428,100,000 | |||||
Business acquisition, cash paid | 9,509,000 | 1,100,000 | ||||
Business acquisition, delta between stock fair value and agreed price | 6,700,000 | |||||
Business acquisition, assumed working capital | 8,400,000 | |||||
Dropdown predecessor debt prepaid prior to acquisition | 106,900,000 | |||||
Net income (loss) | -9,163,000 | |||||
Revenue | 42,200,000 | |||||
Long-term debt | 108,700,000 | |||||
Interest expense | 11,700,000 | |||||
Dropdown Predecessor [Member] | Class A [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, number of shares issued | 4.5 | |||||
Value of Class A common shares | 25,000,000 | |||||
Business acquisition, Class A common share price per share agreed upon | $5.60 | |||||
Value of Class A common shares | 18,300,000 | |||||
Business acquisition, Class A common share price per share on closing date | $4.11 | |||||
Dropdown Predecessor [Member] | Technical management fee [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Vessel operating expenses | $2,566,000 | |||||
Product tankers [Member] | Dropdown Predecessor [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Number of vessels acquired | 6 | |||||
Conventional oil tankers [Member] | Dropdown Predecessor [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Number of vessels acquired | 7 | |||||
Dry-Docking Activity [Member] | Minimum [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Period to dry dock | 2 years 6 months | |||||
Dry-Docking Activity [Member] | Maximum [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Period to dry dock | 5 years |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Summary of Financing Receivables (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in term loans and interest receivable | $0 | $136,061 |
Total financing receivables | 14,980 | 152,991 |
Collateral [Member] | Non-Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in term loans and interest receivable | 136,061 | |
Other internal metrics [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Advances to equity accounted investments | $14,980 | $16,930 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Summarizes Change in Capitalized Dry-Docking Activity (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Balance at the end of the year | $828,291 | $859,308 | |
Dry-Docking Activity [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Balance at the beginning of the year | 29,269 | 18,672 | 20,945 |
Cost incurred for dry docking | 17,072 | 19,245 | 7,003 |
Dry-dock amortization | -10,832 | -8,648 | -8,959 |
Vessel sales/held for sale (note 18) | -317 | ||
Balance at the end of the year | $35,509 | $29,269 | $18,672 |
Public_Offerings_and_Private_P2
Public Offerings and Private Placements - Summary of Issuances of Common Shares (Detail) (USD $) | 1 Months Ended | 12 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Aug. 31, 2014 | Jun. 30, 2012 | Feb. 29, 2012 | Dec. 31, 2014 | Dec. 31, 2012 |
Subsidiary, Sale of Stock [Line Items] | ||||||
Number of Common Shares Issued | 24,166,666 | 4,220,945 | 4,464,286 | 17,250,000 | ||
Gross Proceeds | $116,000 | $17,010 | $18,348 | $69,000 | ||
Net Proceeds | 111,190 | 17,010 | 18,348 | 65,771 | 111,190 | 65,771 |
Number of Common Shares Issued | 4,220,945 | 4,464,286 | ||||
Gross Proceeds | 17,010 | 18,348 | ||||
Net Proceeds | 17,010 | 18,348 | 17,010 | -9,744 | ||
Number of Common Shares Issued | 24,166,666 | 4,220,945 | 4,464,286 | 17,250,000 | ||
Gross Proceeds | 116,000 | 17,010 | 18,348 | 69,000 | ||
Net Proceeds | $111,190 | $17,010 | $18,348 | $65,771 | $111,190 | $65,771 |
Offering Price Per Share | $4.80 | $4.03 | $4.11 | $4 | ||
Teekay Corporation [Member] | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Teekay's Ownership After the Offering | 26.20% | 28.70% | 24.60% | 20.40% |
Public_Offerings_and_Private_P3
Public Offerings and Private Placements - Summary of Issuances of Common Shares (Parenthetical) (Detail) (USD $) | 1 Months Ended | 0 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Aug. 31, 2014 | Jun. 30, 2012 | Feb. 29, 2012 | Jan. 02, 2015 |
Subsidiary, Sale of Stock [Line Items] | |||||
Common stock, shares issued | 24,166,666 | 4,220,945 | 4,464,286 | 17,250,000 | |
Teekay Corporation [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Percentage of ownership acquired | 53.80% | ||||
Class A [Member] | Teekay Corporation [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Purchase price consideration | 25 | ||||
Business acquisition, Class A common share price per share agreed upon | 5.6 | ||||
Class B [Member] | Teekay Corporation [Member] | Teekay Tanker Operations Ltd [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Percentage of ownership acquired | 50.00% | ||||
Purchase price consideration | 15.6 | ||||
Business acquisition, Class A common share price per share agreed upon | 3.7 | ||||
Public Offering [Member] | Class A [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Common stock, shares issued | 20,000,000 | ||||
Private Placement [Member] | Class A [Member] | Teekay Corporation [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Common stock, shares issued | 4,200,000 | ||||
Subsequent Event [Member] | Underwriters' Option [Member] | Class A [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Common stock, shares issued | 3,000,000 |
Business_Operations_Revenues_a
Business Operations - Revenues and Percentage of Consolidated Revenue (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue, Major Customer [Line Items] | |||
Revenue of significant customer | $235,593 | $170,087 | $197,429 |
Statoil ASA [Member] | Customer Concentration Risk [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenue of significant customer | 32,400 | 33,700 | 27,300 |
ConocoPhillips [Member] | Customer Concentration Risk [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenue of significant customer | $18,100 | $31,800 |
Business_Operations_Revenues_a1
Business Operations - Revenues and Percentage of Consolidated Revenue (Parenthetical) (Detail) (Maximum [Member], Customer Concentration Risk [Member], ConocoPhillips [Member], Sales Revenue, Net [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
Maximum [Member] | Customer Concentration Risk [Member] | ConocoPhillips [Member] | Sales Revenue, Net [Member] | |
Revenue, Major Customer [Line Items] | |
Percentage of revenue from significant customer | 10.00% |
Investment_in_Term_Loans_Addit
Investment in Term Loans - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||
Jul. 31, 2010 | Dec. 31, 2014 | Dec. 31, 2013 | 31-May-14 | Mar. 21, 2014 | |
SecurityLoan | Subsidiary | ||||
Vessel | |||||
Net Investment Income [Line Items] | |||||
Total amount of the term loan including costs of acquisition | $115,600,000 | ($1,179,000) | $9,120,000 | ||
Number of term loans invested | 2 | ||||
Number of 2010-built VLCCs collateralized for loans | 2 | ||||
Interest rate on term loan | 9.00% | ||||
Investment yield | 10.00% | ||||
Investment, Interest Rate Reflects Current Yield Flag | TRUE | ||||
Term loan, collateral amount | 0 | 136,061,000 | |||
Fair Value Asset/(Liability) [Member] | Collateral [Member] | |||||
Net Investment Income [Line Items] | |||||
Term loan, collateral amount | 144,000,000 | ||||
Accrued Interest | $9,100,000 | ||||
Tanker Investments Ltd [Member] | |||||
Net Investment Income [Line Items] | |||||
Number of subsidiaries sold | 2 | ||||
Tanker Investments Ltd [Member] | Subsidiary One [Member] | |||||
Net Investment Income [Line Items] | |||||
Number of vessels sold | 1 | ||||
Tanker Investments Ltd [Member] | Subsidiary Two [Member] | |||||
Net Investment Income [Line Items] | |||||
Number of vessels sold | 1 |
Recovered_Sheet1
Investments in and Advances to Equity Accounted Investments - Schedule of Investments in and Advances to Equity Accounted Investments (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Equity Method Investments [Line Items] | |||
Investment in and advances to equity accounted investments | $73,397 | $18,196 | |
High-Q Joint Venture [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in and advances to equity accounted investments | 18,948 | 18,196 | |
Tanker Investments Ltd [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in and advances to equity accounted investments | 36,915 | ||
Teekay Tanker Operations Ltd [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in and advances to equity accounted investments | 17,534 | ||
Equity Accounted Investments [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenues | 94,244 | 7,325 | |
Income from vessel operations | 16,460 | 3,256 | -3 |
Realized and unrealized loss on derivative instruments | -831 | ||
Net income (loss) | 3,598 | 1,686 | -3 |
Equity Accounted Investments [Member] | Vessels and equipment [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Non current assets | 715,360 | 99,526 | |
Equity Accounted Investments [Member] | Other assets- current [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Current assets | 66,473 | 270 | |
Equity Accounted Investments [Member] | Other assets - non-current [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Non current assets | 26,446 | 1,001 | |
Equity Accounted Investments [Member] | Other liabilities - current [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Current liabilities | 47,275 | 1,387 | |
Equity Accounted Investments [Member] | Other liabilities - non-current [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Non-current liabilities | 31,787 | 35,000 | |
Equity Accounted Investments [Member] | Cash and restricted cash [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Current assets | 97,758 | 2,897 | |
Equity Accounted Investments [Member] | Current portion of long-term debt [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Current liabilities | 33,992 | 5,750 | |
Equity Accounted Investments [Member] | Long-term debt [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Non-current liabilities | $359,980 | $59,975 |
Investment_in_and_Advances_to_
Investment in and Advances to Equity Accounted Investments - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||
Aug. 31, 2014 | Jun. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Aug. 01, 2014 | Oct. 31, 2014 | 31-May-14 | Jan. 31, 2014 | Dec. 31, 2014 | Oct. 31, 2014 | Jan. 31, 2014 | Oct. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | 31-May-14 | 31-May-14 | Dec. 31, 2014 | Aug. 01, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2012 | Dec. 31, 2014 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Maximum [Member] | Minimum [Member] | Teekay Corporation [Member] | Tanker Investments Ltd [Member] | Tanker Investments Ltd [Member] | Tanker Investments Ltd [Member] | Tanker Investments Ltd [Member] | Tanker Investments Ltd [Member] | Tanker Investments Ltd [Member] | Tanker Investments Ltd [Member] | Tanker Investments Ltd [Member] | Tanker Investments Ltd [Member] | Tanker Investments Ltd [Member] | Tanker Investments Ltd [Member] | Teekay Tanker Operations Ltd [Member] | Teekay Tanker Operations Ltd [Member] | Teekay Tanker Operations Ltd [Member] | Teekay Tanker Operations Ltd [Member] | Teekay Tankers and Wah Kwong Joint Venture [Member] | Teekay Tankers and Wah Kwong Joint Venture [Member] | Teekay Tankers and Wah Kwong Joint Venture [Member] | Teekay Tankers and Wah Kwong Joint Venture [Member] | |
USD ($) | Subsidiary | USD ($) | NOK | Maximum [Member] | Common Stock [Member] | Common Stock [Member] | Preferred Stock [Member] | Subsidiary One [Member] | Subsidiary Two [Member] | USD ($) | USD ($) | Working Capital [Member] | Class B [Member] | USD ($) | USD ($) | USD ($) | Joint Venture Interest Rate Derivative [Member] | ||||||||||
Vessel | Vessel | USD ($) | USD ($) | Vessel | USD ($) | ||||||||||||||||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||||||||||||||||||||
Ownership percentage | 50.00% | 9.29% | 50.00% | 50.00% | |||||||||||||||||||||||
Number of vessels | 1 | ||||||||||||||||||||||||||
Secured term loan maximum amount to be drawn | $68,600,000 | ||||||||||||||||||||||||||
Loan outstanding balance | 60,000,000 | 64,700,000 | |||||||||||||||||||||||||
Percentage of exposure to loan guarantee | 50.00% | ||||||||||||||||||||||||||
Interest rate swap agreement notional amount | 60,000,000 | ||||||||||||||||||||||||||
Percentage of interest rate swap agreement | 1.47% | ||||||||||||||||||||||||||
Percentage of interest rate swap agreement, description | The interest rate swap exchanges a receipt of floating interest based on 3-months LIBOR for a payment of a fixed rate of 1.47% every three months. | ||||||||||||||||||||||||||
Common stock, shares purchased | 900,000 | 2,500,000 | 1 | ||||||||||||||||||||||||
Investment in equity accounted investment | 10,000,000 | 25,000,000 | |||||||||||||||||||||||||
Stock purchase warrants | 750,000 | ||||||||||||||||||||||||||
Number of stock purchase warrants | 1 | ||||||||||||||||||||||||||
Derivative asset | 4,657,000 | 3,420,000 | |||||||||||||||||||||||||
Preferred stock, voting rights | Elect one Board member | ||||||||||||||||||||||||||
Common share price per share, acquisition closing date | 69 | $4.03 | |||||||||||||||||||||||||
Number of subsidiaries sold | 2 | ||||||||||||||||||||||||||
Number of vessels sold | 1 | 1 | |||||||||||||||||||||||||
Value of the assets acquired, including working capital | 23,500,000 | ||||||||||||||||||||||||||
Remaining ownership percentage retained | 50.00% | ||||||||||||||||||||||||||
Number of Common Shares Issued | 4,220,945 | 4,464,286 | 4,220,945 | ||||||||||||||||||||||||
Value of common shares when the purchase price was agreed upon | 15,600,000 | ||||||||||||||||||||||||||
Value of common shares when the purchase price was agreed upon, per share | $3.70 | ||||||||||||||||||||||||||
Value of common shares, acquisition closing date | 17,010,000 | 18,348,000 | 17,010,000 | -9,744,000 | 17,010,000 | ||||||||||||||||||||||
Business acquisition assets | 6,500,000 | ||||||||||||||||||||||||||
Book value of the assets acquired, including working capital | 16,900,000 | ||||||||||||||||||||||||||
Excess of purchase price over book value of assets | -6,626,000 | -6,626,000 | |||||||||||||||||||||||||
Equity income (loss) | $5,228,000 | $854,000 | ($1,000) |
Accrued_liabilities_Accrued_li
Accrued liabilities - Accrued liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities [Abstract] | ||
Voyage and vessel | $7,358 | $10,692 |
Corporate accruals | 366 | 528 |
Interest | 3,947 | 3,999 |
Payroll and benefits to related parties | 5,894 | 5,850 |
Total | $17,565 | $21,069 |
LongTerm_Debt_Summary_of_LongT
Long-Term Debt - Summary of Long-Term Debt (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Long-term debt | $656,063 | $744,634 |
Current portion | -41,959 | -25,246 |
Total | 614,104 | 719,388 |
Long-term debt | 656,063 | 744,634 |
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 147,470 | 164,041 |
Long-term debt | 147,470 | 164,041 |
Revolving Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 508,593 | 580,593 |
Long-term debt | $508,593 | $580,593 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Percentage of margin | 0.30% | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Percentage of margin | 1.00% | |
Revolving Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Number of debt instruments | 3 | |
Revolving credit facilities borrowing capacity | 634.8 | 728.8 |
Undrawn amount of revolving credit facility | 126.2 | 148.2 |
Reference rate for the variable rate of the debt instrument | LIBOR | |
Debt Instrument, collateral description | The Revolvers were collateralized by 21 of the Company's vessels, together with other related security. | |
Minimum hull coverage ratios | 105.00% | |
Actual hull coverage ratio | 153.00% | |
Minimum liquidity covenant requirement | 35 | |
Minimum liquidity as a percentage of consolidated debt covenant requirement | 5.00% | |
Teekay guarantee of minimum free cash | 100 | |
Teekay guarantee of minimum liquidity as a percentage of debt | 7.50% | |
Amount outstanding in the joint and several liability arrangement | 35 | |
Revolving Credit Facilities [Member] | Subsidiary of Common Parent [Member] | ||
Debt Instrument [Line Items] | ||
Number of debt instruments | 1 | |
Amount outstanding in the joint and several liability arrangement | 89.3 | |
Revolving Credit Facilities [Member] | 2015 [Member] | ||
Debt Instrument [Line Items] | ||
Reduction in the total amount available under Revolvers | -120.9 | |
Revolving Credit Facilities [Member] | 2016 [Member] | ||
Debt Instrument [Line Items] | ||
Reduction in the total amount available under Revolvers | -89.1 | |
Revolving Credit Facilities [Member] | 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Reduction in the total amount available under Revolvers | -395.9 | |
Revolving Credit Facilities [Member] | 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Reduction in the total amount available under Revolvers | -28.9 | |
Revolving Credit Facilities [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Percentage of margin | 0.45% | 0.45% |
Revolving Credit Facilities [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Percentage of margin | 0.60% | 0.60% |
LongTerm_Debt_Additional_Infor1
Long-Term Debt - Additional Information1 (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
SecurityLoan | ||
Debt Instrument [Line Items] | ||
Long-term debt | $656,063,000 | $744,634,000 |
Interest at a weighted-average fixed rate | 1.10% | 1.10% |
Aggregate annual long-term principal repayments, 2015 | 42,000,000 | |
Aggregate annual long-term principal repayments, 2016 | 82,600,000 | |
Aggregate annual long-term principal repayments, 2017 | 415,300,000 | |
Aggregate annual long-term principal repayments, 2018 | 53,200,000 | |
Aggregate annual long-term principal repayments, 2019 | 23,200,000 | |
Aggregate annual long-term principal repayments, thereafter | 39,800,000 | |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Percentage of margin | 0.30% | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Percentage of margin | 1.00% | |
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Number of debt instruments | 3 | |
Long-term debt | 147,470,000 | 164,041,000 |
Reference rate for the variable rate of the debt instrument | LIBOR | |
Minimum hull coverage ratios | 130.00% | 120.00% |
Debt Instrument, collateral description | The term loans are collateralized by first-priority mortgages on six of the Company's vessels, together with certain other related security. | |
Maintain the greater of free cash liquidity | 100,000,000 | |
Minimum liquidity as a percentage of debt | 7.50% | |
Amount outstanding in the joint and several liability arrangement | 92,800,000 | |
Secured Debt [Member] | Subsidiary of Common Parent [Member] | ||
Debt Instrument [Line Items] | ||
Number of debt instruments | 1 | |
Amount outstanding in the joint and several liability arrangement | $188,300,000 | |
Secured Debt [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Term loan fixed interest rate | 4.06% | |
Percentage of margin | 0.30% | 0.30% |
Actual hull coverage ratio | 212.00% | |
Secured Debt [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Term loan fixed interest rate | 4.90% | |
Percentage of margin | 1.00% | 1.00% |
Actual hull coverage ratio | 676.00% |
Derivative_Instruments_Additio
Derivative Instruments - Additional Information (Detail) | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | Dec. 31, 2014 | Jan. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | |
USD ($) | Tanker Investments Ltd [Member] | Tanker Investments Ltd [Member] | Maximum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | |
USD ($) | Tanker Investments Ltd [Member] | Tranche One [Member] | Tranche Two [Member] | Tranche Three [Member] | Tranche Four [Member] | USD ($) | USD ($) | USD ($) | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | USD ($) | Tanker Investments Ltd [Member] | Tanker Investments Ltd [Member] | |||
Tanker Investments Ltd [Member] | Tanker Investments Ltd [Member] | Tanker Investments Ltd [Member] | Tanker Investments Ltd [Member] | USD ($) | USD ($) | USD ($) | USD ($) | NOK | |||||||||
Derivative [Line Items] | |||||||||||||||||
Interest rate swaps, Description of Objective | The Company enters into interest rate swap agreements which exchange a receipt of floating interest for a payment of fixed interest to reduce the Company's exposure to interest rate variability on its outstanding floating-rate debt. | ||||||||||||||||
Interest rate swaps realized loss | ($10,000,000) | ($9,900,000) | ($9,600,000) | ||||||||||||||
Interest rate swaps unrealized gain | 7,100,000 | 8,400,000 | 1,600,000 | ||||||||||||||
Number of shares available through exercise of stock purchase warrant | 750,000 | ||||||||||||||||
Number of stock purchase warrants | 1 | 1 | |||||||||||||||
Fixed price of stock purchase warrants, per share | $10 | 61.67 | |||||||||||||||
Fair value of stock purchase warrant | 4,657,000 | 3,420,000 | 4,657,000 | ||||||||||||||
Fair market value of the shares | 77.08 | 92.5 | 107.91 | 123.33 | |||||||||||||
Consecutive trading days | 10 days | 10 days | |||||||||||||||
Unrealized gain on the derivative asset | $1,200,000 |
Derivative_Instruments_Summary
Derivative Instruments - Summary of Interest Rate Swap Positions (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
U.S. Dollar-denominated interest rate swap 1 [Member] | |
LIBOR-Based Debt: | |
U.S. Dollar-denominated interest rate swap, Interest Rate Index | USD LIBOR 6M |
U.S. Dollar-denominated interest rate swap, Principal Amount | $200,000 |
U.S. Dollar-denominated interest rate swap, Fair Value/Carrying Amount of Asset (Liability) | -6,160 |
U.S. Dollar-denominated interest rate swap, Remaining Term (years) | 1 year 9 months 18 days |
U.S. Dollar-denominated interest rate swap, Fixed Interest Rate | 2.61% |
U.S. Dollar-denominated interest rate swap 2 [Member] | |
LIBOR-Based Debt: | |
U.S. Dollar-denominated interest rate swap, Interest Rate Index | USD LIBOR 3M |
U.S. Dollar-denominated interest rate swap, Principal Amount | 100,000 |
U.S. Dollar-denominated interest rate swap, Fair Value/Carrying Amount of Asset (Liability) | ($12,065) |
U.S. Dollar-denominated interest rate swap, Remaining Term (years) | 2 years 9 months 18 days |
U.S. Dollar-denominated interest rate swap, Fixed Interest Rate | 5.55% |
Derivative_Instruments_Summary1
Derivative Instruments - Summary of Interest Rate Swap Positions (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Minimum [Member] | |
Derivative [Line Items] | |
Margin on variable-rate debt | 0.30% |
Maximum [Member] | |
Derivative [Line Items] | |
Margin on variable-rate debt | 1.00% |
Other_LongTerm_Liabilities_Sum
Other Long-Term Liabilities - Summary of Freight Tax Expenses Recorded in Other Long-Term Liabilities (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Liabilities, Other than Long-term Debt, Noncurrent [Abstract] | |||
Balance at the beginning of the year | $5,351 | $4,757 | $5,449 |
Freight tax (recovery) expense | -499 | 594 | -692 |
Balance at the end of the year | $4,852 | $5,351 | $4,757 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (Tanker Investments Ltd [Member]) | 12 Months Ended | |
Dec. 31, 2014 | Jan. 31, 2014 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Number of stock purchase warrants | 1 | 1 |
Warrant [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Volatility rate | 61.54% | |
Maximum [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Number of shares available through exercise of stock purchase warrant | 750,000 |
Fair_Value_Measurements_Summar
Fair Value Measurements - Summary of Changes in Fair Value of Stock Purchase Warrant (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Summary of Derivative Instruments [Abstract] | |
Fair value on issuance | $3,420 |
Unrealized gain included in earnings | 1,237 |
Fair value at the end of the period | $4,657 |
Fair_Value_Measurements_Summar1
Fair Value Measurements - Summary of Fair Value and Carrying Value of Assets and Liabilities Measured on Recurring and Non-recurring Basis (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 31, 2014 |
In Thousands, unless otherwise specified | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cash and cash equivalents | $162,797 | $25,646 | $26,341 | $18,566 | |
Stock purchase warrant | 4,657 | ||||
Investment in term loans and interest receivable | 0 | 136,061 | |||
Long-term debt, including current portion | -656,063 | -744,634 | |||
Warrant [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Stock purchase warrant | 3,420 | ||||
Carrying Amount Asset/(Liability) [Member] | Fair Value Measurements, Recurring [Member] | Level 1 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cash and cash equivalents | 162,797 | 25,646 | |||
Carrying Amount Asset/(Liability) [Member] | Fair Value Measurements, Recurring [Member] | Level 2 [Member] | Interest Rate Swap [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Interest rate swap agreements | -18,225 | -25,268 | |||
Carrying Amount Asset/(Liability) [Member] | Fair Value Measurements, Recurring [Member] | Level 3 [Member] | Warrant [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Stock purchase warrant | 4,657 | ||||
Carrying Amount Asset/(Liability) [Member] | Fair Value Measurements, Other [Member] | Equity Accounted Investments [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Advances to equity accounted investments | 14,980 | 16,930 | |||
Carrying Amount Asset/(Liability) [Member] | Fair Value Measurements, Other [Member] | Level 2 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt, including current portion | -656,063 | -744,634 | |||
Carrying Amount Asset/(Liability) [Member] | Fair Value Measurements, Other [Member] | Level 3 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Investment in term loans and interest receivable | 136,061 | ||||
Fair Value Asset/(Liability) [Member] | Fair Value Measurements, Recurring [Member] | Level 1 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cash and cash equivalents | 162,797 | 25,646 | |||
Fair Value Asset/(Liability) [Member] | Fair Value Measurements, Recurring [Member] | Level 2 [Member] | Interest Rate Swap [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Interest rate swap agreements | -18,225 | -25,268 | |||
Fair Value Asset/(Liability) [Member] | Fair Value Measurements, Recurring [Member] | Level 3 [Member] | Warrant [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Stock purchase warrant | 4,657 | ||||
Fair Value Asset/(Liability) [Member] | Fair Value Measurements, Other [Member] | Level 2 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt, including current portion | -617,761 | -679,910 | |||
Fair Value Asset/(Liability) [Member] | Fair Value Measurements, Other [Member] | Level 3 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Investment in term loans and interest receivable | $134,857 |
Capital_Stock_Additional_Infor
Capital Stock - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | ||||||
Dec. 31, 2014 | Aug. 31, 2014 | Jun. 30, 2012 | Feb. 29, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 02, 2015 | Jun. 30, 2014 | Mar. 31, 2014 | |
Class of Stock [Line Items] | ||||||||||
Preferred stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | |||||||
Preferred stock, par value | $0.01 | $0.01 | $0.01 | |||||||
Common stock, shares authorized | 300,000,000 | 300,000,000 | 300,000,000 | |||||||
Preferred stock, shares issued | 0 | 0 | 0 | |||||||
Preferred Stock, shares outstanding | 0 | 0 | 0 | |||||||
Common stock, shares issued | 24,166,666 | 4,220,945 | 4,464,286 | 17,250,000 | ||||||
Common stock dividends per share declared | $0.12 | $0.12 | $0.40 | |||||||
Common Stock, Conversion Basis | Shares of the Companybs Class A common stock are not convertible into any other shares of the Companybs capital stock. Each share of Class B common stock is convertible at any time at the option of the holder thereof into one share of Class A common stock. Upon any transfer of shares of Class B common stock to a holder other than Teekay (or any of its affiliates or any successor to Teekaybs business or to all or substantially all of its assets), such shares of Class B common stock shall automatically convert into Class A common stock upon such transfer. | |||||||||
Stock based compensation expense | $1,233,000 | $657,000 | ||||||||
Restricted Stock Units (RSUs) [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock based compensation expense | 1,200,000 | 700,000 | 0 | |||||||
Restricted stock units vested | 122,146 | |||||||||
Market value of restricted stock units | 600,000 | |||||||||
Equity Option [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Unrecognized compensation cost related to non-vested stock options granted | 100,000 | 100,000 | ||||||||
Stock based compensation expense | 200,000 | 0 | 0 | |||||||
Intrinsic value of outstanding in-the-money stock options | 200,000 | 200,000 | ||||||||
Intrinsic value of exercisable stock options | 100,000 | 100,000 | ||||||||
Weighted-average remaining life of options vested and expected to vest | 9 years 2 months 12 days | |||||||||
Exercisable stock options with weighted-average remaining life | 9 years 2 months 12 days | |||||||||
Exercisable stock options | 152,346 | 152,346 | ||||||||
Weighted-average exercise price | $4.10 | $4.10 | ||||||||
Class B [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | |||||||
Common stock, par value | $0.01 | $0.01 | $0.01 | |||||||
Voting rights per share | Five votes per share | |||||||||
Maximum percentage of voting power | 49.00% | |||||||||
Common stock, shares issued | 16,700,000 | 16,700,000 | 12,500,000 | |||||||
Common stock, shares outstanding | 16,700,000 | 16,700,000 | 12,500,000 | |||||||
Common stock conversion feature | In addition, all shares of Class B common stock will automatically convert into shares of Class A common stock if the aggregate number of outstanding shares of Class A common stock and Class B common stock beneficially owned by Teekay and its affiliates falls below 15% of the aggregate number of outstanding shares of common stock. All such conversions will be effected on a one-for-one basis. | |||||||||
Class A [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common stock, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 | |||||||
Common stock, par value | $0.01 | $0.01 | $0.01 | |||||||
Voting rights per share | One vote per share | |||||||||
Common stock, shares issued | 95,300,000 | 95,300,000 | 71,100,000 | |||||||
Common stock, shares outstanding | 95,300,000 | 95,300,000 | 71,100,000 | |||||||
Share-based compensation expense recorded in general and administrative expenses | 100,000 | 400,000 | 400,000 | |||||||
Class A [Member] | 2007 Long-Term Incentive Plan [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common stock, shares reserved for issuance upon awards to be granted | 4,000,000 | 4,000,000 | 1,000,000 | |||||||
Class A [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common stock, shares issued | 68,322 | |||||||||
Class A [Member] | Subsequent Event [Member] | Underwriters' Option [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common stock, shares issued | 3,000,000 | |||||||||
Officer [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 600,000 | |||||||||
Vesting period | 3 years | |||||||||
Restricted stock units aggregate value, granted | 2,300,000 | |||||||||
Officer [Member] | Equity Option [Member] | 2007 Long-Term Incentive Plan [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock options granted during period, value | 100,000 | |||||||||
Exercise price of stock options granted | $4.25 | |||||||||
Term of stock options | 10 years | |||||||||
Vesting period | 3 years | |||||||||
Weighted-average grant date fair value of stock options granted | $1.38 | |||||||||
Expected volatility rate | 46.00% | |||||||||
Expected life | 5 years | |||||||||
Dividend yield | 2.80% | |||||||||
Risk-free interest rate | 1.60% | |||||||||
Non Management Directors [Member] | Equity Option [Member] | 2007 Long-Term Incentive Plan [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock options granted during period, value | 200,000 | |||||||||
Exercise price of stock options granted | $4.10 | |||||||||
Term of stock options | 10 years | |||||||||
Weighted-average grant date fair value of stock options granted | $1.37 | |||||||||
Expected volatility rate | 47.70% | |||||||||
Expected life | 5 years | |||||||||
Dividend yield | 2.90% | |||||||||
Risk-free interest rate | 1.60% | |||||||||
Non Management Directors [Member] | Class A [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 17,073 | 142,157 | 82,573 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 17,073 | |||||||||
Subsidiaries Employees [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 400,000 | |||||||||
Vesting period | 3 years | |||||||||
Restricted stock units aggregate value, granted | $1,000,000 |
Capital_Stock_Summary_of_Stock
Capital Stock - Summary of Stock Option Information (Detail) (Equity Option [Member], USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Equity Option [Member] | |
Schedule Of Stock Option Activity [Line Items] | |
Options, Granted | 263,175 |
Options, Outstanding-end of year | 263,175 |
Options, Exercisable-end of year | 152,346 |
Weighted-Average Exercise Price, Granted | $4.16 |
Weighted-Average Exercise Price, Outstanding-end of year | $4.16 |
Weighted-Average Exercise Price, Exercisable-end of year | $4.10 |
Capital_Stock_Summary_of_NonVe
Capital Stock - Summary of Non-Vested Stock Option Activity and Related Information (Detail) (Non Vested Stock Options [Member], USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Non Vested Stock Options [Member] | |
Schedule Of Nonvested Stock Option Activity [Line Items] | |
Options, Granted | 110,829 |
Options, Outstanding Non-Vested Stock Options-end of year | 110,829 |
Weighted-Average Grant Date Fair Value, Granted | $4.25 |
Weighted-Average Grant Date Fair Value, outstanding non-vested stock options-end of year | $4.25 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | |||||
Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2014 | 31-May-14 | Jan. 31, 2014 | Jun. 26, 2012 | Jun. 15, 2012 | Jun. 30, 2012 | Dec. 31, 2012 | Aug. 31, 2014 | |
Subsidiary | Vessel | Vessel | Vessel | Vessel | |||||||
Related Party Transaction [Line Items] | |||||||||||
Aggregate proceeds received | $154,000,000 | $9,114,000 | |||||||||
Equity contribution from Teekay Corporation | 1,267,000 | 1,267,000 | |||||||||
Reimbursement of Manager's crewing and manning costs | 10,395,000 | 11,323,000 | |||||||||
Working capital advanced to Pool Managers | 42,502,000 | 27,991,000 | |||||||||
Minimum threshold for payment of performance fee to Manager | $3.20 | ||||||||||
Percentage of performance fee payable on Gross Cash Available for Distribution | 20.00% | ||||||||||
Percentage of commercial services fee | 1.25% | ||||||||||
Pool receivable from affiliates | 35,254,000 | 10,765,000 | |||||||||
Payable To Manager [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Reimbursement of Manager's crewing and manning costs | 5,900,000 | 5,800,000 | |||||||||
Minimum [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Ownership percentage | 9.29% | ||||||||||
Fixed amount of management fee chargeable per vessel payable per day | 275 | ||||||||||
Maximum [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Ownership percentage | 50.00% | ||||||||||
Fixed amount of management fee chargeable per vessel payable per day | 350 | ||||||||||
Tanker Investments Ltd [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Investment in equity accounted investment | 10,000,000 | 25,000,000 | |||||||||
Number of subsidiaries sold | 2 | ||||||||||
Pool Managers [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Working capital advanced to Pool Managers | 36,200,000 | 20,300,000 | |||||||||
Teekay Corporation [Member] | Charters Out [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Number of vessels | 2 | ||||||||||
Dropdown Predecessor [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Number of vessels | 3 | 10 | 13 | 13 | |||||||
Aggregate purchase price | 454,200,000 | ||||||||||
Working Capital [Member] | Tanker Investments Ltd [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Aggregate proceeds received | 1,700,000 | ||||||||||
Vessels [Member] | Tanker Investments Ltd [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Aggregate proceeds received | 154,000,000 | ||||||||||
Common Stock [Member] | Tanker Investments Ltd [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Common stock, shares purchased | 900,000 | 2,500,000 | |||||||||
Teekay Tanker Operations Ltd [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Ownership percentage | 50.00% | ||||||||||
Value of the assets acquired, including working capital | 23,500,000 | ||||||||||
Teekay Tanker Operations Ltd [Member] | Working Capital [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Business acquisition assets | $6,500,000 |
Related_Party_Transactions_Sum
Related Party Transactions - Summary of Related Party Transactions (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | |||
Time-charter revenues | $13,728 | $13,506 | $14,604 |
Pool management fees and commissions | -5,292 | -4,043 | -3,565 |
Commercial management fees | -1,117 | -1,079 | -1,118 |
Vessel operating expenses | -93,022 | -91,667 | -96,160 |
Strategic and administrative service fees | -8,676 | -10,783 | -5,492 |
Dropdown Predecessor [Member] | |||
Related Party Transaction [Line Items] | |||
Interest expense | -11,660 | ||
Crew training [Member] | |||
Related Party Transaction [Line Items] | |||
Vessel operating expenses | -1,757 | -1,163 | -2,870 |
Technical management fee [Member] | |||
Related Party Transaction [Line Items] | |||
Vessel operating expenses | -5,613 | -5,637 | -4,379 |
Technical management fee [Member] | Dropdown Predecessor [Member] | |||
Related Party Transaction [Line Items] | |||
Vessel operating expenses | ($2,566) |
Other_Income_Expense_Summary_o
Other Income (Expense) - Summary of Other Income (Expense) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Income And Expense [Line Items] | |||
Freight tax recovery (expense) | $154 | ($594) | ($1,530) |
Foreign exchange gain (loss) | 138 | -107 | -428 |
Other | 97 | -313 | -105 |
Total | 3,809 | -1,014 | -2,063 |
Warrant [Member] | |||
Other Income And Expense [Line Items] | |||
Gain on initial recognition of stock purchase warrant(note 6b) | $3,420 |
Operating_Leases_Additional_In
Operating Leases - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Vessel | ||
Operating Leased Assets [Line Items] | ||
Minimum commitment to be incurred by Company, 2015 | 49 | |
Minimum commitment to be incurred by Company, 2016 | 8.5 | |
Minimum commitment to be incurred by Company, 2017 | 4.8 | |
Minimum scheduled future revenues to be received by Company | 44.5 | |
Minimum scheduled future revenues to be received by Company in current year | 36.3 | |
Minimum scheduled future revenues to be received by Company in second year | 8.2 | |
Carrying amount of vessels employed on operating leases | 224.8 | 431.1 |
Cost of the vessels | 352.4 | 598.1 |
Accumulated depreciation of the vessels | 127.6 | $167 |
Charters In [Member] | ||
Operating Leased Assets [Line Items] | ||
Number of vessels | 12 | |
Property Subject to Operating Lease [Member] | Fixed Rate Time Charter Contract [Member] | ||
Operating Leased Assets [Line Items] | ||
Number of vessels | 8 | |
Property Subject to Operating Lease [Member] | Time Charter Contract Expiration 2015 [Member] | ||
Operating Leased Assets [Line Items] | ||
Number of vessels | 5 | |
Property Subject to Operating Lease [Member] | Time Charter Contract Expiration 2016 [Member] | ||
Operating Leased Assets [Line Items] | ||
Number of vessels | 3 |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information - Changes in Operating Assets and Liabilities (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Supplemental Cash Flow Information [Abstract] | |||
Accounts receivable and interest receivable | ($9,049) | ($9,150) | ($3,317) |
Pool receivables from affiliates | -24,489 | -1,664 | -4,741 |
Due from affiliates | -14,511 | -3,204 | -12,177 |
Prepaid expenses and other current assets | 1,478 | -647 | -3,147 |
Accounts payable and accrued liabilities | -3,856 | 2,092 | 2,337 |
Due to affiliates | -928 | 7,731 | -1,204 |
Deferred revenue | -2,324 | -1,603 | 855 |
Other | 2,000 | -141 | 1,600 |
Change in non-cash working capital items related to operating activities | ($51,679) | ($6,586) | ($19,794) |
Supplemental_Cash_Flow_Informa3
Supplemental Cash Flow Information - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Supplemental Cash Flow Information [Line Items] | |||
Cash interest paid including realized losses on the interest rate swap agreements | $17.90 | $18.90 | $29.30 |
Dropdown Predecessor [Member] | |||
Supplemental Cash Flow Information [Line Items] | |||
Repayments | 108.7 | ||
Teekay Tanker Operations Ltd [Member] | Class B [Member] | |||
Supplemental Cash Flow Information [Line Items] | |||
Ownership percentage | 50.00% | ||
Number of common shares issued for acquisition | 4.2 | ||
Interest Rate Swap [Member] | Dropdown Predecessor [Member] | |||
Supplemental Cash Flow Information [Line Items] | |||
Realized losses on interest rate swap agreements | $1.80 |
Earnings_Loss_Per_Share_Schedu
Earnings (Loss) Per Share - Schedule of Income (Loss) per Share (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings (loss) per common share: | |||
Net income (loss) | $57,142 | ($8,138) | ($370,181) |
Net income (loss) available for common stockholders | 57,142 | -8,138 | -361,018 |
Weighted-average number of common shares - basic | 85,882,685 | 83,591,030 | 79,539,605 |
Dilutive effect of stock-based compensation | 364,452 | ||
Weighted average number of common shares - diluted | 86,247,137 | 83,591,030 | 79,539,605 |
Basic | $0.67 | ($0.10) | ($4.54) |
Diluted | $0.66 | ($0.10) | ($4.54) |
Dropdown Predecessor [Member] | |||
Earnings (loss) per common share: | |||
Net income (loss) | ($9,163) |
Vessel_Sales_Vessel_Acquisitio1
Vessel Sales, Vessel Acquisitions and Vessel Impairments - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-14 | Mar. 31, 2015 | Feb. 28, 2015 | Dec. 31, 2014 | Jan. 31, 2013 | |
Subsidiary | Vessel | Vessel | Vessel | Tanker | ||||
Property, Plant and Equipment [Line Items] | ||||||||
Aggregate proceeds received | $154,000,000 | $9,114,000 | ||||||
Revolving credit facilities repaid | 167,000,000 | 25,000,000 | 60,000,000 | |||||
Gain (loss) on the sale of subsidiary recognized | 9,955,000 | -71,000 | ||||||
Vessel impairment and net loss on sale of vessels | 352,546,000 | |||||||
Tanker Investments Ltd [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Number of subsidiaries sold | 2 | |||||||
Gain (loss) on the sale of subsidiary recognized | 10,000,000 | |||||||
Tanker Investments Ltd [Member] | Revolving Credit Facilities [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Revolving credit facilities repaid | 152,000,000 | |||||||
Working Capital [Member] | Tanker Investments Ltd [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Aggregate proceeds received | 1,700,000 | |||||||
Purchased And Delivered [Member] | Subsequent Event [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Number of vessels | 2 | 3 | ||||||
Suezmax tankers [Member] | Impaired Asset [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Number of vessels | 7 | |||||||
Vessel impairment and net loss on sale of vessels | 305,600,000 | |||||||
Aframax tankers [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Aggregate purchase price | 37,000,000 | 37,000,000 | ||||||
Number of vessels | 1 | |||||||
Aggregate proceeds received | 9,100,000 | |||||||
Gain (loss) on the sale of subsidiary recognized | -100,000 | |||||||
Number of tankers sold | 1 | |||||||
Aframax tankers [Member] | Other non-current assets [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Escrow fund | 3,700,000 | 3,700,000 | ||||||
Aframax tankers [Member] | Impaired Asset [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Number of vessels | 4 | |||||||
Vessel impairment and net loss on sale of vessels | 44,500,000 | |||||||
Aframax tankers [Member] | Assets Held-for-sale [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Number of vessels | 1 | |||||||
Aframax tankers [Member] | Sold Asset [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Number of vessels | 1 | |||||||
Product tankers [Member] | Impaired Asset [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Number of vessels | 1 | |||||||
Vessel impairment and net loss on sale of vessels | 2,400,000 | |||||||
Vessels [Member] | Tanker Investments Ltd [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Aggregate proceeds received | 154,000,000 | |||||||
Modern LR2 vessels [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Aggregate purchase price | $193,300,000 | $193,300,000 | ||||||
Number of vessels | 4 |
Shipbuilding_Contracts_Additio
Shipbuilding Contracts - Additional Information (Detail) (USD $) | 0 Months Ended | 2 Months Ended | |
In Millions, unless otherwise specified | Apr. 08, 2013 | Nov. 30, 2013 | Nov. 30, 2014 |
DWT | Vessel | ||
Property, Plant and Equipment [Line Items] | |||
Weight capacity in dead-weight tonnes | 113,000 | ||
Cash and cash equivalents [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Amount of escrow account placed | $0.60 | ||
Additional Order Option Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Number of vessels | 12 | ||
Orders to Construct Newbuildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Number of vessels | 4 | ||
Option To Order Exercised [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Number of vessels | 8 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | ||||||
Dec. 31, 2014 | Aug. 31, 2014 | Jun. 30, 2012 | Feb. 29, 2012 | Dec. 31, 2014 | Dec. 31, 2012 | Jan. 02, 2015 | Jan. 31, 2015 | Mar. 31, 2015 | Feb. 28, 2015 | |
Vessel | Vessel | Vessel | ||||||||
Subsequent Event [Line Items] | ||||||||||
Number of Common Shares Issued | 24,166,666 | 4,220,945 | 4,464,286 | 17,250,000 | ||||||
Net proceeds from common stock | $111,190,000 | $17,010,000 | $18,348,000 | $65,771,000 | $111,190,000 | $65,771,000 | ||||
Aframax tankers [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Aggregate purchase price | 37,000,000 | 37,000,000 | ||||||||
Number of vessels | 1 | |||||||||
Modern LR2 vessels [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Aggregate purchase price | 193,300,000 | 193,300,000 | ||||||||
Number of vessels | 4 | |||||||||
Class A [Member] | Underwriters' Option [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Grant period for option to purchase common shares | 30 days | |||||||||
Class A [Member] | Underwriters' Option [Member] | Maximum [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Option granted to purchase additional common shares | 3,000,000 | 3,000,000 | ||||||||
Other non-current assets [Member] | Aframax tankers [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Escrow fund | 3,700,000 | 3,700,000 | ||||||||
Subsequent Event [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Secured loan facility, amount | 126,600,000 | |||||||||
Subsequent Event [Member] | Class A [Member] | Underwriters' Option [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Number of Common Shares Issued | 3,000,000 | |||||||||
Net proceeds from common stock | $13,700,000 | |||||||||
Subsequent Event [Member] | Collateral [Member] | Modern LR2 vessels [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Number of vessels | 4 | |||||||||
Subsequent Event [Member] | Collateral [Member] | Aframax vessels [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Number of vessels | 1 | |||||||||
Subsequent Event [Member] | Purchased And Delivered [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Number of vessels | 2 | 3 |