Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2020shares | |
Entity Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2020 |
Current Fiscal Year End Date | --12-31 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 1-33867 |
Entity Registrant Name | TEEKAY TANKERS LTD. |
Entity Incorporation, State or Country Code | 1T |
Entity Address, Address Line One | 4th Floor |
Entity Address, Address Line Two | Belvedere Building |
Entity Address, City or Town | Hamilton |
Entity Address, Postal Zip Code | HM 08 |
Entity Address, Country | BM |
Title of 12(b) Security | Class A common stock, par value of $0.01 per share |
Trading Symbol | TNK |
Security Exchange Name | NYSE |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Central Index Key | 0001419945 |
Amendment Flag | false |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Address, Address Line Three | 69 Pitts Bay Road |
Business Contact | |
Entity Information [Line Items] | |
Entity Address, Address Line One | 4th Floor |
Entity Address, Address Line Two | Belvedere Building |
Entity Address, City or Town | Hamilton |
Entity Address, Postal Zip Code | HM 08 |
Entity Address, Country | BM |
City Area Code | 441 |
Local Phone Number | 298-2530 |
Contact Personnel Name | N. Angelique Burgess |
Contact Personnel Fax Number | (441) 292-3931 |
Entity Address, Address Line Three | 69 Pitts Bay Road |
Class A | |
Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding (in shares) | 29,112,146 |
Class B | |
Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding (in shares) | 4,625,997 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
REVENUES | |||
Total revenues | $ 886,434 | $ 943,917 | $ 776,493 |
Voyage expenses | (297,225) | (402,294) | (381,306) |
Vessel operating expenses (notes 14b and 14c) | (184,233) | (208,601) | (209,131) |
Time-charter hire expenses (note 10) | 36,341 | 43,189 | 19,538 |
Depreciation and amortization | (117,212) | (124,002) | (118,514) |
General and administrative expenses (note 14b) | (39,006) | (36,404) | (39,775) |
(Write-down) and (loss) gain on sale of assets (note 19) | (69,446) | (5,544) | 170 |
Restructuring charges (note 20) | (1,398) | 0 | (1,195) |
Income from operations | 141,573 | 123,883 | 7,204 |
Interest expense | (51,525) | (65,362) | (58,653) |
Interest income | 1,199 | 871 | 879 |
Realized and unrealized (loss) gain on derivative instruments (note 11) | (2,220) | (967) | 3,032 |
Equity income (note 5) | 5,100 | 2,345 | 1,220 |
Other income (note 15) | 473 | 695 | 3,182 |
Net income (loss) before income taxes | 94,600 | 61,465 | (43,136) |
Income tax expense (note 21) | (7,283) | (20,103) | (9,412) |
Net Income (Loss) | $ 87,317 | $ 41,362 | $ (52,548) |
Per common share amounts (note 18) | |||
• Basic earnings (loss) per share (in dollars per share) | $ 2.59 | $ 1.23 | $ (1.57) |
• Diluted earnings (loss) per share (in dollars per share) | 2.57 | 1.23 | (1.57) |
• Cash dividends declared (in dollars per share) | $ 0 | $ 0 | $ 0.24 |
Weighted-average number of Class A and Class B common stock outstanding (note 18) | |||
• Basic (in shares) | 33,718,665 | 33,617,635 | 33,561,615 |
• Diluted (in shares) | 33,921,621 | 33,731,171 | 33,561,615 |
Voyage charter | |||
REVENUES | |||
Total revenues | $ 741,804 | $ 881,603 | $ 671,928 |
Time-charter revenues | |||
REVENUES | |||
Total revenues | 127,598 | 17,495 | 59,976 |
Other | |||
REVENUES | |||
Total revenues | $ 17,032 | $ 44,819 | $ 44,589 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current | ||
Cash and cash equivalents | $ 97,232 | $ 88,824 |
Restricted Cash - Current (note 16) | 2,779 | 3,071 |
Accounts receivable | 36,202 | 95,648 |
Assets held for sale (note 19) | 32,974 | 65,458 |
Due from affiliates (note 14c) | 5,236 | 697 |
Current portion of derivative assets (note 11) | 0 | 577 |
Bunker and lube oil inventory | 34,606 | 49,790 |
Prepaid expenses | 9,739 | 10,288 |
Accrued revenue (note 3) | 26,640 | 106,872 |
Total current assets | 245,408 | 421,225 |
Restricted Cash - long-term (note 16) | 3,135 | 3,437 |
At cost, less accumulated depreciation of $417.4 million (2019 - $437.1 million) (notes 9 and 19) | 1,104,742 | 1,223,085 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment, Excluding Capital Leased Assets | 417,400 | 537,100 |
Sale Leaseback Transaction, Accumulated Depreciation | 124,400 | 143,700 |
Vessels related to finance leases, at cost, less accumulated depreciation of $124.4 million (2019 - $143.7 million) (notes 10 and 19) | 450,558 | 527,081 |
Operating lease right-of-use assets (notes 2, 10 and 19) | 2,529 | 19,560 |
Total vessels and equipment | 1,557,829 | 1,769,726 |
Investment in and advances to equity-accounted joint venture (note 5) | 28,561 | 28,112 |
Derivative assets | 0 | 82 |
Accumulated amortization | 3,700 | 3,200 |
Other non-current assets | 897 | 1,923 |
Intangible assets, at cost, less accumulated depreciation of $3.7 million (2019 - $3.2 million) (note 6) | 1,989 | 2,545 |
Goodwill (note 6) | 2,426 | 2,426 |
Total assets | 1,840,245 | 2,229,476 |
Current | ||
Accounts payable | 31,059 | 70,978 |
Accrued liabilities (notes 7, 14c, 20 and 21) | 55,055 | 59,735 |
Short-term debt (note 8) | 10,000 | 50,000 |
Current portion of long-term debt (note 9) | 10,858 | 43,573 |
Current portion of derivative liabilities (note 11) | 289 | 86 |
Current obligations related to finance leases (note 10) | 78,476 | 25,357 |
Current portion of operating lease liabilities (notes 2 and 10) | 3,685 | 16,290 |
Due to affiliates (note 14c) | 3,123 | 2,139 |
Liabilities associated with assets held for sale (note 19) | 0 | 2,980 |
Other current liabilities | 4,574 | 8,567 |
Total current liabilities | 197,119 | 279,705 |
Long-term debt (note 9) | 232,103 | 516,106 |
Long-term obligations related to finance leases (note 10) | 281,567 | 389,431 |
Long-term operating lease liabilities (notes 2 and 10) | 315 | 3,270 |
Derivative Liability, Noncurrent(note 11) | 597 | 0 |
Other long-term liabilities (note 21) | 49,642 | 51,044 |
Total liabilities | $ 761,343 | 1,239,556 |
Commitments and contingencies (notes 5, 8, 9, 10 and 11) | ||
Equity | ||
Common stock, shares authorized (in shares) | 585,000,000 | 585,000,000 |
Common stock and paid-in capital (585.0 million shares authorized, 29.1 million Class A and 4.6 million Class B shares issued and outstanding as at December 31, 2020 and 585.0 million shares authorized, 29.0 million Class A and 4.6 million Class B shares issued and outstanding as at December 31, 2019) (note 13) | $ 1,299,220 | $ 1,297,555 |
Accumulated deficit | (220,318) | (307,635) |
Total equity | 1,078,902 | 989,920 |
Total liabilities and equity | $ 1,840,245 | $ 2,229,476 |
Class A | ||
Equity | ||
Common stock, shares authorized (in shares) | 485,000,000 | 485,000,000 |
Common Stock, Shares, Issued | 29,100,000 | 29,000,000 |
Common Stock, Shares, Outstanding | 29,100,000 | 29,000,000 |
Common Class B [Member] | ||
Equity | ||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 4,600,000 | 4,600,000 |
Common Stock, Shares, Outstanding | 4,600,000 | 4,600,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING ACTIVITIES | |||
Net income (loss) | $ 87,317 | $ 41,362 | $ (52,548) |
Non-cash items: | |||
Depreciation and amortization | 117,212 | 124,002 | 118,514 |
(Write-down) and (loss) gain on sale of assets (note 19) | 69,446 | 5,544 | (170) |
Unrealized loss (gain) on derivative instruments (note 11) | 1,458 | 5,247 | (579) |
Equity income (note 5) | (5,100) | (2,345) | (1,220) |
Income tax expense (note 21) | 7,283 | 20,103 | 9,412 |
Other | 5,232 | 4,044 | 5,659 |
Change in operating assets and liabilities (note 16) | 89,920 | 30,432 | 54,952 |
Expenditures for dry docking | (24,655) | (48,250) | (27,972) |
Net operating cash flow | 347,943 | 117,661 | (7,263) |
FINANCING ACTIVITIES | |||
Proceeds from short-term debt (note 8) | 235,000 | 200,000 | 0 |
Repayments of Short-term Debt | 275,000 | 150,000 | 0 |
Proceeds from long-term debt, net of issuance costs (note 9) | 574,872 | 57,086 | 81,397 |
Repayments of Long-term Debt | (13,174) | (101,107) | (165,365) |
Early Repayment of Senior Debt | 882,495 | 135,110 | 137,717 |
Proceeds from financing related to sales and leasebacks of vessels (note 10) | 0 | 63,720 | 241,339 |
Scheduled repayments of obligations related to finance leases (note 10) | (25,149) | (24,221) | (14,958) |
Repayments of Long-term Capital Lease Obligations | (29,596) | 0 | 0 |
Cash dividends paid | 0 | 0 | (8,052) |
Other | (562) | (126) | (92) |
Net financing cash flow | (416,104) | (89,758) | (3,448) |
INVESTING ACTIVITIES | |||
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents | 2,100 | ||
Proceeds from Sales of Business, Affiliate and Productive Assets | 85,892 | 20,008 | 589 |
Expenditures for vessels and equipment | (16,025) | (11,628) | (5,827) |
Proceeds from (Repayments of) Related Party Debt | 4,650 | 0 | 0 |
Return of capital from equity-accounted joint venture | 0 | 0 | 746 |
Net investing cash flow | 74,517 | 8,380 | (4,492) |
Increase (decrease) in cash, cash equivalents and restricted cash | 6,356 | 36,283 | (15,203) |
Cash, cash equivalents and restricted cash, beginning of the year | 96,790 | 60,507 | 75,710 |
Cash, cash equivalents and restricted cash, end of the year (note 16c) | 103,146 | 96,790 | 60,507 |
Freight Tax [Member] [Member] | |||
Non-cash items: | |||
Income tax expense (note 21) | $ 7,113 | $ 18,489 | $ 6,005 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock and Paid-in Capital | Common Stock and Paid-in CapitalClass A | Common Stock and Paid-in CapitalClass B | Accumulated Deficit |
Beginning Balance, shares (in shares) at Dec. 31, 2017 | 33,525 | ||||
Beginning Balance at Dec. 31, 2017 | $ 1,006,601 | $ 1,206,466 | $ 88,532 | $ (288,397) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
• Cash dividends declared (in dollars per share) | $ 0.24 | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ (52,548) | (52,548) | |||
Dividends declared | (8,052) | (8,052) | |||
Equity-based compensation (in shares) | 45 | ||||
Equity-based compensation | 1,220 | 1,220 | |||
Other | (288) | (289) | 1 | ||
Ending Balance, shares (in shares) at Dec. 31, 2018 | 33,570 | ||||
Ending Balance at Dec. 31, 2018 | $ 946,933 | 1,207,397 | 88,532 | (348,996) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
• Cash dividends declared (in dollars per share) | $ 0 | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 41,362 | 41,362 | |||
Equity-based compensation (in shares) | 85 | ||||
Equity-based compensation | 1,660 | 1,660 | |||
Adjustments to Additional Paid in Capital, Stock Split | 35 | 34 | 1 | ||
Ending Balance, shares (in shares) at Dec. 31, 2019 | 33,655 | ||||
Ending Balance at Dec. 31, 2019 | $ 989,920 | 1,209,023 | 88,532 | (307,635) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
• Cash dividends declared (in dollars per share) | $ 0 | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 87,317 | 87,317 | |||
Equity-based compensation (in shares) | 83 | ||||
Equity-based compensation | 1,665 | 1,665 | |||
Ending Balance, shares (in shares) at Dec. 31, 2020 | 33,738 | ||||
Ending Balance at Dec. 31, 2020 | $ 1,078,902 | $ 1,210,688 | $ 88,532 | $ (220,318) |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information a. The changes in non-cash working capital items related to operating activities for the years ended December 31, 2020, 2019 and 2018 are as follows: Year Ended December 31, 2020 2019 2018 Accounts receivable, including other current assets 140,290 (171,342) (16,020) Pool receivables from affiliates — 56,549 (40,999) Due from affiliates (4,539) 38,966 9,440 Bunker and lube oil inventory 13,634 (28,628) (15,564) Prepaid expenses 532 119 57 Accounts payable and accrued liabilities (50,040) 83,244 9,778 Due to affiliates 984 (16,431) (1,147) Deferred revenue (3,277) 7,485 (557) Other (7,664) (394) 60 Change in operating assets and liabilities 89,920 (30,432) (54,952) b. Cash interest paid during the years ended December 31, 2020, 2019, and 2018 totaled $47.9 million, $61.8 million, and $47.6 million, respectively. c. The Company maintains restricted cash deposits relating to certain freight forward agreements (note 11), for certain contracts related to the ship-to-ship transfer business and for the LNG terminal management business, prior to its sale in April 2020 (note 19). Attached to the LNG terminal management contracts were certain performance guarantees which were required to be issued by the Company. The Company also maintains restricted cash deposits for the purposes of the margin requirements of the Company's obligations related to certain finance leases (note 10). Total cash, cash equivalents and restricted cash, including cash, cash equivalents and restricted cash held for sale are as follows: As at December 31, 2020 As at December 31, 2019 As at December 31, 2018 As at December 31, 2017 $ $ $ $ Cash and cash equivalents 97,232 88,824 54,917 71,439 Restricted cash - current 2,779 3,071 2,153 1,599 Restricted cash - long-term 3,135 3,437 3,437 2,672 Cash and cash equivalents held for sale — 1,121 — — Restricted cash held for sale - current — 337 — — 103,146 96,790 60,507 75,710 Non-cash items related to operating lease right-of-use assets and operating lease liabilities are as follows: Year Ended December 31, 2020 December 31, 2019 $ $ Leased assets obtained in exchange for new operating lease liabilities 835 23,725 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Changes in Non-cash Working Capital Items Related to Operating Activities | The changes in non-cash working capital items related to operating activities for the years ended December 31, 2020, 2019 and 2018 are as follows: Year Ended December 31, 2020 2019 2018 Accounts receivable, including other current assets 140,290 (171,342) (16,020) Pool receivables from affiliates — 56,549 (40,999) Due from affiliates (4,539) 38,966 9,440 Bunker and lube oil inventory 13,634 (28,628) (15,564) Prepaid expenses 532 119 57 Accounts payable and accrued liabilities (50,040) 83,244 9,778 Due to affiliates 984 (16,431) (1,147) Deferred revenue (3,277) 7,485 (557) Other (7,664) (394) 60 Change in operating assets and liabilities 89,920 (30,432) (54,952) |
Schedule of Cash, Cash Equivalents, and Restricted Cash | The Company also maintains restricted cash deposits for the purposes of the margin requirements of the Company's obligations related to certain finance leases (note 10). Total cash, cash equivalents and restricted cash, including cash, cash equivalents and restricted cash held for sale are as follows: As at December 31, 2020 As at December 31, 2019 As at December 31, 2018 As at December 31, 2017 $ $ $ $ Cash and cash equivalents 97,232 88,824 54,917 71,439 Restricted cash - current 2,779 3,071 2,153 1,599 Restricted cash - long-term 3,135 3,437 3,437 2,672 Cash and cash equivalents held for sale — 1,121 — — Restricted cash held for sale - current — 337 — — 103,146 96,790 60,507 75,710 Non-cash items related to operating lease right-of-use assets and operating lease liabilities are as follows: Year Ended December 31, 2020 December 31, 2019 $ $ Leased assets obtained in exchange for new operating lease liabilities 835 23,725 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Changes in Non-cash Working Capital Items Related to Operating Activities - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |||
Accounts receivable, including other current assets | $ 140,290 | $ (171,342) | $ (16,020) |
Pool receivables from affiliates | 0 | 56,549 | (40,999) |
Due from affiliates | (4,539) | 38,966 | 9,440 |
Increase (Decrease) in Inventories | 13,634 | (28,628) | (15,564) |
Increase (Decrease) in Prepaid Expense | 532 | 119 | 57 |
Accounts payable and accrued liabilities | (50,040) | 83,244 | 9,778 |
Due to affiliates | 984 | (16,431) | (1,147) |
Increase (Decrease) in Deferred Revenue | (3,277) | 7,485 | (557) |
Other | (7,664) | (394) | 60 |
Change in operating assets and liabilities | $ (89,920) | $ (30,432) | $ (54,952) |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Additional Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |||
Cash interest paid including realized losses on the interest rate swap agreements | $ 47.9 | $ 61.8 | $ 47.6 |
Supplemental Cash Flow Inform_5
Supplemental Cash Flow Information - Schedule of Cash, Cash Equivalents, and Restricted Cash - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash and Cash Equivalents [Line Items] | ||||
Cash, cash equivalents, and restricted cash | $ 103,146 | $ 96,790 | $ 60,507 | $ 75,710 |
Cash and cash equivalents | 97,232 | 88,824 | 54,917 | 71,439 |
Restricted Cash - Current (note 16) | 2,779 | 3,071 | 2,153 | 1,599 |
Restricted Cash - long-term (note 16) | 3,135 | 3,437 | 3,437 | 2,672 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 835 | 23,725 | ||
Cash and Cash Equivalents [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 0 | 1,121 | 0 | 0 |
Restricted Cash [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Restricted Cash - Current (note 16) | $ 0 | $ 337 | $ 0 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of presentation and consolidation principles These consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles ( GAAP ). They include the accounts of Teekay Tankers Ltd., a Marshall Islands corporation, its wholly-owned subsidiaries , and any variable interest entities (or VIEs ) (note 10) of which it is the primary beneficiary (collectively, the Company ). The preparation of these consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. Significant intercompany balances and transactions have been eliminated upon consolidation. In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (or COVID-19 ) as a pandemic. Given the dynamic nature of these circumstances, the full extent to which the COVID-19 pandemic may have direct or indirect impact on the Company's business and the related financial reporting implications cannot be reasonably estimated at this time, although the pandemic could materially affect the Company's business, results of operations and financial condition in the future. COVID-19 has resulted and may continue to result in a significant decline in global demand for oil. As the Company's business includes the transportation of crude oil and refined petroleum products on behalf of customers, any significant decrease in demand for the cargo the Company transports could adversely affect demand for the Company's vessels and services. Spot tanker rates have come under pressure since mid-May 2020 as a result of significantly reduced oil demand due to COVID-19 and the subsequent decision by the OPEC+ group of oil producers to implement record oil supply cuts. Reduced oil production from other oil producing nations due to lower oil prices and the unwinding of floating storage has also contributed to the weakness in rates. COVID-19 has also led to an increase in certain crewing-related costs, which has had an impact on our cash flows, and was a contributing factor to the write-down of certain tankers during 2020 as described in Note 19 - Write-down and Sale of Assets and the reduction in certain tax accruals as described in Note 21 - Income Tax Expense. Foreign currency The consolidated financial statements are stated in U.S. Dollars and the functional currency of the Company 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). Revenues The Company's time charters and voyage charters include both a lease component, consisting of the lease of the vessel, and a non-lease component, consisting of the operation of the vessel for the customer. The Company has elected to not separate the non-lease component from the lease component for all such charters, where the lease component is classified as an operating lease, and to account for the combined component as an operating lease. Voyage charters 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 that contain a lease and a load-to-discharge basis in determining proportionate performance for all spot voyages that do not contain a lease. The 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. Revenues from the Company’s vessels performing voyage charters subject to revenue sharing agreements (or RSAs ) follow the same revenue recognition policy as voyage charters not subject to RSAs. The difference between the net revenue earned by a vessel of the Company performing voyage charters subject to RSAs and its allocated share of the aggregate net contribution is reflected within voyage expenses. The consolidated balance sheets reflect in accrued revenue the accrued portion of revenues for those voyages that commence prior to the balance sheet date and complete after the balance sheet date. Voyage expenses incurred that are recoverable from the Company's customers in connection with its voyage charter contracts are reflected in voyage charters revenues and voyage expenses. Time charters The Company recognizes revenues from time charters accounted for as operating leases on a straight-line basis 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 or other variable consideration, the Company recognizes the profit-sharing or contingent revenues in the period in which the changes in facts and circumstances on which the variable charter hire payments are based occur. The consolidated balance sheets reflect in accrued receivables, any accrued revenue and in deferred revenue, the deferred portion of revenues which will be earned in subsequent periods. If collectability of the time-charter hire receipts from time-charters accounted for as operating leases is not probable, revenue that would have otherwise been recognized is limited to the amount collected from the charterer. Other revenues Other revenues are earned from the offshore ship-to-ship transfer of commodities, primarily crude oil and refined oil products, but also liquid gases and various other products which are referred to as support operations. In addition, other revenues are also earned from other activities such as management of terminals and vessels, consultancy, procurement and equipment rental. Other revenues from short-term contracts are recognized as services are completed based on percentage of completion or in the case of long-term contracts, are recognized over the duration of the contract period. On April 30, 2020, the Company completed the sale of the non-US portion of its ship-to-ship support services business, as well as its LNG terminal management business (note 19). Operating expenses Voyage expenses are all expenses unique to a particular voyage, including fuel expenses, port fees, cargo loading and unloading expenses, canal tolls, agency fees and commissions. In addition, the difference between the net revenue earned by a vessel of the Company performing voyage charters subject to an RSA and its allocated share of the aggregate net contribution is reflected within voyage expenses. The Company, as shipowner, pays voyage expenses under voyage charters. The Company’s customers pay voyage expenses under time charters, except when the vessel is off-hire during the term of a time charter, in which case the Company pays voyage expenses. Voyage expenses are recognized when incurred. 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. Vessel operating expenses are recognized when incurred. Equity-based compensation The Company grants stock options and restricted stock units as incentive-based compensation to certain employees of the Company and 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. The requisite service period consists of the period from grant date of the award to the earlier of the date of vesting or the date the recipient becomes eligible for retirement. For equity-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 ( note 13). 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. Restricted cash - current The Company maintains restricted cash deposits relating to certain freight forward agreements (note 11), for certain contracts related to the ship-to-ship transfer business and for the LNG terminal management business, prior to its sale in April 2020 (note 19). Attached to the LNG terminal management contracts were certain performance guarantees which were required to be issued by the Company. Restricted cash - long-term The Company maintains restricted cash deposits for the purposes of the margin requirements of the Company's obligations related to certain finance leases (note 10). Accounts receivable and other loan receivables Accounts receivable are recorded at the invoiced amount and do not bear interest. The consolidated balance sheets reflect, in accounts receivable, any amounts where the right to consideration is conditioned upon the passage of time, and in other current assets, any accrued revenue where the right to consideration is conditioned upon something other than the passage of time. The Company’s advances to its equity-accounted joint venture is recorded at cost. Bunker and lube oil inventory Bunker and lube oil inventory is stated at cost, which is determined on a first-in, first-out basis. Investments in equity-accounted joint ventures The Company’s investments in equity-accounted joint ventures, in which the Company does not control but has the ability to exercise significant influence over the operating and financial policies of the entity, are accounted for using the equity method of accounting. Under the equity method of accounting, investments are stated at initial cost and are adjusted for subsequent additional investments and the Company’s proportionate share of earnings or losses and distributions. The Company evaluates its investments in equity-accounted joint ventures 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 investment in the equity-accounted joint venture is impaired and if its estimated fair value is less than its carrying value, the carrying value is written down to its estimated fair value and the resulting impairment is recorded in the Company’s consolidated statements of income (loss). The Company’s maximum exposure to loss is the amount it has invested in its equity-accounted joint venture and its proportionate share of guaranteed debt of the joint venture. 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. Vessel capital modifications include the addition of new equipment or certain modifications to the vessel that 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. Depreciation is calculated on a straight-line basis over a vessel’s estimated useful life, less an estimated residual value. Depreciation for vessels is calculated using an estimated useful life of 25 years from the date the vessel is delivered from the shipyard, or a shorter period if regulations prevent the Company from operating the vessels for 25 years. Depreciation of vessels and equipment (excluding amortization of dry-docking costs and intangible assets) for the years ended December 31, 2020, 2019 and 2018 totaled $88.3 million, $95.1 million , a nd $95.2 million, res pectively. Generally, the Company dry docks each vessel every two and a half years to five years. The Company capitalizes certain costs incurred during dry docking and amortizes those costs on a straight-line basis from the completion of a dry docking to the estimated completion of the next dry docking. The 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, 2018 to December 31, 2020: Year Ended December 31, 2020 2019 2018 Balance at the beginning of the year 71,807 56,019 48,460 Cost incurred for dry docking 28,546 45,371 27,896 Dry-dock amortization (27,851) (26,682) (20,326) Write-down / sale of vessels (4,975) (2,901) (11) Balance at the end of the year 67,527 71,807 56,019 Vessels and equipment that are intended to be “held and used” in the Company's business are assessed for impairment when events or circumstances indicate the carrying value 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 and the fair value of the asset is less than its carrying value, the carrying value of the asset is reduced to its estimated fair value. The estimated fair value for the Company's impaired vessels is determined using discounted cash flows or appraised values. In cases where an active second-hand sale and purchase market exists, an appraised value is used to estimate the fair value of an impaired vessel. An appraised value is generally the amount the Company would expect to receive if it were to sell the vessel. The appraised values are provided by third parties where available or prepared by the Company based on second-hand sale and purchase market data. In cases where an active second-hand sale and purchase market does not exist, or in certain other cases, the Company uses a discounted cash flow approach to estimate the fair value of an impaired vessel. Vessels and equipment that are "held for sale" are measured at the lower of their carrying value or fair value less costs to sell and are not depreciated while classified as held for sale. Interest and other expenses and related liabilities attributable to vessels and equipment classified as held for sale continue to be recognized as incurred. Lease obligations and right-of-use assets For its vessels and office leases as of the lease commencement date, the Company recognizes a liability for its lease obligation, initially measured at the present value of lease payments not yet paid, and an asset for its right to use the underlying asset, initially measured equal to the lease liability and adjusted for lease payments made at or before lease commencement, lease incentives, and any initial direct costs. The discount rate used to determine the present value of the lease payments is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term for an amount equal to the lease payments in a similar economic environment. The initial recognition of the lease obligation and right-of-use asset excludes short-term leases for the Company's chartered-in vessels and office leases. Short-term leases are leases with an original term of one year or less, excluding those leases with an option to extend the lease for greater than one year or an option to purchase the underlying asset that the lessee is deemed reasonably certain to exercise. The initial recognition of this lease obligation and right-of-use asset excludes variable lease payments that are based on the usage or performance of the underlying asset and the portion of payments related to non-lease elements of vessel charters. The Company uses the effective interest rate method to subsequently account for the lease liability, whereby interest is recognized in interest expense in the Company’s consolidated statements of income (loss). For those leases classified as operating leases, lease interest and right-of-use asset amortization in aggregate result in a straight-line expense profile that is presented in time-charter hire expense for vessels and general and administrative expense for office leases, unless the right-of-use asset becomes impaired. For those leases classified as finance leases, the right-of-use asset is amortized on a straight-line basis over the remaining life of the vessel, with such amortization included in depreciation and amortization in the Company’s consolidated statements of income (loss). Variable lease payments that are based on the usage or performance of the underlying asset are recognized as an expense when incurred, unless achievement of a specified target triggers the lease payment, in which case an expense is recognized in the period achievement of the target is considered probable. The Company recognizes the expense from short-term leases and any non-lease components of vessels time-chartered from other owners, on a straight-line basis over the firm period of the charters. The expense is included in time-charter hire expense for vessel charters and general and administrative expenses for office leases. The Company has determined that its time charter-in contracts contain both a lease component (lease of the vessel) and a non-lease component (technical operation of the vessel). The Company has allocated the contract consideration between the lease component and non-lease component on a relative standalone selling price basis. The standalone selling price of the non-lease component has been determined using a cost-plus approach, whereby the Company estimates the cost to technically operate the vessel using cost benchmarking studies prepared by a third party, when available, or internal estimates when not available, plus a profit margin. The standalone selling price of the lease component has been determined using an adjusted market approach, whereby the Company calculates a rate excluding the operating component based on a market time-charter rate information from published broker estimates, when available, or internal estimates when not available. Given that there are no observable standalone selling prices for either of these two components, judgment is required in determining the standalone selling price of each component. The right-of-use asset is assessed for impairment when events or circumstances indicate the carrying amount of the asset may not be recoverable. If the right-of-use 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 right-of-use asset is reduced to its estimated fair value. The estimated fair value for the Company's impaired right-of-use assets from in-chartered vessels is determined using a discounted cash flow approach to estimate the fair value. Subsequent to an impairment, a right-of-use asset related to an operating lease is amortized on a straight-line basis over its remaining life. Vessels sold and leased back by the Company, where the Company has a fixed price repurchase obligation or other situations where the leaseback would be classified as a finance lease are accounted for as a failed sale of the vessel. The Company does not derecognize the vessel sold and continues to depreciate the vessel as if it was the legal owner. Proceeds received from the sale of the vessel are recognized as an obligation related to finance lease and bareboat charter hire payments made by the Company to the lessor are allocated between interest expense and principal repayments on the obligation related to finance lease. In periods prior to the adoption of ASU 2016-02 (note 2), the Company's accounting policy was to recognize the expense from vessels time-chartered from other owners, which was included in time-charter hire expense, on a straight-line basis over the firm period of the charters. Goodwill and intangible assets Goodwill is not amortized but is reviewed for impairment at the reporting unit level on an annual basis or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. A reporting unit is a component of the Company that constitutes a business for which discrete financial information is available and regularly reviewed by management. When goodwill is reviewed for impairment, the Company may elect to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. Alternatively, the Company may bypass this step and use a fair value approach to identify potential goodwill impairment and, when necessary, measure the amount of impairment. The Company uses a discounted cash flow model to determine the fair value of reporting units, unless there is a readily determinable fair market value. Goodwill impairment is measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill. Customer-related intangible assets are amortized over the expected duration that the customer relationships are estimated to contribute to the cash flows of the Company. The amount amortized each year is weighted based on the projected revenue to be earned as a result of the customer relationships. Intangible assets are assessed for impairment when and if impairment indicators exist. An impairment loss is recognized if the carrying amount of an intangible asset is not recoverable and its carrying amount exceeds its fair value. Debt issuance costs Debt issuance costs related to recognized debt liabilities, including fees, commissions and legal expenses, are deferred and presented as a direct deduction from the carrying amount of the debt liability. Debt issuance costs which are not attributable to a specific debt liability or where the debt issuance costs exceed the carrying value of the related debt liability (primarily undrawn revolving credit facilities) are deferred and presented as other non-current assets in the Company's consolidated balance sheets. Debt issuance costs 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 in the Company’s consolidated statements of income (loss). Fees paid to substantially amend a non-revolving credit facility are associated with the extinguishment of the old debt instrument, if applicable, and included in determining the debt extinguishment gain or loss to be recognized. Other related costs incurred with third parties directly related to the extinguishment are deferred and presented as a direct reduction to the carrying amount of the replacement debt instrument and amortized using the effective interest rate method. In addition, any unamortized debt issuance costs are written off. If the amendment is considered not to be a substantial amendment, then the fees would be associated with the replacement or modified debt instrument and, along with any existing unamortized premium, discount and unamortized debt issuance costs, would be amortized as an adjustment of interest expense over the remaining term of the replacement or modified debt instrument using the effective interest method. Other costs incurred with third parties directly related to the modification, other than the loan amendment fee, are expensed as incurred. Fees paid to amend a revolving credit facility are deferred and amortized over the term of the modified revolving credit facility. If the borrowing capacity of the revolving credit facility increases as a result of the amendment, unamortized debt issuance costs of the original revolving credit facility are amortized over the remaining term of the modified revolving credit facility. If the borrowing capacity of the revolving credit facility decreases as a result of the amendment, a proportionate amount (based on the reduction in borrowing capacity) of the unamortized debt issuance costs of the original revolving credit facility are written off and the remaining amount is amortized over the remaining term of the modified revolving credit facility. Credit losses The Company utilizes a lifetime expected credit loss measurement objective for the recognition of credit losses for loans to equity-accounted joint ventures, guarantees of secured loan facilities of equity-accounted joint ventures, non-operating lease accounts receivable, contract assets and other receivables at the time the financial asset is originated or acquired. The expected credit losses are subsequently adjusted each period for changes in expected lifetime credit losses. The Company discontinues accrual of interest on financial assets if collection of required payments is no longer probable, and in those situations, recognizes payments received on non-accrual assets on a cash basis method, until collection of required payments becomes probable. The Company considers a financial asset to be past due when payment is not made within 30 days of it being owed, assuming there is no dispute or other uncertainty regarding the amount owing. Expected credit loss provisions are presented on the consolidated balance sheets as a reduction to the carrying value of the related financial asset and as an other long-term liability for expected credit loss provisions that relate to guarantees of secured loan facilities of equity-accounted joint ventures. Changes in expected credit loss provisions are presented within other income (loss) within the consolidated statements of income (loss). Prior to the adoption of Accounting Standards Update ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (or ASU 2016-13 ) on January 1, 2020, the Company recognized an allowance for doubtful accounts receivable consisting of the Company’s best estimate of the amount of probable credit losses in existing accounts receivable based on historical write-off experience and customer economic data. The Company reviewed the allowance for doubtful accounts regularly and past due balances were reviewed for collectability. Account balances were charged against the allowance when the Company believed that the receivable would not be recovered. In addition, the Company analyzed its loans for collectability during each reporting period. A loan loss provision was recognized, based on prevailing information and events, if it was probable that the Company would be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors the Company considered in determining if a loan loss provision was required include, among other things, an assessment of the financial condition of the debtor, payment history of the debtor, general economic conditions, the credit rating of the debtor (when available), any information provided by the debtor regarding its ability to repay the loan, and the fair value of the underlying collateral. When a loan loss provision was recognized, the Company measured the amount of the loss provision based on the present value of expected future cash flows discounted at the loan’s effective interest rate and recognizes the resulting loss in the consolidated statements of income (loss). The carrying value of the loan was adjusted each subsequent period to reflect any changes in the present value of the expected future cash flows. For charter contracts being accounted for as operating leases, if the remaining lease payments are no longer probable of being collected, any unpaid accounts receivable and any accrued revenue will be reversed against revenue and any subsequent payments will be recognized as revenue when collected until such time that the remaining lease payments are probable of being collected. Income taxes The Company accounts for income taxes using the liability method. Under the liability method, deferred tax assets and liabilities are recognized for the anticipated future tax effects of temporary differences between the consolidated financial statement basis and the tax basis of the Company's assets and liabilities using the applicable jurisdictional tax rates. A valuation allowance for deferred tax assets is recorded when it is determined that it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized. The Company recognizes the tax benefits from uncertain tax positions only if it is more likely than not that the tax position taken or expected to be taken in a tax return will be sustained on examination by the taxing authorities, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefits recognized in the Company’s consolidated financial statements from such positions are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense in the Company's consolidated statements of income (loss). The Company believes that it and its subsidiaries are not subject to income taxation under the laws of the Republic of The Marshall Islands or that distributions by its subsidiaries to the Company will not be subject to any income taxes under the laws of such countries, and that it qualifies for the Section 883 exemption under U.S. federal income tax purposes. Derivative instruments All derivative instruments are initially recorded at fair value as either assets or liabilities in the accompanying consolidated balance sheets and subsequently remeasured to fair value each period end, regardless of the purpose or intent of holding the derivative. The method of recognizing the resulting gains or losses is 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, however it could 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 gains and losses on the derivative that are excluded from the assessment of hedge effectiveness are recognized immediately in earnings. 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 probable of occurring. For derivative financial instruments designated and qualifying as cash flow hedges, changes in the fair value 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 Company's consolidated statements of income (loss). If a cash flow hedge is terminated and the originally hedged item is still considered probable of occurring, the gains and losses initially recognized in total equity remain there until the hedged it |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company’s primary source of revenue is from chartering its vessels (Aframax tankers, Suezmax tankers and Long Range 2 (or LR2 ) tankers) to its customers. The Company utilizes two primary forms of contracts, consisting of voyage charters and time charters. The extent to which the Company employs its vessels on voyage charters versus time charters is dependent upon the Company’s chartering strategy and the availability of time charters. Spot market rates for voyage charters are volatile from period to period, whereas time charters provide a stable source of monthly revenue. The Company also provides ship-to-ship support services, which include managing the process of transferring cargo between seagoing ships positioned alongside each other, either stationary or underway, as well as management services to third-party owners of vessels. Prior to April 30, 2020, the Company managed liquefied natural gas (or LNG ) terminals and procured LNG-related goods for terminal owners and other customers. On April 30, 2020, the Company completed the sale of the non-US portion of its ship-to-ship support services business, as well as its LNG terminal management business (note 19). Voyage Charters Voyage charters are charters for a specific voyage that are usually priced on a current or "spot" market rate. Voyage charters for full service lightering voyages may also be priced based on pre-agreed terms. The performance obligations within a voyage charter contract, which will typically include the lease of the vessel to the charterer as well as the operation of the vessel, are satisfied as services are rendered over the duration of the voyage, as measured using the time that has elapsed from commencement of performance. In addition, any expenses that are unique to a particular voyage, including fuel expenses, port fees, cargo loading and unloading expenses, canal tolls, agency fees and commissions, are the responsibility of the vessel owner. The Company’s voyage charters will normally contain a lease; however, judgment is necessary to determine whether this is the case based upon the decision-making rights the charterer has under the contract. Consideration for such contracts are considered either fixed or variable, depending on certain conditions. Delays caused by the charterer result in additional consideration. Payment for the voyage is not due until the voyage is completed. The duration of a single voyage will typically be less than three months. As such, accrued revenue at the end of a period will be invoiced and paid in the subsequent period. The amount of accrued revenue at any point in time will depend on the percent completed of each voyage in progress as well as the freight rate agreed for those specific voyages. The Company does not engage in any specific tactics to minimize vessel residual value risk due to the short-term nature of the contracts. Time Charters Pursuant to a time charter, the Company charters a vessel to a customer for a fixed period of time, generally one year or more. The performance obligations within a time-charter contract, which will include the lease of the vessel to the charterer as well as the operation of the vessel, are satisfied as services are rendered over the duration of such contract, as measured using the time that has elapsed from commencement of performance. In addition, any expenses that are unique to a particular voyage, including any fuel expenses, port fees, cargo loading and unloading expenses, canal tolls, agency fees and commissions, are the responsibility of the customer, as long as the vessel is not off-hire. Hire is typically invoiced monthly in advance for time-charter contracts, based on a fixed daily hire amount. However, certain sources of variability exist, including off-hire and sometimes profit share revenue. If the vessel is off-hire due to mechanical breakdown or for any other reason, the charterer does not pay charter hire for this time. For contracts including a profit share component, the profit share consideration occurs when actual spot tanker rates earned by the vessel exceed certain thresholds for a period of time. Variable consideration of the Company’s contracts is typically recognized as incurred. The Company does not engage in any specific tactics to minimize vessel residual value risk. As at December 31, 2020, nine of the Company’s vessels operated under time-charter contracts with the Company’s customers, seven of which are scheduled to expire in 2021 and two of which are scheduled to expire in 2022. As at December 31, 2020, the future hire payments expected to be received by the Company under time charters then in place were approximately $45.3 million (2021) and $5.2 million (2022). The hire payments should not be construed to reflect a forecast of total charter hire revenues for any of the periods. Future hire payments do not include hire payments generated from new contracts entered into after December 31, 2020, from unexercised option periods of contracts that existed on December 31, 2020 or from variable consideration, if any. In addition, future hire payments presented above have been reduced by estimated off-hire time for required period maintenance. Actual amounts may vary given future events such as unplanned vessel maintenance. The carrying amount of the Company's owned and leased vessels employed on time charters as at December 31, 2020, was $344.4 million (2019 - $173.8 million). The cost and accumulated depreciation of the vessels employed on these time charters as at December 31, 2020 were $464.8 million (2019 - $213.8 million) and $120.4 million (2019 - $40.0 million), respectively. As at December 31, 2020, the Company had $4.2 million (2019 - $7.5 million) advanced payments recognized as contract liabilities that are expected to be recognized as time-charter revenues in the following periods which are included in other current liabilities on the Company's consolidated balance sheets. During the year ended December 31, 2020, the Company recognized revenue of $7.5 million that was included as contract liabilities at December 31, 2019. Other Revenues Ship-to-ship support services include managing the process of transferring cargo between seagoing ships positioned alongside each other. Each operation is typically completed in less than 48 hours. The performance obligations within LNG terminal and vessel management contracts are satisfied as services are rendered over the duration of such contracts. The management fee, consisting of a fixed component based on the period of management and in certain cases a variable component based on the asset earnings, is invoiced monthly in arrears. Substantially all of the Company’s performance obligations are satisfied over the duration of the associated contract, and the Company uses the proportion of elapsed time as its method to recognize revenue over the contract duration. The variable consideration of the Company’s contracts is typically recognized as incurred as such consideration is allocated to distinct periods within a contract. On April 30, 2020, the Company completed the sale of the non-US portion of its ship-to-ship support services business, as well as its LNG terminal management business (note 19). Revenue Table The following table contains a breakdown of the Company's revenue by contract type for the years ended December 31, 2020, 2019 and 2018. All revenue is part of the Company's tanker segment, except for revenue for the non-US portion of the ship-to-ship support services and LNG terminal management, consultancy, procurement, and other related services, which are part of the Company's previously existing ship-to-ship transfer segment (note 4). The Company’s lease income consists of the revenue from its voyage charters and time-charters. Year Ended December 31, 2020 2019 2018 Voyage charter revenues Suezmax 340,535 424,578 371,463 Aframax 198,206 255,702 125,390 LR2 109,343 119,486 67,345 Full service lightering 93,720 81,837 107,730 Total 741,804 881,603 671,928 Time-charter revenues Suezmax 107,543 15,658 17,088 Aframax 13,262 1,837 35,531 LR2 6,793 — 7,357 Total 127,598 17,495 59,976 Other revenues Ship-to-ship support services 9,621 24,015 28,629 Vessel management 7,019 8,461 8,829 LNG terminal management, consultancy, procurement and other 392 12,343 7,131 Total 17,032 44,819 44,589 Total revenues 886,434 943,917 776,493 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment ReportingOn April 30, 2020, the Company completed the sale of the non-US portion of its ship-to-ship support services business, as well as its LNG terminal management business. Following the sale, the Company's remaining ship-to-ship support operations were integrated into the Company's tanker business. As a result, effective April 30, 2020, the Company has one reportable segment. The Company’s segment information for all periods prior to the sale and reorganization has been retroactively adjusted whereby the remaining ship-to-ship support operations have been reallocated from the ship-to-ship transfer segment to the tanker segment. Consequently, the Company’s tanker segment now consists of the operation of all of its tankers, including the operations from those tankers employed on full service lightering contracts, and the US based ship-to-ship support service operations that the Company retained, including its lightering support services provided as part of full service lightering operations. The Company’s ship-to-ship transfer segment consisted of the Company’s non-US lightering support services, LNG terminal management, consultancy, procurement, and other related services which were sold as of April 30, 2020. Segment results are evaluated based on income (loss) from operations. The accounting policies applied to the reportable segments are the same as those used in the preparation of the Company’s consolidated financial statements. The following tables include results for the Company’s revenue and income (loss) from operations by segment for the years ended December 31, 2020, 2019 and 2018: Year Ended December 31, 2020 Tanker Ship-to-Ship Total Revenues (1) 879,442 6,992 886,434 Voyage expenses (297,225) — (297,225) Vessel operating expenses (178,293) (5,940) (184,233) Time-charter hire expenses (36,341) — (36,341) Depreciation and amortization (116,719) (493) (117,212) General and administrative expenses (2) (38,379) (627) (39,006) (Write-down) and (loss) gain on sale of assets (72,527) 3,081 (69,446) Restructuring charges (1,398) — (1,398) Income from operations 138,560 3,013 141,573 Equity income 5,100 — 5,100 Year Ended December 31, 2019 Tanker Ship-to-Ship Total Revenues (1) 913,816 30,101 943,917 Voyage expenses (402,294) — (402,294) Vessel operating expenses (184,320) (24,281) (208,601) Time-charter hire expenses (43,189) — (43,189) Depreciation and amortization (121,126) (2,876) (124,002) General and administrative expenses (2) (34,904) (1,500) (36,404) Write-down and loss on sale of vessels (5,544) — (5,544) Income from operations 122,439 1,444 123,883 Equity income 2,345 — 2,345 Year Ended December 31, 2018 Tanker Ship-to-Ship Total Revenues (1) 750,769 25,724 776,493 Voyage expenses (381,306) — (381,306) Vessel operating expenses (187,523) (21,608) (209,131) Time-charter hire expenses (19,538) — (19,538) Depreciation and amortization (114,930) (3,584) (118,514) General and administrative expenses (2) (38,195) (1,580) (39,775) Gain on sale of vessel 170 — 170 Restructuring charges (348) (847) (1,195) Income (loss) from operations 9,099 (1,895) 7,204 Equity income 1,220 — 1,220 (1) Revenues earned from the ship-to-ship transfer segment are reflected in other revenues in the Company's consolidated statements of income (loss). (2) Includes direct general and administrative expenses and indirect general and administrative expenses (allocated to each segment based on estimated use of corporate resources) (note 14b). A reconciliation of total segment assets to total assets presented in the accompanying consolidated balance sheet as at December 31, 2019, when the Company had more than one reportable segment, is as follows: As at Tanker 2,114,451 Ship-to-Ship Transfer 26,201 Cash and cash equivalents 88,824 Total assets 2,229,476 |
Investment in and advances to E
Investment in and advances to Equity-Accounted for Investment | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in and advances to Equity-Accounted for Investment | Investment in and Advances to Equity-Accounted Joint Venture 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 2013-built VLCC, which trades on spot voyage charters in a pool managed by a third party. As at December 31, 2020, the High-Q joint venture had a loan outstanding with a financial institution with a balance of $25.7 million (2019 - $31.9 million). The loan is secured by a first-priority mortgage on the VLCC owned by the High-Q joint venture and 50% of the outstanding loan balance is guaranteed by the Company. For the year ended December 31, 2020, the Company recorded equity income of $5.1 million (2019 - $2.3 million and 2018 – $1.2 million), which comprises its share of net income from the High-Q joint venture. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets In 2015, the Company acquired a ship-to-ship transfer business (previously referred to as SPT and now known as Teekay Marine Solutions or TMS ) from a company jointly owned by Teekay Corporation and a Norway-based marine transportation company, I.M. Skaugen SE and recognized goodwill and intangible assets relating to customer relationships at the time of acquisition. On April 30, 2020, the Company completed the sale of the non-U.S. portion of its ship-to-ship support services business, as well as its LNG terminal management business. Following the sale, the Company's remaining ship-to-ship support operations were integrated into the Company's tanker business. As a result, effective April 30, 2020, the Company has one reportable segment. The Company’s goodwill and intangible assets for December 31, 2019 have been retroactively adjusted whereby the remaining ship-to-ship support operations amounts have been reallocated from the ship-to-ship transfer segment to the tanker segment. The proportionate share of goodwill of $5.6 million and intangible assets of $6.9 million attributable to the business that was sold was classified as held for sale on the Company's consolidated balance sheet as at December 31, 2019 (note 19). Goodwill The carrying amount of goodwill was $2.4 million as at December 31, 2020 and 2019. In 2020, 2019 and 2018, the Company conducted its annual goodwill impairment review and concluded that no impairment had occurred. Intangible Assets The carrying amounts of intangible assets are as follows: As at December 31, 2020 December 31, 2019 $ $ Customer relationships At cost, less accumulated amortization of $3.7 million (2019 - $3.2 million) (1) 1,989 2,545 1,989 2,545 (1) The customer relationships are being amortized over a weighted average amortization period of 10 years. Amortization of intangible assets for the year ended December 31, 2020 was $1.0 million (2019 - $2.2 million, 2018 - $2.9 million). Amortization of intangible assets for the five years subsequent to 2020 is expected to be, $0.5 million (2021), $0.4 million (2022), $0.4 million (2023), $0.4 million (2024) and $0.3 million (2025). |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Year Ended December 31, 2020 2019 Voyage and vessel 39,796 48,526 Corporate accruals 781 463 Interest 2,814 2,610 Payroll and benefits ( note 14c ) 11,664 8,136 Accrued liabilities 55,055 59,735 |
Short-Term Debt
Short-Term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Short-Term Debt Disclosure [Abstract] | |
Short-Term Debt | Short-Term Debt In November 2018, Teekay Tankers Chartering Pte. Ltd. (or TTCL ) a wholly-owned subsidiary of the Company, entered into a working capital revolving loan facility (or the Working Capital Loan ), which initially provided available aggregate borrowings of up to $40.0 million for TTCL, and had an initial maturity date in May 2019, subject to extension as described below. The maximum available aggregate borrowings were subsequently increased to $80.0 million, effective December 2019. The amount available for drawdown is limited to a percentage of certain receivables and accrued revenue, which is assessed weekly. The next maturity date of the Working Capital Loan is in May 2021. The Working Capital Loan maturity date is continually extended for further periods of six months thereafter unless and until the lender gives notice in writing that no further extensions shall occur. Proceeds of the Working Capital Loan are used to provide working capital in relation to certain vessels subject to the RSAs. Interest payments are based on LIBOR plus a margin of 3.5%. The Working Capital Loan is collateralized by the assets of TTCL. The Working Capital Loan requires the Company to maintain its paid-in capital contribution under the RSAs and the retained distributions of the RSA counterparties in an amount equal to the greater of (a) an amount equal to the minimum average capital contributed by the RSA counterparties per vessel in respect of the RSA (including cash, bunkers or other working capital contributions and amounts accrued to the RSA counterparties but unpaid) and (b) a minimum capital contribution ranging from $20.0 million to $30.0 million based on the amount borrowed. As at December 31, 2020 , $10.0 million (2019 - $50.0 million) was owing under this facility, the aggregate available borrowings were $32.0 million (2019 - $80.0 million), and the interest rate on the facility was 3.6% ( |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Year Ended December 31, 2020 2019 Revolving credit facilities due through 2024 185,000 341,132 Term loans due through 2023 64,568 221,729 Total principal 249,568 562,861 Less: unamortized discount and debt issuance costs (6,607) (3,182) Total debt 242,961 559,679 Less: current portion (10,858) (43,573) Long-term portion 232,103 516,106 As at December 31, 2020, the Company had one revolving credit facility (or the 2020 Revolver ) (2019 - two revolving credit facilities) which, as at such date, provided for aggregate borrowings of up to $438.4 million, o f which $253.4 million was undrawn (2019 - $371.5 million, of which $30.4 million was undrawn). Interest payments are based on LIBOR plus a margin, which was 2.40% as at December 31, 2020 (2019 - ranged from 2.00% to 2.75%). The total amount available under the 2020 Revolver decreases by $91.4 million (2021), $80.4 million (2022), $65.3 million (2023) and $201.3 million (2024). As at December 31, 2020, the Company also had one term loan (or the 2020 Term Loan ) outstanding (2019 - three term loans), which totaled $64.6 million (2019 - $221.7 million). Interest payments are based on LIBOR plus a margin, which was 2.25% as at December 31, 2020 (2019 - based on a combination of a fixed rate of 5.40% and variable rates based on LIBOR plus margins, which ranged from 0.30% to 2.00%). The term loan reduces in quarterly payments and has a balloon repayment due at maturity in 2023. The 2020 Revolver and 2020 Term Loan are further described below. In January 2020, the Company entered into the 2020 Revolver, which is scheduled to mature in December 2024, and which had an outstanding balance of $185.0 million drawn as at December 31, 2020. The 2020 Revolver was used to repay a portion of the $455.3 million previously outstanding under two previous revolving credit facilities of the Company, which were scheduled to mature in 2021 and 2022, and under two term loan facilities, which were scheduled to mature in 2020 and 2021. The 2020 Revolver is collateralized by 31 of the Company's vessels, together with other related security. The 2020 Revolver requires that the Company maintain a minimum hull coverage ratio of 125% of the total outstanding drawn balance for the facility period. Such requirement is assessed on a semi-annual basis with reference to vessel valuations compiled by two or more agreed upon third parties. Should the ratio drop below the required amount, the lender may request that the Company either prepay a portion of the loan in the amount of the shortfall or provide additional collateral in the amount of the shortfall, at the Company's option. As at December 31, 2020, the hull coverage ratio was 404%. A decline in the tanker market could negatively affect the ratio. In addition, the Company is required to maintain a minimum liquidity (cash, cash equivalents and undrawn committed revolving credit lines with at least six months to maturity) of the greater of $35.0 million and at least 5% of the Company's total consolidated debt and obligations related to finance leases. In August 2020, the Company entered into the 2020 Term Loan, which is scheduled to mature in August 2023, and which had an outstanding balance of $64.6 million as at December 31, 2020. The 2020 Term Loan was used to repay a portion of the $85.1 million previously outstanding under one previous term loan facility, which was scheduled to mature in 2021. The 2020 Term Loan is collateralized by four of the Company's vessels, together with other related security. The 2020 Term Loan requires that the Company maintain a minimum hull coverage ratio of 125% of the total outstanding principal balance for the loan period. Such requirement is assessed on a semi-annual basis with reference to vessel valuations compiled by two or more agreed upon third parties. Should the ratio drop below the required amount, the lender may request that the Company either prepay a portion of the loan in the amount of the shortfall or provide additional collateral in the amount of the shortfall, at the Company's option. As at December 31, 2020, the hull coverage ratio was 189%. A decline in the tanker market could negatively affect the ratio. In addition, the Company is required to maintain a minimum liquidity (cash, cash equivalents and undrawn committed revolving credit lines with at least six months to maturity) of the greater of $35.0 million and at least 5% of the Company's total consolidated debt and obligations related to finance leases. As at December 31, 2020, the Company was in compliance with all covenants in respect of the 2020 Revolver and the 2020 Term Loan. The weighted-average interest rate on the Company’s long-term debt as at December 31, 2020 was 2.6% (2019 – 3.7%). This rate does not reflect the effect of the Company’s interest rate swap agreement (note 11). |
Operating Leases and Obligation
Operating Leases and Obligations Related to Finance Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lessee, Operating Leases | Operating Leases and Obligations Related to Finance Leases Operating Leases The Company charters-in vessels from other vessel owners on time-charter contracts, whereby the vessel owner provides use and technical operation of the vessel for the Company. A time charter-in contract is typically for a fixed period of time, although in certain cases, the Company may have the option to extend the charter. The Company typically pays the owner a daily hire rate that is fixed over the duration of the charter. The Company is generally not required to pay the daily hire rate during periods the vessel is not able to operate. With respect to time charter-in contracts with an original term of more than one year, for the year ended December 31, 2020, the Company incurred $30.0 million (2019 - $25.2 million) of time-charter hire expenses related to five (2019 - four) time charter-in contracts, of which $16.0 million (2019 - $14.1 million) was allocable to the lease component and $14.0 million (2019 - $11.1 million) was allocable to the non-lease component. The $16.0 million (2019 - $14.1 million) allocable to the lease component approximate the cash paid for the amounts included in lease liabilities and is reflected as a reduction in operating cash flows for the year ended December 31, 2020. Three of these time charter-in contracts include an option to extend the charter for an additional one The Company has elected to recognize the lease payments of short-term leases in the statement of income (loss) on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred, which is consistent with the recognition of payment for the non-lease component. Short-term leases are leases with an original term of one year or less, excluding those leases with an option to extend the lease for greater than one year or an option to purchase the underlying asset that the lessee is deemed reasonably certain to exercise. For the year ended December 31, 2020, the Company incurred $6.3 million (2019 - $18.0 million) of time-charter hire expense related to time charter-in contracts classified as short-term leases. During the year ended December 31, 2020, the Company chartered in one lightering support vessel for a period of 24 months, which resulted in the Company recognizing right-of-use assets of $0.8 million on the lease commencement date. During the year ended December 31, 2019, the Company chartered in two LR2 vessels and one Aframax vessel for periods of 24 months, which resulted in the Company recognizing right-of-use assets of $14.7 million and $7.8 million on the lease commencement dates for the LR2 vessels and Aframax vessel, respectively. In December 2020, the Company entered into a time charter-in contract for one Aframax tanker newbuilding for a period of seven years, with three additional one A maturity analysis of the Company's operating lease liabilities from time charter-in contracts (excluding short-term leases) as at December 31, 2020 is as follows: Lease Commitment Non-Lease Commitment Total Commitment As at December 31, 2020 Payments: 2021 3,744 4,235 7,979 2022 319 1,226 1,545 Total payments 4,063 5,461 9,524 Less: imputed interest (63) Carrying value of operating lease liabilities 4,000 As at December 31, 2020, the total minimum commitments to be incurred by the Company under time charter-in contracts were approximately $10.3 million (2021), $3.3 million (2022), $6.8 million (2023), $6.8 million (2024), $6.8 million (2025), and $25.0 million (thereafter), including one seven |
Lessee, Finance Leases | Obligations Related to Finance Leases As at As at December 31, 2020 December 31, 2019 $ $ Total obligations related to finance leases 360,043 414,788 Less: current portion (78,476) (25,357) Long-term obligations related to finance leases 281,567 389,431 From 2017 to 2019, the Company completed sale-leaseback financing transactions with financial institutions relating to 16 of the Company's vessels. Under these arrangements, the Company transferred the vessels to subsidiaries of the financial institutions (or collectively, the Lessors ) and leased the vessels back from the Lessors on bareboat charters ranging from 9- to 12-year terms. The Company is obligated to purchase eight of the vessels upon maturity of their respective bareboat charters. The Company also has the option to purchase each of the 16 vessels at various times starting between July 2020 and November 2021 until the end of their respective lease terms. In October 2020, the Company completed the purchases of two of these vessels for a total cost of $29.6 million. As at December 31, 2020, the Company consolidates 12 of the remaining 14 Lessors for financial reporting purposes as VIEs. The Company understands that these vessels and lease operations are the only assets and operations of the Lessors. The Company operates the vessels during the lease terms, and as a result, is considered to be the Lessors' primary beneficiary. The liabilities of the 12 Lessors are loans and are non-recourse to the Company. The amounts funded to the 12 Lessors in order to purchase the vessels materially match the funding to be paid by the Company's subsidiaries under these lease-back transactions. As a result, the amounts due by the Company's subsidiaries to the 12 Lessors considered as VIEs have been included in obligations related to finance leases as representing the Lessors' loans. Subsequent to the adoption of ASU 2016-02 on January 1, 2019, sale and leaseback transactions where the lessee has a purchase obligation are treated as a failed sale. Consequently, the sale-leaseback of the Aspen Spirit and Cascade Spirit during the second quarter of 2019 is accounted for as a failed sale and the Company has not derecognized the assets and continues to depreciate the assets as if it was the legal owner. Proceeds received from the sale are set up as an obligation related to finance lease and bareboat charter hire payments made by the Company to the Lessor are allocated between interest expense and principal repayments on the obligation related to finance lease. The bareboat charters related to these vessels require that the Company maintain a minimum liquidity (cash, cash equivalents and undrawn committed revolving credit lines with at least six months to maturity) of the greater of $35.0 million and at least 5.0% of the Company's consolidated debt and obligations related to finance leases. Six bareboat charters were entered into with subsidiaries of a financial institution in July 2017 and November 2018. Four of these bareboat charters, entered into in July 2017, require the Company to maintain, for each vessel, a minimum hull coverage ratio of 90% of the total outstanding principal balance during the first three years of the lease period and 100% of the total outstanding principal balance thereafter. As at December 31, 2020, these ratios ranged f rom 121% to 143% (2019 - ranged from 110% to 132%). The remaining two of these bareboat charters, entered into in November 2018, require the Company to maintain, for each vessel, a minimum hull coverage ratio of 100% of the total outstanding principal balance. As at December 31, 2020, these ratios ranged from 145% to 156% (2019 - ranged from 140% to 144%). Should any of these ratios drop below the required amount, the Lessor may request that the Company prepay additional charter hire. Eight bareboat charters were entered into with subsidiaries of a financial institution in September 2018 and May 2019. Six of these bareboat charters, entered into in September 2018, require the Company to maintain, for each vessel, a minimum hull coverage ratio of 75% of the total outstanding principal balance during the first year of the lease period, 78% for the second year, 80% for the following two years and 90% of the total outstanding principal balance thereafter. As at December 31, 2020, these ratios ranged from 80% to 88% (2019 - ranged from 106% to 123%). The remaining two of these bareboat charters, entered into in May 2019, require the Company to maintain, for each vessel, a minimum hull coverage ratio of 75% of the total outstanding principal balance during the first year of the lease period, 78% for the second year, 80% for the following two years and 90% of the total outstanding principal balance thereafter. As at December 31, 2020, these ratios were 81% (2019 - 109%). Should any of these ratios drop below the required amount, and we are unable to cure any such breach within the prescribed cure period, our obligations may become immediately due and payable at the election of the relevant lessor. In certain circumstances, this could lead to cross-defaults under our other financing agreements which in turn could result in obligations becoming due and commitments being terminated under such agreements. In November 2020, the Company declared purchase options to acquire two of these vessels for a total cost of $56.7 million with an expected completion date of May 2021 and, in March 2021, the Company declared purchase options to acquire the remaining six vessels for a total cost of $128.8 million with an expected completion date of September 2021 (note 22). Such requirements are assessed annually or quarterly with reference to vessel valuations compiled by one or more agreed upon third parties. As at December 31, 2020, the Company was in compliance with all covenants in respect of its obligations related to finance leases. The weighted-average interest rate on the Company's obligations related to finance leases as at December 31, 2020 was 7.8% (2019 - 7.6%). As at December 31, 2020, the Company's total remaining commitments (including vessel purchase options declared) related to the financial liabilities of these vessels were approximately $480.9 million (2019 - $601.7 million), including imputed interest of $120.9 million (2019 - $186.9 million), repayable from 2021 through 2030, as indicated below: Commitments December 31, 2020 Year $ 2021 103,033 2022 43,552 2023 43,545 2024 43,656 2025 43,528 Thereafter 203,630 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Interest rate swap The Company uses derivative instruments 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 swap as a cash flow hedge of its U.S. Dollar LIBOR-denominated borrowings. In January 2020, the Company completed a refinancing of certain long-term debt facilities (note 9). As a result of this refinancing, the Company extinguished all of its then existing interest rate swaps. In March 2020, the Company entered into a new interest rate swap which is scheduled to mature in December 2024. The following summarizes the Company's interest rate swap agreement as at December 31, 2020: Interest Rate Index Notional Amount Fair Value / Remaining Fixed Swap (1) LIBOR-Based Debt: U.S. Dollar-denominated interest rate swap LIBOR 50,000 886 4.0 0.76 (1) Excludes the margin the Company pays on its variable-rate long-term debt, which, as of December 31, 2020, ranged from 2.25% to 2.40%. The Company is potentially exposed to credit loss in the event of non-performance by the counterparty to the interest rate swap agreement 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. Forward freight agreements The Company uses forward freight agreements (or FFAs ) in non-hedge-related transactions to increase or decrease its exposure to spot market rates, within defined limits. Net gains and losses from FFAs are recorded within realized and unrealized (loss) gain on derivative instruments in the Company's consolidated statements of income (loss). The following table presents the location and fair value amounts of derivative instruments, segregated by type of contract, on the Company’s consolidated balance sheets. Current portion of derivative assets Derivative assets Accounts Receivable Current portion of derivative liabilities Derivative liabilities As at December 31, 2020 Interest rate swap agreement — — — (289) (597) — — — (289) (597) As at December 31, 2019 Interest rate swap agreements 577 82 230 — — Forward freight agreements — — — (86) — 577 82 230 (86) — Realized and unrealized (losses) gains relating to the interest rate swaps and FFAs are recognized in earnings and reported in realized and unrealized (loss) gain on derivative instruments in the Company’s consolidated statements of income (loss) as follows: Year Ended Year Ended Year Ended Realized gains (losses) relating to: Interest rate swap agreements 481 2,791 2,316 Forward freight agreements (1,242) 1,489 137 (761) 4,280 2,453 Unrealized (losses) gains relating to: Interest rate swap agreements (1,545) (5,218) 636 Forward freight agreements 86 (29) (57) (1,459) (5,247) 579 Total realized and unrealized (loss) gain on derivatives (2,220) (967) 3,032 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following methods and assumptions were used to estimate the fair value of each class of financial instruments and other non-financial assets: Cash and cash equivalents and restricted cash – The fair value of the Company’s cash and cash equivalents and restricted cash approximates its carrying amounts reported in the consolidated balance sheets. Vessels and equipment, operating lease right-of-use assets and assets held for sale – The estimated fair value of the Company’s vessels and equipment, operating lease right-of-use assets and assets held for sale are determined based on appraised values, discounted cash flows and contractual sales prices. In cases where an active second-hand sale and purchase market exists, an appraised value is generally the amount the Company would expect to receive if it were to sell the vessel. The appraised values are provided by third parties where available or prepared by the Company based on second-hand sale and purchase market data. 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 or asset. Other assets held for sale include working capital balances and the fair value of such amounts generally approximate their carrying value. Long-term debt – The fair value of the Company’s long-term debt is 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. Long-term obligations related to finance leases - The fair value of the Company's long-term obligations related to finance leases is 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 is the estimated amount 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. 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 on a recurring basis. December 31, 2020 December 31, 2019 Fair Value Hierarchy Level Carrying Amount Asset/ (Liability) Fair Value Asset/ (Liability) Carrying Amount Asset/ (Liability) Fair Value Asset/ (Liability) Recurring: Cash, cash equivalents and restricted cash (note 16c) Level 1 103,146 103,146 95,332 95,332 Derivative instruments (note 11) Interest rate swap agreements (1) Level 2 (886) (886) 659 659 Freight forward agreements (1) Level 2 — — (86) (86) Non-recurring: Operating lease right-of-use assets ( note 19 ) Level 2 1,799 1,799 — — Vessels and equipment ( note 19 ) Level 2 59,250 59,250 — — Assets held for sale (note 19) Level 2 31,680 31,680 37,240 37,240 Other: Short-term debt (note 8) Level 2 (10,000) (10,000) (50,000) (50,000) Advances to equity-accounted joint venture Note (2) 5,280 Note (2) 9,930 Note (2) Long-term debt, including current portion (note 9) Level 2 (242,961) (248,738) (559,679) (558,657) Obligations related to finance leases, including current portion (note 10) Level 2 (360,043) (411,740) (414,788) (442,648) (1) The fair values of the Company's interest rate swap agreements and FFAs at December 31, 2020 and 2019 exclude accrued interest income and expenses, which are recorded in accounts receivables and accrued liabilities, respectively, in these consolidated financial statements. (2) The advances to its equity-accounted joint venture, together with the Company’s investment in the equity-accounted joint venture, form the net aggregate carrying value of the Company’s interests in the equity-accounted joint venture in these consolidated financial statements. The fair values of the individual components of such aggregate interests as at December 31, 2020 and 2019 were not determinable. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Capital Stock | Capital Stock The authorized capital stock of Teekay Tankers Ltd. at December 31, 2020 was 100.0 million shares of Preferred Stock (2019 - 100.0 million shares of Preferred Stock), with a par value of $0.01 per share (2019 - $0.01 per share), 485.0 million shares of Class A common stock (2019 - 485.0 million shares of Class A common stock), with a par value of $0.01 per share (2019 - $0.01 per share), and 100.0 million shares of Class B common stock (2019 - 100.0 million shares of Class B common stock), with a par value of $0.01 per share (2019 - $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, 2020, the Company had 29.1 million shares of Class A common stock (2019 – 29.0 million), 4.6 million shares of Class B common stock (2019 – 4.6 million) and no shares of Preferred Stock issued and outstanding (2019 – nil). Commencing in December 2015, the Company adopted a dividend policy under which quarterly dividends were set to range from 30% to 50% of its quarterly adjusted net income, subject to the discretion of its Board of Directors, with a minimum quarterly dividend of $0.24 per share under the Company's policy, which was subject to change. Effective May 2018, the Company eliminated the payment of its minimum quarterly dividend of $0.24 per share in order to preserve liquidity during the cyclical downturn of the tanker spot market. Under the revised dividend policy, quarterly dividends were expected to range from 30% to 50% of the Company's quarterly adjusted net income, subject to reserves its Board of Directors may determine are necessary for the prudent operations of the Company. In November 2019, the Company eliminated its previous dividend policy. Going forward dividend payments are subject to the discretion of the Company's Board of Directors, and the policy remains subject to change. 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, 2020, the Company had reserved under its 2007 Long-Term Incentive Plan a total of 1,250,000 shares of Class A common stock for issuance pursuant to awards granted under the plan (2019 – 1,250,000 Class A common stock). For the year ended December 31, 2020, a total of 13.1 thousand shares (2019 – 19.9 thousand shares, 2018 – 21.0 thousand shares) of Class A common stock were granted and issued to the Company’s non-management directors as part of their annual compensation. The compensation relating to the granting of such stock has been included in general and administrative expenses in the amount of $0.2 million for each of the years ended December 31, 2020, 2019, and 2018, 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 eligible officers, employees and non-management directors of the Company or Teekay subsidiaries that provide services to the Company. The number of options and restricted stock units information included in these consolidated financial statements has been retroactively adjusted for the November 2019 reverse stock split (note 1). 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). During 2020, no stock options were granted by the Company. During 2019, the Company granted 58.8 thousand (2018 - 63.0 thousand) stock options with an exercise price of $8.00 per share (2018 - $9.76) to the Company’s non-management directors. These stock options have a ten ten The weighted-average fair value of the stock options granted during 2019 was $2.79 per option (2018 - $2.77 per option), estimated on the grant date using the Black-Scholes option pricing model. The following assumptions were used in computing the fair value of the stock options granted: expected volatility of 48.7% (2018 - 48.7%); expected life of five years (2018 - five years); dividend yield of 3.0% (2018 - 5.5%); and risk-free interest rate of 2.4% (2018 - 2.6%). The expected life of the stock options granted was estimated using the historical exercise behavior of employees of Teekay that receive stock options from Teekay. The expected volatility was based on historical volatility as calculated using historical data during the five years prior to the grant date. A summary of the Company’s stock option information for the years ended December 31, 2020, 2019, and 2018 is as follows: December 31, 2020 December 31, 2019 December 31, 2018 Options (#) Weighted-Average Exercise Price ($) Options (#) Weighted-Average Exercise Price ($) Options (#) Weighted-Average Exercise Price ($) Outstanding - beginning of year 605,594 14.16 359,496 18.45 208,788 24.78 Granted — — 277,066 8.00 155,053 9.76 Exercised (25,681) 10.47 (30,968) 8.96 — — Forfeited / expired — — — — (4,345) 12.45 Outstanding - end of year 579,913 14.32 605,594 14.16 359,496 18.45 Exercisable - end of year 404,716 16.92 309,609 19.12 224,687 21.54 A summary of the Company’s non-vested stock option activity and related information for the years ended December 31, 2020, 2019 and 2018 is as follows: December 31, 2020 December 31, 2019 December 31, 2018 Options (#) Weighted-Average Grant Date Fair Value ($) Options (#) Weighted-Average Grant Date Fair Value ($) Options (#) Weighted-Average Grant Date Fair Value ($) Outstanding non-vested stock options - 295,984 8.96 134,809 13.30 76,881 21.47 Granted — — 218,223 8.00 92,041 9.76 Vested (120,787) 9.93 (57,048) 15.54 (29,768) 23.56 Forfeited / expired — — — — (4,345) 12.45 Outstanding non-vested stock options - 175,197 8.30 295,984 8.96 134,809 13.30 As of December 31, 2020, there was $0.3 million (2019 - $0.5 million, 2018 - $0.3 million) of total unrecognized compensation cost related to non-vested stock options granted. During the year ended December 31, 2020, the Company recognized $0.3 million (2019 - $0.4 million, 2018 - $0.2 million) of expenses related to the stock options granted to the officers of the Company and to certain employees of Teekay subsidiaries that provide services to the Company. As at December 31, 2020, the intrinsic value of the outstanding in-the-money stock options was $0.9 million (2019 - $7.2 million; 2018 - $nil ) and the intrinsic value of the exercisable stock options was $0.4 million (2019 - $2.3 million; 2018 - $nil ). As at December 31, 2020, the weighted-average remaining life of options vested and expected to vest was 7.0 years (2019 - 8.0 years; 2018 - 8.1 years) and the weighted-average remaining life of the exercisable stock options was 6.5 years (2019 - 7.1 years; 2018 - 7.7 years). During 2020, the Company granted 0.2 million (2019 - 0.1 million; 2018 - 0.1 million) restricted stock units to the officers and employees of the Company and to certain employees of Teekay subsidiaries that provide services to the Company, with an aggregate fair value of $3.1 million (2019 - $0.8 million; 2018 - $0.9 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 canceled, 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, 2020, the Company recorded an expense of $1.4 million (2019 - $0.8 million, 2018 - $0.7 million) related to the restricted stock units in general and administrative expenses. During the year ended December 31, 2020, 78.3 thousand restricted stock units (2019 - 53.8 thousand; 2018 - 34.2 thousand) with a market value of $1.3 million (2019 - $0.5 million; 2018 - $0.3 million) vested and that amount, net of withholding taxes, was paid to the grantees by issuing 44.8 thousand shares (2019 - 34.1 thousand shares; 2018 - 23.6 thousand shares) of Class A common stock. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions a. The Company's operations are conducted in part by its subsidiaries, which receive services from Teekay's wholly-owned subsidiary, Teekay Shipping Ltd. (or the Manager ) and its affiliates. The Manager provides various services under a long-term management agreement (or the Management Agreement ). Commencing October 1, 2018, the Company elected to receive vessel management services for its owned and leased vessels (other than certain form er Tanker Investments Ltd. (or TIL ) ves sels, which are technically managed by a third party) from its wholly-owned subsidiaries and no longer contracts these services from the Manager. Prior to this date, the Manager was required to provide these services to the Company, which it did by subcontracting such services from the Company's subsidiary Teekay Tanker Operations Ltd. (or TTOL ) and its affiliates. b. Amounts received and (paid) by the Company for related party transactions for the periods indicated were as follows: Year Ended December 31, 2020 2019 2018 Vessel operating expenses - technical management fee (i) (992) (1,202) (10,400) Strategic and administrative service fees (ii ) (30,775) (31,422) (32,918) Secondment fees (iii) (402) (185) (679) LNG service revenues (iv) — 1,979 1,689 Technical management fee recoveries (v) 677 765 13,811 Service revenues (vi) 22 320 1,019 i. 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). Commencing October 1, 2018, the Company elected to receive ship management services for its own vessels from its wholly-owned subsidiaries and no longer subcontracts these services from the Manager. The Company continues to pay third party technical management fees to the Manager in relation to certain former TIL vessels. ii. The Manager’s strategic and administrative service fees have been presented in general and administrative expenses, except for fees related to technical management services, which have been presented in vessel operating expenses 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 13) is set and paid by Teekay or such other subsidiaries. The Company compensates Teekay for time spent by its executive officers on the Company’s management matters through the strategic portion of the management fee. iii. The Company pays secondment fees for services provided by some employees of Teekay. Secondment fees have been presented in general and administrative expenses, except for fees related to technical management services, which have been presented in vessel operating expenses on the Company's consolidated statements of income (loss). iv. In November 2016, the Company's ship-to-ship transfer business signed an operational and maintenance subcontract with Teekay LNG Bahrain Operations L.L.C., an entity wholly-owned by Teekay LNG Partners L.P., for the Bahrain LNG Import Terminal. The terminal is owned by Bahrain LNG W.I.L., a joint venture for which Teekay LNG Operating L.L.C., an entity wholly-owned by Teekay LNG Partners L.P., has a 30% interest. The sub-contract was terminated in April 2019. v. The Company receives reimbursements from Teekay, for the provision of technical management services. These reimbursements have been presented in general and administrative expenses on the Company's consolidated statements of income (loss). Commencing October 1, 2018, the Company elected to receive technical management services for its own vessels from its wholly-owned subsidiaries and no longer subcontracts these services from the Manager. vi. The Company recorded service revenues relating to TTOL's administration of certain revenue sharing agreements and provision of certain commercial services to the counterparties in the agreements. Commencing October 1, 2018, the Company elected to receive certain commercial services from its wholly-owned subsidiaries and no longer subcontract these services from the Manager. c. 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 on the Company's consolidated balance sheets in "due from affiliates" or "due to affiliates", as applicable, are without interest or stated terms of repayment. In addition, $10.6 million and $7.9 million were payable as crewing and manning costs as at December 31, 2020 and 2019, respectively, and such amounts are included in accrued liabilities on the Company's consolidated balance sheets. These crewing and manning costs will be payable as reimbursement to the Manager once they are paid by the Manager to the vessels' crew. d. 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 $25.60 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, 2020, 2019 and 2018. Cash Available for Distribution represents net income 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 . e. Prior to 2019, pursuant to certain RSAs, TTOL provided management services in relation to the RSAs in exchange for a fee consisting of a fixed component based on the period of management and a variable component based on the vessel's monthly earnings. Voyage revenues and voyage expenses of all vessels which operated under these RSAs were shared based on the actual earning days each vessel was available and the relative performance capabilities of each vessel. f. In October 2018, the Company established a new RSA structure under TTCL and subsequently began transitioning the Company's RSA activities from TTOL to TTCL. Pursuant to a service agreement with the Teekay Aframax RSA prior to the change in structure, from time to time, the Company hired vessels to perform full service lightering services. During 2019 and 2018, the Company recognized $8.8 million and $28.4 million, respectively, related to vessels that were chartered-in from the RSA to assist with full service lightering operations. These amounts have been presented in voyage expenses on the Company's consolidated statements of income (loss). |
Other (Expense) Income
Other (Expense) Income | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Other (Expense) Income | Other Income Year Ended December 31, 2020 2019 2018 Foreign exchange (loss) gain (734) 486 3,133 Other income 1,207 209 49 Total 473 695 3,182 |
Liquidity
Liquidity | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Liquidity | LiquidityManagement is required to assess if the Company will have sufficient liquidity to continue as a going concern for the one-year period following the issuance of these consolidated financial statements. The Company has declared purchase options to acquire eight tankers for a total cost of $185.5 million during 2021, as part of the repurchase options under the sale-leaseback arrangements described in note 10. As a result of this, over the one-year period following the issuance of these consolidated financial statements, the Company expects it will need to obtain additional sources of financing, in addition to amounts generated from operations, to meet its minimum liquidity requirements under its financial covenants. The Company expects to obtain this liquidity through refinancing the eight repurchased vessels. The Company is actively pursuing the refinancing described above, which it considers probable of completion based on the Company’s history of being able to refinance loan facilities and sale-leaseback transactions for similar types of vessels. Based on the Company’s liquidity as at the date these consolidated financial statements were issued, and from the expected cash flows from the Company's operations over the following year and by incorporating the Company’s plans to raise additional liquidity that it considers probable, the Company estimates that it will have sufficient liquidity to continue as a going concern for at least the one-year period following the issuance of these consolidated financial statements. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share The net income (loss) available for common shareholders and earnings (loss) per common share are presented in the table below: Year Ended December 31, 2020 2019 2018 Net income (loss) 87,317 41,362 (52,548) Weighted-average number of common shares - basic 33,718,665 33,617,635 33,561,615 Dilutive effect of stock-based awards 202,956 113,536 — Weighted average number of common shares - diluted 33,921,621 33,731,171 33,561,615 Earnings (loss) per common share: - Basic 2.59 1.23 (1.57) - Diluted 2.57 1.23 (1.57) |
Sale of Vessels and Other Asset
Sale of Vessels and Other Assets | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Asset Impairment Charges | During the year ended December 31, 2020, the carrying values of nine Aframax tankers were written down to their estimated fair values, using appraised values provided by third parties, primarily due to the lower near-term tanker market outlook, a reduction of charter rates, and a decline in vessel values, as a result of the current economic environment, which has been impacted by the COVID-19 global pandemic. The Company's consolidated statement of income for the year ended December 31, 2020 includes write-downs totaling $65.4 million related to these vessels. In February 2021, the Company agreed to the sale of two of these vessels for an aggregate sales price of $32.0 million (note 22). The vessels were delivered to their new owners in March 2021 and therefore, both vessels and their related bunkers and lube oil inventory are classified as held for sale on the Company's consolidated balance sheet as at December 31, 2020. The vessels were written down to their agreed sales price less selling costs and the Company's consolidated statement of income for the year ended December 31, 2020 includes a further $1.6 million write-down related to the two vessels. During the year ended December 31, 2020, the Company recorded write-downs of $2.9 million on its operating lease right-of-use assets, which were written-down to their estimated fair value, based on prevailing charter rates for comparable periods, due to a reduction in these charter rates. |
Sale of Vessels and Other Assets | During the year ended December 31, 2020, the Company completed the sale of three Suezmax tankers, with an aggregate loss on sales of $2.6 million. Two of these vessels were written-down to their agreed sales price and classified as held for sale on the Company's consolidated balance sheet as at December 31, 2019. The Company's consolidated statement of income for the year ended December 31, 2019 includes a $3.2 million write-down related to the two vessels. The Company's consolidated statement of income for the year ended December 31, 2020 includes a gain of $3.1 million relating to the completion of the sale of the non-US portion of its ship-to-ship support services business, as well as its LNG terminal management business for proceeds of $27.1 million, including an adjustment of $1.1 million for the final amounts of cash and other working capital present on the closing date. The sale of the ship-to-ship support services business was classified as held for sale on the Company's consolidated balance sheet as at December 31, 2019. The Company's consolidated statement of income for the year ended December 31, 2019 includes a loss on sale of a vessel of $2.3 million relating to one Suezmax vessel, which was sold and delivered to its buyer in the fourth quarter of 2019. The Company's consolidated statement of loss for the year ended December 31, 2018 includes a gain on sale of vessel of $0.2 million relating to one lightering support vessel, which was sold and delivered to its buyer in the second quarter of 2018. As at December 31, 2020, two Aframax tankers and their related bunker and lube oil inventory are classified as held for sale on the Company's consolidated balance sheet. The following table summarizes the two Suezmax tankers and the ship-to-ship transfer assets and liabilities which were classified as held for sale on the Company's consolidated balance sheet as at December 31, 2019: As at December 31, 2019 Tanker Segment Ship-to-Ship Transfer Segment (note 4) $ Total Cash and cash equivalents — 1,121 1,121 Restricted cash - current — 337 337 Accounts receivable — 4,129 4,129 Bunker and lube oil inventory 2,017 — 2,017 Prepaid expenses — 510 510 Vessel and equipment 37,240 7,562 44,802 Intangibles (i) — 6,880 6,880 Goodwill (i) — 5,633 5,633 Other non current assets — 29 29 Total assets held for sale 39,257 26,201 65,458 Current liabilities — 2,650 2,650 Other long term liabilities — 330 330 Total liabilities associated with assets held for sale — 2,980 2,980 Net assets held for sale 39,257 23,221 62,478 i. 91% of the intangible assets and goodwill relating to support services and 100% of the LNG business intangibles and goodwill have been allocated as held for sale. |
Restructuring and Related Activ
Restructuring and Related Activities | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Other Revenues and Restructuring Charges | Restructuring Charges During the year ended December 31, 2020, the Company recognized restructuring charges of $1.4 million. The restructuring charges relate to estimated severance costs resulting from organizational changes to the Company's tanker services and operations, partially related to the sale of the non-US portion of the Company's ship-to-ship support services business in April 2020 (note 19). As at December 31, 2020 and December 31, 2019, restructuring liabilities of $1.0 million and nil, respectively, were recognized in accrued liabilities on the Company's consolidated balance sheets. |
Income Tax Expenses
Income Tax Expenses | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | Income Tax Expense The following table reflects changes in uncertain tax positions relating to freight tax liabilities, which are recorded in other long-term liabilities and accrued liabilities on the Company's consolidated balance sheets: Year Ended December 31, 2020 2019 2018 Balance of unrecognized tax benefits as at January 1 49,579 32,059 26,054 Increases for positions related to the current year 14,264 3,385 5,399 Increases for positions related to prior years 10,748 16,410 5,016 Decreases for positions related to prior years (15,164) — — Settlements with tax authority (8,556) — — Decreases related to statute of limitations (2,196) (1,646) (1,095) Foreign exchange loss (gain) 449 (629) (3,315) Balance of unrecognized tax benefits as at December 31 49,124 49,579 32,059 Included in the Company's current income tax expense are provisions for uncertain tax positions relating to freight taxes. Freight taxes recognized for positions related to the current year will vary between years based upon changes in the trading patterns of the Company's vessels. Interest and penalties related to freight taxes during the years ended December 31, 2020, 2019 and 2018 are included in the table above, and are approximately $13.3 million, $8.4 million and $5.4 million, respectively. As at December 31, 2020, 2019 and 2018, total interest and penalties recognized were $27.7 million, $23.8 million and $15.8 million, respectively. In 2020, the Company obtained further advice regarding freight taxes in a certain jurisdiction due to the uncertainty surrounding a recent tax law change and the limited transparency into the actions of the tax authority in this jurisdiction. Based on this new information and other considerations related to the application of the new tax law to past periods, the Company increased its uncertain tax liabilities for this jurisdiction for periods prior to 2020 by $7.6 million. In addition, in 2020, the Company secured an agreement with a tax authority, which was based in part on an initiative of the tax authority in response to the COVID-19 global pandemic and included the waiver of interest and penalties on unpaid taxes. As a result, the Company reduced its freight tax liabilities for this jurisdiction by $15.2 million to $8.6 million, of which $7.7 million was paid in August 2020 with respect to open tax years up to and including 2019. The Company does not presently anticipate that its provisions for these uncertain tax positions will significantly increase in the next 12 months; however, this is dependent on the jurisdictions in which vessel trading activity occurs. The Company reviews its freight tax obligations on a regular basis and may update its assessment of its tax positions based on available information at that time. Such information may include legal advice as to applicability of freight taxes in relevant jurisdictions. Freight tax regulations are subject to change and interpretation; therefore, the amounts recorded by the Company may change accordingly. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In February 2021, the Company entered into agreements to sell two Aframax tankers for an aggregate price of $32.0 million. The vessels and related bunkers and lube oil inventory were classified as held for sale on the Company's consolidated balance sheet as at December 31, 2020 (note 19), and the vessels were written down to their agreed sales price less selling costs. Both vessels were delivered in March 2021. In March 2021, the Company declared purchase options to acquire six Aframax tankers for a total cost of $128.8 million, as part of the repurchase options under the sale-leaseback arrangements described in note 10. The Company expects to complete the purchase and delivery of these vessels in September 2021. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of presentation and consolidation principles | Basis of presentation and consolidation principles These consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles ( GAAP ). They include the accounts of Teekay Tankers Ltd., a Marshall Islands corporation, its wholly-owned subsidiaries , and any variable interest entities (or VIEs ) (note 10) of which it is the primary beneficiary (collectively, the Company ). The preparation of these consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. Significant intercompany balances and transactions have been eliminated upon consolidation. In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (or COVID-19 ) as a pandemic. Given the dynamic nature of these circumstances, the full extent to which the COVID-19 pandemic may have direct or indirect impact on the Company's business and the related financial reporting implications cannot be reasonably estimated at this time, although the pandemic could materially affect the Company's business, results of operations and financial condition in the future. COVID-19 has resulted and may continue to result in a significant decline in global demand for oil. As the Company's business includes the transportation of crude oil and refined petroleum products on behalf of customers, any significant decrease in demand for the cargo the Company transports could adversely affect demand for the Company's vessels and services. Spot tanker rates have come under pressure since mid-May 2020 as a result of significantly reduced oil demand due to COVID-19 and the subsequent decision by the OPEC+ group of oil producers to implement record oil supply cuts. Reduced oil production from other oil producing nations due to lower oil prices and the unwinding of floating storage has also contributed to the weakness in rates. COVID-19 has also led to an increase in certain crewing-related costs, which has had an impact on our cash flows, and was a contributing factor to the write-down of certain tankers during 2020 as described in Note 19 - Write-down and Sale of Assets and the reduction in certain tax accruals as described in Note 21 - Income Tax Expense. |
Foreign currency | Foreign currency The consolidated financial statements are stated in U.S. Dollars and the functional currency of the Company 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). |
Revenues | Revenues The Company's time charters and voyage charters include both a lease component, consisting of the lease of the vessel, and a non-lease component, consisting of the operation of the vessel for the customer. The Company has elected to not separate the non-lease component from the lease component for all such charters, where the lease component is classified as an operating lease, and to account for the combined component as an operating lease. Voyage charters 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 that contain a lease and a load-to-discharge basis in determining proportionate performance for all spot voyages that do not contain a lease. The 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. Revenues from the Company’s vessels performing voyage charters subject to revenue sharing agreements (or RSAs ) follow the same revenue recognition policy as voyage charters not subject to RSAs. The difference between the net revenue earned by a vessel of the Company performing voyage charters subject to RSAs and its allocated share of the aggregate net contribution is reflected within voyage expenses. The consolidated balance sheets reflect in accrued revenue the accrued portion of revenues for those voyages that commence prior to the balance sheet date and complete after the balance sheet date. Voyage expenses incurred that are recoverable from the Company's customers in connection with its voyage charter contracts are reflected in voyage charters revenues and voyage expenses. Time charters The Company recognizes revenues from time charters accounted for as operating leases on a straight-line basis 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 or other variable consideration, the Company recognizes the profit-sharing or contingent revenues in the period in which the changes in facts and circumstances on which the variable charter hire payments are based occur. The consolidated balance sheets reflect in accrued receivables, any accrued revenue and in deferred revenue, the deferred portion of revenues which will be earned in subsequent periods. If collectability of the time-charter hire receipts from time-charters accounted for as operating leases is not probable, revenue that would have otherwise been recognized is limited to the amount collected from the charterer. Other revenues Other revenues are earned from the offshore ship-to-ship transfer of commodities, primarily crude oil and refined oil products, but also liquid gases and various other products which are referred to as support operations. In addition, other revenues are also earned from other activities such as management of terminals and vessels, consultancy, procurement and equipment rental. Other revenues from short-term contracts are recognized as services are completed based on percentage of completion or in the case of long-term contracts, are recognized over the duration of the contract period. On April 30, 2020, the Company completed the sale of the non-US portion of its ship-to-ship support services business, as well as its LNG terminal management business (note 19). |
Cost of Goods and Service | Operating expenses Voyage expenses are all expenses unique to a particular voyage, including fuel expenses, port fees, cargo loading and unloading expenses, canal tolls, agency fees and commissions. In addition, the difference between the net revenue earned by a vessel of the Company performing voyage charters subject to an RSA and its allocated share of the aggregate net contribution is reflected within voyage expenses. The Company, as shipowner, pays voyage expenses under voyage charters. The Company’s customers pay voyage expenses under time charters, except when the vessel is off-hire during the term of a time charter, in which case the Company pays voyage expenses. Voyage expenses are recognized when incurred. 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. Vessel operating expenses are recognized when incurred. |
Equity-based compensation | Equity-based compensation The Company grants stock options and restricted stock units as incentive-based compensation to certain employees of the Company and 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. The requisite service period consists of the period from grant date of the award to the earlier of the date of vesting or the date the recipient becomes eligible for retirement. For equity-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 ( note 13). |
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. |
Restricted cash-long term | Restricted cash - current The Company maintains restricted cash deposits relating to certain freight forward agreements (note 11), for certain contracts related to the ship-to-ship transfer business and for the LNG terminal management business, prior to its sale in April 2020 (note 19). Attached to the LNG terminal management contracts were certain performance guarantees which were required to be issued by the Company. Restricted cash - long-term The Company maintains restricted cash deposits for the purposes of the margin requirements of the Company's obligations related to certain finance leases (note 10). |
Accounts receivable and allowance for doubtful accounts and Other loan receivables | Accounts receivable and other loan receivables Accounts receivable are recorded at the invoiced amount and do not bear interest. The consolidated balance sheets reflect, in accounts receivable, any amounts where the right to consideration is conditioned upon the passage of time, and in other current assets, any accrued revenue where the right to consideration is conditioned upon something other than the passage of time. The Company’s advances to its equity-accounted joint venture is recorded at cost. |
Bunker and lube oil inventory | Bunker and lube oil inventoryBunker and lube oil inventory is stated at cost, which is determined on a first-in, first-out basis. |
Equity accounted for investments | Investments in equity-accounted joint ventures The Company’s investments in equity-accounted joint ventures, in which the Company does not control but has the ability to exercise significant influence over the operating and financial policies of the entity, are accounted for using the equity method of accounting. Under the equity method of accounting, investments are stated at initial cost and are adjusted for subsequent additional investments and the Company’s proportionate share of earnings or losses and distributions. The Company evaluates its investments in equity-accounted joint ventures 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 investment in the equity-accounted joint venture is impaired and if its estimated fair value is less than its carrying value, the carrying value is written down to its estimated fair value and the resulting impairment is recorded in the Company’s consolidated statements of income (loss). The Company’s maximum exposure to loss is the amount it has invested in its equity-accounted joint venture and its proportionate share of guaranteed debt of the joint venture. |
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. Vessel capital modifications include the addition of new equipment or certain modifications to the vessel that 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. Depreciation is calculated on a straight-line basis over a vessel’s estimated useful life, less an estimated residual value. Depreciation for vessels is calculated using an estimated useful life of 25 years from the date the vessel is delivered from the shipyard, or a shorter period if regulations prevent the Company from operating the vessels for 25 years. Depreciation of vessels and equipment (excluding amortization of dry-docking costs and intangible assets) for the years ended December 31, 2020, 2019 and 2018 totaled $88.3 million, $95.1 million , a nd $95.2 million, res pectively. Generally, the Company dry docks each vessel every two and a half years to five years. The Company capitalizes certain costs incurred during dry docking and amortizes those costs on a straight-line basis from the completion of a dry docking to the estimated completion of the next dry docking. The 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, 2018 to December 31, 2020: Year Ended December 31, 2020 2019 2018 Balance at the beginning of the year 71,807 56,019 48,460 Cost incurred for dry docking 28,546 45,371 27,896 Dry-dock amortization (27,851) (26,682) (20,326) Write-down / sale of vessels (4,975) (2,901) (11) Balance at the end of the year 67,527 71,807 56,019 Vessels and equipment that are intended to be “held and used” in the Company's business are assessed for impairment when events or circumstances indicate the carrying value 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 and the fair value of the asset is less than its carrying value, the carrying value of the asset is reduced to its estimated fair value. The estimated fair value for the Company's impaired vessels is determined using discounted cash flows or appraised values. In cases where an active second-hand sale and purchase market exists, an appraised value is used to estimate the fair value of an impaired vessel. An appraised value is generally the amount the Company would expect to receive if it were to sell the vessel. The appraised values are provided by third parties where available or prepared by the Company based on second-hand sale and purchase market data. In cases where an active second-hand sale and purchase market does not exist, or in certain other cases, the Company uses a discounted cash flow approach to estimate the fair value of an impaired vessel. Vessels and equipment that are "held for sale" are measured at the lower of their carrying value or fair value less costs to sell and are not depreciated while classified as held for sale. Interest and other expenses and related liabilities attributable to vessels and equipment classified as held for sale continue to be recognized as incurred. |
Lease obligations and right-of-use assets | Lease obligations and right-of-use assets For its vessels and office leases as of the lease commencement date, the Company recognizes a liability for its lease obligation, initially measured at the present value of lease payments not yet paid, and an asset for its right to use the underlying asset, initially measured equal to the lease liability and adjusted for lease payments made at or before lease commencement, lease incentives, and any initial direct costs. The discount rate used to determine the present value of the lease payments is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term for an amount equal to the lease payments in a similar economic environment. The initial recognition of the lease obligation and right-of-use asset excludes short-term leases for the Company's chartered-in vessels and office leases. Short-term leases are leases with an original term of one year or less, excluding those leases with an option to extend the lease for greater than one year or an option to purchase the underlying asset that the lessee is deemed reasonably certain to exercise. The initial recognition of this lease obligation and right-of-use asset excludes variable lease payments that are based on the usage or performance of the underlying asset and the portion of payments related to non-lease elements of vessel charters. The Company uses the effective interest rate method to subsequently account for the lease liability, whereby interest is recognized in interest expense in the Company’s consolidated statements of income (loss). For those leases classified as operating leases, lease interest and right-of-use asset amortization in aggregate result in a straight-line expense profile that is presented in time-charter hire expense for vessels and general and administrative expense for office leases, unless the right-of-use asset becomes impaired. For those leases classified as finance leases, the right-of-use asset is amortized on a straight-line basis over the remaining life of the vessel, with such amortization included in depreciation and amortization in the Company’s consolidated statements of income (loss). Variable lease payments that are based on the usage or performance of the underlying asset are recognized as an expense when incurred, unless achievement of a specified target triggers the lease payment, in which case an expense is recognized in the period achievement of the target is considered probable. The Company recognizes the expense from short-term leases and any non-lease components of vessels time-chartered from other owners, on a straight-line basis over the firm period of the charters. The expense is included in time-charter hire expense for vessel charters and general and administrative expenses for office leases. The Company has determined that its time charter-in contracts contain both a lease component (lease of the vessel) and a non-lease component (technical operation of the vessel). The Company has allocated the contract consideration between the lease component and non-lease component on a relative standalone selling price basis. The standalone selling price of the non-lease component has been determined using a cost-plus approach, whereby the Company estimates the cost to technically operate the vessel using cost benchmarking studies prepared by a third party, when available, or internal estimates when not available, plus a profit margin. The standalone selling price of the lease component has been determined using an adjusted market approach, whereby the Company calculates a rate excluding the operating component based on a market time-charter rate information from published broker estimates, when available, or internal estimates when not available. Given that there are no observable standalone selling prices for either of these two components, judgment is required in determining the standalone selling price of each component. The right-of-use asset is assessed for impairment when events or circumstances indicate the carrying amount of the asset may not be recoverable. If the right-of-use 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 right-of-use asset is reduced to its estimated fair value. The estimated fair value for the Company's impaired right-of-use assets from in-chartered vessels is determined using a discounted cash flow approach to estimate the fair value. Subsequent to an impairment, a right-of-use asset related to an operating lease is amortized on a straight-line basis over its remaining life. Vessels sold and leased back by the Company, where the Company has a fixed price repurchase obligation or other situations where the leaseback would be classified as a finance lease are accounted for as a failed sale of the vessel. The Company does not derecognize the vessel sold and continues to depreciate the vessel as if it was the legal owner. Proceeds received from the sale of the vessel are recognized as an obligation related to finance lease and bareboat charter hire payments made by the Company to the lessor are allocated between interest expense and principal repayments on the obligation related to finance lease. |
Goodwill and intangible assets | Goodwill and intangible assets Goodwill is not amortized but is reviewed for impairment at the reporting unit level on an annual basis or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. A reporting unit is a component of the Company that constitutes a business for which discrete financial information is available and regularly reviewed by management. When goodwill is reviewed for impairment, the Company may elect to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. Alternatively, the Company may bypass this step and use a fair value approach to identify potential goodwill impairment and, when necessary, measure the amount of impairment. The Company uses a discounted cash flow model to determine the fair value of reporting units, unless there is a readily determinable fair market value. Goodwill impairment is measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill. Customer-related intangible assets are amortized over the expected duration that the customer relationships are estimated to contribute to the cash flows of the Company. The amount amortized each year is weighted based on the projected revenue to be earned as a result of the customer relationships. Intangible assets are assessed for impairment when and if impairment indicators exist. An impairment loss is recognized if the carrying amount of an intangible asset is not recoverable and its carrying amount exceeds its fair value. |
Debt issuance costs | Debt issuance costs Debt issuance costs related to recognized debt liabilities, including fees, commissions and legal expenses, are deferred and presented as a direct deduction from the carrying amount of the debt liability. Debt issuance costs which are not attributable to a specific debt liability or where the debt issuance costs exceed the carrying value of the related debt liability (primarily undrawn revolving credit facilities) are deferred and presented as other non-current assets in the Company's consolidated balance sheets. Debt issuance costs 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 in the Company’s consolidated statements of income (loss). Fees paid to substantially amend a non-revolving credit facility are associated with the extinguishment of the old debt instrument, if applicable, and included in determining the debt extinguishment gain or loss to be recognized. Other related costs incurred with third parties directly related to the extinguishment are deferred and presented as a direct reduction to the carrying amount of the replacement debt instrument and amortized using the effective interest rate method. In addition, any unamortized debt issuance costs are written off. If the amendment is considered not to be a substantial amendment, then the fees would be associated with the replacement or modified debt instrument and, along with any existing unamortized premium, discount and unamortized debt issuance costs, would be amortized as an adjustment of interest expense over the remaining term of the replacement or modified debt instrument using the effective interest method. Other costs incurred with third parties directly related to the modification, other than the loan amendment fee, are expensed as incurred. |
Credit Losses | Credit losses The Company utilizes a lifetime expected credit loss measurement objective for the recognition of credit losses for loans to equity-accounted joint ventures, guarantees of secured loan facilities of equity-accounted joint ventures, non-operating lease accounts receivable, contract assets and other receivables at the time the financial asset is originated or acquired. The expected credit losses are subsequently adjusted each period for changes in expected lifetime credit losses. The Company discontinues accrual of interest on financial assets if collection of required payments is no longer probable, and in those situations, recognizes payments received on non-accrual assets on a cash basis method, until collection of required payments becomes probable. The Company considers a financial asset to be past due when payment is not made within 30 days of it being owed, assuming there is no dispute or other uncertainty regarding the amount owing. Expected credit loss provisions are presented on the consolidated balance sheets as a reduction to the carrying value of the related financial asset and as an other long-term liability for expected credit loss provisions that relate to guarantees of secured loan facilities of equity-accounted joint ventures. Changes in expected credit loss provisions are presented within other income (loss) within the consolidated statements of income (loss). Prior to the adoption of Accounting Standards Update ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (or ASU 2016-13 ) on January 1, 2020, the Company recognized an allowance for doubtful accounts receivable consisting of the Company’s best estimate of the amount of probable credit losses in existing accounts receivable based on historical write-off experience and customer economic data. The Company reviewed the allowance for doubtful accounts regularly and past due balances were reviewed for collectability. Account balances were charged against the allowance when the Company believed that the receivable would not be recovered. In addition, the Company analyzed its loans for collectability during each reporting period. A loan loss provision was recognized, based on prevailing information and events, if it was probable that the Company would be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors the Company considered in determining if a loan loss provision was required include, among other things, an assessment of the financial condition of the debtor, payment history of the debtor, general economic conditions, the credit rating of the debtor (when available), any information provided by the debtor regarding its ability to repay the loan, and the fair value of the underlying collateral. When a loan loss provision was recognized, the Company measured the amount of the loss provision based on the present value of expected future cash flows discounted at the loan’s effective interest rate and recognizes the resulting loss in the consolidated statements of income (loss). The carrying value of the loan was adjusted each subsequent period to reflect any changes in the present value of the expected future cash flows. |
Income taxes | Income taxes The Company accounts for income taxes using the liability method. Under the liability method, deferred tax assets and liabilities are recognized for the anticipated future tax effects of temporary differences between the consolidated financial statement basis and the tax basis of the Company's assets and liabilities using the applicable jurisdictional tax rates. A valuation allowance for deferred tax assets is recorded when it is determined that it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized. The Company recognizes the tax benefits from uncertain tax positions only if it is more likely than not that the tax position taken or expected to be taken in a tax return will be sustained on examination by the taxing authorities, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefits recognized in the Company’s consolidated financial statements from such positions are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense in the Company's consolidated statements of income (loss). The Company believes that it and its subsidiaries are not subject to income taxation under the laws of the Republic of The Marshall Islands or that distributions by its subsidiaries to the Company will not be subject to any income taxes under the laws of such countries, and that it qualifies for the Section 883 exemption under U.S. federal income tax purposes. |
Derivative instruments | Derivative instruments All derivative instruments are initially recorded at fair value as either assets or liabilities in the accompanying consolidated balance sheets and subsequently remeasured to fair value each period end, regardless of the purpose or intent of holding the derivative. The method of recognizing the resulting gains or losses is 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, however it could 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 gains and losses on the derivative that are excluded from the assessment of hedge effectiveness are recognized immediately in earnings. 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 probable of occurring. For derivative financial instruments designated and qualifying as cash flow hedges, changes in the fair value 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 Company's consolidated statements of income (loss). If a cash flow hedge is terminated and the originally hedged item is still considered probable of occurring, the gains and losses initially recognized in total equity remain there until the hedged item impacts earnings, at which point they are transferred to the corresponding earnings line item in the Company's consolidated statements of income (loss). If the hedged items are no longer probable of occurring, amounts recognized in total equity are immediately transferred to the earnings item in the Company's consolidated statements of income (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 gain (loss) on derivative instruments in the Company’s consolidated statements of income (loss). |
Earnings (loss) per share | Earnings (loss) per shareEarnings (loss) per share is determined by dividing (a) net income (loss) of the Company 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. The weighted-average number of shares is retroactively adjusted for stock splits and reverse stock splits. The weighted-average number of shares and per share amounts in the consolidated financial statements reflect the changes resulting from a 1 for 8 reverse stock split which took effect on November 25, 2019. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company adopted Accounting Standards Update 2016-02, Leases (or ASU 2016-02 ) on January 1, 2019. ASU 2016-02 established a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. For lessees, leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 requires lessors to classify leases as a sales-type, direct financing, or operating lease. A lease is a sales-type lease if any one of five criteria are met, each of which indicate that the lease, in effect, transfers control of the underlying asset to the lessee. If none of those five criteria are met, but two additional criteria are both met, indicating that the lessor has transferred substantially all of the risks and benefits of the underlying asset to the lessee and a third party, the lease is a direct financing lease. All leases that are not sales-type leases or direct financing leases are operating leases. ASU 2016-02 was adopted using a transition approach whereby a cumulative effect adjustment was made as of the effective date, with no retrospective effect. ASU 2016-02 provides an optional practical expedient to lessors to not separate lease and non-lease components of a contract if certain criteria are met. The Company elected to use this optional transition approach and the optional practical expedient. To determine the cumulative effect adjustment, the Company did not reassess lease classification, initial direct costs for any existing leases and whether any expired or existing contracts are or contain leases. The Company identified the following differences: • The adoption of ASU 2016-02 resulted in a change in the accounting method for the lease portion of the daily charter hire for the chartered in vessels by the Company accounted for as operating leases with firm periods of greater than one year. Under ASU 2016-02, the Company recognized an operating lease right-of-use asset and an operating lease liability. This resulted in an increase of the Company's assets and liabilities. The right-of-use asset and lease liability recognized at December 31, 2019 was $19.6 million (January 1, 2019 - $11.0 million). The pattern of expense recognition of chartered-in vessels in 2019 remained substantially unchanged. • The adoption of ASU 2016-02 resulted in sale and leaseback transactions where the seller lessee has a fixed price repurchase option, or other situations where the leaseback would be classified as a finance lease, being accounted for as a failed sale of the vessel and a failed purchase of the vessel by the buyer lessor. Prior to the adoption of ASU 2016-02, such transactions were accounted for as a completed sale and a completed purchase. Consequently, for such transactions, the Company does not derecognize the vessel sold and continues to depreciate the vessel as if it was the legal owner. Proceeds received from the sale of the vessel are recognized as an obligation related to finance lease, and bareboat charter hire payments made by the Company to the lessor are allocated between interest expense and principal repayments on the obligation related to finance lease. The adoption of ASU 2016-02 has resulted in the sale and leaseback of the Aspen Spirit and Cascade Spirit during the second quarter of 2019 being accounted for as a failed sale and unlike the 14 sale-leaseback transactions entered into in prior years, the Company is not considered as holding a variable interest in the buyer lessor entity and, thus, does not consolidate the buyer lessor entities (note 10). In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (or ASU 2016-13 ). ASU 2016-13 introduces a new credit loss methodology, which requires earlier recognition of potential credit losses, while also providing additional transparency about credit risk. This new credit loss methodology utilizes a lifetime expected credit loss measurement objective for the recognition of credit losses for loans, held-to-maturity debt securities and other receivables at the time the financial asset is originated or acquired. The expected credit losses are subsequently adjusted each period for changes in expected lifetime credit losses. This methodology replaces multiple existing impairment methods under previous GAAP for these types of assets, which generally required that a loss be incurred before it was recognized. The Company adopted this update on January 1, 2020. The adoption of ASU 2016-13 did not have a material impact on the Company's consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes (or ASU 2019-12 ), as part of its initiative to reduce complexity in the accounting standards. The amendments in ASU 2019-12 eliminate certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences, among other changes. The guidance becomes effective for annual reporting periods beginning after December 15, 2020 and interim periods within those fiscal years with early adoption permitted. The Company is currently evaluating the effect of adopting this new guidance. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting ( or ASU 2020-04) . This ASU provides optional guidance for a limited period of time to ease potential accounting impacts associated with transitioning away from reference rates that are expected to be discontinued, such as the London Interbank Offered Rate (or LIBOR ). The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued. The amendments in this ASU are effective through December 31, 2022. The Company is currently evaluating the effect of adopting this new guidance. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summarizes Change in Capitalized Dry-Docking Activity | The following table summarizes the change in the Company’s capitalized dry-docking costs, from January 1, 2018 to December 31, 2020: Year Ended December 31, 2020 2019 2018 Balance at the beginning of the year 71,807 56,019 48,460 Cost incurred for dry docking 28,546 45,371 27,896 Dry-dock amortization (27,851) (26,682) (20,326) Write-down / sale of vessels (4,975) (2,901) (11) Balance at the end of the year 67,527 71,807 56,019 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table contains a breakdown of the Company's revenue by contract type for the years ended December 31, 2020, 2019 and 2018. All revenue is part of the Company's tanker segment, except for revenue for the non-US portion of the ship-to-ship support services and LNG terminal management, consultancy, procurement, and other related services, which are part of the Company's previously existing ship-to-ship transfer segment (note 4). The Company’s lease income consists of the revenue from its voyage charters and time-charters. Year Ended December 31, 2020 2019 2018 Voyage charter revenues Suezmax 340,535 424,578 371,463 Aframax 198,206 255,702 125,390 LR2 109,343 119,486 67,345 Full service lightering 93,720 81,837 107,730 Total 741,804 881,603 671,928 Time-charter revenues Suezmax 107,543 15,658 17,088 Aframax 13,262 1,837 35,531 LR2 6,793 — 7,357 Total 127,598 17,495 59,976 Other revenues Ship-to-ship support services 9,621 24,015 28,629 Vessel management 7,019 8,461 8,829 LNG terminal management, consultancy, procurement and other 392 12,343 7,131 Total 17,032 44,819 44,589 Total revenues 886,434 943,917 776,493 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Company's Revenue and Income From Operations by Segment | The following tables include results for the Company’s revenue and income (loss) from operations by segment for the years ended December 31, 2020, 2019 and 2018: Year Ended December 31, 2020 Tanker Ship-to-Ship Total Revenues (1) 879,442 6,992 886,434 Voyage expenses (297,225) — (297,225) Vessel operating expenses (178,293) (5,940) (184,233) Time-charter hire expenses (36,341) — (36,341) Depreciation and amortization (116,719) (493) (117,212) General and administrative expenses (2) (38,379) (627) (39,006) (Write-down) and (loss) gain on sale of assets (72,527) 3,081 (69,446) Restructuring charges (1,398) — (1,398) Income from operations 138,560 3,013 141,573 Equity income 5,100 — 5,100 Year Ended December 31, 2019 Tanker Ship-to-Ship Total Revenues (1) 913,816 30,101 943,917 Voyage expenses (402,294) — (402,294) Vessel operating expenses (184,320) (24,281) (208,601) Time-charter hire expenses (43,189) — (43,189) Depreciation and amortization (121,126) (2,876) (124,002) General and administrative expenses (2) (34,904) (1,500) (36,404) Write-down and loss on sale of vessels (5,544) — (5,544) Income from operations 122,439 1,444 123,883 Equity income 2,345 — 2,345 Year Ended December 31, 2018 Tanker Ship-to-Ship Total Revenues (1) 750,769 25,724 776,493 Voyage expenses (381,306) — (381,306) Vessel operating expenses (187,523) (21,608) (209,131) Time-charter hire expenses (19,538) — (19,538) Depreciation and amortization (114,930) (3,584) (118,514) General and administrative expenses (2) (38,195) (1,580) (39,775) Gain on sale of vessel 170 — 170 Restructuring charges (348) (847) (1,195) Income (loss) from operations 9,099 (1,895) 7,204 Equity income 1,220 — 1,220 (1) Revenues earned from the ship-to-ship transfer segment are reflected in other revenues in the Company's consolidated statements of income (loss). |
Reconciliation of Total Segment Assets to Total Assets Presented in Consolidated Balance Sheets | A reconciliation of total segment assets to total assets presented in the accompanying consolidated balance sheet as at December 31, 2019, when the Company had more than one reportable segment, is as follows: As at Tanker 2,114,451 Ship-to-Ship Transfer 26,201 Cash and cash equivalents 88,824 Total assets 2,229,476 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | The carrying amounts of intangible assets are as follows: As at December 31, 2020 December 31, 2019 $ $ Customer relationships At cost, less accumulated amortization of $3.7 million (2019 - $3.2 million) (1) 1,989 2,545 1,989 2,545 (1) The customer relationships are being amortized over a weighted average amortization period of 10 years. Amortization of intangible assets for the year ended December 31, 2020 was $1.0 million (2019 - $2.2 million, 2018 - $2.9 million). Amortization of intangible assets for the five years subsequent to 2020 is expected to be, $0.5 million (2021), $0.4 million (2022), $0.4 million (2023), $0.4 million (2024) and $0.3 million (2025). |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Year Ended December 31, 2020 2019 Voyage and vessel 39,796 48,526 Corporate accruals 781 463 Interest 2,814 2,610 Payroll and benefits ( note 14c ) 11,664 8,136 Accrued liabilities 55,055 59,735 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Year Ended December 31, 2020 2019 Revolving credit facilities due through 2024 185,000 341,132 Term loans due through 2023 64,568 221,729 Total principal 249,568 562,861 Less: unamortized discount and debt issuance costs (6,607) (3,182) Total debt 242,961 559,679 Less: current portion (10,858) (43,573) Long-term portion 232,103 516,106 |
Operating Leases and Obligati_2
Operating Leases and Obligations Related to Finance Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Maturity | A maturity analysis of the Company's operating lease liabilities from time charter-in contracts (excluding short-term leases) as at December 31, 2020 is as follows: Lease Commitment Non-Lease Commitment Total Commitment As at December 31, 2020 Payments: 2021 3,744 4,235 7,979 2022 319 1,226 1,545 Total payments 4,063 5,461 9,524 Less: imputed interest (63) Carrying value of operating lease liabilities 4,000 |
Finance Lease Obligations | Obligations Related to Finance Leases As at As at December 31, 2020 December 31, 2019 $ $ Total obligations related to finance leases 360,043 414,788 Less: current portion (78,476) (25,357) Long-term obligations related to finance leases 281,567 389,431 |
Schedule of Future Minimum Lease Payments for Capital Leases | As at December 31, 2020, the Company's total remaining commitments (including vessel purchase options declared) related to the financial liabilities of these vessels were approximately $480.9 million (2019 - $601.7 million), including imputed interest of $120.9 million (2019 - $186.9 million), repayable from 2021 through 2030, as indicated below: Commitments December 31, 2020 Year $ 2021 103,033 2022 43,552 2023 43,545 2024 43,656 2025 43,528 Thereafter 203,630 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Interest Rate Swap Positions | The following summarizes the Company's interest rate swap agreement as at December 31, 2020: Interest Rate Index Notional Amount Fair Value / Remaining Fixed Swap (1) LIBOR-Based Debt: U.S. Dollar-denominated interest rate swap LIBOR 50,000 886 4.0 0.76 (1) Excludes the margin the Company pays on its variable-rate long-term debt, which, as of December 31, 2020, ranged from 2.25% to 2.40%. |
Schedule of Derivative Instruments | The following table presents the location and fair value amounts of derivative instruments, segregated by type of contract, on the Company’s consolidated balance sheets. Current portion of derivative assets Derivative assets Accounts Receivable Current portion of derivative liabilities Derivative liabilities As at December 31, 2020 Interest rate swap agreement — — — (289) (597) — — — (289) (597) As at December 31, 2019 Interest rate swap agreements 577 82 230 — — Forward freight agreements — — — (86) — 577 82 230 (86) — |
Schedule of Other Derivatives not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | Realized and unrealized (losses) gains relating to the interest rate swaps and FFAs are recognized in earnings and reported in realized and unrealized (loss) gain on derivative instruments in the Company’s consolidated statements of income (loss) as follows: Year Ended Year Ended Year Ended Realized gains (losses) relating to: Interest rate swap agreements 481 2,791 2,316 Forward freight agreements (1,242) 1,489 137 (761) 4,280 2,453 Unrealized (losses) gains relating to: Interest rate swap agreements (1,545) (5,218) 636 Forward freight agreements 86 (29) (57) (1,459) (5,247) 579 Total realized and unrealized (loss) gain on derivatives (2,220) (967) 3,032 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | 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 on a recurring basis. December 31, 2020 December 31, 2019 Fair Value Hierarchy Level Carrying Amount Asset/ (Liability) Fair Value Asset/ (Liability) Carrying Amount Asset/ (Liability) Fair Value Asset/ (Liability) Recurring: Cash, cash equivalents and restricted cash (note 16c) Level 1 103,146 103,146 95,332 95,332 Derivative instruments (note 11) Interest rate swap agreements (1) Level 2 (886) (886) 659 659 Freight forward agreements (1) Level 2 — — (86) (86) Non-recurring: Operating lease right-of-use assets ( note 19 ) Level 2 1,799 1,799 — — Vessels and equipment ( note 19 ) Level 2 59,250 59,250 — — Assets held for sale (note 19) Level 2 31,680 31,680 37,240 37,240 Other: Short-term debt (note 8) Level 2 (10,000) (10,000) (50,000) (50,000) Advances to equity-accounted joint venture Note (2) 5,280 Note (2) 9,930 Note (2) Long-term debt, including current portion (note 9) Level 2 (242,961) (248,738) (559,679) (558,657) Obligations related to finance leases, including current portion (note 10) Level 2 (360,043) (411,740) (414,788) (442,648) (1) The fair values of the Company's interest rate swap agreements and FFAs at December 31, 2020 and 2019 exclude accrued interest income and expenses, which are recorded in accounts receivables and accrued liabilities, respectively, in these consolidated financial statements. (2) The advances to its equity-accounted joint venture, together with the Company’s investment in the equity-accounted joint venture, form the net aggregate carrying value of the Company’s interests in the equity-accounted joint venture in these consolidated financial statements. The fair values of the individual components of such aggregate interests as at December 31, 2020 and 2019 were not determinable. |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Summary of Stock Option Information | A summary of the Company’s stock option information for the years ended December 31, 2020, 2019, and 2018 is as follows: December 31, 2020 December 31, 2019 December 31, 2018 Options (#) Weighted-Average Exercise Price ($) Options (#) Weighted-Average Exercise Price ($) Options (#) Weighted-Average Exercise Price ($) Outstanding - beginning of year 605,594 14.16 359,496 18.45 208,788 24.78 Granted — — 277,066 8.00 155,053 9.76 Exercised (25,681) 10.47 (30,968) 8.96 — — Forfeited / expired — — — — (4,345) 12.45 Outstanding - end of year 579,913 14.32 605,594 14.16 359,496 18.45 Exercisable - end of year 404,716 16.92 309,609 19.12 224,687 21.54 |
Summary of Non-Vested Stock Option Activity and Related Information | A summary of the Company’s non-vested stock option activity and related information for the years ended December 31, 2020, 2019 and 2018 is as follows: December 31, 2020 December 31, 2019 December 31, 2018 Options (#) Weighted-Average Grant Date Fair Value ($) Options (#) Weighted-Average Grant Date Fair Value ($) Options (#) Weighted-Average Grant Date Fair Value ($) Outstanding non-vested stock options - 295,984 8.96 134,809 13.30 76,881 21.47 Granted — — 218,223 8.00 92,041 9.76 Vested (120,787) 9.93 (57,048) 15.54 (29,768) 23.56 Forfeited / expired — — — — (4,345) 12.45 Outstanding non-vested stock options - 175,197 8.30 295,984 8.96 134,809 13.30 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Summary of Related Party Transactions | Amounts received and (paid) by the Company for related party transactions for the periods indicated were as follows: Year Ended December 31, 2020 2019 2018 Vessel operating expenses - technical management fee (i) (992) (1,202) (10,400) Strategic and administrative service fees (ii ) (30,775) (31,422) (32,918) Secondment fees (iii) (402) (185) (679) LNG service revenues (iv) — 1,979 1,689 Technical management fee recoveries (v) 677 765 13,811 Service revenues (vi) 22 320 1,019 i. 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). Commencing October 1, 2018, the Company elected to receive ship management services for its own vessels from its wholly-owned subsidiaries and no longer subcontracts these services from the Manager. The Company continues to pay third party technical management fees to the Manager in relation to certain former TIL vessels. ii. The Manager’s strategic and administrative service fees have been presented in general and administrative expenses, except for fees related to technical management services, which have been presented in vessel operating expenses 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 13) is set and paid by Teekay or such other subsidiaries. The Company compensates Teekay for time spent by its executive officers on the Company’s management matters through the strategic portion of the management fee. iii. The Company pays secondment fees for services provided by some employees of Teekay. Secondment fees have been presented in general and administrative expenses, except for fees related to technical management services, which have been presented in vessel operating expenses on the Company's consolidated statements of income (loss). iv. In November 2016, the Company's ship-to-ship transfer business signed an operational and maintenance subcontract with Teekay LNG Bahrain Operations L.L.C., an entity wholly-owned by Teekay LNG Partners L.P., for the Bahrain LNG Import Terminal. The terminal is owned by Bahrain LNG W.I.L., a joint venture for which Teekay LNG Operating L.L.C., an entity wholly-owned by Teekay LNG Partners L.P., has a 30% interest. The sub-contract was terminated in April 2019. v. The Company receives reimbursements from Teekay, for the provision of technical management services. These reimbursements have been presented in general and administrative expenses on the Company's consolidated statements of income (loss). Commencing October 1, 2018, the Company elected to receive technical management services for its own vessels from its wholly-owned subsidiaries and no longer subcontracts these services from the Manager. vi. The Company recorded service revenues relating to TTOL's administration of certain revenue sharing agreements and provision of certain commercial services to the counterparties in the agreements. Commencing October 1, 2018, the Company elected to receive certain commercial services from its wholly-owned subsidiaries and no longer subcontract these services from the Manager. |
Other (Expense) Income (Tables)
Other (Expense) Income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Summary of Other Income | Year Ended December 31, 2020 2019 2018 Foreign exchange (loss) gain (734) 486 3,133 Other income 1,207 209 49 Total 473 695 3,182 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Net Income (Loss) Per Share | The net income (loss) available for common shareholders and earnings (loss) per common share are presented in the table below: Year Ended December 31, 2020 2019 2018 Net income (loss) 87,317 41,362 (52,548) Weighted-average number of common shares - basic 33,718,665 33,617,635 33,561,615 Dilutive effect of stock-based awards 202,956 113,536 — Weighted average number of common shares - diluted 33,921,621 33,731,171 33,561,615 Earnings (loss) per common share: - Basic 2.59 1.23 (1.57) - Diluted 2.57 1.23 (1.57) |
Sale of Vessels and Other Ass_2
Sale of Vessels and Other Assets Assets Held For Sale (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disclosure of Long Lived Assets Held-for-sale [Table Text Block] | The following table summarizes the two Suezmax tankers and the ship-to-ship transfer assets and liabilities which were classified as held for sale on the Company's consolidated balance sheet as at December 31, 2019: As at December 31, 2019 Tanker Segment Ship-to-Ship Transfer Segment (note 4) $ Total Cash and cash equivalents — 1,121 1,121 Restricted cash - current — 337 337 Accounts receivable — 4,129 4,129 Bunker and lube oil inventory 2,017 — 2,017 Prepaid expenses — 510 510 Vessel and equipment 37,240 7,562 44,802 Intangibles (i) — 6,880 6,880 Goodwill (i) — 5,633 5,633 Other non current assets — 29 29 Total assets held for sale 39,257 26,201 65,458 Current liabilities — 2,650 2,650 Other long term liabilities — 330 330 Total liabilities associated with assets held for sale — 2,980 2,980 Net assets held for sale 39,257 23,221 62,478 i. 91% of the intangible assets and goodwill relating to support services and 100% of the LNG business intangibles and goodwill have been allocated as held for sale. |
Income Tax Expenses (Tables)
Income Tax Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Contingencies | The following table reflects changes in uncertain tax positions relating to freight tax liabilities, which are recorded in other long-term liabilities and accrued liabilities on the Company's consolidated balance sheets: Year Ended December 31, 2020 2019 2018 Balance of unrecognized tax benefits as at January 1 49,579 32,059 26,054 Increases for positions related to the current year 14,264 3,385 5,399 Increases for positions related to prior years 10,748 16,410 5,016 Decreases for positions related to prior years (15,164) — — Settlements with tax authority (8,556) — — Decreases related to statute of limitations (2,196) (1,646) (1,095) Foreign exchange loss (gain) 449 (629) (3,315) Balance of unrecognized tax benefits as at December 31 49,124 49,579 32,059 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | Nov. 25, 2019 | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Significant Accounting Policies [Line Items] | ||||
Depreciation and amortization | $ 117,212 | $ 124,002 | $ 118,514 | |
Conversion ratio | 0.125 | |||
Vessels and equipment, useful life | 25 years | |||
Excluding Amortization Of Drydocking Expenditure | ||||
Significant Accounting Policies [Line Items] | ||||
Depreciation and amortization | $ 88,300 | $ 95,100 | $ 95,200 | |
Dry-Docking Activity | ||||
Significant Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Estimated Useful Lives | two and a half years to five years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summarizes Change in Capitalized Dry-Docking Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Roll Forward] | |||
Balance at the beginning of the year | $ 1,769,726 | ||
Cost incurred for dry docking | 24,655 | $ 48,250 | $ 27,972 |
(Write-down) and (loss) gain on sale of assets (note 19) | (69,446) | (5,544) | 170 |
Balance at the end of the year | 1,557,829 | 1,769,726 | |
Dry-Docking Activity | |||
Property, Plant and Equipment [Roll Forward] | |||
Balance at the beginning of the year | 71,807 | 56,019 | 48,460 |
Cost incurred for dry docking | 28,546 | 45,371 | 27,896 |
Dry-dock amortization | (27,851) | (26,682) | (20,326) |
(Write-down) and (loss) gain on sale of assets (note 19) | (4,975) | (2,901) | (11) |
Balance at the end of the year | $ 67,527 | $ 71,807 | $ 56,019 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) $ in Thousands | Dec. 31, 2020USD ($)lease | Dec. 31, 2019USD ($) | Jan. 01, 2019USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets (notes 2, 10 and 19) | $ 2,529 | $ 19,560 | |
ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets (notes 2, 10 and 19) | 19,600 | $ 11,000 | |
Carrying value of operating lease liabilities | $ 19,600 | $ 11,000 | |
Variable Interest Entity, Primary Beneficiary [Member] | ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Finance leased assets, number of units | lease | 14 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)vesselcontract | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | |||
Cost of Goods and Services Sold | $ 297,225,000 | $ 402,294,000 | $ 381,306,000 |
Number of primary forms of contracts | contract | 2 | ||
Lessor, Operating Lease, Payments to be Received, Two Years | $ 5,200,000 | ||
Property, Plant and Equipment, Net | 1,557,829,000 | 1,769,726,000 | |
Lessor, Operating Lease, Payments to be Received, Next Twelve Months | $ 45,300,000 | ||
Charters Out | |||
Disaggregation of Revenue [Line Items] | |||
Number Of Vessels | vessel | 9 | ||
Charters Out Expires 2021 | |||
Disaggregation of Revenue [Line Items] | |||
Number Of Vessels | vessel | 7 | ||
Charters Out Expires 2022 | |||
Disaggregation of Revenue [Line Items] | |||
Number Of Vessels | vessel | 2 | ||
Assets Leased to Others | |||
Disaggregation of Revenue [Line Items] | |||
Property, Plant and Equipment, Net | $ 344,400,000 | 173,800,000 | |
Property, Plant and Equipment, Gross | 464,800,000 | 213,800,000 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 120,400,000 | 40,000,000 | |
Time-charter revenues | |||
Disaggregation of Revenue [Line Items] | |||
Deferred revenue | $ 4,200,000 | $ 7,500,000 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 886,434 | $ 943,917 | $ 776,493 |
Voyage Charters - Suezmax | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 340,535 | 424,578 | 371,463 |
Voyage Charters - Aframax | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 198,206 | 255,702 | 125,390 |
Voyage Charters - LR2 | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 109,343 | 119,486 | 67,345 |
Voyage Charters - Full Service Lightering | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 93,720 | 81,837 | 107,730 |
Voyage charter revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 741,804 | 881,603 | 671,928 |
Time Charters - Suezmax | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 107,543 | 15,658 | 17,088 |
Time Charters - Aframax | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 13,262 | 1,837 | 35,531 |
Time Charters - LR2 | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 6,793 | 0 | 7,357 |
Time-charter revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 127,598 | 17,495 | 59,976 |
Ship-to-ship support services, Other revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 9,621 | 24,015 | 28,629 |
Commercial management, Other revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 7,019 | 8,461 | 8,829 |
LNG terminal management, consultancy, procurement and other, Other revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 392 | 12,343 | 7,131 |
Other revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 17,032 | $ 44,819 | $ 44,589 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 8 Months Ended |
Dec. 31, 2020segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Company's Revenue and Income From Operations by Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 886,434 | $ 943,917 | $ 776,493 |
Voyage expenses | (297,225) | (402,294) | (381,306) |
Vessel operating expenses | (184,233) | (208,601) | (209,131) |
Time-charter hire expenses (note 10) | 36,341 | 43,189 | 19,538 |
Depreciation and amortization | (117,212) | (124,002) | (118,514) |
General and administrative expenses | (39,006) | (36,404) | (39,775) |
(Write-down) and (loss) gain on sale of assets (note 19) | (69,446) | (5,544) | 170 |
Restructuring charges | (1,398) | 0 | (1,195) |
Income from operations | 141,573 | 123,883 | 7,204 |
Equity income (loss) | 5,100 | 2,345 | 1,220 |
Operating Segments | Tankers [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 879,442 | 913,816 | 750,769 |
Voyage expenses | (297,225) | (402,294) | (381,306) |
Vessel operating expenses | (178,293) | (184,320) | (187,523) |
Time-charter hire expenses (note 10) | 36,341 | 43,189 | 19,538 |
Depreciation and amortization | (116,719) | (121,126) | (114,930) |
General and administrative expenses | (38,379) | (34,904) | (38,195) |
(Write-down) and (loss) gain on sale of assets (note 19) | (72,527) | (5,544) | 170 |
Restructuring charges | (1,398) | (348) | |
Income from operations | 138,560 | 122,439 | 9,099 |
Equity income (loss) | 5,100 | 2,345 | 1,220 |
Operating Segments | Ship To Ship Transfer [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 6,992 | 30,101 | 25,724 |
Voyage expenses | 0 | 0 | 0 |
Vessel operating expenses | (5,940) | (24,281) | (21,608) |
Time-charter hire expenses (note 10) | 0 | 0 | 0 |
Depreciation and amortization | (493) | (2,876) | (3,584) |
General and administrative expenses | (627) | (1,500) | (1,580) |
(Write-down) and (loss) gain on sale of assets (note 19) | 3,081 | 0 | 0 |
Restructuring charges | 0 | (847) | |
Income from operations | 3,013 | 1,444 | (1,895) |
Equity income (loss) | $ 0 | $ 0 | $ 0 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Total Segment Assets to Total Assets Presented in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Cash and cash equivalents | $ 97,232 | $ 88,824 | $ 54,917 | $ 71,439 |
Total assets | $ 1,840,245 | 2,229,476 | ||
Tankers [Member] | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | 2,114,451 | |||
Ship To Ship Transfer [Member] | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | $ 26,201 |
Investment in and advances to_2
Investment in and advances to Equity-Accounted for Investment - Schedule of Investments in and Advances to Equity Accounted Investments (Detail) $ in Thousands | Dec. 31, 2020USD ($)vessel | Dec. 31, 2019USD ($) |
Schedule of Equity Method Investments [Line Items] | ||
Investment in and advances to equity accounted investments | $ 28,561 | $ 28,112 |
High-Q Joint Venture | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 50.00% | |
Number Of Vessels | vessel | 1 | |
Investment in and advances to equity accounted investments | $ 28,600 | $ 28,100 |
Investment in and advances to_3
Investment in and advances to Equity-Accounted for Investment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||
Long-term debt, gross | $ 249,568 | $ 562,861 | |
Equity income (loss) | 5,100 | 2,345 | $ 1,220 |
High-Q Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Long-term debt, gross | 25,700 | 31,900 | |
Equity income (loss) | $ 5,100 | $ 2,300 | $ 1,200 |
Percentage Of Exposure To Loan Guarantee | 50.00% | ||
Ownership percentage | 50.00% |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) $ in Thousands | 8 Months Ended | |
Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | |
Goodwill [Line Items] | ||
Number of reportable segments | segment | 1 | |
Goodwill (note 6) | $ 2,426 | $ 2,426 |
Disposal Group, Including Discontinued Operation, Goodwill | 5,600 | |
Disposal Group, Including Discontinued Operation, Intangible Assets | $ 6,900 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets | $ 1,989 | $ 2,545 | |
Amortization of intangible assets | 1,000 | 2,200 | $ 2,900 |
2021 | 500 | ||
2022 | 400 | ||
2023 | 400 | ||
2024 | 400 | ||
2025 | 300 | ||
Customer Relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets | $ 1,989 | $ 2,545 | |
Useful life | 10 years |
Accrued Liabilities (Detail)
Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Voyage and vessel | $ 39,796 | $ 48,526 |
Corporate accruals | 781 | 463 |
Interest | 2,814 | 2,610 |
Payroll and benefits (note 14c) | 11,664 | 8,136 |
Accrued liabilities | $ 55,055 | $ 59,735 |
Short-Term Debt (Details)
Short-Term Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Nov. 30, 2018 | |
Short-term Debt [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 32,000 | $ 80,000 | |
Short-term Debt | $ 10,000 | $ 50,000 | |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 3.60% | 5.00% | |
Short-term Debt [Member] | |||
Short-term Debt [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 80,000 | $ 40,000 | |
Debt Instrument, Term | 6 months | ||
Minimum [Member] | |||
Short-term Debt [Line Items] | |||
Debt covenant, required capital invested | $ 20,000 | ||
Maximum | |||
Short-term Debt [Line Items] | |||
Debt covenant, required capital invested | $ 30,000 | ||
London Interbank Offered Rate (LIBOR) [Member] | |||
Short-term Debt [Line Items] | |||
Short-term Debt, Percentage Bearing Variable Interest Rate | 3.50% |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 249,568 | $ 562,861 |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | (6,607) | (3,182) |
Long-term Debt, Total | 242,961 | 559,679 |
Long-term Debt, Current Maturities | (10,858) | (43,573) |
Long-term Debt, Excluding Current Maturities | 232,103 | 516,106 |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 64,568 | 221,729 |
Revolving Credit Facilities | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 185,000 | $ 341,132 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2020USD ($)term_loan | Jan. 31, 2020USD ($)credit_facilityterm_loan | Dec. 31, 2020USD ($)credit_facilityterm_loanvesselvaluator | Dec. 31, 2019USD ($)term_loancredit_facility | |
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 32,000,000 | $ 80,000,000 | ||
Total principal | $ 249,568,000 | $ 562,861,000 | ||
Repayments of Debt | $ 85,100,000 | $ 455,300,000 | ||
Interest at a weighted-average fixed rate | 2.60% | 3.70% | ||
Aggregate annual long-term principal repayments, 2020 | $ 11,200,000 | |||
Aggregate annual long-term principal repayments, 2021 | 11,200,000 | |||
Aggregate annual long-term principal repayments, 2022 | 42,200,000 | |||
Long-term debt, maturities, repayments of principal in year four | $ 185,000,000 | |||
Number of Third Party Valuators | valuator | 2 | |||
Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Number of debt instruments | term_loan | 1 | 2 | 1 | 3 |
Total principal | $ 64,568,000 | $ 221,729,000 | ||
Fixed rate percentage | 5.40% | |||
2020 Debt Facility Maturing in December 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Collateral, Number of Vessels | vessel | 31 | |||
Debt covenant minimum hull coverage ratio | 125.00% | |||
Actual hull coverage ratio | 404.00% | |||
Minimum liquidity covenant requirement | $ 35,000,000 | |||
Minimum liquidity as a percentage of consolidated debt covenant requirement | 5.00% | |||
Term Loan Due 2023 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Collateral, Number of Vessels | vessel | 4 | |||
Debt covenant minimum hull coverage ratio | 125.00% | |||
Actual hull coverage ratio | 189.00% | |||
Minimum liquidity covenant requirement | $ 35,000,000 | |||
Minimum liquidity as a percentage of consolidated debt covenant requirement | 5.00% | |||
Term Loan Due 2023 | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 64,600,000 | |||
Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||
Minimum [Member] | Term Loan Due 2023 | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Term | 6 months | |||
Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.40% | |||
London Interbank Offered Rate (LIBOR) [Member] | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.30% | |||
London Interbank Offered Rate (LIBOR) [Member] | Maximum | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||
Revolving Credit Facilities | ||||
Debt Instrument [Line Items] | ||||
Number of debt instruments | credit_facility | 2 | 1 | 2 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 438,400,000 | $ 371,500,000 | ||
Undrawn amount of revolving credit facility | 253,400,000 | 30,400,000 | ||
Long-term Debt, Revolving Credit Facility, Decrease in Amount Available Next Twelve Months | 91,400,000 | |||
Long-term Debt, Revolving Credit Facility, Decrease in Amount Available Year Two | 80,400,000 | |||
Long-term Debt, Revolving Credit Facility, Decrease in Amount Available Year Three | 65,300,000 | |||
Long-term Debt, Revolving Credit Facility, Decrease in Amount Available Year Four | 201,300,000 | |||
Total principal | 185,000,000 | $ 341,132,000 | ||
Revolving Credit Facilities | 2020 Debt Facility Maturing in December 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total principal | $ 185,000,000 | |||
Revolving Credit Facilities | Minimum [Member] | 2020 Debt Facility Maturing in December 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Term | 6 months | |||
Revolving Credit Facilities | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.40% | |||
Revolving Credit Facilities | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||
Revolving Credit Facilities | London Interbank Offered Rate (LIBOR) [Member] | Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% |
Operating Leases and Obligati_3
Operating Leases and Obligations Related to Finance Leases - Operating Leases (Detail) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2020USD ($)ExtensionOptioncontractvessel | Dec. 31, 2020USD ($)contractvessel | Dec. 31, 2019USD ($)vesselcontract | Dec. 31, 2018USD ($) | |
Operating Leased Assets [Line Items] | ||||
Operating Lease, Weighted Average Remaining Lease Term | 8 months 12 days | 8 months 12 days | 1 year 2 months 12 days | |
Lease Commitment | ||||
2020 | $ 10,300 | $ 10,300 | $ 34,700 | |
2021 | $ 3,300 | $ 3,300 | $ 5,900 | |
Number of time-charter contracts | contract | 5 | 4 | ||
Operating Lease, Weighted Average Discount Rate, Percent | 4.49% | 4.49% | 5.55% | |
Lessee, Operating Lease, Term of Contract | 1 year | 1 year | ||
Charter Contract Extension, Period | 1 year | 1 year | ||
Operating lease right-of-use assets (notes 2, 10 and 19) | $ 2,529 | $ 2,529 | $ 19,560 | |
Number of extension options | ExtensionOption | 3 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Three | $ 6,800 | 6,800 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 6,800 | 6,800 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 6,800 | 6,800 | ||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | $ 25,000 | 25,000 | ||
Time-charter hire expenses (note 10) | $ 36,341 | $ 43,189 | $ 19,538 | |
Number of Time Charters with Option to Extend | contract | 3 | 3 | ||
LR2 Tankers [Member] | ||||
Lease Commitment | ||||
Number of vessels chartered in | vessel | 2 | |||
Operating lease right-of-use assets (notes 2, 10 and 19) | $ 14,700 | |||
Aframax Tanker | ||||
Lease Commitment | ||||
Number of vessels chartered in | vessel | 1 | 1 | 1 | |
Lessee, Operating Lease, Term of Contract | 7 years | 7 years | ||
Operating lease right-of-use assets (notes 2, 10 and 19) | $ 7,800 | |||
Ship-to-ship Support Vessel [Member] | ||||
Lease Commitment | ||||
Number of vessels chartered in | vessel | 1 | |||
Lessee, Operating Lease, Term of Contract | 24 months | 24 months | ||
Operating lease right-of-use assets (notes 2, 10 and 19) | $ 800 | $ 800 | ||
LR2 and Aframax Vessels | ||||
Lease Commitment | ||||
Lessee, Operating Lease, Term of Contract | 24 months | |||
Lease [Member] | ||||
Lease Commitment | ||||
Time-charter hire expenses (note 10) | 16,000 | $ 14,100 | ||
Lease and Non-lease | ||||
Lease Commitment | ||||
Time-charter hire expenses (note 10) | 30,000 | 25,200 | ||
Non-lease Component [Member] | ||||
Lease Commitment | ||||
Time-charter hire expenses (note 10) | 14,000 | 11,100 | ||
Short Term Lease less than 1 year [Member] | ||||
Lease Commitment | ||||
Time-charter hire expenses (note 10) | 6,300 | $ 18,000 | ||
Long-Term Lease | ||||
Lease Commitment | ||||
2020 | 3,744 | 3,744 | ||
2021 | 319 | 319 | ||
Total payments | 4,063 | 4,063 | ||
Less: imputed interest | (63) | (63) | ||
Carrying value of operating lease liabilities | 4,000 | 4,000 | ||
Long-Term Non-lease | ||||
Lease Commitment | ||||
2020 | 4,235 | 4,235 | ||
2021 | 1,226 | 1,226 | ||
Total payments | 5,461 | 5,461 | ||
Long-Term Lease and Non-lease | ||||
Lease Commitment | ||||
2020 | 7,979 | 7,979 | ||
2021 | 1,545 | 1,545 | ||
Total payments | $ 9,524 | $ 9,524 |
Operating Leases and Obligati_4
Operating Leases and Obligations Related to Finance Leases - Additional Information (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2021USD ($) | Nov. 30, 2020USD ($) | Oct. 31, 2020USD ($) | Dec. 31, 2020USD ($)lessorvesselvaluator | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Mar. 10, 2021vessel | Nov. 13, 2020vessel | Oct. 22, 2020vessel | |
Capital Leased Assets [Line Items] | |||||||||
Number of Lessors | lessor | 14 | ||||||||
Finance Lease, Weighted Average Remaining Lease Term | 7.80% | 7.60% | |||||||
Number of Third Party Valuators | valuator | 2 | ||||||||
Finance Lease, Liability, Undiscounted Excess Amount | $ | $ 120,900 | $ 186,900 | |||||||
Number of vessels obligated to purchase | 8 | ||||||||
Payments to Acquire Property, Plant, and Equipment | $ | $ 29,600 | $ 16,025 | $ 11,628 | $ 5,827 | |||||
Suezmax Tankers | |||||||||
Capital Leased Assets [Line Items] | |||||||||
Number Of Vessels | 2 | ||||||||
Payments to Acquire Property, Plant, and Equipment | $ | $ 56,700 | ||||||||
Suezmax, Aframax and LR2 Vessels | |||||||||
Capital Leased Assets [Line Items] | |||||||||
Number Of Vessels | 16 | ||||||||
Number of Vessels with Purchase Option | 16 | ||||||||
Aframax Tanker | |||||||||
Capital Leased Assets [Line Items] | |||||||||
Number Of Vessels | 2 | ||||||||
Aframax Tanker | Subsequent Event [Member] | |||||||||
Capital Leased Assets [Line Items] | |||||||||
Number Of Vessels | 6 | ||||||||
Payments to Acquire Property, Plant, and Equipment | $ | $ 128,800 | ||||||||
Minimum [Member] | |||||||||
Capital Leased Assets [Line Items] | |||||||||
Sale Leaseback Transaction, Lease Terms | 9 | ||||||||
Maximum | |||||||||
Capital Leased Assets [Line Items] | |||||||||
Sale Leaseback Transaction, Lease Terms | 12 | ||||||||
Finance Lease Obligations | |||||||||
Capital Leased Assets [Line Items] | |||||||||
Minimum Liquidity Covenant Requirement | $ | $ 35,000 | ||||||||
Minimum Liquidity as a Percentage of Consolidated Debt Covenant Requirement | 5.00% | ||||||||
Number of Third Party Valuators | valuator | 1 | ||||||||
Finance Lease Obligations | Minimum [Member] | |||||||||
Capital Leased Assets [Line Items] | |||||||||
Long-term Debt, Term | 6 months | ||||||||
May 2019 Sale Leaseback [Member] | |||||||||
Capital Leased Assets [Line Items] | |||||||||
Debt Covenant Minimum Hull Coverage Ratio, Year 1 | 75.00% | ||||||||
Actual Hull Coverage Ratio | 81.00% | 109.00% | |||||||
Debt Covenant Minimum Hull Coverage Ratio, Thereafter | 90.00% | ||||||||
May 2019 Sale Leaseback [Member] | Suezmax Tankers | |||||||||
Capital Leased Assets [Line Items] | |||||||||
Debt Covenant Minimum Hull Coverage Ratio, Year 2 | 78.00% | ||||||||
Maintain 80% Hull Coverage Ratio for the Third & Fourth Year | 80.00% | ||||||||
May 2019 Sale Leaseback [Member] | Finance Lease Obligations | |||||||||
Capital Leased Assets [Line Items] | |||||||||
Number Of Vessels | 2 | ||||||||
November 2018 Sale Leaseback | |||||||||
Capital Leased Assets [Line Items] | |||||||||
Debt Covenant Minimum Hull Coverage Ratio | 100.00% | ||||||||
November 2018 Sale Leaseback | Minimum [Member] | |||||||||
Capital Leased Assets [Line Items] | |||||||||
Actual Hull Coverage Ratio | 145.00% | 140.00% | |||||||
November 2018 Sale Leaseback | Maximum | |||||||||
Capital Leased Assets [Line Items] | |||||||||
Actual Hull Coverage Ratio | 156.00% | 144.00% | |||||||
November 2018 Sale Leaseback | Finance Lease Obligations | |||||||||
Capital Leased Assets [Line Items] | |||||||||
Number Of Vessels | 2 | ||||||||
September 2018 Sale Leaseback [Member] | |||||||||
Capital Leased Assets [Line Items] | |||||||||
Debt Covenant Minimum Hull Coverage Ratio, Year 1 | 75.00% | ||||||||
Debt Covenant Minimum Hull Coverage Ratio, Year 2 | 78.00% | ||||||||
Maintain 80% Hull Coverage Ratio for the Third & Fourth Year | 80.00% | ||||||||
Debt Covenant Minimum Hull Coverage Ratio, Thereafter | 90.00% | ||||||||
September 2018 Sale Leaseback [Member] | Minimum [Member] | |||||||||
Capital Leased Assets [Line Items] | |||||||||
Actual Hull Coverage Ratio | 80.00% | 106.00% | |||||||
September 2018 Sale Leaseback [Member] | Maximum | |||||||||
Capital Leased Assets [Line Items] | |||||||||
Actual Hull Coverage Ratio | 88.00% | 123.00% | |||||||
September 2018 Sale Leaseback [Member] | Finance Lease Obligations | |||||||||
Capital Leased Assets [Line Items] | |||||||||
Number Of Vessels | 6 | ||||||||
July 2017 Sale Leaseback | |||||||||
Capital Leased Assets [Line Items] | |||||||||
Debt Covenant Minimum Hull Coverage Ratio, Years 1, 2 and 3 | 90.00% | ||||||||
Debt Covenant Minimum Hull Coverage Ratio, Thereafter | 100.00% | ||||||||
July 2017 Sale Leaseback | Minimum [Member] | |||||||||
Capital Leased Assets [Line Items] | |||||||||
Actual Hull Coverage Ratio | 121.00% | 110.00% | |||||||
July 2017 Sale Leaseback | Maximum | |||||||||
Capital Leased Assets [Line Items] | |||||||||
Actual Hull Coverage Ratio | 143.00% | 132.00% | |||||||
July 2017 Sale Leaseback | Finance Lease Obligations | |||||||||
Capital Leased Assets [Line Items] | |||||||||
Number Of Vessels | 4 | ||||||||
July 2017 and November 2018 Sale Leaseback | Finance Lease Obligations | |||||||||
Capital Leased Assets [Line Items] | |||||||||
Number Of Vessels | 6 | ||||||||
September 2018 and May 2019 Sale Leaseback | Finance Lease Obligations | |||||||||
Capital Leased Assets [Line Items] | |||||||||
Number Of Vessels | 8 | ||||||||
Variable Interest Entity, Primary Beneficiary | |||||||||
Capital Leased Assets [Line Items] | |||||||||
Number of Lessors | lessor | 12 |
Operating Leases and Obligati_5
Operating Leases and Obligations Related to Finance Leases - Finance Lease Obligation (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Total obligations related to finance leases | $ 360,043 | $ 414,788 |
Less: current portion | (78,476) | (25,357) |
Long-term obligations related to finance leases | $ 281,567 | $ 389,431 |
Operating Leases and Obligati_6
Operating Leases and Obligations Related to Finance Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Capital Leases, Future Minimum Payments Due | $ 480,900 | $ 601,700 |
Finance Lease, Liability, Undiscounted Excess Amount | 120,900 | $ 186,900 |
Year | ||
2020 | 103,033 | |
2021 | 43,552 | |
2022 | 43,545 | |
2023 | 43,656 | |
2025 | 43,528 | |
Thereafter | $ 203,630 |
Derivative Instruments - Summar
Derivative Instruments - Summary of Interest Rate Swap Positions (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Minimum [Member] | |
Derivative [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.25% |
Maximum | |
Derivative [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.40% |
United States Dollar Denominated Interest Rate Swaps One | London Interbank Offered Rate (LIBOR) [Member] | |
Derivative [Line Items] | |
Notional Amount | $ 50,000 |
Fair Value / Carrying Amount of Asset (Liability) | $ 886 |
Remaining Term (years) | 4 years |
Fixed Interest Rate | 76.00% |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Derivative Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Reported Value Measurement | ||
Derivative [Line Items] | ||
Current portion of derivative assets (note 11) | $ 0 | $ 577 |
Derivative assets | 0 | 82 |
Accounts Receivable | 0 | 230 |
Current portion of derivative liabilities | (289) | (86) |
Derivative Liability, Noncurrent | (597) | 0 |
Reported Value Measurement | Interest rate swap agreements | ||
Derivative [Line Items] | ||
Current portion of derivative assets (note 11) | 0 | 577 |
Derivative assets | 0 | 82 |
Accounts Receivable | 0 | 230 |
Current portion of derivative liabilities | (289) | 0 |
Derivative Liability, Noncurrent | (597) | 0 |
Reported Value Measurement | Forward freight agreements | ||
Derivative [Line Items] | ||
Accounts Receivable | 0 | |
Current portion of derivative liabilities | (86) | |
Derivative Liability, Noncurrent | 0 | |
Current portion of derivative assets (note 11) | 0 | 577 |
Derivative assets | 0 | 82 |
Current portion of derivative liabilities | (289) | (86) |
Derivative Liability, Noncurrent | $ (597) | $ 0 |
Derivative Instruments - Sche_2
Derivative Instruments - Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
Derivative instruments not designated as hedging instruments realized gain (loss) net | $ (761) | $ 4,280 | $ 2,453 |
Derivative Instruments Not Designated As Hedging Instruments Unrealized Gain (Loss) Net | (1,459) | (5,247) | 579 |
Total realized and unrealized (loss) gain on derivatives | (2,220) | (967) | 3,032 |
Interest rate swap agreements | |||
Derivative [Line Items] | |||
Derivative instruments not designated as hedging instruments realized gain (loss) net | 481 | 2,791 | 2,316 |
Derivative Instruments Not Designated As Hedging Instruments Unrealized Gain (Loss) Net | (1,545) | (5,218) | 636 |
Forward freight agreements | |||
Derivative [Line Items] | |||
Derivative instruments not designated as hedging instruments realized gain (loss) net | (1,242) | 1,489 | 137 |
Derivative Instruments Not Designated As Hedging Instruments Unrealized Gain (Loss) Net | $ 86 | $ (29) | $ (57) |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Fair Value and Carrying Value of Assets and Liabilities Measured on Recurring and Non-recurring Basis (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Reported Value Measurement | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Current portion of derivative liabilities (note 11) | $ 289,000 | $ 86,000 | ||
Advances to equity-accounted joint venture | 5,280,000 | 9,930,000 | ||
Reported Value Measurement | Interest rate swap | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Current portion of derivative liabilities (note 11) | 289,000 | 0 | ||
Reported Value Measurement | Forward freight agreements | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Current portion of derivative liabilities (note 11) | 86,000 | |||
Reported Value Measurement | Level 2 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Short-term debt | (10,000,000) | (50,000,000) | ||
Long-term Debt | 242,961,000 | 559,679,000 | ||
Obligations related to finance leases, including current portion (note 12) | (360,043,000) | (414,788,000) | ||
Reported Value Measurement | Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash, cash equivalents and restricted cash (note 16c) | 103,146,000 | 95,332,000 | ||
Reported Value Measurement | Fair Value, Measurements, Recurring | Level 2 | Interest rate swap | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Interest rate swap agreements | 659,000 | |||
Interest rate swap agreements | (886,000) | |||
Reported Value Measurement | Fair Value, Measurements, Recurring | Level 2 | Forward freight agreements | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Current portion of derivative liabilities (note 11) | 0 | 86,000 | ||
Reported Value Measurement | Fair Value, Nonrecurring | Level 2 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Operating lease right-of-use assets (notes 2, 10 and 19) | 1,799,000 | 0 | ||
Property, Plant and Equipment, Net, Excluding Capital Leased Assets | 59,250,000 | 0 | ||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 31,680,000 | 37,240,000 | ||
Fair Value Asset/(Liability) | Level 2 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Short-term debt | (10,000,000) | (50,000,000) | ||
Long-term Debt | 248,738,000 | 558,657,000 | ||
Obligations related to finance leases, including current portion (note 12) | (411,740,000) | (442,648,000) | ||
Fair Value Asset/(Liability) | Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash, cash equivalents and restricted cash (note 16c) | 103,146,000 | 95,332,000 | ||
Fair Value Asset/(Liability) | Fair Value, Measurements, Recurring | Level 2 | Interest rate swap | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Interest rate swap agreements | 659,000 | |||
Interest rate swap agreements | (886,000) | |||
Fair Value Asset/(Liability) | Fair Value, Measurements, Recurring | Level 2 | Forward freight agreements | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Current portion of derivative liabilities (note 11) | 0 | 86,000 | ||
Fair Value Asset/(Liability) | Fair Value, Nonrecurring | Level 2 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Operating lease right-of-use assets (notes 2, 10 and 19) | 1,799,000 | 0 | ||
Property, Plant and Equipment, Net, Excluding Capital Leased Assets | 59,250,000 | 0 | ||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 31,680,000 | 37,240,000 | ||
Cash, cash equivalents and restricted cash (note 16c) | 103,146,000 | 96,790,000 | $ 60,507,000 | $ 75,710,000 |
Current portion of derivative liabilities (note 11) | 289,000 | 86,000 | ||
Operating lease right-of-use assets (notes 2, 10 and 19) | 2,529,000 | 19,560,000 | ||
Property, Plant and Equipment, Net, Excluding Capital Leased Assets | 1,104,742,000 | 1,223,085,000 | ||
Short-term debt | (10,000,000) | (50,000,000) | ||
Long-term Debt | 242,961,000 | 559,679,000 | ||
Obligations related to finance leases, including current portion (note 12) | $ (360,043,000) | $ (414,788,000) |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||
May 31, 2018 | Dec. 31, 2015 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Class of Stock [Line Items] | |||||
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | |||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
Common stock, shares authorized (in shares) | 585,000,000 | 585,000,000 | |||
Preferred Stock, Shares Outstanding | 0 | 0 | |||
Preferred stock, shares issued (in shares) | 0 | 0 | |||
Conversion basis (in shares) | 1 | ||||
Minimum percentage of common stock | 15.00% | ||||
Class A | |||||
Class of Stock [Line Items] | |||||
Common stock, shares authorized (in shares) | 485,000,000 | 485,000,000 | |||
Common Stock, Shares, Outstanding | 29,100,000 | 29,000,000 | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
Votes per share owned | one | ||||
Common Stock, Shares, Issued | 29,100,000 | 29,000,000 | |||
Common Class B [Member] | |||||
Class of Stock [Line Items] | |||||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | |||
Common Stock, Shares, Outstanding | 4,600,000 | 4,600,000 | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
Votes per share owned | five | ||||
Maximum percentage of voting power | 49.00% | ||||
Common Stock, Shares, Issued | 4,600,000 | 4,600,000 | |||
Share-based Payment Arrangement, Option [Member] | |||||
Class of Stock [Line Items] | |||||
Share-based Payment Arrangement, Expense | $ 300,000 | $ 400,000 | $ 200,000 | ||
Period Of Historical Data Used To Calculate Expected Volatility In Year | 5 years | ||||
Unrecognized compensation cost related to non-vested stock options granted | $ 300,000 | 500,000 | 300,000 | ||
Intrinsic value of outstanding in-the-money stock options | 900,000 | 7,200,000 | 0 | ||
Intrinsic value of exercisable stock options | $ 400,000 | $ 2,300,000 | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 7 years | 8 years | 8 years 1 month 6 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 6 years 6 months | 7 years 1 month 6 days | 7 years 8 months 12 days | ||
Restricted Stock Units (RSUs) | |||||
Class of Stock [Line Items] | |||||
Restricted stock units vested (in shares) | 78,300 | 53,800 | 34,200 | ||
Market value of restricted stock units | $ 1,300,000 | $ 500,000 | $ 300,000 | ||
Restricted Stock Units (RSUs) | Class A | |||||
Class of Stock [Line Items] | |||||
Proceeds from issuance of common stock, net of offering costs (in shares) | 44,800 | 34,100 | 23,600 | ||
2007 Long-Term Incentive Plan | Share-based Payment Arrangement, Option [Member] | |||||
Class of Stock [Line Items] | |||||
Weighted-average grant date fair value of stock options granted (in dollars per share) | $ 2.79 | $ 2.77 | |||
Expected volatility rate | 48.70% | 48.70% | |||
Expected life (in years) | 5 years | 5 years | |||
Dividend yield | 3.00% | 5.50% | |||
Risk-free interest rate | 2.40% | 2.60% | |||
General and Administrative Expense [Member] | Class A | |||||
Class of Stock [Line Items] | |||||
Share-based Payment Arrangement, Expense | $ 200,000 | $ 200,000 | $ 200,000 | ||
General and Administrative Expense [Member] | Restricted Stock Units (RSUs) | |||||
Class of Stock [Line Items] | |||||
Restricted Stock or Unit Expense | $ 1,400,000 | $ 800,000 | $ 700,000 | ||
Non Management Directors | 2007 Long-Term Incentive Plan | Class A | |||||
Class of Stock [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 13,100 | 19,900 | 21,000 | ||
Grants in period (shares) | 13,100 | 19,900 | 21,000 | ||
Non Management Directors | 2007 Long-Term Incentive Plan | Share-based Payment Arrangement, Option [Member] | |||||
Class of Stock [Line Items] | |||||
Grants in period (shares) | 0 | 58,800 | 63,000 | ||
Exercise price of stock options granted (in dollars per share) | $ 8 | $ 9.76 | |||
Term of stock options (in years) | 10 years | ||||
Officers and Certain Subsidiaries Employees | 2007 Long-Term Incentive Plan | Share-based Payment Arrangement, Option [Member] | |||||
Class of Stock [Line Items] | |||||
Term of stock options (in years) | 10 years | ||||
Vesting period (in years) | 3 years | ||||
Officer | 2007 Long-Term Incentive Plan | Restricted Stock Units (RSUs) | Subsidiaries Employees | |||||
Class of Stock [Line Items] | |||||
Vesting period (in years) | 3 years | ||||
Restricted stock units aggregate value, granted (in shares) | $ 3,100,000 | $ 800,000 | $ 900,000 | ||
Officers and Employees and Certain Subsidiaries Employees | 2007 Long-Term Incentive Plan | Share-based Payment Arrangement, Option [Member] | |||||
Class of Stock [Line Items] | |||||
Grants in period (shares) | 218,200 | 92,000 | |||
Exercise price of stock options granted (in dollars per share) | $ 8 | $ 9.76 | |||
2007 Long-Term Incentive Plan | Class A | |||||
Class of Stock [Line Items] | |||||
Common stock, shares reserved for issuance upon awards to be granted (in shares) | 1,250,000 | 1,250,000 | |||
2007 Long-Term Incentive Plan | Officer | Restricted Stock Units (RSUs) | Subsidiaries Employees | |||||
Class of Stock [Line Items] | |||||
Common stock, granted (in shares) | 200,000 | 100,000 | 100,000 | ||
Minimum [Member] | |||||
Class of Stock [Line Items] | |||||
Dividend range under dividend policy | 30.00% | 30.00% | |||
Dividends per quarter (USD per share) | $ 0.24 | ||||
Maximum | |||||
Class of Stock [Line Items] | |||||
Dividend range under dividend policy | 50.00% | 50.00% |
Capital Stock - Summary of Stoc
Capital Stock - Summary of Stock Option Information (Detail) - Stock Option - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Options | |||
Outstanding - beginning of year (in shares) | 605,594 | 359,496 | 208,788 |
Grants in period (shares) | 0 | 277,066 | 155,053 |
Exercised (in shares) | (25,681) | (30,968) | 0 |
Forfeited / expired (in shares) | 0 | 0 | (4,345) |
Outstanding - end of year (in shares) | 579,913 | 605,594 | 359,496 |
Exercisable - end of year (in shares) | 404,716 | 309,609 | 224,687 |
Weighted-Average Exercise Price ($) | |||
Outstanding - beginning of year (in dollars per share) | $ 14.16 | $ 18.45 | $ 24.78 |
Granted (in dollars per share) | 0 | 8 | 9.76 |
Exercised (in dollars per share) | 10.47 | 8.96 | 0 |
Forfeited / expired (in dollars per share) | 0 | 0 | 12.45 |
Outstanding - end of year (in dollars per share) | 14.32 | 14.16 | 18.45 |
Exercisable - end of year (in dollars per share) | $ 16.92 | $ 19.12 | $ 21.54 |
Capital Stock - Summary of Non-
Capital Stock - Summary of Non-Vested Stock Option Activity and Related Information (Detail) - Nonvested - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Options | |||
Outstanding non-vested stock options - beginning of year (in shares) | 295,984 | 134,809 | 76,881 |
Grants in period (shares) | 0 | 218,223 | 92,041 |
Vested (in shares) | (120,787) | (57,048) | (29,768) |
Forfeited / expired (in shares) | 0 | 0 | (4,345) |
Outstanding non-vested stock options - end of year (in shares) | 175,197 | 295,984 | 134,809 |
Weighted-Average Grant Date Fair Value | |||
Outstanding non-vested stock options - beginning of year (in dollars per share) | $ 8.96 | $ 13.30 | $ 21.47 |
Granted (in dollars per share) | 0 | 8 | 9.76 |
Vested (in dollars per share) | 9.93 | 15.54 | 23.56 |
Forfeited / expired (in dollars per share) | 0 | 0 | 12.45 |
Outstanding non-vested stock options - end of year (in dollars per share) | $ 8.30 | $ 8.96 | $ 13.30 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Reimbursement of manager's crewing and manning costs | $ 3,123 | $ 2,139 | |
Minimum threshold for payment of performance fee to manager (in dollars per share) | $ 25.60 | ||
Percentage of performance fee payable on gross cash available for distribution | 20.00% | ||
Other Income | |||
Related Party Transaction [Line Items] | |||
Revenue from Related Parties | $ 22 | 320 | $ 1,019 |
Technical management fee revenue | |||
Related Party Transaction [Line Items] | |||
Revenue from Related Parties | 677 | 765 | 13,811 |
Payable to Manager | |||
Related Party Transaction [Line Items] | |||
Reimbursement of manager's crewing and manning costs | $ 10,600 | 7,900 | |
Vessels Hire | RSA Participants [Member] | Aframax Tanker | |||
Related Party Transaction [Line Items] | |||
Expenses due to hiring vessels | $ 8,800 | $ 28,400 |
Related Party Transactions - Su
Related Party Transactions - Summary of Related Party Transactions (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 30, 2016 | |
Related Party Transaction [Line Items] | ||||
Operating Costs and Expenses | $ 184,233 | $ 208,601 | $ 209,131 | |
Strategic and administrative service fees | (30,775) | (31,422) | (32,918) | |
Technical management fee | ||||
Related Party Transaction [Line Items] | ||||
Operating Costs and Expenses | 992 | 1,202 | 10,400 | |
Secondment fees | ||||
Related Party Transaction [Line Items] | ||||
Strategic and administrative service fees | (402) | (185) | (679) | |
LNG terminal services | ||||
Related Party Transaction [Line Items] | ||||
Revenue from Related Parties | 0 | 1,979 | 1,689 | |
Technical management fee revenue | ||||
Related Party Transaction [Line Items] | ||||
Revenue from Related Parties | 677 | 765 | 13,811 | |
Service revenue | ||||
Related Party Transaction [Line Items] | ||||
Revenue from Related Parties | $ 22 | $ 320 | $ 1,019 | |
Teekay LNG Operating LLC | Bahrain LNG W.I.L. | ||||
Related Party Transaction [Line Items] | ||||
Ownership percentage by noncontrolling owners | 30.00% |
Other (Expense) Income - Summar
Other (Expense) Income - Summary of Other Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |||
Foreign exchange (loss) gain | $ (734) | $ 486 | $ 3,133 |
Other income | 1,207 | 209 | 49 |
Total | $ 473 | $ 695 | $ 3,182 |
Earnings (Loss) Per Share - Sch
Earnings (Loss) Per Share - Schedule of Net Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Weighted average number of common shares - basic (in shares) | 33,718,665 | 33,617,635 | 33,561,615 |
Dilutive effect of stock-based awards (in shares) | 202,956 | 113,536 | 0 |
Weighted average number of common shares - diluted (in shares) | 33,921,621 | 33,731,171 | 33,561,615 |
Net income (loss) | $ 87,317 | $ 41,362 | $ (52,548) |
Earnings (loss) per common share: | |||
Basic (in dollars per share) | $ 2.59 | $ 1.23 | $ (1.57) |
Diluted (in dollars per share) | $ 2.57 | $ 1.23 | $ (1.57) |
Earnings (Loss) Per Share - Add
Earnings (Loss) Per Share - Additional Information (Detail) - Class A - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Restricted Stock Units (RSUs) | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive effect on calculation of diluted earnings per common share attributable to outstanding stock-based awards (in shares) | 100,000 | 7,000 |
Share-based Payment Arrangement, Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive effect on calculation of diluted earnings per common share attributable to outstanding stock-based awards (in shares) | 200,000 | 500,000 |
Impairment and Sale of Vessels
Impairment and Sale of Vessels and Other Assets (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Feb. 28, 2021USD ($) | Dec. 31, 2020USD ($)vessel | Dec. 31, 2019USD ($)vessel | Dec. 31, 2018USD ($)vessel | Mar. 10, 2021vessel | Feb. 05, 2021vessel | Nov. 13, 2020vessel | Oct. 22, 2020vessel | |
Property, Plant and Equipment [Line Items] | ||||||||
Operating Lease, Impairment Loss | $ | $ 2.9 | |||||||
Subsequent Event [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Proceeds from Sale of Property, Plant, and Equipment | $ | $ 32 | |||||||
Aframax Tanker | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Number Of Vessels | vessel | 2 | |||||||
Asset Impairment Charges | $ | $ 1.6 | |||||||
Number of Vessels held for sale | vessel | 2 | |||||||
Aframax Tanker | Subsequent Event [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Number Of Vessels | vessel | 2 | |||||||
Suezmax Tankers | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Number of Vessels held for sale | vessel | 2 | |||||||
Aframax Tanker | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Asset Impairment Charges | $ | $ 65.4 | |||||||
Number Of Vessels Impaired | vessel | 9 | |||||||
Suezmax Tankers | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Gain (Loss) on Disposition of Assets | $ | $ 2.6 | $ 2.3 | ||||||
Number Of Vessels Sold | vessel | 3 | 1 | ||||||
Number Of Vessels | vessel | 2 | |||||||
Asset Impairment Charges | $ | $ 3.2 | |||||||
Aframax Tanker | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Number Of Vessels | vessel | 2 | |||||||
Aframax Tanker | Subsequent Event [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Number Of Vessels | vessel | 6 | |||||||
Ship-to-ship Support Vessel [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
(Loss) gain and write-down on sale of vessels (note 21) | $ | $ 0.2 | |||||||
Number Of Vessels Sold | vessel | 1 | |||||||
Ship to Ship Transfer Business | Ship To Ship Transfer [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Gain (Loss) on Disposition of Business | $ | $ 3.1 | |||||||
Proceeds from business divestiture | $ | 27.1 | |||||||
Proceeds From Divestiture of Business Adjustment | $ | $ 1.1 |
Assets held for sale (Details)
Assets held for sale (Details) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)vessel |
Long Lived Assets Held-for-sale [Line Items] | ||
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents | $ 2,100,000 | |
Disposal Group, Including Discontinued Operation, Intangible Assets | $ 6,900,000 | |
Disposal Group, Including Discontinued Operation, Goodwill | 5,600,000 | |
Liabilities associated with assets held for sale (note 19) | $ 0 | $ 2,980,000 |
Suezmax Tankers | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Number of Vessels held for sale | vessel | 2 | |
Tanker [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents | $ 0 | |
Disposal Group, Including Discontinued Operation, Restricted Cash, Current | 0 | |
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net | 0 | |
Disposal Group, Including Discontinued Operation, Inventory | 2,017,000 | |
Disposal Group, Including Discontinued Operation, Prepaid and Other Assets | 0 | |
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | 37,240,000 | |
Disposal Group, Including Discontinued Operation, Intangible Assets | 0 | |
Disposal Group, Including Discontinued Operation, Goodwill | 0 | |
Disposal Group, Including Discontinued Operation, Other Assets, Noncurrent | 0 | |
Disposal Group, Including Discontinued Operation, Assets, Current | 39,257,000 | |
Liabilities associated with assets held for sale (note 19) | 0 | |
Disposal Group, Including Discontinued Operation, Liabilities, Noncurrent | 0 | |
Disposal Group, Including Discontinued Operation, Liabilities, Total | 0 | |
Disposal Group, Including Discontinued Operation, Net Assets | $ 39,257,000 | |
Ship To Ship Transfer [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Intangible Assets and Goodwill Held for Sale | 91.00% | |
Tanker and Ship-to-Ship Transfer [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents | $ 1,121,000 | |
Disposal Group, Including Discontinued Operation, Restricted Cash, Current | 337,000 | |
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net | 4,129,000 | |
Disposal Group, Including Discontinued Operation, Inventory | 2,017,000 | |
Disposal Group, Including Discontinued Operation, Prepaid and Other Assets | 510,000 | |
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | 44,802,000 | |
Disposal Group, Including Discontinued Operation, Intangible Assets | 6,880,000 | |
Disposal Group, Including Discontinued Operation, Goodwill | 5,633,000 | |
Disposal Group, Including Discontinued Operation, Other Assets, Noncurrent | 29,000 | |
Disposal Group, Including Discontinued Operation, Assets, Current | 65,458,000 | |
Liabilities associated with assets held for sale (note 19) | 2,650,000 | |
Disposal Group, Including Discontinued Operation, Liabilities, Noncurrent | 330,000 | |
Disposal Group, Including Discontinued Operation, Liabilities, Total | 2,980,000 | |
Disposal Group, Including Discontinued Operation, Net Assets | $ 62,478,000 | |
LNG Segment [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Intangible Assets and Goodwill Held for Sale | 100.00% | |
Ship to Ship Transfer Business | Ship To Ship Transfer [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents | $ 1,121,000 | |
Disposal Group, Including Discontinued Operation, Restricted Cash, Current | 337,000 | |
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net | 4,129,000 | |
Disposal Group, Including Discontinued Operation, Inventory | 0 | |
Disposal Group, Including Discontinued Operation, Prepaid and Other Assets | 510,000 | |
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | 7,562,000 | |
Disposal Group, Including Discontinued Operation, Intangible Assets | 6,880,000 | |
Disposal Group, Including Discontinued Operation, Goodwill | 5,633,000 | |
Disposal Group, Including Discontinued Operation, Other Assets, Noncurrent | 29,000 | |
Disposal Group, Including Discontinued Operation, Assets, Current | 26,201,000 | |
Liabilities associated with assets held for sale (note 19) | 2,650,000 | |
Disposal Group, Including Discontinued Operation, Liabilities, Noncurrent | 330,000 | |
Disposal Group, Including Discontinued Operation, Liabilities, Total | 2,980,000 | |
Disposal Group, Including Discontinued Operation, Net Assets | $ 23,221,000 |
Restructuring and Related Act_2
Restructuring and Related Activities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |||
Restructuring charges | $ 1,398,000 | $ 0 | $ 1,195,000 |
Restructuring Reserve | $ 1,000,000 | $ 0 |
Income Tax Expenses - Summary o
Income Tax Expenses - Summary of Income Tax Expenses (Recovery) Recorded in Other Long-Term Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | $ 14,264 | $ 3,385 | $ 5,399 | |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 10,748 | 16,410 | 5,016 | |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | 15,164 | 0 | 0 | |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 8,556 | 0 | 0 | |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | 2,196 | 1,646 | 1,095 | |
Unrecognized Tax Benefits, Increase Resulting from Foreign Currency Translation | 449 | |||
Foreign exchange gains on freight tax expenses | 629 | 3,315 | ||
Unrecognized Tax Benefits | $ 49,124 | $ 49,579 | $ 32,059 | $ 26,054 |
Income Tax Expenses - Additiona
Income Tax Expenses - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2020 | |
Income Tax Contingency [Line Items] | |||||
Interest and penalties on freight tax expenses (recoveries) | $ 13,300 | $ 8,400 | $ 5,400 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 27,700 | 23,800 | 15,800 | ||
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 10,748 | 16,410 | 5,016 | ||
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | 15,164 | $ 0 | $ 0 | ||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | $ 8,600 | ||||
Foreign Tax Authority | |||||
Income Tax Contingency [Line Items] | |||||
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 7,600 | ||||
Settlement with Taxing Authority | |||||
Income Tax Contingency [Line Items] | |||||
Payments for Other Taxes | $ 7,700 | ||||
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | $ 15,200 |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2021USD ($) | Feb. 28, 2021USD ($) | Oct. 31, 2020USD ($) | Dec. 31, 2020USD ($)vessel | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Mar. 10, 2021vessel | Feb. 05, 2021vessel | Oct. 22, 2020vessel | |
Subsequent Event [Line Items] | |||||||||
Payments to Acquire Property, Plant, and Equipment | $ | $ 29,600 | $ 16,025 | $ 11,628 | $ 5,827 | |||||
Aframax Tanker | |||||||||
Subsequent Event [Line Items] | |||||||||
Number Of Vessels | 2 | ||||||||
Aframax Tanker | |||||||||
Subsequent Event [Line Items] | |||||||||
Number Of Vessels | 2 | ||||||||
Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Proceeds from Sale of Property, Plant, and Equipment | $ | $ 32,000 | ||||||||
Subsequent Event [Member] | Aframax Tanker | |||||||||
Subsequent Event [Line Items] | |||||||||
Number Of Vessels | 2 | ||||||||
Subsequent Event [Member] | Aframax Tanker | |||||||||
Subsequent Event [Line Items] | |||||||||
Number Of Vessels | 6 | ||||||||
Payments to Acquire Property, Plant, and Equipment | $ | $ 128,800 |