Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2015shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | FY |
Trading Symbol | KNOP |
Entity Registrant Name | KNOT Offshore Partners LP |
Entity Central Index Key | 1,564,180 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Common Units [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 18,626,594 |
Subordinated Units [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 8,567,500 |
Consolidated and Combined Carve
Consolidated and Combined Carve-Out Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||
Operating revenues: (Notes 2(d), 5 and 18) | |||||||
Time charter and bareboat revenues | $ 154,750 | [1] | $ 112,784 | [1] | $ 73,151 | [2] | |
Other income | [1] | 274 | 57 | ||||
Loss of hire insurance recoveries | [2] | 250 | |||||
Total revenues (Notes 2(d), 5, 6, and 18) | 155,024 | [1] | 112,841 | [1] | 73,401 | [2] | |
Operating expenses: (Note 18) | |||||||
Vessel operating expenses (Note 2(d)) | 27,543 | [1] | 23,879 | [1] | 14,288 | [2] | |
Depreciation (Note 13) | 48,844 | [1],[3] | 34,322 | [1],[3] | 23,768 | [2],[4] | |
General and administrative expenses | 4,290 | [1] | 4,323 | [1] | 5,361 | [2] | |
Goodwill impairment charge (Note 8) | [1],[3] | 6,217 | |||||
Total operating expenses | 86,894 | [1] | 62,524 | [1] | 43,417 | [2] | |
Operating income | 68,130 | [1] | 50,317 | [1] | 29,984 | [2] | |
Finance income (expense): (Notes 2(e) and 18) | |||||||
Interest income | 8 | [1] | 13 | [1] | 30 | [2] | |
Interest expense (Note 9(a)) | (17,451) | [1] | (15,271) | [1] | (10,773) | [2] | |
Other finance expense (Note 9(b)) | (504) | [1] | (1,271) | [1] | (2,048) | [2] | |
Realized and unrealized gain (loss) on derivative instruments (Note 10) | (9,695) | [1] | (6,407) | [1] | 505 | [2] | |
Net gain (loss) on foreign currency transactions | (105) | [1] | 26 | [1] | 193 | [2] | |
Total finance expense | (27,747) | [1] | (22,910) | [1] | (12,093) | [2] | |
Income before income taxes | 40,383 | [1] | 27,407 | [1] | 17,891 | [2] | |
Income tax benefit (expense) (Notes 2(q) and 17) | 59 | [1],[3] | (15) | [1],[3] | (2,827) | [2],[4] | |
Net income | 40,442 | [1],[3] | 27,392 | [1],[3] | 15,064 | [2],[4] | |
General Partner's interest in net income | 767 | [1] | 536 | [1] | 301 | [2] | |
Limited Partners' interest in net income | $ 39,675 | [1] | $ 26,856 | [1] | $ 14,764 | [2] | |
Earnings per unit: (Note 21) | |||||||
Cash distributions declared and paid per unit (Note 21) | $ 2.030 | [1] | $ 1.795 | [1] | $ 0.752 | [2] | |
Common Units [Member] | |||||||
Finance income (expense): (Notes 2(e) and 18) | |||||||
Net income | $ 25,038 | $ 15,349 | |||||
Limited Partners' interest in net income | $ (11,060) | $ (7,916) | |||||
Earnings per unit: (Note 21) | |||||||
Earnings per unit (basic and diluted) | [5] | $ 1.499 | [1] | $ 1.369 | [1] | 1.063 | [2] |
Subordinated Units [Member] | |||||||
Finance income (expense): (Notes 2(e) and 18) | |||||||
Net income | $ 14,637 | $ 11,507 | |||||
Limited Partners' interest in net income | $ (5,087) | $ (4,912) | |||||
Earnings per unit: (Note 21) | |||||||
Earnings per unit (basic and diluted) | [5] | $ 1.708 | [1] | $ 1.343 | [1] | 1.065 | [2] |
General Partner Unit [Member] | |||||||
Finance income (expense): (Notes 2(e) and 18) | |||||||
Net income | $ 767 | $ 536 | |||||
General Partner's interest in net income | $ (332) | $ (261) | |||||
Earnings per unit: (Note 21) | |||||||
Earnings per unit (basic and diluted) | [5] | $ 1.487 | [1] | $ 1.329 | [1] | $ 1.063 | [2] |
[1] | 2015 and 2014 refers to the Consolidated Statements of Operations | ||||||
[2] | 2013 refers to the Consolidated and Combined Carve-Out Statement of Operations | ||||||
[3] | 2015 and 2014 refers to the Consolidated Statements of Cash Flows | ||||||
[4] | 2013 refers to the Consolidated and Combined Carve-Out Statement of Cash Flows | ||||||
[5] | Earnings per unit information for the year ended December 31, 2013 is in respect of the period from the closing of the IPO (April 15, 2013) to December 31, 2013. |
Consolidated and Combined Carv3
Consolidated and Combined Carve-Out Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015 | [2] | Dec. 31, 2014 | [2] | Dec. 31, 2013 | [4] | |
Statement of Comprehensive Income [Abstract] | ||||||
Net income | $ 40,442 | [1] | $ 27,392 | [1] | $ 15,064 | [3] |
Other comprehensive income, net of tax | 0 | 0 | 0 | |||
Comprehensive income | $ 40,442 | $ 27,392 | $ 15,064 | |||
[1] | 2015 and 2014 refers to the Consolidated Statements of Cash Flows | |||||
[2] | 2015 and 2014 refers to the Consolidated Statements of Operations | |||||
[3] | 2013 refers to the Consolidated and Combined Carve-Out Statement of Cash Flows | |||||
[4] | 2013 refers to the Consolidated and Combined Carve-Out Statement of Operations |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | |
Current assets: | |||
Cash and cash equivalents (Notes 2(f) and 11) | [1] | $ 23,573,000 | $ 30,746,000 |
Trade accounts receivable, less allowance for doubtful accounts of $0 in, 2015 and $0 in 2014 (Notes 2(h) and 12(a)) | 0 | 0 | |
Amounts due from related parties (Note 18(d)) | 58,000 | 130,000 | |
Inventories (Note 2(i)) | 849,000 | 915,000 | |
Other current assets (Notes 2(j) and 12(b)) | 2,949,000 | 3,958,000 | |
Total current assets | 27,429,000 | 35,749,000 | |
Vessels and equipment (Notes 2(k), 2(l), 2(m), 13 and 18(f)): | |||
Vessels | 1,351,219,000 | 1,131,321,000 | |
Less accumulated depreciation and amortization | (158,292,000) | (109,464,000) | |
Vessels and equipment, net | 1,192,927,000 | 1,021,857,000 | |
Goodwill (Notes 2(n), 8, and 22) | 0 | 6,217,000 | |
Deferred debt issuance cost (Note 2(o)) | 2,819,000 | 3,959,000 | |
Derivative assets (Notes 2(p), 10 and 11) | 695,000 | 2,966,000 | |
Total assets | 1,223,870,000 | 1,070,748,000 | |
Current liabilities: | |||
Trade accounts payable (Note 18(e)) | 1,995,000 | 1,869,000 | |
Accrued expenses (Note 15) | 3,888,000 | 2,735,000 | |
Current portion of long-term debt (Notes 11 and 16) | 49,684,000 | 38,718,000 | |
Current portion derivative liabilities (Notes 2(p), 10 and 11) | 5,138,000 | 7,450,000 | |
Income taxes payable (Notes 2(q) and 17) | 249,000 | 362,000 | |
Current portion of contract liabilities (Notes 2(n) and 14) | 1,518,000 | 1,518,000 | |
Prepaid charter and deferred revenue (Note 2(r)) | 3,365,000 | 6,751,000 | |
Amount due to related parties (Note 18(d)) | 848,000 | 628,000 | |
Total current liabilities | 66,685,000 | 60,031,000 | |
Long-term liabilities: | |||
Long-term debt (Notes 11 and 16) | 622,006,000 | 562,503,000 | |
Derivative liabilities (Notes 2(p), 10 and 11) | 1,232,000 | ||
Contract liabilities (Notes 2(n) and 14) | 9,757,000 | 11,275,000 | |
Deferred tax liabilities (Notes 2(q) and 17) | 877,000 | 1,402,000 | |
Long-term debt from related parties (Notes 11, 16 and 18) | 12,000,000 | ||
Other long-term liabilities (Note 2(r)) | 2,543,000 | 4,172,000 | |
Total liabilities | $ 703,100,000 | $ 651,383,000 | |
Commitments and contingencies (Notes 2(s) and 19) | |||
Partners' capital: | |||
General partner interest | $ 10,295,000 | $ 8,141,000 | |
Total partners' capital | 520,770,000 | 419,365,000 | |
Total liabilities and equity | 1,223,870,000 | 1,070,748,000 | |
Common Units [Member] | |||
Partners' capital: | |||
Common and subordinated unitholders | 411,317,000 | 307,544,000 | |
Total partners' capital | 411,317,000 | 307,544,000 | |
Subordinated Units [Member] | |||
Partners' capital: | |||
Common and subordinated unitholders | 99,158,000 | 103,680,000 | |
Total partners' capital | $ 99,158,000 | $ 103,680,000 | |
[1] | 2015 and 2014 refers to the Consolidated Statements of Cash Flows |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 0 | $ 0 |
Consolidated and Combined Carv6
Consolidated and Combined Carve-Out Statements of Changes in Partners' Capital/Owners' Equity - USD ($) $ in Thousands | Total | Common Units [Member] | Subordinated Units [Member] | General Partner Unit [Member] | KNOT [Member] | KNOT [Member]Subordinated Units [Member] | Owners' Invested Equity [Member] | Accumulated Other Comprehensive Income [Member] | ||
Beginning Balance at Dec. 31, 2012 | $ 97,194 | $ 97,194 | ||||||||
Net income (loss) | (3,538) | (3,538) | ||||||||
Other comprehensive income | 0 | $ 0 | $ 0 | $ 0 | 0 | $ 0 | ||||
Movement in invested Equity | 10,882 | 10,882 | ||||||||
Ending Balance at Apr. 15, 2013 | 104,538 | 104,538 | ||||||||
Beginning Balance at Dec. 31, 2012 | 97,194 | 97,194 | ||||||||
Net income (loss) | [1],[2] | 15,064 | ||||||||
Other comprehensive income | [2] | 0 | ||||||||
Ending Balance at Dec. 31, 2013 | 281,927 | 168,773 | 107,857 | 5,297 | ||||||
Beginning Balance at Apr. 15, 2013 | 104,538 | 104,538 | ||||||||
Elimination of equity | 27,792 | 27,792 | ||||||||
Allocation of partnership capital to unitholders | 127,141 | 5,189 | (132,330) | |||||||
Proceeds from public offering | 168,313 | 168,313 | ||||||||
Initial public offering costs | (2,201) | (2,201) | ||||||||
Post initial public offering net income | 18,602 | 9,106 | 9,125 | 371 | ||||||
Other comprehensive income | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Cash distribution | (13,163) | (6,445) | (6,455) | (263) | $ (21,954) | $ (21,954) | ||||
Ending Balance at Dec. 31, 2013 | 281,927 | 168,773 | 107,857 | 5,297 | ||||||
Net income (loss) | 27,392 | [3],[4] | 15,349 | 11,507 | 536 | |||||
Proceeds from public offering | 147,023 | 143,983 | 3,040 | |||||||
Other comprehensive income | 0 | [4] | 0 | 0 | 0 | 0 | 0 | |||
Cash distribution | (36,637) | (20,226) | (15,684) | (727) | ||||||
Offering cost (Note 23) | (340) | (335) | (5) | |||||||
Ending Balance at Dec. 31, 2014 | 419,365 | 307,544 | 103,680 | 8,141 | ||||||
Net income (loss) | 40,442 | [3],[4] | 25,038 | 14,637 | 767 | |||||
Proceeds from public offering | 116,924 | 114,500 | 2,424 | |||||||
Other comprehensive income | 0 | [4] | 0 | 0 | 0 | $ 0 | $ 0 | |||
Cash distribution | (53,370) | (33,179) | (19,159) | (1,032) | ||||||
Offering cost (Note 23) | (293) | (288) | (5) | |||||||
Repurchase common units | (2,298) | (2,298) | ||||||||
Ending Balance at Dec. 31, 2015 | $ 520,770 | $ 411,317 | $ 99,158 | $ 10,295 | ||||||
[1] | 2013 refers to the Consolidated and Combined Carve-Out Statement of Cash Flows | |||||||||
[2] | 2013 refers to the Consolidated and Combined Carve-Out Statement of Operations | |||||||||
[3] | 2015 and 2014 refers to the Consolidated Statements of Cash Flows | |||||||||
[4] | 2015 and 2014 refers to the Consolidated Statements of Operations |
Consolidated and Combined Carv7
Consolidated and Combined Carve-Out Statements of Changes in Partners' Capital/Owners' Equity (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | |
Underwriting discount | $ 4,300 | $ 4,991 | |
Common Units [Member] | |||
Common units issued | 8,567,500 | 5,000,000 | 5,240,000 |
Common units sold pursuant to the full exercise of underwriters' options | 1,117,500 | 640,000 | |
Underwriting discount | $ 11,605 | $ 4,300 | $ 4,991 |
Consolidated and Combined Carv8
Consolidated and Combined Carve-Out Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||
Cash flows provided by operating activities: | |||||||
Net income | $ 40,442 | [1],[2] | $ 27,392 | [1],[2] | $ 15,064 | [3],[4] | |
Adjustments to reconcile net income to cash provided by operating activities: | |||||||
Depreciation | 48,844 | [1],[2] | 34,322 | [1],[2] | 23,768 | [3],[4] | |
Amortization of contract intangibles / liabilities | (1,518) | [1] | (1,518) | [1] | (1,518) | [3] | |
Amortization of deferred revenue | (1,913) | [1] | (1,170) | [1] | (427) | [3] | |
Amortization of deferred debt issuance cost | 1,149 | [1] | 3,021 | [1] | 1,741 | [3] | |
Goodwill impairment charge | [1],[2] | 6,217 | |||||
Income tax expense | (59) | [1],[2] | 15 | [1],[2] | 2,827 | [3],[4] | |
Income taxes paid | [1] | (348) | (731) | ||||
Unrealized (gain) loss on derivative instruments | 390 | [1] | 3,910 | [1] | (1,770) | [3] | |
Unrealized (gain) loss on foreign currency transactions | 22 | [1] | (136) | [1] | 32 | [3] | |
Other items | [1] | (16) | |||||
Changes in operating assets and liabilities | |||||||
Decrease (increase) in trade accounts receivable | [3] | 99 | |||||
Decrease (increase) in amounts due from related parties | 1,008 | [1] | (49) | [1] | (77) | [3] | |
Decrease (increase) in inventories | 210 | [1] | 58 | [1] | 197 | [3] | |
Decrease (increase) in other current assets | 1,222 | [1] | (172) | [1] | 2,555 | [3] | |
Increase (decrease) in trade accounts payable | 45 | [1] | 337 | [1] | 662 | [3] | |
Increase (decrease) in accrued expenses | (737) | [1] | (2,092) | [1] | 771 | [3] | |
Increase (decrease) prepaid revenue | (4,306) | [1] | 793 | [1] | 101 | [3] | |
Increase (decrease) in amounts due to related parties | (1,508) | [1] | (4,625) | [1] | 109 | [3] | |
Increase (decrease) in other liabilities | [3] | 26 | |||||
Net cash provided by operating activities (Note 20) | 89,160 | [1] | 59,339 | [1] | 44,160 | [3] | |
Cash flows from investing activities: | |||||||
Disposals (additions) to vessel and equipment | (1,526) | [1] | 6 | [1] | 215 | [3] | |
Net cash used in investing activities | (46,488) | [1] | (121,946) | [1] | (55,468) | [3] | |
Cash flows from financing activities: | |||||||
Proceeds from issuance of long-term debt (Note 16) | 377,813 | [1] | 45,422 | [3] | |||
Proceeds from issuance of long-term debt from related parties (Note 16 and 18) | 12,000 | [1] | 10,453 | [3] | |||
Repayment of long-term debt (Note 16) | (78,276) | [1] | (420,196) | [1] | (142,873) | [3] | |
Repayment of long-term debt from related parties | [1] | (32,253) | (10,612) | ||||
Accumulated interest from related party | [1] | 263 | |||||
Payments of debt issuance cost | (9) | [1] | (5,004) | [1] | (1,098) | [3] | |
Repurchase of common units | [1] | (2,298) | |||||
Changes in payables to related parties | [3] | (15,174) | |||||
Contributions from/distribution to owner, net (Note 20) | [3] | 11,623 | |||||
Proceeds from public offerings, net of underwriters' discount | 116,924 | [1] | 147,023 | [1] | 168,313 | [3] | |
Cash distributed to KNOT | [3] | (21,954) | |||||
Offering cost | (293) | [1] | (340) | [1] | (2,201) | [3] | |
Cash distribution | (53,370) | [1] | (36,637) | [1] | (13,163) | [3] | |
Change in restricted cash | 458 | [1] | (458) | [3] | |||
Net cash provided by (used in) financing activities | (49,575) | [1] | 64,768 | [1] | 38,890 | [3] | |
Effect of exchange rate changes on cash | (270) | [1] | (251) | [1] | (33) | [3] | |
Net increase in cash and cash equivalents | 7,173 | [1] | 1,910 | [1] | 27,549 | [3] | |
Cash and cash equivalents at the beginning of the year | 30,746 | [1] | 28,836 | [1],[3] | 1,287 | [3] | |
Cash and cash equivalents at the end of the year | [1] | 23,573 | 30,746 | 28,836 | [3] | ||
Carmen Knutsen [Member] | |||||||
Cash flows from investing activities: | |||||||
Payments for acquisition, net of cash acquired | [3] | $ (55,683) | |||||
Hilda Knutsen and Torill Knutsen [Member] | |||||||
Cash flows from investing activities: | |||||||
Payments for acquisition, net of cash acquired | [1] | (105,296) | |||||
Dan Cisne [Member] | |||||||
Cash flows from investing activities: | |||||||
Payments for acquisition, net of cash acquired | [1] | $ (16,656) | |||||
Dan Sabia [Member] | |||||||
Cash flows from investing activities: | |||||||
Payments for acquisition, net of cash acquired | [1] | (36,843) | |||||
Ingrid Knutsen [Member] | |||||||
Cash flows from investing activities: | |||||||
Payments for acquisition, net of cash acquired | [1] | $ (8,119) | |||||
[1] | 2015 and 2014 refers to the Consolidated Statements of Cash Flows | ||||||
[2] | 2015 and 2014 refers to the Consolidated Statements of Operations | ||||||
[3] | 2013 refers to the Consolidated and Combined Carve-Out Statement of Cash Flows | ||||||
[4] | 2013 refers to the Consolidated and Combined Carve-Out Statement of Operations |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Description of Business | 1) Description of Business KNOT Offshore Partners LP (the “Partnership”) was formed as a limited partnership under the laws of the Republic of the Marshall Islands. The Partnership was formed for the purpose of acquiring 100% ownership interests in four shuttle tankers owned by Knutsen NYK Offshore Tankers AS (“KNOT”) in connection with the Partnership’s initial public offering of its common units (the “IPO”), which was completed on April 15, 2013. The Partnership was established prior to the closing of the IPO. In connection with the consummation of the IPO, through KNOT Offshore Partners UK LLC (“KNOT UK”), a 100% owned limited liability company formed under the laws of the Marshall Islands, the Partnership acquired a 100% ownership interest in KNOT Shuttle Tankers AS, a wholly owned subsidiary of KNOT, which as of February 27, 2013 directly or indirectly owned (1) 100% of Knutsen Shuttle Tankers XII KS, the owner of the Recife Knutsen Fortaleza Knutsen Windsor Knutsen Bodil Knutsen Windsor Knutsen Bodil Knutsen In connection with the consummation of the IPO, (1) the Partnership issued to KNOT 8,567,500 subordinated units, representing a 49.0% limited partner interest in the Partnership, and 100% of the incentive distribution rights (“IDRs”); (2) KNOT Offshore Partners GP LLC, a wholly owned subsidiary of KNOT and the general partner of the Partnership (the “General Partner”), continued its 2.0% general partner interest in the Partnership; and (3) the Partnership issued and sold to the public, through the underwriters, 8,567,500 common units (including 1,117,500 common units sold pursuant to the full exercise of the underwriters’ option to purchase additional units), representing a 49.0% limited partner interest in the Partnership. The Partnership received gross proceeds before underwriting discounts, the structuring fee and estimated offering expenses of approximately $179.9 million in connection with the IPO, all as further described in Note 3—Formation Transactions and Initial Public Offering. For periods prior to April 15, 2013 (the closing of the IPO), the Partnership and its subsidiaries that had interests in the Windsor Knutsen Bodil Knutsen Recife Knutsen Fortaleza Knutsen Windsor Knutsen Bodil Knutsen Recife Knutsen Fortaleza Knutsen Pursuant to the Partnership’s First Amended and Restated Agreement of Limited Partnership (the “Partnership Agreement”), the General Partner has irrevocably delegated to the Partnership’s board of directors the power to oversee and direct the operations of, manage and determine the strategies and policies of the Partnership. During the period from the IPO until the time of the Partnership’s first annual meeting of unitholders (“AGM”) on June 25, 2013, the General Partner retained the sole power to appoint, remove and replace all members of the Partnership’s board of directors. At the first AGM, four of the seven board members became electable by the common unitholders and accordingly, from this date, KNOT, as the owner of the General Partner, no longer retained the power to control the Partnership’s board of directors and hence the Partnership. As a result, the Partnership is no longer considered to be under common control with KNOT, and, as a consequence, the Partnership no longer accounts for any vessel acquisitions from KNOT after June 25, 2013 as a transfer of equity interests between entities under common control. On August 1, 2013, the Partnership’s wholly owned subsidiary, KNOT Shuttle Tankers AS, acquired Knutsen Shuttle Tankers 13 AS, the company that owns the Carmen Knutsen Carmen Knutsen Carmen Knutsen Carmen Knutsen On June 27, 2014, the Partnership issued and sold 4,600,000 common units in an underwritten public offering (the “June 2014 Offering”). In connection with the June 2014 Offering, the Partnership also granted the underwriters the option to purchase an additional 690,000 common units. In connection with the partial exercises (the “Option Exercises”) by the underwriters of their option to purchase additional common units, on July 14, 2014 and July 24, 2014, the Partnership issued and sold 150,000 common units and 490,000 common units, respectively, and the General Partner made additional capital contributions to the Partnership in order to maintain its 2% general partner interest in the Partnership. The net proceeds from the June 2014 Offering and the Option Exercises (an aggregate of $144.0 million) and related capital contributions by the General Partner (an aggregate of $3.0 million) were used to fund the purchase price of the acquisitions of the companies that own the Hilda Knutsen Torill Knutsen On June 30, 2014, the Partnership’s wholly owned subsidiary, KNOT Shuttle Tankers AS, acquired Knutsen Shuttle Tankers 14 AS and Knutsen Shuttle Tankers 15 AS, the companies that own the Hilda Knutsen Torill Knutsen Hilda Knutsen Torill Knutsen Hilda Knutsen Torill Knutsen On December 15, 2014, the Partnership’s wholly owned subsidiary, KNOT Shuttle Tankers AS, acquired KNOT Shuttle Tankers 20 AS, the company that owns the Dan Cisne Dan Cisne Dan Cisne On June 2, 2015, the Partnership issued and sold 5,000,000 common units in an underwritten public offering (the “June 2015 Offering”) and the General Partner made an additional capital contribution to the Partnership in order to maintain its 2% general partner interest in the Partnership. The net proceeds from the June 2015 Offering (an aggregate of $114.2 million) and related capital contributions by the General Partner (an aggregate of $2.4 million) were used to fund the purchase price of the acquisition of the company that owns the Dan Sabia On June 15, 2015, the Partnership’s wholly owned subsidiary, KNOT Shuttle Tankers AS, acquired KNOT Shuttle Tankers 21 AS, the company that owns the Dan Sabia Dan Sabia Dan Sabia On October 15, 2015, the Partnership’s wholly owned subsidiary, KNOT Shuttle Tankers AS, acquired Knutsen NYK Shuttle Tankers 16 AS, the company that owns the Ingrid Knutsen Ingrid Knutsen Ingrid Knutsen Please read Note 22—Business Acquisitions. Each of the Windsor Knutsen Bodil Knutsen Recife Knutsen Fortaleza Knutsen Carmen Knutsen, Hilda Knutsen, Torill Knutsen Dan Cisne Dan Sabia Ingrid Knutsen The consolidated and combined carve-out financial statements have been prepared assuming that the Partnership will continue as a going concern. As of December 31, 2015, the Partnership’s net current liabilities were $39.3 million. Included in current liabilities are short term loan obligations that mature before December 31, 2016 and are therefore, presented as current debt. Furthermore, included within current liabilities as of December 31, 2015, are: (i) mark-to-market valuations of swap derivatives and foreign exchange forward contracts of $5.1 million of which $3.8 million is mark-to-market valuations of interest rate swap derivatives and $1.3 million is mark-to-market valuation of foreign exchange forward contracts. The swaps mature between 2018 and 2024. The Partnership has no intention of terminating these swaps before their maturity dates and hence realizing theses liabilities; (ii) prepaid charter and deferred revenues of $3.4 million which relate to charter hire received in advance from charterers; and (iii) contract liabilities of $1.5 million, which is the current portion of contractual rights for charters obtained in connection with a step acquisition that had unfavorable terms. The unfavorable contract liabilities of $1.5 million will amortize during 2016, thus no cash outflows are expected in respect of these liabilities in the next twelve months. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2) Summary of Significant Accounting Policies (a) Basis of Preparation The consolidated and combined carve-out financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). All intercompany balances and transactions are eliminated. The consolidated and combined carve-out financial statements include the financial statements of the entities listed in Note 4—Subsidiaries. As of April 16, 2013, the financial statements of the Partnership as a separate legal entity are presented on a consolidated basis. Prior to April 16, 2013, the results of operations, cash flows and balance sheet have been carved out of the consolidated financial statements of KNOT and therefore are presented on a combined carve-out basis. As of February 27, 2013, KNOT Shuttle Tankers AS acquired the 100% ownership in KNOT Shuttle Tankers 12 AS, KNOT Shuttle Tankers 17 AS, KNOT Shuttle Tankers 18 AS, and Knutsen Shuttle Tankers XII AS in a reorganization under common control. As of February 27, 2013, KNOT Shuttle Tankers 12 AS and Knutsen Shuttle Tankers XII AS owned a 90% and 10% ownership interest, respectively, in Knutsen Shuttle Tankers XII KS; and KNOT Shuttle Tankers 17 AS owned a 100% interest in the Bodil Knutsen Windsor Knutsen The Bodil Knutsen Windsor Knutsen Vessels operating expenses includes ship management fees for the provision of technical and commercial management of Vessels and are based on intercompany charges invoiced by KNOT. All long-term debt is specifically related to financing of the individual Vessels. Derivatives are composed of interest rate swap derivatives and foreign exchange forward contracts. The interest rate swaps were entered into in conjunction with the individual Vessel financing to secure fixed interest rates. The interest rate swaps are included in the combined carve-out financial statements to reflect all of the historical cost of doing business even though they will not be transferred to the Partnership. The foreign exchange forward contracts were entered into in conjunction with the construction of certain of the individual Vessels to secure the amounts payable in foreign currencies. The following items, which are not directly attributable to the Vessels, have been allocated to the combined carve-out financial statements as set forth below: • General and administrative expenses of KNOT were invoiced to its subsidiaries based upon certain transfer pricing principles by type of cost. See Note 18—Related Party Transactions. The invoiced amounts that cannot be attributed to the Bodil Knutsen Windsor Knutsen • Cash and cash equivalents for general purposes at the legal entity level have not been allocated. The cash and cash equivalents and restricted cash balances are only included in the combined carve-out balance sheets to the extent they are specifically related to the Bodil Knutsen Windsor Knutsen • Payables to owners and affiliates (“owner balances”) are not tracked on an individual Vessel basis for the Bodil Knutsen Windsor Knutsen • Net gain (loss) of foreign currency transactions cannot be attributed directly to the Bodil Knutsen Windsor Knutsen • Goodwill arose in 2008 when TSSI acquired the remaining 50% interest in the majority of KNOT’s vessels, including the Windsor Knutsen The Partnership’s activities included in the consolidated and combined carve-out financial statements contain Norwegian entities or activities that were organized as non-taxable partnerships or were without tax status. To reflect the historical cost of doing business, the income tax expense and related deferred tax assets and liabilities arising for the Combined Entity activities included in the historical parent entities have been included in the consolidated and combined carve-out financial statements calculated on a separate return basis. The Vessels of the Partnership were not historically owned by a separate legal entity or operated as a discrete group. Therefore, no separate share capital existed in owner’s equity. Further, certain Vessels had cash accounts shared with other vessels of the KNOT Group that were not allocated to the Combined Entity. Accordingly, the historical consolidated and combined carve-out financial statements prior to April 16, 2013 reflect allocations of certain expenses, including that of general and administrative expenses, mark-to-market valuations of interest rate swap derivatives, interest expense on related party payables and net gain (loss) on foreign currency transactions. These allocated costs have been accounted for as equity contribution in the consolidated and combined carve-out balance sheets. Included in the Combined Entity’s equity prior to April 16, 2013 are amounts (net liabilities of $27.8 million) relating to certain assets and liabilities that were carved out as they were readily separable and identifiable within the books of KNOT. However, these amounts have been retained by KNOT and have not been transferred to the Partnership and therefore have been eliminated from the Partnership’s opening equity as of April 16, 2013. Details of the net liabilities eliminated are as follows: (U.S. Dollars in thousands) Balance sheet captions: Other current assets $ 89 Other non-current assets — Other current liabilities (*) (6,321 ) Other long-term liabilities (*) (21,560 ) Net liabilities $ (27,792 ) (*) The majority of the assets and liabilities not transferred to the Partnership are related to interest swap derivatives (Note 10) and insurance proceeds pursuant to the Contribution and Sale Agreement entered into in connection with the closing of the IPO on April 15, 2013. Management believes that the allocations included in these consolidated and combined carve-out financial statements are reasonable to present the financial position, results of operations and cash flows of the Partnership on a stand-alone basis. However, the financial position, results of operations and cash flows of the Combined Entity as presented may differ from those that would have been achieved had the Partnership operated autonomously for all years presented as the Partnership would have had additional general and administrative expenses, including legal, accounting, treasury and regulatory compliance and other costs normally incurred by a stand-alone listed publicly traded entity for the periods prior to the IPO. Accordingly, the consolidated and combined carve-out financial statements do not purport to be indicative of the future financial position, results of operations or cash flows of the Partnership. Business combinations Reorganization of entities under common control is accounted for similar to the pooling of interests method of accounting. Under this method, the carrying amount of net assets recognized in the balance sheets of each combining entity are carried forward to the balance sheet of the combined entity, and no other assets or liabilities are recognized as a result of the combination. The excess of the proceeds paid, if any, over the historical cost of the combining entity is accounted for as an equity distribution. In addition, re-organization of entities under common control is accounted for as if the transfer occurred from the date that both the combining entity and combined entity were both under common control. Therefore, the Partnership’s financial statements prior to the date the interests in the combining entity were actually acquired are retroactively adjusted to include the results of the combined entity during the periods it was under common control of KNOT. As discussed in Note 1—Description of Business, under the Partnership’s Partnership Agreement, the General Partner has irrevocably delegated to the Partnership’s board of directors the power to oversee and direct the operations of, manage and determine the strategies and policies of the Partnership. During the period from the IPO in April 2013 until the time of the Partnership’s first AGM on June 25, 2013, the General Partner retained the sole power to appoint, remove and replace all members of the Partnership’s board of directors. From the date of the Partnership’s first annual meeting of common unitholders, four of the seven board members became electable by the common unitholders and accordingly, from this date, KNOT, as the owner of the General Partner, no longer retains the power to control the Partnership’s board of directors and, hence, the Partnership. As a result, the Partnership is no longer considered to be under common control with KNOT and as a consequence, the Partnership has not accounted for any acquisitions from KNOT after June 25, 2013 as a transfer of equity interests between entities under common control. Business combinations are accounted for under the acquisition method. On acquisition, the identifiable assets, liabilities and contingent liabilities are measured at their fair values at the date of acquisition. Any excess of the cost of acquisition over the fair values of the identifiable net assets acquired is recognized as goodwill. Any deficiency of the cost of acquisition below the fair values of the identifiable net assets acquired (i.e. bargain purchase) is credited to the statement of operations in the period of acquisition. The consideration transferred for an acquisition is measured at fair value of the consideration given. Acquisition related costs are expensed as incurred. The results of operations of the acquired businesses are included in the consolidated results as of the date of the applicable acquisition. (b) Reporting Currency The consolidated and combined carve-out financial statements are prepared in the reporting currency of U.S. Dollars. The functional currency of the vessel-owning Partnership subsidiaries is the U.S. Dollar, because the subsidiaries operate in the international shipping market, in which all revenues are U.S. Dollar-denominated and the majority of expenditures are made in U.S. Dollars. Transactions involving other currencies during the year are converted into U.S. Dollars using the exchange rates in effect at the time of the transactions. As of the balance sheet dates, monetary assets and liabilities that are denominated in currencies other than the U.S. Dollar are translated to reflect the year-end exchange rates. Resulting gains or losses are reflected separately in the accompanying consolidated and combined carve-out statements of operations. (c) Use of Estimates The preparation of consolidated and combined carve-out financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives and impairment of Vessels, drydocking, the estimates of future cash flows and use of discount rate and impairment of Goodwill, the valuation of derivatives and income taxes. (d) Revenues and Operating Expenses The Partnership recognizes revenues from time charters and bareboat charters as operating leases on a straight-line basis over the term of the charter, net of any commissions. Under time charters, revenue is not recognized during days the Vessel is off-hire. Revenue is recognized from delivery of the Vessel to the charterer, until the end of the contract period. Under time charters, the Partnership is responsible for providing the crewing and other services related to the Vessel’s operations, the cost of which is included in the daily hire rate, except when off-hire. Fees received from customers for customized equipment are deferred and recognized over the contract period. Under bareboat charters, the Partnership provides a specified Vessel for a fixed period of time at a specified day rate. The Partnership recognizes revenues from spot contracts as voyage revenues using the percentage of completion method on a discharge-to-discharge basis. Voyage expenses are all expenses unique to a particular voyage, including bunker fuel expenses, port fees, cargo loading and unloading expenses, canal tolls and agency fees. Voyage expenses are paid by the customer under time charter and bareboat charters. Voyage expenses are paid by the Partnership for spot contracts and during periods of off-hire and are recognized when incurred. Vessel operating expenses include crewing, repairs and maintenance, insurance, stores, lube oils and communication expenses. Vessel operating expenses are paid by the Partnership for time charters, spot contracts and during off-hire and are recognized when incurred. As further discussed in Note 18—Related Party Transactions, related parties have provided the management services for the Vessels and employ the crews that work on the Vessels. The Partnership has no direct employees and, accordingly, is not liable for any pension or post-retirement benefits. (e) Financial Income (Expense) Interest expense incurred on the Partnership’s debt incurred during the construction of the Vessels exceeding one year are capitalized during the construction period. Other finance expense includes external bank fees, financing service fees paid to related parties and guarantee commissions paid to external and related parties in connection with the Partnership’s debt and other bank services. (f) Cash and Cash Equivalents The Partnership considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. (g) Restricted Cash Restricted cash consists of bank deposits, which may only be used to settle principal payments under the Partnership’s Vessel financing agreements. (h) Trade Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. Under terms of the current time charters and bareboat charters, the customers are committed to pay for the full month’s charter the first day of each month. See Note 2(r)—Prepaid Charter and Deferred Revenue. The allowance for doubtful accounts is the Partnership’s best estimate of the amount of probable credit losses in existing accounts receivable. The Partnership establishes provisions for doubtful accounts on a case-by-case basis when it is unlikely that required payments of specific amounts will occur. In establishing these provisions, the Partnership considers the financial condition of the customer as well as specific circumstances related to the receivable. Receivable amounts determined to be unrecoverable are written-off. There were no allowances for doubtful accounts or amounts written off against the allowance for doubtful accounts as of December 31, 2015 and 2014. The Partnership does not have any off-balance-sheet credit exposure related to its customers. (i) Inventories Inventories, which are comprised principally of lubricating oils, are stated at the lower of cost or market. For vessels on time charters or bareboat charters, there are no bunkers, as the charterer supplies the bunkers, which principally consist of fuel oil. Cost is determined using the first-in, first-out method for all inventories. (j) Other Current Assets Other current assets principally consist of prepaid expenses, the current portion of deferred cost and other receivables. (k) Vessels and Equipment Vessels and equipment are stated at the historical acquisition or construction cost, including capitalized interest, supervision and technical and delivery cost, net of accumulated depreciation and impairment loss, if any. Expenditures for subsequent conversions and major improvements are capitalized, provided that such costs increase the earnings capacity or improve the efficiency or safety of the vessels. Generally, the Partnership drydocks each vessel every 60 months until the vessel is 15 years old and every 30 months thereafter, as required for the renewal of certifications issued by classification societies. For vessels operating on time charters, the Partnership capitalizes the costs directly associated with the classification and regulatory requirements for inspection of the vessels, major repairs and improvements incurred during drydocking. Drydock cost is depreciated on a straight-line basis over the period until the next planned drydocking takes place. The Partnership expenses costs related to routine repairs and maintenance performed during drydocking or as otherwise incurred. For vessels that are newly built or acquired, an element of the cost of the vessel is initially allocated to a drydock component and depreciated on a straight-line basis over the period until the next planned drydocking. When significant drydocking expenditures occur prior to the expiration of this period, the Partnership expenses the remaining balance of the original drydocking cost in the month of the subsequent drydocking. For vessels operating on bareboat charters, the charterparty bears the cost of any drydocking. Depreciation on vessels and equipment is calculated on a straight-line basis over the asset’s estimated useful life, less an estimated residual value, as follows: Useful Life Hull 25 years Anchor-handling, loading and unloading equipment 25 years Main/auxiliary engine 25 years Thruster, dynamic positioning systems, cranes and other equipment 25 years Drydock costs 2.5–5 years A Vessel is depreciated to its estimated residual value, which is calculated based on the weight of the ship and estimated steel price. Any cost related to the disposal is deducted from the residual value. (l) Capitalized Interest Interest expense incurred on the Partnership’s debt during the construction of the Vessels exceeding one year is capitalized during the construction period. (m) Impairment of Long-Lived Assets Vessels and equipment, vessels under construction and intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Partnership first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. (n) Goodwill and Intangibles The Partnership allocates the cost of acquired companies to the identifiable tangible and intangible assets and liabilities acquired, with the remaining amount being classified as goodwill. Goodwill is not amortized but is reviewed for impairment annually or more frequently if impairment indicators are identified. The Partnership tests goodwill for impairment using a two-step analysis, with the option of performing a qualitative assessment before performing the first step of the two-step analysis, whereby the carrying value of the reporting unit is compared to its fair value in the first step. If the carrying value of the reporting unit is greater than its fair value, the second step is performed, where the implied fair value of goodwill is compared to its carrying value. An impairment charge is recognized for the amount by which the carrying amount of goodwill exceeds its fair value. The fair value is estimated using the net present value of discounted cash flows of the reporting unit. The Partnership has only one reporting unit. Other intangible assets represent contractual rights for charters obtained in connection with a step acquisition that had favorable contractual terms relative to market as of the acquisition date. Contractual rights for charters obtained in connection with a step acquisition that had unfavorable contractual terms are classified as contract liabilities in the consolidated and combined carve-out balance sheets. The favorable and unfavorable contract rights are amortized to revenues over the period of the contract. (o) Debt Issuance Costs Debt issuance costs, including fees, commissions and legal expenses, are deferred. Debt issuance costs of term loans are amortized over the term of the relevant loan. Amortization of debt issuance costs is included in interest expense. (p) Derivative Instruments The Partnership uses derivatives to reduce market risks associated with its operations. The Partnership uses interest rate swaps for the management of interest risk exposure. The interest rate swaps effectively convert a portion of the Partnership’s debt from a floating to a fixed rate over the life of the transactions without an exchange of underlying principal. The Partnership seeks to reduce its exposure to fluctuations in foreign exchange rates through the use of foreign currency forward contracts. All derivative instruments are initially recorded at fair value as either assets or liabilities in the accompanying consolidated and combined carve-out balance sheets and subsequently measured to fair value. The Partnership does not apply hedge accounting to its derivative instruments. Changes in the fair value of the derivative instruments are recognized in earnings. Gains and losses from the interest rate swap contracts of the Partnership related to long-term mortgage debt and foreign exchange forward contracts are recorded in realized and unrealized gain (loss) on derivative instruments in the consolidated and combined carve-out statements of operations. Cash flows related to interest rate swap contracts are presented as cash flows provided by operating activities. Cash flows related to foreign exchange forward contracts entered into to economically hedge operating expenses in currencies other than U.S. Dollars are presented as cash flows provided by operating activities in the consolidated and combined carve-out statements of cash flows, while cash flows related to foreign exchange forward contracts entered into to hedge contractual obligations to pay the shipyard in currencies other than functional currency of U.S. Dollars are presented as cash flows used in investing activities in the consolidated and combined carve-out statements of cash flows. (q) Income Taxes Historically, part of the Partnership’s activities were subject to ordinary taxation and taxes were paid on taxable income (including operating income and net financial income and expense), while part of the activities were subject to the Norwegian Tonnage Tax regime (the “tonnage tax regime”). Under the tonnage tax regime, the tax is based on the tonnage of the vessel, and operating income is tax free. The net financial income and expense remains taxable as ordinary income tax for entities subject to the tonnage tax regime. Income taxes arising from the part of activities subject to ordinary taxation are included in income tax expense in the consolidated and combined carve-out statements of operations. For the portion of activities subject to the tonnage tax regime, tonnage taxes are classified as vessel operating expenses while the current and deferred taxes arising on net financial income and expense are reflected as income tax expense in the consolidated and combined carve-out statements of operations. The amounts of tonnage tax included in operating expenses for the years ended December 31, 2015, 2014 and 2013 were $132,000, $126,000 and $100,000, respectively. The Partnership accounts for deferred income taxes using the liability method. Under the liability method, deferred tax assets and liabilities are recognized for the anticipated future tax effects of temporary differences between the financial statement basis and the tax basis of the Partnership’s assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which these temporary differences are expected to be recovered or settled. A valuation allowance for deferred tax assets is recorded when it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized. Recognition of uncertain tax positions is dependent upon whether it is more-likely-than-not that a tax position taken or expected to be taken in a tax return will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. If a tax position meets the more-likely-than-not recognition threshold, it is measured to determine the amount of benefit to recognize in the financial statements based on U.S. GAAP guidance. The Partnership recognizes interest and penalties related to uncertain tax positions in income tax expense. (r) Prepaid Charter and Deferred Revenue Under terms of the time charters and bareboat charters, the customer pays for the month’s charter the first day of each month that is recorded as prepaid charter revenues. Deferred revenues for fees received from customers for customized equipment are classified as prepaid charter and deferred revenue for the current portion and as other long-term liabilities for the non-current portion. (s) Commitments, Contingencies and Insurance Proceeds Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. See Note 19—Commitments and Contingencies. Insurance claims for property damage for recoveries up to the amount of loss recognized are recorded when the claims submitted to insurance carriers are probable of recovery. Claims for property damage in excess of the loss recognized and for loss off-hire are considered gain contingencies, which are generally recognized when the proceeds are received. (t) Fair Value Measurements The Partnership utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Partnership determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: • Level 1 Inputs: • Level 2 Inputs: • Level 3 Inputs: (u) Accounting Pronouncement Not Yet Adopted New Accounting Standards not yet adopted In May 2014, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) issued a comprehensive revenue recognition standard that will supersede virtually all of the existing revenue recognition guidance. The standard is intended to increase comparability across industries and jurisdictions. The single, global revenue recognition model applies to most contacts with customers. Leases, insurance contracts, financial instruments, guarantees and certain non-monetary transactions are excluded from the scope of the guidance. Revenue will be recognized in a manner that depicts the transfer of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled, subject to certain limitations. The FASB deferred by one year the effective date of its new revenue recognition standard for public and nonpublic entities reporting under U.S. GAAP. The new revenue recognition standard will be effective for public entities for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Public entities will be permitted to adopt the standard as early as the original public entity effective date (i.e., annual reporting periods beginning after December 15, 2016 and interim periods therein). Early adoption prior to that date is not permitted. The Partnership is assessing what impact, if any, the adoption of the guidance will have on its financial position, results of operations and cash flows. In August 2014, FASB issued Presentation of Financial Statements – Going Concern (Subtopic 205-40), Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern (Accounting Standards Update (ASU) 2014-15). ASU 2014-15 provides guidance in GAAP about management’s responsibility to evaluate whether there are conditions and events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the financial statements are issued (or available to be issued when applicable) and, if so, disclose that fact. Management will be required to make this evaluation for both annual and interim reporting periods, if applicable. Management also is required to evaluate and disclose whether its plans alleviate that doubt. The standard is effective for annual periods after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted. The Partnership is evaluating the effect of adopting this new accounting guidance. The Partnership does not expect the adoption of this standard to have a material impact on the consolidated and combined financial statements. In April 2015, FASB issued Interest – Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability rather than as an asset. This will make the presentation of debt issuance costs consistent with the presentation of debt discounts or premiums. The guidance also addresses the long-standing conflict with the conceptual framework and improves consistency with International Financial Reporting Standards (IFRS).The recognition and measurement guidance for debt issuance costs is not affected. The standard does not address the presentation of costs that does not have an associated liability. The guidance is effective for annual and interim periods beginning after December 15, 2015. Early adoption is permitted. The Partnership has not yet adopted ASU 2015-03. The adoption of the new standard will have an impact on the Partnership’s balance sheets and reduce total assets and total liabilities and will be applied retrospectively. In June 2015, FASB issued Technical Corrections and Improvements (ASU 2015-10) to correct differences between original guidance and the ASC, clarify the guidance, correct references and make minor improvements affecting a variety of topics. While most of the amendments are not expected to have a significant effect on practice, some of them could change practice for some entities. Amendments that the FSAB deemed more substantive are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The other amendments are effective immediately. The Partnership is assessing what impact, if any, this guidance will have on its consolidated and combined financial position, results of operations and cash flows. In August 2015, FASB issued ASU 2015-15 to incorporate into the Accounting Standards Codification (ASC) an SEC staff announcement that the SEC staff will not object to an entity presenting the cost of securing a revolving line of credit as a deferred asset, regardless of whether a balance is outstanding. The announcement came in response to questions that arose after the FASB issued ASU 2015-03 Interest – Imputation of interest (Subtopic 835-30) – Simplifying the Presentation of Debt Issuance Costs. The standard, as issued, did not address revolving lines of credit, which may not have outstanding balances. An entity that repeatedly draws on a revolving credit facility and then repays the balance could present the cost as a deferred asset and reclassify all or a portion of it as a direct deduction from the liability whenever a balance is outstanding. However, the SEC staff’s announcement provides a less cumbersome alternative. Either way, the cost should be amortized over the term of the arrangement. The guidance is effective upon announcement by the SEC staff on June 18, 2015. The Partnership is assessing what impact, if any, the adoption of this guidance will |
Formation Transactions and Init
Formation Transactions and Initial Public Offering | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Formation Transactions and Initial Public Offering | 3) Formation Transactions and Initial Public Offering During April 2013, the following transactions occurred in connection with the transfer of the interests in KNOT Shuttle Tankers AS and the subsequent IPO: Capital Contribution (i) KNOT contributed to the Partnership’s subsidiary KNOT UK its 100% interest in KNOT Shuttle Tankers AS, which directly or indirectly owned (1) Knutsen Shuttle Tankers XII KS, the owner of the Recife Knutsen Fortaleza Knutsen Windsor Knutsen Bodil Knutsen Recapitalization of the Partnership (ii) The Partnership issued to KNOT 8,567,500 subordinated units, representing a 49.0% limited partner interest in the Partnership, and 100% of the IDRs, which will entitle KNOT to increasing percentages of the cash the Partnership distributes in excess of $0.43125 per unit per quarter. (iii) The Partnership issued 349,694 general partner units to the General Partner, KNOT Offshore Partners GP LLC, a wholly owned subsidiary of KNOT, representing a 2.0% general partner interest in the Partnership. Initial Public Offering (iv) In connection with the IPO, the Partnership issued and sold to the public, through the underwriters, 8,567,500 common units (including 1,117,500 common units sold pursuant to the full exercise of the underwriters’ option to purchase additional units), representing a 49.0% limited partner interest in the Partnership. The price per common unit in the IPO was $21.00. The Partnership received gross proceeds of approximately $179.9 million in connection with the IPO. Expenses relating to the IPO, including, among other things, incremental costs directly attributable to the IPO, were deferred and charged against the gross proceeds of the IPO, whereas other costs have been expensed as incurred. The net proceeds of the IPO (approximately $160.7 million, after deducting underwriting discounts, commissions and structuring fees and offering expenses payable by the Partnership) have been used by the Partnership to make a cash distribution to KNOT of approximately $21.95 million (which equals net proceeds from the underwriters’ option exercised in full after deducting the underwriting discounts and commissions), to repay approximately $118.9 million of outstanding debt and pre-fund approximately $3.0 million of the Partnership’s one-time entrance tax into the Norwegian tonnage tax regime. The reminder of the net proceeds was made available for general partnership purposes. Agreements In connection with the IPO, at or prior to the closing of the IPO, the Partnership entered into several agreements, including: • An Administrative Services Agreement with KNOT UK, pursuant to which: • KNOT UK agreed to provide to the Partnership administrative services; and • KNOT UK is permitted to subcontract certain of the administrative services provided under the administrative services agreement to Knutsen OAS (UK) Ltd. (“KOAS UK”) and Knutsen OAS Shipping AS (“KOAS”), both wholly owned subsidiaries of TS Shipping Invest AS (“TSSI”); • Amended Technical Management Agreements with KNOT Management AS (“KNOT Management”), a wholly owned subsidiary of KNOT, that govern the crew, technical and commercial management of the vessels in the fleet; • A Contribution and Sale Agreement with KNOT. See Note 2(a)—Summary of Significant Accounting Policies—Basis of Preparation; • Amendments to certain of the Partnership’s existing vessel financing agreements to permit the transactions pursuant to which the Partnership acquired its initial fleet in connection with the IPO and to include a $20.0 million revolving credit facility; and • An Omnibus Agreement with KNOT, the General Partner and the other parties thereto governing, among other things: • To what extent the Partnership and KNOT may compete with each other; • The Partnership’s option to purchase the Carmen Knutsen Hilda Knutsen Torill Knutsen Ingrid Knutsen Raquel Knutsen • Certain rights of first offer on shuttle tankers operating under charters of five or more years; • The provision of certain indemnities to the Partnership by KNOT; and • KNOT’s guarantee of the payment of the hire rate under the existing Bodil Knutsen Windsor Knutsen |
Subsidiaries
Subsidiaries | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Subsidiaries | 4) Subsidiaries The following table lists the Partnership’s subsidiaries and their purpose as of December 31, 2015. Company Name Jurisdiction of Formation Purpose KNOT Offshore Partners UK LLC Marshall Islands Holding company KNOT Shuttle Tankers AS Norway Holding company KNOT Shuttle Tankers 12 AS Norway Majority owner of Knutsen Shuttle Tankers XII KS KNOT Shuttle Tankers 17 AS Norway Owner of the Bodil Knutsen KNOT Shuttle Tankers 18 AS Norway Owner of the Windsor Knutsen Knutsen Shuttle Tankers 13 AS Norway Owner of the Carmen Knutsen Knutsen Shuttle Tankers XII KS Norway Owner of the Fortaleza Knutsen Recife Knutsen Knutsen Shuttle Tankers XII AS Norway General partner of Knutsen Shuttle Tanker XII KS Knutsen Shuttle Tankers 14 AS Norway Owner of the Hilda Knutsen Knutsen Shuttle Tankers 15 AS Norway Owner of the Torill Knutsen KNOT Shuttle Tankers 20 AS Norway Owner of the Dan Cisne KNOT Shuttle Tankers 21 AS Norway Owner of the Dan Sabia Knutsen NYK Shuttle Tankers 16 AS Norway Owner of the Ingrid Knutsen |
Significant Risks and Uncertain
Significant Risks and Uncertainties Including Business and Credit Concentrations | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Significant Risks and Uncertainties Including Business and Credit Concentrations | 5) Significant Risks and Uncertainties Including Business and Credit Concentrations Each of the Vessels is employed under long-term fixed rate charters, which mitigates earnings risk. The Partnership’s operational results are dependent on the worldwide market for shuttle tankers and timing of entrance into long-term charters. Market conditions for shipping activities are typically volatile, and, as a consequence, the hire rates may vary from year to year. The market is mainly dependent upon two factors: the supply of vessels and the overall growth in the world economy. The general supply of vessels is impacted by the combination of newbuilds, demolition activity of older vessels and legislation that limits the use of older vessels or new standards for vessels used in specific trades. As of December 31, 2015, all of the Partnership’s Vessel crews, which are employed through Knutsen OAS Shipping AS, were represented by collective bargaining agreements that are renegotiated annually, or bi-annually. The Partnership did not incur any loss relating to its customers during the years ended December 31, 2015, 2014 and 2013. The following table presents revenues and percentage of combined revenues for customers that accounted for more than 10% of the Partnership’s combined revenues during the years ended December 31, 2015, 2014 and 2013. All of these customers are subsidiaries of major international oil companies, except KNOT, which was chartering the Windsor Knutsen Year Ended December 31, (U.S. Dollars in thousands) 2015 2014 2013 Fronape International Company, a subsidiary of Petrobras Transporte S.A. $ 40,618 26 % $ 25,666 23 % $ 22,860 31 % Eni Trading and Shipping S.p.A. 46,806 30 % 23,512 21 % — — Statoil ASA 23,203 15 % 22,263 20 % 21,563 29 % Repsol Sinopec Brasil, S.A., a subsidiary of Repsol Sinopec Brasil, B.V. 19,789 13 % 20,338 18 % 8,417 12 % Brazil Shipping I Limited, a subsidiary of BG Group Plc 4,466 3 % 12,124 11 % $ 20,311 28 % KNOT $ 16,231 11 % $ 8,880 8 % — — The Partnership has financial assets that expose it to credit risk arising from possible default by a counterparty. The Partnership considers its counterparties to be creditworthy financial institutions and does not expect any significant loss to result from non-performance by such counterparties. The maximum loss due to credit risk that the Partnership would incur if counterparties failed completely to perform would be the carrying value of cash and cash equivalents, restricted cash and trade accounts receivable. The Partnership, in the normal course of business, does not demand collateral from its counterparties. |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Operating Leases | 6) Operating Leases The time charters and bareboat charters of the Vessels with third parties are accounted for as operating leases. The minimum contractual future revenues to be received from time charters and bareboat charters as of December 31, 2015, were as follows: (U.S. Dollars in thousands) 2016 $ 166,669 2017 167,148 2018 124,753 2019 80,004 2020 80,745 2021 and thereafter 209,634 Total $ 828,953 The minimum contractual future revenues should not be construed to reflect total charter hire revenues for any of the years. Minimum contractual future revenues are calculated based on certain assumptions such as operating days per year. In addition, minimum contractual future revenues presented in the table above have not been reduced by estimated off-hire time for periodic maintenance. The amounts may vary given unscheduled future events such as vessel maintenance. Partnership’s fleet as of December 31, 2015 consisted of: • the Fortaleza Knutsen • the Recife Knutsen • the Bodil Knutsen • the Windsor Knutsen • the Carmen Knutsen • the Hilda Knutsen • the Torill Knutsen • the Dan Cisne • the Dan Sabia • the Ingrid Knutsen |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | 7) Segment Information The Partnership has not presented segment information as it considers its operations to occur in one reportable segment, the shuttle tanker market. At December 31, 2015, the Partnership’s fleet operated under six time charters and four bareboat charters. At December 31, 2014, the Partnership’s fleet operated under five time charters and three bareboat charters, and during 2013 the Partnership’s fleet operated under three time charters and two bareboat charters. See Note 5—Significant Risks and Uncertainties Including Business and Credit Concentrations for revenues from customers accounting for over 10 % of the Partnership’s consolidated and combined revenue. In both time charters and bareboat charters, the charterer, not the Partnership, controls the choice of which trading areas the Vessels will serve. Accordingly, the Partnership’s management, including the chief operating decision makers, does not evaluate performance according to geographical region. |
Goodwill Impairment Charge
Goodwill Impairment Charge | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Impairment Charge | 8) Goodwill Impairment Charge During the three months ended June 30, 2015, the Partnership concluded that indicators of impairment were present due to a significant reduction in the price of the Partnership’s common units during the quarter. Consequently, the Partnership performed an interim vessel and goodwill impairment analysis as of June 30, 2015 on its fleet, concluding that there was no impairment to the vessels’ values. However, the Partnership determined that the carrying value of the goodwill exceeded its fair value. The impairment charge relates mainly to capitalized goodwill which arose in 2008 when the Partnership’s predecessor acquired the Windsor Knutsen |
Other Finance Expenses
Other Finance Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift, Interest [Abstract] | |
Other Finance Expenses | 9) Other Finance Expenses (a) Interest Expense A reconciliation of total interest cost to interest expense as reported in the consolidated and combined carve-out statements of operations for the years ended December 31, 2015, 2014 and 2013 is as follows: Year Ended December 31, (U.S. Dollars in thousands) 2015 2014 2013 Interest cost capitalized $ — $ — $ — Interest expense 17,451 15,271 10,773 Total interest cost $ 17,451 $ 15,271 $ 10,773 (b) Other Finance Expense The following table presents the other finance expense for the years ended December 31, 2015, 2014 and 2013: Year Ended December 31, (U.S. Dollars in thousands) 2015 2014 2013 Bank fees, charges and external guarantee costs $ 504 $ 1,221 $ 1,414 Related party guarantee commissions (Note 18) — — 634 Related party financing service fee (Note 18) — 50 — Total other finance expense $ 504 $ 1,271 $ 2,048 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 10) Derivative Instruments Interest Rate Risk Management The consolidated and combined carve-out financial statements include the results of interest rate swap contracts to manage the Partnership’s exposure related to changes in interest rates on its variable rate debt instruments and the results of foreign exchange forward contracts to manage its exposure related to changes in currency exchange rates on its operating expenses, mainly crew expenses, in other currency than USD and on its contract obligations. The Partnership does not apply hedge accounting for derivative instruments. The Partnership does not speculate using derivative instruments. By using derivative financial instruments to economically hedge exposures to changes in interest rates, the Partnership exposes itself to credit risk and market risk. Derivative instruments that economically hedge exposures are used for risk management purposes, but these instruments are not designated as hedges for accounting purposes. Credit risk is the failure of the counterparty to perform under the terms of the derivative instrument. When the fair value of a derivative instrument is positive, the counterparty owes the Partnership, which creates credit risk for the Partnership. When the fair value of a derivative instrument is negative, the Partnership owes the counterparty, and, therefore, the Partnership is not exposed to the counterparty’s credit risk in those circumstances. The Partnership minimizes counterparty credit risk in derivative instruments by entering into transactions with major banking and financial institutions. The derivative instruments entered into by the Partnership do not contain credit risk-related contingent features. The Partnership has not entered into master netting agreements with the counterparties to its derivative financial instrument contracts. Market risk is the adverse effect on the value of a derivative instrument that results from a change in interest rates, currency exchange rates or commodity prices. The market risk associated with interest rate contracts is managed by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. The Partnership assesses interest rate risk by monitoring changes in interest rate exposures that may adversely impact expected future cash flows and by evaluating economical hedging opportunities. The Partnership has historically used variable interest rate mortgage debt to finance its vessel construction or conversions. The variable interest rate mortgage debt obligations expose the Partnership to variability in interest payments due to changes in interest rates. The Partnership believes that it is prudent to limit the variability of a portion of its interest payments. To meet this objective, the Partnership entered into London Interbank Offered Rate (“LIBOR”)-based interest rate swap contracts to manage fluctuations in cash flows resulting from changes in the benchmark interest rate of LIBOR. These swaps change the variable rate cash flow exposure on the mortgage debt obligations to fixed cash flows. Under the terms of the interest rate swap contracts, the Partnership receives LIBOR-based variable interest rate payments and makes fixed interest rate payments, thereby creating the equivalent of fixed rate debt for the notional amount of its debt hedged. All interest rate swap contracts entered into in conjunction with the individual vessel financings prior to the closing date of the IPO have been carved out, as they were readily separable and identifiable within the books of KNOT. Additionally, all these interest rate swap contracts have been retained by KNOT and have not been transferred to the Partnership. Therefore, such interest rate swap contracts have been eliminated from the Partnership’s opening equity position as of April 16, 2013. See Consolidated and Combined Carve-Out Statements of Changes in Partners’ Capital/Owners’ Capital and Note 2(a)—Summary of Significant Accounting Policies—Basis of Preparation. As of December 31, 2015 and 2014, the total notional amount of the Partnership’s outstanding interest rate swap contracts that were entered into in order to hedge outstanding or forecasted debt obligations were $410.0 million and $382.3 million, respectively. As of December 31, 2015 and 2014 the carrying amount of the interest rate swaps contracts were net liabilities of $3.6 million and $1.7 million, respectively. See Note 11—Fair Value Measurements. Changes in the fair value of interest rate swap contracts are reported in realized and unrealized gain (loss) on derivative instruments in the same period in which the related interest affects earnings. The Partnership and its subsidiaries utilize the U.S. Dollar as their functional and reporting currency, because all of their revenues and the majority of their expenditures, including the majority of their investments in vessels and their financing transactions, are denominated in U.S. Dollars. The Partnership’s predecessor also from time to time contracted vessels with contractual obligations to pay the yards in currencies other than the U.S. Dollar. Payment obligations in currencies other than the U.S. Dollar, and in particular operating expenses in NOK, expose the Partnership to variability in currency exchange rates. The Partnership believes that it is prudent to limit the variability of a portion of its currency exchange exposure. To meet this objective, the Partnership entered into foreign exchange forward contracts to manage fluctuations in cash flows resulting from changes in the exchange rates towards the U.S. Dollar. The agreements change the variable exchange rate to fixed exchange rates at agreed dates. As of December 31, 2015 and 2014, the total contract amount in foreign currency of the Partnership’s outstanding foreign exchange forward contracts that were entered into to economically hedge outstanding future payments in currencies other than the U.S. Dollar were NOK 289.8 million and NOK 127.9 million, respectively. As of December 31, 2015 and 2014, the carrying amount of the Partnership’s foreign exchange forward contracts was a liability of $2.1 million and $2.7 million, respectively. See Note 11—Fair Value Measurements. The following table presents the realized and unrealized gains and losses that are recognized in earnings as net gain (loss) on derivative instruments for the years ended December 31, 2015, 2014 and 2013: Year Ended December 31 (U.S. Dollars in thousands) 2015 2014 2013 Realized gain (loss) Interest rate swap contracts $ (4,957 ) $ (2,997 ) $ (1,265 ) Foreign exchange forward contracts (4,348 ) 500 — Unrealized gain (loss) Interest rate swap contracts (1,088 ) (919 ) 1,522 Foreign exchange forward contracts 698 (2,991 ) 248 Total $ (9,695 ) $ (6,407 ) $ 505 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 11) Fair Value Measurements (a) Fair Value of Financial Instruments The following table presents the carrying amounts and estimated fair values of the Partnership’s financial instruments as of December 31, 2015 and 2014. Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. December 31, 2015 December 31, 2014 (U.S. Dollars in thousands) Carrying Fair Value Carrying Fair Value Financial assets: Cash and cash equivalents $ 23,573 $ 23,573 $ 30,746 $ 30,746 Non-current derivative assets: Interest rate swap contracts 695 695 2,966 2,966 Financial liabilities: Current derivative liabilities: Interest rate swap contracts 3,799 3,799 4,708 4,708 Foreign exchange forward contract 1,339 1,339 2,742 2,742 Non-current derivative liabilities: Interest rate swap contracts 527 527 — — Foreign exchange forward contract 705 705 — — Long-term debt, current and non-current 671,690 671,690 613,221 613,221 The carrying amounts shown in the table above are included in the consolidated and combined carve-out balance sheets under the indicated captions. The carrying value of trade accounts receivable, trade accounts payable and receivables/payables to owners and affiliates approximate their fair value. The fair values of the financial instruments shown in the above table as of December 31, 2015 and 2014 represent the amounts that would be received to sell those assets or that would be paid to transfer those liabilities in an orderly transaction between market participants at that date. Those fair value measurements maximize the use of observable inputs. However, in situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects the Partnership’s own judgment about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by the Partnership based on the best information available in the circumstances, including expected cash flows, appropriately risk-adjusted discount rates and available observable and unobservable inputs. The following methods and assumptions were used to estimate the fair value of each class of financial instruments: • Cash and cash equivalents and restricted cash • Foreign exchange forward contracts: • Interest rate swap contracts • Long-term debt (b) Fair Value Hierarchy The following table presents the placement in the fair value hierarchy of assets and liabilities that are measured at fair value on a recurring basis (including items that are required to be measured at fair value or for which fair value is required to be disclosed) as of December 31, 2015 and 2014: Fair Value Measurements at (U.S. Dollars in thousands) December 31, Quoted Price Significant Significant Financial assets: Cash and cash equivalents $ 23,573 $ 23,573 $ — $ — Non-current derivative assets: Interest rate swap contracts 695 — 695 — Financial liabilities: Current derivative liabilities: Interest rate swap contracts 3,799 — 3,799 — Foreign exchange forward contracts 1,339 — 1,339 — Non-current derivative liabilities: Interest rate swap contracts 527 527 Foreign exchange forward contract 705 705 Long-term debt, current and non-current 671,690 — 671,690 — Fair Value Measurements at (U.S. Dollars in thousands) December 31, Quoted Price Significant Significant Financial assets: Cash and cash equivalents $ 30,746 $ 30,746 $ — $ — Restricted cash — — — — Current derivative asset: Foreign exchange forward contracts — — — — Non-current derivative assets: Interest rate swap contracts 2,966 — 2,966 — Financial liabilities: Current derivative liabilities: Interest rate swap contracts 4,708 — 4,708 — Foreign exchange forward contracts 2,742 — 2,742 — Non-current derivative liabilities: Interest rate swap contracts — — — — Foreign exchange forward contracts — — — — Long-term debt, current and non-current 613,221 — 613,221 — The Partnership’s accounting policy is to recognize transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. There were no transfers into or out of Level 1, Level 2 or Level 3 as of December 31, 2015 and 2014. |
Trade Accounts Receivables and
Trade Accounts Receivables and Other Current Assets | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Trade Accounts Receivables and Other Current Assets | 12) Trade Accounts Receivables and Other Current Assets (a) Trade Accounts Receivables Trade accounts receivable are presented net of provisions for doubtful accounts. As of December 31, 2015 and 2014, there was no provision for doubtful accounts. (b) Other Current Assets Other current assets consist of the following: Year Ended December 31, (U.S. Dollars in thousands) 2015 2014 Insurance claims for recoveries — 189 Refund of value added tax 596 453 Prepaid expenses 707 464 Current portion of deferred debt issuance cost 1,149 1,149 Other receivable 497 1,703 Total other current assets $ 2,949 $ 3,958 |
Vessels and Equipment
Vessels and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Vessels and Equipment | 13) Vessels and Equipment (U.S. Dollars in thousands) Vessel & Accumulated Net vessels Balance December 31, 2013 $ 692,926 $ (75,141 ) $ 617,785 Additions 434,232 — 434,232 Drydock costs 4,277 — 4,277 Transfer from vessels under construction — — — Disposals (114 ) — (114 ) Depreciation — (34,322 ) (34,322 ) Balance December 31, 2014 $ 1,131,321 $ (109,464 ) $ 1,021,857 Additions 218,540 — 218,540 Drydock costs 1,625 — 1,625 Transfer from vessels under construction — — — Disposal (267 ) 16 (251 ) Depreciation — (48,844 ) (48,844 ) Balance December 31, 2015 $ 1,351,219 $ (158,292 ) $ 1,192,927 As of December 31, 2015 and 2014, Vessels with a book value of $1,193 million and $1,022 million, respectively, are pledged as security held as a guarantee for the Partnership’s long-term debt. See Note 16—Long-Term Debt. Drydocking activity for the years ended December 31, 2015 and 2014 is summarized as follows: Year Ended (U.S. Dollars in thousands) 2015 2014 Balance at the beginning of the year $ 5,874 $ 3,369 Costs incurred for drydocking 362 69 Costs allocated to drydocking as part of acquisition of business 1,263 4,208 Drydock depreciation (2,232 ) (1,772 ) Balance at the end of the year $ 5,267 $ 5,874 |
Intangible Assets and Contract
Intangible Assets and Contract Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Contract Liabilities | 14) Intangible Assets and Contract Liabilities The Partnership’s identified finite-lived intangible assets associated with contractual rights for a charter of a Vessel obtained in connection with a step acquisition in 2008 that had favorable contractual terms relative to market as of the acquisition date. The finite-lived intangible assets of $533 were fully amortized as of December 31, 2010. In addition, as part of that transaction, unfavorable contractual rights for charters of two of the Vessels that had unfavorable contractual terms were identified. The unfavorable contract rights are amortized over the period of the contract to time charter and bareboat revenues as follows: (U.S. Dollars in thousands) Balance as of Amortization Balance as of Amortization Balance as of Contract liabilities: Unfavorable contract rights $ (14,311 ) $ 1,518 $ (12,793 ) $ 1,518 $ (11,275 ) Total amortization income $ 1,518 $ 1,518 Accumulated amortization for contract liabilities was $6,940 and $5,422 as of December 31, 2015 and 2014, respectively. The amortization of contract liabilities that is classified under time charter and bareboat revenues for the next five years is expected to be as follows: (U.S. Dollars in thousands) 2016 2017 2018 2019 2020 and Contract liabilities: Unfavorable contract rights $ (1,518 ) $ (1,518 ) $ (1,518 ) $ (1,518 ) $ (5,203 ) |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | 15) Accrued Expenses The following table presents accrued expenses as of December 31, 2015 and 2014: Year Ended December 31, (U.S. Dollars in thousands) 2015 2014 Operating expenses $ 1,364 $ 1,035 Interest expenses 2,130 1,700 Other expenses 394 — Total accrued expenses $ 3,888 $ 2,735 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 16) Long-Term Debt Prior to the closing of the IPO, existing vessel financing agreements were amended to permit the transactions pursuant to which the Partnership acquired its initial fleet at the closing of the IPO and to establish a $20.0 million revolving credit facility. The Partnership used the net proceeds from the IPO to repay either a portion of the amounts outstanding or the full amount outstanding under the existing loan facilities. All amended loan agreements have been assessed for debt extinguishment or debt modifications in accordance with Accounting Standards Codification (ASC) 470, Debt In June 2014, the Partnership entered into two new senior secured credit facilities in order to refinance its existing long term bank debt. The new senior secured credit facilities consist of a $20 million revolving credit facility and two term loans of $220 million and $140 million. The $220 million term loan and the $20 million revolving facility were drawn in June 2014 to repay existing debt under a $120 million loan facility, a $85 million loan facility and a $93 million loan facility secured by the Bodil Knutsen Windsor Knutsen Carmen Knutsen Fortaleza Knutsen Recife Knutsen Debt Long-term debt as of December 31, 2015 and 2014, consisted of following: As of December 31, (U.S. Dollars in thousands) Vessel 2015 2014 $220 million loan facility Windsor Knutsen, Bodil Knutsen, Carmen Knutsen $ 196,429 $ 212,142 $20 million revolving credit facility Windsor Knutsen, Bodil Knutsen, Carmen Knutsen — 20,000 $140 million loan facility Fortaleza Knutsen & Recife Knutse n 126,875 135,625 $117 million loan facility Hilda Knutsen 81,797 86,724 $117 million loan facility Torill Knutsen 83,033 87,960 $172.5 million loan facility Dan Cisne & Dan Sabia 109,339 58,770 $77.5 million loan facility Ingrid Knutsen 74,217 — $12.0 million Seller’s Credit — 12,000 Total long-term debt 671,690 613,221 Less current installments 49,684 38,718 Less $12.0 million Seller’s Credit — 12,000 Long-term debt, excluding current installments and seller’s credit $ 622,006 $ 562,503 The Partnership’s outstanding debt of $671.7 million as of December 31, 2015 is repayable as follows: Year Ending December 31, U.S. Dollars in 2016 $ 49,684 2017 50,084 2018 203,422 2019 266,260 2020 17,650 2021- thereafter 84,590 Total $ 671,690 As of December 31, 2015, the interest rates on the Partnership’s loan agreements (other than tranche two of the $77.5 million loan facility) were the London Interbank Offered Rate (“LIBOR”) plus a fixed margin ranging from 2.125% to 2.5%. On the export credit loan of $55.1 million which is tranche two of the $77.5 million loan facility secured by the Ingrid Knutsen $240 Million Secured Loan Facility In June 2014, the Partnership’s subsidiaries KNOT Shuttle Tankers 18 AS, KNOT Shuttle Tankers 17 AS and Knutsen Shuttle Tankers 13 AS entered into a senior syndicate secured loan facility in an aggregate amount of $240 million (the “Senior Secured Loan Facility”) to repay existing debt under previous credit facilities and a $10.5 million seller’s credit from KNOT. The Senior Secured Loan Facility consists of (i) a $220 million term loan (the “Term Loan Facility”) and (ii) a $20 million revolving credit facility (the “Revolving Credit Facility”). The Revolving Credit Facility terminates in June 2019, and bears interest at LIBOR plus a fixed margin of 2.125%, and has a commitment fee equal to 40% of the margin of the Revolving Credit Facility calculated on the daily undrawn portion of the Revolving Credit Facility. The outstanding balance on the Revolving Credit Facility was repaid on June 23, 2015 using a portion of the net proceeds from the June 2015 Offering. As of December 31, 2015, the Revolving Credit Facility was undrawn. The Term Loan Facility is repayable in quarterly instalments over five years with a final balloon payment due at maturity at June 2019. The Term Loan Facility bears interest at LIBOR plus a margin of 2.125%. The Windsor Knutsen, Bodil Knutsen Carmen Knutsen, Windsor Knutsen, Bodil Knutsen Carmen Knutsen The Senior Secured Loan Facility contains the following financial covenants: • The aggregate market value of the Windsor Knutsen Bodil Knutsen Carmen Knutsen • Positive working capital for the borrowers and the Partnership; • Minimum liquidity of the Partnership of $17 million plus increments of $1 million for each additional vessel acquired by the Partnership and $1.5 million for each owned vessel with less than 12 months remaining tenor on its employment contract; • Minimum book equity ratio for the Partnership of 30%; and • Minimum EBITDA to interest ratio for the Partnership of 2.50. The Senior Secured Loan Facility also identifies various events that may trigger mandatory reduction, prepayment and cancellation of the facility, including total loss or sale of a vessel and customary events of default. As of December 31, 2015, the borrowers and the guarantors were in compliance with all covenants under this facility. $117 Million Hilda Loan Facility In July 2011, Knutsen Shuttle Tankers 14 AS, the subsidiary owning the Hilda Knutsen Hilda Knutsen Hilda Knutsen • Market value of the Hilda Knutsen • Positive working capital of the borrower and the Partnership; • Minimum liquidity of the Partnership of $17 million plus increments of $1 million for each additional vessel acquired by the Partnership and $1.5 million for each owned vessel with less than 12 months remaining tenor on its employment contract; • Minimum book equity ratio for the Partnership of 30%; and • Minimum EBITDA to interest ratio for the Partnership of 2.50. The Hilda Facility also identifies various events that may trigger mandatory reduction, prepayment and cancellation of the facility, including total loss or sale of a vessel and customary events of default. As of December 31, 2015, the borrower and the guarantors were in compliance with all covenants under this facility. $117 Million Torill Loan Facility In November 2011, Knutsen Shuttle Tankers 15 AS, the subsidiary owning the Torill Knutsen Torill Knutsen. Torill Knutsen • Market value of the Torill Knutsen • Positive working capital of the borrower and the Partnership; • Minimum liquidity of the Partnership of $17 million plus increments of $1 million for each additional vessel acquired by the Partnership and $1.5 million for each owned vessel with less than 12 months remaining tenor on its employment contract; • Minimum book equity ratio for the Partnership of 30%; and • Minimum EBITDA to interest ratio for the Partnership of 2.50. The Torill Facility also identifies various events that may trigger mandatory reduction, prepayment and cancellation of the facility, including total loss or sale of a vessel and customary events of default. As of December 31, 2015, the borrower and the guarantors were in compliance with all covenants under this facility. $140 Million Secured Loan Facility In June 2014, the Partnership’s subsidiary Knutsen Shuttle Tankers XII KS, as the borrower, entered into a senior syndicate secured loan facility in the amount of $140 million (the “New Fortaleza and Recife Facility”). The New Fortaleza and Recife Facility was drawn in November 2014 and replaced a $160 million loan facility previously secured by the Fortaleza Knutsen Recife Knutsen Fortaleza Knutsen Recife Knutsen Fortaleza Knutsen Recife Knutsen The New Fortaleza and Recife Facility contains the following financial covenants: • The aggregate market value of the Fortaleza Knutsen Recife Knutsen • Positive working capital of the borrower and the Partnership; • Minimum liquidity of the Partnership of $17 million plus increments of $1 million for each additional vessel acquired by the Partnership and $1.5 million for each owned vessel with less than 12 months remaining tenor on its employment contract; • Minimum book equity ratio for the Partnership of 30%; and • Minimum EBITDA to interest ratio for the Partnership of 2.50. The New Fortaleza and Recife Facility also identifies various events that may trigger mandatory reduction, prepayment and cancellation of the facility, including total loss or sale of a vessel and customary events of default. As of December 31, 2015, the borrower and the guarantors were in compliance with all covenants under this facility. $172.5 Million Secured Loan Facility In April 2014, KNOT Shuttle Tankers 20 AS and KNOT Shuttle Tankers 21 AS, the subsidiaries owning the Dan Cisne Dan Sabia Dan Cisne Dan Cisne Dan Sabia The Dan Cisne Facility and the Dan Sabia Facility are guaranteed by the Partnership and secured by a vessel mortgage on the Dan Cisne Dan Sabia The facilities contain the following financial covenants: • Market value of each of the Dan Cisne Dan Sabia • Minimum liquidity of the Partnership of $17 million plus increments of $1 million for each additional vessel acquired by the Partnership and $1.5 million for each owned vessel with less than 12 months remaining tenor on its employment contract; • Minimum book equity ratio for the Partnership of 30%. The facility also identifies various events that may trigger mandatory reduction, prepayment and cancellation of the facility, including total loss or sale of a vessel and customary events of default. As of December 31, 2015, the borrowers and the guarantor were in compliance with all covenants under this facility. $77.5 Million Secured Loan Facility In June 2012, Knutsen NYK Shuttle Tankers 16 AS, the subsidiary owning the Ingrid Knutsen Ingrid Knutsen Ingrid Knutsen Ingrid Knutsen The Ingrid Facility contains the following financial covenants: • Market value of the Ingrid Knutsen • Positive working capital of the borrower and the Partnership; • Minimum liquidity of the Partnership of $17 million plus increments of $1 million for each additional vessel acquired by the Partnership and $1.5 million for each owned vessel with less than 12 months remaining tenor on its employment contract; • Minimum book equity ratio for the Partnership of 30%; and • Minimum EBITDA to interest ratio for the Partnership of 2.50. The Ingrid Facility also identifies various events that may trigger mandatory reduction, prepayment and cancellation of the facility, including total loss or sale of a vessel and customary events of default. As of December 31, 2015, the borrower and the guarantors were in compliance with all covenants under this facility. $12 Million Seller’s Credit As part of financing for the purchase of the Dan Cisne |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 17) Income Taxes (a) Components of Current and Deferred Tax Expense All of the income from continuing operations before income taxes was taxable to Norway for the years ended December 31, 2015, 2014 and 2013 as follows: Year Ended December 31, (U.S. Dollars in thousands) 2015 2014 2013 Income before income taxes $ 40,383 $ 27,407 $ 17,891 The significant components of current and deferred income tax expense attributable to income from continuing operations for the years ended December 31, 2015, 2014 and 2013 are as follows: Year Ended December 31, (U.S. Dollars in thousands) 2015 2014 2013 Current tax benefit (expense) $ (11 ) $ (15 ) $ (686 ) Deferred tax benefit (expense) 70 — (2,141 ) Income tax benefit (expense) $ 59 $ (15 ) $ (2,827 ) (b) Tax Rate Reconciliation Income taxes attributable to income from continuing operations was an income tax benefit (expense) of $59, $(15) and $(2,827) for the years ended December 31, 2015, 2014 and 2013, respectively, and differed from the amounts computed by applying the Norwegian ordinary income tax rate of 27% in 2015 and 2014 and 28% in 2013 to pretax net income as a result of the following: Year Ended December 31, (U.S. Dollars in thousands, except for tax rate) 2015 2014 2013 Income tax benefit (expense) at Norwegian ordinary tax regime(1) $ — $ — $ (111 ) Income tax benefit (expense) at Norwegian tonnage tax regime 70 — (188 ) Income tax benefit (expense) within UK (11 ) (15 ) — Adjustments for amounts not taxable under tonnage tax regime — — — Adjustments due to permanent differences — — — Translation differences (1) — — 168 Entrance tax into the Norwegian tonnage tax regime — — (2,696 ) Reduction in income tax benefit resulting from a change in valuation allowance — — — Income tax benefit (expense) $ 59 $ (15 ) $ (2,827 ) Effective tax rate 0 % 0 % 16 % (1) These tax elements are related to the carve-out period in 2013, a total tax benefit of $57. (c) Components of Deferred Tax Assets and Liabilities The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2015 and 2014 are presented below. As of December 31, (U.S. Dollars in thousands) 2015 2014 Deferred tax assets: Interest rate swaps $ 6 $ — Financial loss carry forwards for tonnage tax 10,314 9,100 Total deferred tax asset 10,320 9,100 Less valuation allowance (10,320 ) (9,100 ) Net deferred tax asset — — Deferred tax liabilities: Entrance tax 877 1,402 Total deferred tax liabilities 877 1,402 Net deferred tax liabilities $ 877 $ 1,402 The net deferred tax liability is classified in the consolidated and combined carve-out balance sheets as follows: As of December 31, (U.S. Dollars in thousands) 2015 2014 Current deferred tax asset $ — $ — Non-current deferred tax liabilities (877 ) (1,402 ) Net deferred tax liabilities $ (877 ) $ (1,402 ) Changes in the net deferred tax liabilities at December 31, 2015 and 2014 are presented below: Year Ended December 31, (U.S. Dollars in thousands) 2015 2014 Net deferred tax liabilities at January 1 $ 1,402 $ 2,141 Change in temporary differences (307 ) (350 ) Translation differences (218 ) (389 ) Elimination of deferred tax not transferred to the partnership — — Changes in temporary differences after the IPO date — — Net deferred tax liabilities at December 31 $ 877 $ 1,402 The Partnership records a valuation allowance for deferred tax assets when it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized. The valuation allowances were $10.3 million and $9.1 million respectively, as of December 31, 2015 and 2014. The valuation allowances relate to the financial loss carry forwards and other deferred tax assets for tonnage tax that, in the judgment of the Partnership, are more-likely-than not to be realized reflecting the Partnership’s cumulative loss position for tonnage tax. In assessing the realizability of deferred tax assets, the Partnership considers whether it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized taking into account all the positive and negative evidence available. As of December 31, 2014, the Partnership determined that the deferred tax assets are likely to not be realized, and the booked value was, therefore, zero. After the reorganization of the Partnership’s predecessor’s activities into the new group structure in February 2013, all profit from continuing operations in Norway is taxable within the tonnage tax regime. The consequence of the reorganization is a one-time entrance tax into the Norwegian tonnage tax regime due to the Partnership’s acquisition of the shares in the subsidiary that owns the Fortaleza Knutsen Recife Knutsen In 2013, the total entrance tax was estimated at $2.7 million of which approximately $0.6 million was estimated to be payable during 2014. In addition, ordinary tonnage taxes payable were estimated at $0.1 million. Total income taxes payable were estimated at $0.7 million as of December 31, 2013 and equaled taxes paid in 2014. As of December 31, 2014, the total income taxes payable were estimated to be $0.4 million and consisted of payable entrance tax and ordinary UK corporation tax. As of December 31, 2015, the total income taxes payable are estimated to be $0.2 million and consist of payable entrance tax and ordinary UK corporation tax. Approximately $0.6 million of the estimated entrance tax of $2.7 million as of December 31, 2013 was paid during 2014. Approximately $0.3 million of the estimated entrance tax of $1.8 million as of December 31, 2014 was paid during 2015. Approximately $0.2 million of the estimated entrance tax of $1.1 million is estimated to be payable in the first and second quarter of 2016 and is presented as income taxes payable, while $0.9 million is presented as non-current deferred taxes payable. The tax loss carry forward from ordinary taxation and financial loss carry forwards for tonnage tax have no expiration dates. The Partnership’s Norwegian income tax returns are subject to examination by Norwegian tax authorities going back ten years from 2014. The Partnership had no unrecognized tax benefits as December 31, 2015 and 2014. During the years ended December 31, 2015 and 2014, the Partnership did not incur any interest or penalties on its tax return. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 18) Related Party Transactions (a) Related Parties Historically, the Combined Entity operated as an integrated part of KNOT. KNOT is owned 50% by TSSI and 50% by Nippon Yusen Kaisha (“NYK”). TSSI also controls 99% of KOAS, which subcontracts services from Knutsen OAS Management AS, which served as the vessel management companies for KNOT and its subsidiaries until June 30, 2012. As of July 1, 2012, KNOT Management, a 100% owned subsidiary of KNOT, assumed responsibility for the commercial and technical management of the Vessels. The Partnership has been charged by KNOT, KOAS and TSSI for commercial services related to the charters, technical and operational support related to the operation of the Vessels, certain administrative costs and finance fees. Consequently, for the periods prior to April 16, 2013, for the purpose of the consolidated and combined carve-out statements of operations, these costs and fees include allocations as described above and in Note 2(a)—Summary of Significant Accounting Policies—Basis of Preparation. On February 18, 2013, the Partnership terminated the Commercial Management Agreements that existed between KNOT Management and the owners of the Windsor Knutsen Bodil Knutsen Fortaleza Knutsen Recife Knutsen Windsor Knutsen Bodil Knutsen Fortaleza Knutsen Recife Knutsen Dan Cisne Dan Sabia On March 25, 2013, the Partnership entered into an administrative services agreement with KNOT UK, pursuant to which KNOT UK provides administrative services, and KNOT UK is permitted to subcontract certain of the administrative services provided under the administrative services agreement to KOAS UK and KOAS. On May 7, 2015, the Partnership entered into an amendment to the administrative services agreement, which allows KNOT UK to also subcontract administrative services to KNOT Management. The amounts of such costs and expenses included in the consolidated and combined carve-out statements of operations for the years ended December 31, 2015, 2014 and 2013 are as follows: Year Ended December 31, (U.S. Dollars in thousands) 2015 2014 2013 Statements of operations: Time charter and bareboat revenues: Charter revenues from KNOT (1) $ 16,231 $ 8,881 $ — Commercial commission fee from KNOT to Vessels (2) — — (95 ) Cancellation fee from KNOT to Vessels (3) — — (3,448 ) Other income: Guarantee income from KNOT(4) 122 — — Operating expenses: Technical and operational management fee from KNOT Management to Vessels (5) 2,420 1,764 1,073 General and administrative expenses: Administration fee from KNOT Management (6) 1,103 642 428 Administration fee from KOAS (6) 461 425 392 Administration fee from KOAS UK (6) 151 151 112 Administration and management fee from KNOT (7) 170 99 82 Accounting service fee from KNOT (8) 31 25 27 IPO administration cost from KNOT (9) — — 454 Finance income (expense): Financing service fee from KNOT to Vessels (10) — (50 ) — Interest expense charged from KNOT (11) and (12) (268 ) (277 ) (336 ) Interest income charged to TSSI (11) — — 10 Guarantee commission from TSSI to Vessels (13) — — (210 ) Guarantee commission from KNOT to Vessels (13) — — (424 ) Total income (expenses) $ 11,749 $ 5,448 $ (7,071 ) (1) Charter revenue from KNOT Bodil Knutsen Windsor Knutsen Windsor Knutsen Windsor Knutsen Windsor Knutsen (2) Commercial commission fee from KNOT to Vessels (3) Cancellation fee from KNOT to Vessels (4) Guarantee income from KNOT Bodil Knutsen Windsor Knutsen Windsor Knutsen (5) Technical and operational management fee from KNOT to Vessels (6) Administration fee from KNOT Management, KOAS and KOAS UK (7) Administration fee and management fee from KNOT (8) Accounting service fee from KNOT (9) IPO administration cost from KNOT (10) Financing service fee from KNOT to Vessels (11) Interest expense charged from, interest income charged to KNOT/TSSI Recife Knutsen Fortaleza Knutsen Bodil Knutsen Windsor Knutsen (12) Interest expense to KNOT on Sellers’ Credit: Carmen Knutsen , Dan Cisne (13) Guarantee commission from TSSI/KNOT to Vessels (b) Guarantees and Indemnifications Pursuant to the Omnibus Agreement, KNOT agreed to guarantee the payments of the hire rate under the existing charters of each of the Bodil Knutsen Windsor Knutsen In April 2014, the Partnership was notified that BG Group would not exercise its option to extend the Windsor Knutsen Prior to the IPO, the Partnership entered into amended financing agreements with various lenders. The majority of the Partnership’s original external vessels financing agreements have been guaranteed by either KNOT or TSSI for which a guarantee commission was paid. Following the completion of the IPO and the amendments to the vessel financing agreements, the Partnership guaranteed the obligations of the Partnership’s subsidiaries directly under the vessel financing agreements. Therefore, after the IPO, the Partnership did not incur any guarantee commissions to KNOT and TSSI. Under the Omnibus Agreement, KNOT has agreed to indemnify the Partnership until April 15, 2018, against certain environmental and toxic tort liabilities with respect to certain assets that KNOT contributed or sold to the Partnership to the extent arising prior to the time they were contributed or sold. However, claims are subject to a deductible of $0.5 million and an aggregate cap of $5 million. In addition, pursuant to the Omnibus Agreement, KNOT agreed to indemnify the Partnership for any defects in title to certain assets contributed or sold to the Partnership and any failure to obtain, prior to April 15, 2013, certain consents and permits necessary to conduct the Partnership’s business, which liabilities arise within three years after the closing of the IPO on April 15, 2013. (c) Transactions with Management and Directors Trygve Seglem, the chairman of the Partnership’s board of directors and the President and CEO of KNOT, controls Seglem Holding AS, which owns 100% of the equity interest in TSSI, which controls KOAS. TSSI owns 50% of the equity interest in KNOT. NYK, which owns 50% of the equity interest in KNOT, has management and administrative personnel on secondment to KNOT. See the footnotes to Note 18(a)—Related Party Transactions—Related Parties for a discussion of the allocation principles for KNOT’s administrative costs, including management and administrative staff, included in the consolidated and combined carve-out statements of operations. Directors each receive a director fee of $40,000 per year. Members of the audit and conflicts committees each receive a committee fee of $5,000 per year. (d) Amounts Due from and Due to Related Parties Balances with related parties consisted of the following: (U.S. Dollars in thousands) At December 31, At December 31, Balance Sheets: Trading balances due from KOAS $ 10 $ 77 Trading balances due from KNOT and affiliates 48 53 Amount due from related parties $ 58 $ 130 Trading balances due to KOAS $ 448 $ 423 Trading balances due to KNOT and affiliates 400 205 Amount due to related parties $ 848 $ 628 Amounts due from and due to related parties are unsecured and intended to be settled in the ordinary course of business. The majority of these related party transactions relate to vessel management and other fees due to KNOT, KNOT Management, KOAS UK and KOAS . (e) Trade accounts payables Trade accounts payables to related parties are included in total trade accounts payables in the balance sheet. The balances to related parties consisted of the following: (U.S. Dollars in thousands) At December 31, At December 31, Balance Sheets: Trading balances due to KOAS $ 651 $ 792 Trading balances due to KNOT and affiliates 360 241 Trade accounts payables to related parties $ 1,011 $ 1,033 (f) Acquisitions from KNOT On August 1, 2013, the Partnership acquired KNOT’s 100% interest in Knutsen Shuttle Tankers 13 AS, the company that owns and operates the Carmen Knutsen On June 30, 2014, the Partnership acquired KNOT’s 100% interests in Knutsen Shuttle Tankers 14 AS, the company that owns and operates the Hilda Knutsen Torill Knutsen. On December 15, 2014, the Partnership acquired KNOT’s 100% interest in KNOT Shuttle Tankers 20 AS, the company that owns and operates the Dan Cisne Dan Cisne, On June 30, 2015, the Partnership acquired KNOT’s 100% interest in KNOT Shuttle Tankers 21 AS, the company that owns and operates the Dan Sabia. On October 15, 2015, the Partnership acquired KNOT’s 100% interest in Knutsen NYK Shuttle Tankers 16 AS, the company that owns and operates the Ingrid Knutsen. The board of directors of the Partnership (the “Board”) and the conflicts committee of the Board (the “Conflicts Committee”) approved the purchase price for each transaction described above. The Conflicts Committee retained a financial advisor to assist with its evaluation of each of the transactions. See Note—22 Business Acquisitions. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 19) Commitments and Contingencies Assets Pledged As of December 31, 2015 and 2014, Vessels with a book value of $1,193 million and $1,022 million, respectively, were pledged as security held as guarantee for the Partnership’s long-term debt and interest rate swap obligations. See Note 10—Derivative Instruments and Note 16—Long-Term Debt. Claims and Legal Proceedings At the closing of the IPO on April 15, 2013, the probable liability and insurance claims were not transferred to the Partnership. In addition, there were no new insurance incidents during 2013. Therefore, for the year ended December 31, 2013, the probable liability and insurance claims were $nil. Under the Partnership’s time charters, claims to reduce the hire rate payments can be made if the Vessel does not perform to certain specifications in the agreements. No accrual for possible claim was recorded for the year ended December 31, 2015 and 2014, while an immaterial claim was recorded for the year ended December 31, 2013 and which was subject to revision. From time to time, the Partnership is involved in various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the consolidated and combined carve-out financial position, results of operations or cash flows. Insurance The Partnership maintains insurance on all the Vessels to insure against marine and war risks, which include damage to or total loss of the Vessels, subject to deductible amounts that average $0.150 million per Vessel, and loss of hire. Under the loss of hire policies, the insurer will pay a compensation for the lost hire rate agreed in respect of each Vessel for each day, in excess of 14 deductible days, for the time that the Vessel is out of service as a result of damage, for a maximum of 180 days. In addition, the Partnership maintains protection and indemnity insurance, which covers third-party legal liabilities arising in connection with the Vessels’ activities, including, among other things, the injury or death of third-party persons, loss or damage to cargo, claims arising from collisions with other vessels and other damage to other third-party property, including pollution arising from oil or other substances. This insurance is unlimited, except for pollution, which is limited to $1 billion per vessel per incident. The protection and indemnity insurance is maintained through a protection and indemnity association, and as a member of the association, the Partnership may be required to pay amounts above budgeted premiums if the member claims exceed association reserves, subject to certain reinsured amounts. If the Partnership experiences multiple claims each with individual deductibles, losses due to risks that are not insured or claims for insured risks that are not paid, it could have a material adverse effect on the Partnership’s results of operations and financial condition. |
Supplemental Cash Flows Informa
Supplemental Cash Flows Information | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flows Information | 20) Supplemental Cash Flows Information The following supplemental information is provided related to the Consolidated and Combined Carve-Out Statements of Cash Flows for the years ended December 31, 2015, 2014 and 2013: Year Ended December 31, (U.S. Dollars in thousands) 2015 2014 2013 Non-cash investing and financing activities: Payable to owner and affiliates converted to equity $ — $ — $ 27,051 |
Earnings per Unit and Cash Dist
Earnings per Unit and Cash Distributions | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per Unit and Cash Distributions | 21) Earnings per Unit and Cash Distributions The calculations of basic and diluted earnings per unit (1) are presented below: Year Ended December 31, April 15th to (U.S. Dollars in thousands, except unit and per unit amounts) 2015 2014 2013 Post IPO net income attributable to the members of KNOT Offshore Partners LP $ 40,442 $ 27,392 $ 18,603 Less: Distributions (2) 56,921 40,481 20,779 Over distributed earnings (16,479 ) (13,089 ) (2,176 ) Over distributed earnings attributable to: Common unitholders (11,060 ) (7,916 ) (1,066 ) Subordinated unitholders (5,087 ) (4,912 ) (1,066 ) General Partner (332 ) (261 ) (44 ) Weighted average units outstanding (basic and diluted) (in thousands): Common unitholders 16,705 11,209 8,568 Subordinated unitholders 8,568 8,568 8,568 General Partner 516 404 350 Earnings per unit (basic and diluted): Common unitholders $ 1.499 $ 1.369 $ 1.063 Subordinated unitholders(3) $ 1.708 $ 1.343 $ 1.065 General Partner $ 1.487 $ 1.329 $ 1.063 Cash distributions declared and paid in the period per unit(4) $ 2.030 $ 1.795 $ 0.752 Subsequent event: Cash distributions declared and paid per unit relating to the period(5) $ 0.520 $ 0.490 $ 0.435 (1) Earnings per unit have been calculated in accordance with the cash distribution provisions set forth in the Partnership’s First Amended and Restated Agreement of Limited Partnership (the “Partnership Agreement”). (2) This refers to distributions made or to be made in relation to the period irrespective of the declaration and payment dates and based on the numbers of units outstanding at the record date. This includes cash distributions to the IDR holder (KNOT) for the years ended December 31, 2015 and 2014 of $2.1 million and $0.6 million, respectively and for the period April 15, 2013 to December 31, 2013 of $0.02 million. (3) This includes the net income attributable to the IDR holder. The IDRs generally may not be transferred by KNOT until March 31, 2018. The net income attributable to IDRs for the year ended December 31, 2015 and 2014 was $2.1 million and $0.6 million, respectively and for the period April 15 to December 31, 2013 was $0.02 million. (4) Refers to cash distributions declared and paid during the period. (5) Refers to cash distributions declared and paid subsequent to the fourth quarter. Earnings per unit information is given for the period from the date of the closing of the IPO (April 15, 2013). Earnings per unit information has not been presented for any period prior to the IPO as the information is not comparable due to the change in the Partnership’s structure and the basis of preparation of the financial statements as described in Note 2—Summary of Significant Accounting Policies. As of December 31, 2015, the public owned a 66.8% limited partner interest in the Partnership (in the form of 18,536,226 common units) and KNOT directly owned a 30.9% limited partner interest in the Partnership (in the form of 8,567,500 subordinated units). In addition, KNOT, through its ownership of the General Partner, owned a 2.01% general partner interest (in the form of 558,674 general partner units) and a 0.3% limited partner interest (in the form of 90,368 common units). Earnings per unit is determined by dividing net income, after deducting the distribution paid or to be made in relation to the period by the weighted-average number of units outstanding during the applicable period. The General Partner’s, common unitholders’ and subordinated unitholders’ interest in net income are calculated as if all net income was distributed according to the terms of the Partnership Agreement, regardless of whether those earnings would or could be distributed. The Partnership Agreement does not provide for the distribution of net income. Rather, it provides for the distribution of available cash, which is a contractually defined term that generally means all cash on hand at the end of each quarter less the amount of cash reserves established by the Partnership’s board of directors to provide for the proper conduct of the Partnership’s business, including reserves for maintenance and replacement capital expenditures and anticipated capital requirements. In addition, KNOT, as the initial holder of all IDRs, has the right, at the time when there are no subordinated units outstanding and it has received incentive distributions at the highest level to which it is entitled (48.0% for each of the prior four consecutive fiscal quarters), to reset the initial cash target distribution levels at higher levels based on the distribution at the time of the exercise of the reset election. Unlike available cash, net income is affected by non-cash items, such as depreciation and amortization, unrealized gains and losses on derivative instruments and unrealized foreign currency gains and losses. Under the Partnership Agreement, during the subordination period, the common units will have the right to receive distributions of available cash from operating surplus in an amount equal to the minimum quarterly distribution (the “MQD”) of $0.375 per unit per quarter, plus arrearages in the payment of the MQD on the common units from prior quarters, before any distributions of available cash from operating surplus may be made on the subordinated units. Distributions of available cash from operating surplus are to be made in the following manner for any quarter during the subordination period: • first • second • third In addition, KNOT currently holds all of the IDRs in the Partnership. IDRs represent the rights to receive an increasing percentage of quarterly distributions of available cash from operating surplus after the MQD and the target distribution levels have been achieved. If for any quarter during the subordination period: • the Partnership has distributed available cash from operating surplus to the common and subordinated unitholders in an amount equal to the MQD; and • the Partnership has distributed available cash from operating surplus on outstanding common units in an amount necessary to eliminate any cumulative arrearages in payment of the MQD, then, the Partnership will distribute any additional available cash from operating surplus for that quarter among the unitholders, the holders of the IDRs and the General Partner in the following manner: • first • second • third • thereafter Distributions of available cash from operating surplus for any quarter after the subordination period has ended are to be made in the following manner: • first • second • third • fourth • thereafter The percentage interests set forth above assume that the General Partner owns a 2.0% general partner interest and that the Partnership does not issue additional classes of equity securities. |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Acquisitions | 22) Business Acquisitions The Partnership acquired from KNOT equity interests in certain subsidiaries which own and operate the Carmen Knutsen Hilda Knutsen Torill Knutsen Dan Cisne, Dan Sabia Ingrid Knutsen The Board and the Conflicts Committee approved the purchase price for each transaction. The Conflicts Committee retained a financial advisor to assist with its evaluation of the transactions. The fee paid to the financial advisor was divided equally between the Partnership and KNOT. Acquisition related costs of $0.1 million, $0.1 million and $0.1 million as of December 31, 2015, 2014 and 2013, respectively, were expensed as incurred. The allocation of the purchase price to acquired identifiable assets was based on their estimated fair values at the date of acquisition. The purchase price of the acquisition has been allocated to the identifiable assets acquired. The details of each transaction are as follows: (U.S. Dollars in thousands) Final Ingrid October 15, Final Dan Sabia June 15, Final Dan Cisne December 15, Final Hilda Knutsen and Torill Knutsen June 30, 2014 Final Carmen August 1, Purchase price (1) $ 12,863 $ 41,186 $ 18,230 $ 114,293 $ 55,772 Less: Fair value of net assets acquired: Vessel and equipment (2) 115,000 103,389 103,400 335,000 145,000 Cash 4,744 4,343 1,574 8,997 89 Inventories 144 — — 395 234 Other current assets 188 25 — 1,939 108 Amounts due from related parties 1 935 — 4 — Long-term debt (84,275 ) (64,470 ) (82,164 ) (221,812 ) (89,125 ) Long-term debt from related parties (20,253 ) — — — — Other long-term liabilities — — — (4,774 ) — Derivatives liabilities — (802 ) (968 ) (348 ) — Trade accounts payable (94 ) (4 ) (35 ) (390 ) (91 ) Accrued expenses (1,555 ) (335 ) (825 ) (1,360 ) (387 ) Prepaid charter and deferred revenue (762 ) (442 ) — (1,487 ) — Amount due to related parties (275 ) (1,453 ) (2,752 ) (2,338 ) (56 ) Subtotal 12,863 41,186 18,230 113,826 55,772 Difference between the purchase price and fair value of net assets acquired $ — $ — $ — $ 467 $ — Goodwill (3) — — — 467 — Difference between the purchase price and allocated values $ — $ — $ — $ — $ — (1) The purchase price comprises the following: (U.S. Dollars in thousands) Final Ingrid Final Dan Sabia December 15, Final Dan Cisne December 15, Final Hilda Knutsen and Final Carmen August 1, Cash consideration paid to KNOT $ 10,472 $ 38,531 $ 8,836 $ 113,306 $ 45,423 Purchase price adjustments 2,391 2,655 (2,606 ) 987 — Seller’s credit — — 12,000 — 10,349 Purchase price $ 12,863 $ 41,186 $ 18,230 $ 114,293 $ 55,772 (2) Vessel and equipment includes allocation to dry docking for the following vessels (in thousands): Ingrid Knutsen Hilda Knutsen Torill Knutsen Carmen Knutsen Dan Sabia Dan Cisne (3) The goodwill recognized in connection with the acquisitions of the Hilda Knutsen Torill Knutsen Ingrid Knutsen On October 15, 2015, the Partnership’s wholly owned subsidiary, KNOT Shuttle Tankers AS, acquired KNOT’s 100% interest in Knutsen NYK Shuttle Tankers 16 AS, the company that owns and operates the Ingrid Knutsen Revenue and profit contributions Since the Ingrid Knutsen Dan Sabia On June 15, 2015, the Partnership’s wholly owned subsidiary, KNOT Shuttle Tankers AS, acquired KNOT’s 100% interest in KNOT Shuttle Tankers 21 AS, the company that owns and operates the Dan Sabia Revenue and profit contributions Since the Dan Sabia Dan Cisne On December 15, 2014, the Partnership’s wholly owned subsidiary, KNOT Shuttle Tankers AS, acquired KNOT’s 100% interest in KNOT Shuttle Tankers 20 AS, the company that owns and operates the Dan Cisne Revenue and profit contributions Since the Dan Cisne Hilda Knutsen & Torill Knutsen On June 30, 2014, the Partnership’s wholly owned subsidiary, KNOT Shuttle Tankers AS, acquired KNOT’s 100% interest in: (i) Knutsen Shuttle Tankers 14 AS, the company that owns and operates the Hilda Knutsen Torill Knutsen . Hilda Knutsen Torill Knutsen Revenue and profit contributions Since the Hilda Knutsen Torill Knutsen Carmen Knutsen In August 2013, the Partnership’s wholly owned subsidiary, KNOT Shuttle Tankers AS, acquired KNOT’s 100% interest in Knutsen Shuttle Tankers 13 AS, the company that owns and operates the Carmen Knutsen. Revenue and Profit Contributions Since the Carmen Knutsen Pro forma financial information – Ingrid Knutsen and Dan Sabia The table below shows comparative summarized consolidated pro forma financial information for the Partnership for the years ended December 31, 2015, 2014 and 2013, giving effect to the Partnership’s acquisition and financing of the Dan Sabia Ingrid Knutsen Ingrid Knutsen Ingrid Knutsen Ingrid Knutsen (U.S. Dollars in thousands) Unaudited 2015 Unaudited 2014 Unaudited 2013 Revenue $ 173,116 $ 138,702 $ 83,349 Net income 43,810 30,395 18,482 Included in the pro forma adjustments are depreciation related to the purchase price allocation performed on the acquired identifiable assets as if the acquisitions had taken place on January 1, 2013 for the Dan Sabia Ingrid Knutsen Pro forma financial information – Hilda Knutsen, Torill Knutsen and Dan Cisne The table below shows comparative summarized consolidated pro forma financial information for the Partnership for the years ended December 31, 2014 and 2013, giving effect to the Partnership’s acquisition and financing of the Dan Cisne, Hilda Knutsen Torill Knutsen Dan Cisne, Hilda Knutsen Torill Knutsen (U.S. Dollars in thousands) Unaudited 2014 Unaudited 2013 Revenue $ 145,524 $ 106,616 Net income $ 36,621 $ 23,209 Included in the pro forma adjustments are depreciation related to the purchase price allocation performed on the acquired identifiable assets as if the acquisitions had taken place on January 1, 2013. In addition, the pro forma adjustments reflect new capital structure and changes in guarantors as if the acquisitions had taken place from date of delivery of the vessels. Pro forma financial information – Carmen Knutsen The table below shows comparative summarized consolidated pro forma financial information for the Partnership for the year ended December 31, 2013, giving effect to the Partnership’s acquisition and financing of the Carmen Knutsen Carmen Knutsen (U.S. Dollars in thousands) Unaudited 2013 Revenue $ 84,037 Net income $ 16,695 Included in the pro forma adjustments are depreciation related to the purchase price allocation performed on the acquired identifiable assets as if the acquisition had taken place on January 1, 2013. In addition, the pro forma adjustments include finance expenses related to the increased borrowings as if the acquisitions had taken place from date of delivery of the vessel. |
Equity Offerings
Equity Offerings | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Equity Offerings | 23) Equity Offerings (U.S. Dollars in thousands) 2015 2014 Gross proceeds received (1) $ 121,224 $ 152,014 Less: Underwriters’ discount 4,300 4,991 Less: Offering expenses 293 340 Net proceeds received 116,631 146,683 (1) Includes General Partner’s 2% proportional capital contribution On June 2, 2015, the Partnership sold 5,000,000 common units, representing limited partner interests, in an underwritten public offering (the “June 2015 Offering”). In connection with the June 2015 Offering, the General Partner contributed a total of $2.4 million in order to maintain its 2% general partner interest in the Partnership. The Partnership’s total net proceeds from the June 2015 Offering and the related General Partner’s contribution were $116.6 million. The Partnership used the net proceeds from the June 2015 Offering to fund the cash portion of the purchase price of the company that owns and operates the Dan Sabia On June 27, 2014, the Partnership sold 4,600,000 common units, representing limited partner interests, in an underwritten public offering and granted the underwriters a 30-day option to purchase an additional 690,000 common units. In connection with this closing, the General Partner contributed $2.7 million in order to maintain its 2% general partner interest in the Partnership. In connection with the partial exercises by the underwriters of their option to purchase additional common units, on July 14, 2014 and July 24, 2014, the Partnership issued and sold 150,000 common units and 490,000 common units, respectively, and the General Partner made an additional $0.4 million aggregate capital contribution to the Partnership in order to maintain its 2% general partner interest in the Partnership. The Partnership’s total net proceeds from the public offering and the related General Partner’s contribution were $146.7 million as of December 31, 2014. The Partnership used the net proceeds from the offering and related capital contribution by the General Partner to fund the cash portion of the purchase prices of the Hilda Knutsen Torill Knutsen |
Unit Activity
Unit Activity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Unit Activity | 24) Unit Activity The following table shows the movement in the number of common units, subordinated units and general partner units during the years ended December 31, 2015, 2014 and 2013: (in units) Common Units Subordinated General Partner April 2013, Initial Public Offering (IPO) 8,567,500 8,567,500 349,694 December 31, 2013 8,567,500 8,567,500 349,694 June 2014 4,600,000 — 93,877 July 2014 640,000 — 13,062 December 31, 2014 13,807,500 8,567,500 456,633 June 2015 5,000,000 — 102,041 Repurchase program (180,906 ) — — December 31, 2015 18,626,594 8,567,500 558,674 On August 12, 2015, the Partnership’s board of directors authorized a program for the Partnership to repurchase up to 666,667 of its common units. The board of directors of the General Partner concurrently authorized the General Partner to purchase up to 333,333 common units of the Partnership. All purchases will be made pursuant to a single program and will be allocated approximately two-thirds to the Partnership and one-third to the General Partner. The program will conclude by August 31, 2016. There is no obligation to purchase any specific number of common units and the program may be modified, suspended, extended or terminated at any time. Common units repurchased by the Partnership under the program have been cancelled. As of December 31, 2015, the Partnership and the General Partner had purchased 180,906 and 90,368 common units, respectively, at an average purchase price of $12.71 per unit. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 25) Subsequent Events The Partnership has evaluated subsequent events from the balance sheet date through March 18, 2016, the date at which the audited consolidated and combined carve-out financial statements were available to be issued, and determined that there are no other items to disclose, except as follows: On February 15, 2016, the Partnership paid a quarterly cash distribution of $0.52 per unit with respect to the quarter ended December 31, 2015. The aggregate amount of the paid distribution was $15.0 million. |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Preparation | (a) Basis of Preparation The consolidated and combined carve-out financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). All intercompany balances and transactions are eliminated. The consolidated and combined carve-out financial statements include the financial statements of the entities listed in Note 4—Subsidiaries. As of April 16, 2013, the financial statements of the Partnership as a separate legal entity are presented on a consolidated basis. Prior to April 16, 2013, the results of operations, cash flows and balance sheet have been carved out of the consolidated financial statements of KNOT and therefore are presented on a combined carve-out basis. As of February 27, 2013, KNOT Shuttle Tankers AS acquired the 100% ownership in KNOT Shuttle Tankers 12 AS, KNOT Shuttle Tankers 17 AS, KNOT Shuttle Tankers 18 AS, and Knutsen Shuttle Tankers XII AS in a reorganization under common control. As of February 27, 2013, KNOT Shuttle Tankers 12 AS and Knutsen Shuttle Tankers XII AS owned a 90% and 10% ownership interest, respectively, in Knutsen Shuttle Tankers XII KS; and KNOT Shuttle Tankers 17 AS owned a 100% interest in the Bodil Knutsen Windsor Knutsen The Bodil Knutsen Windsor Knutsen Vessels operating expenses includes ship management fees for the provision of technical and commercial management of Vessels and are based on intercompany charges invoiced by KNOT. All long-term debt is specifically related to financing of the individual Vessels. Derivatives are composed of interest rate swap derivatives and foreign exchange forward contracts. The interest rate swaps were entered into in conjunction with the individual Vessel financing to secure fixed interest rates. The interest rate swaps are included in the combined carve-out financial statements to reflect all of the historical cost of doing business even though they will not be transferred to the Partnership. The foreign exchange forward contracts were entered into in conjunction with the construction of certain of the individual Vessels to secure the amounts payable in foreign currencies. The following items, which are not directly attributable to the Vessels, have been allocated to the combined carve-out financial statements as set forth below: • General and administrative expenses of KNOT were invoiced to its subsidiaries based upon certain transfer pricing principles by type of cost. See Note 18—Related Party Transactions. The invoiced amounts that cannot be attributed to the Bodil Knutsen Windsor Knutsen • Cash and cash equivalents for general purposes at the legal entity level have not been allocated. The cash and cash equivalents and restricted cash balances are only included in the combined carve-out balance sheets to the extent they are specifically related to the Bodil Knutsen Windsor Knutsen • Payables to owners and affiliates (“owner balances”) are not tracked on an individual Vessel basis for the Bodil Knutsen Windsor Knutsen • Net gain (loss) of foreign currency transactions cannot be attributed directly to the Bodil Knutsen Windsor Knutsen • Goodwill arose in 2008 when TSSI acquired the remaining 50% interest in the majority of KNOT’s vessels, including the Windsor Knutsen The Partnership’s activities included in the consolidated and combined carve-out financial statements contain Norwegian entities or activities that were organized as non-taxable partnerships or were without tax status. To reflect the historical cost of doing business, the income tax expense and related deferred tax assets and liabilities arising for the Combined Entity activities included in the historical parent entities have been included in the consolidated and combined carve-out financial statements calculated on a separate return basis. The Vessels of the Partnership were not historically owned by a separate legal entity or operated as a discrete group. Therefore, no separate share capital existed in owner’s equity. Further, certain Vessels had cash accounts shared with other vessels of the KNOT Group that were not allocated to the Combined Entity. Accordingly, the historical consolidated and combined carve-out financial statements prior to April 16, 2013 reflect allocations of certain expenses, including that of general and administrative expenses, mark-to-market valuations of interest rate swap derivatives, interest expense on related party payables and net gain (loss) on foreign currency transactions. These allocated costs have been accounted for as equity contribution in the consolidated and combined carve-out balance sheets. Included in the Combined Entity’s equity prior to April 16, 2013 are amounts (net liabilities of $27.8 million) relating to certain assets and liabilities that were carved out as they were readily separable and identifiable within the books of KNOT. However, these amounts have been retained by KNOT and have not been transferred to the Partnership and therefore have been eliminated from the Partnership’s opening equity as of April 16, 2013. Details of the net liabilities eliminated are as follows: (U.S. Dollars in thousands) Balance sheet captions: Other current assets $ 89 Other non-current assets — Other current liabilities (*) (6,321 ) Other long-term liabilities (*) (21,560 ) Net liabilities $ (27,792 ) (*) The majority of the assets and liabilities not transferred to the Partnership are related to interest swap derivatives (Note 10) and insurance proceeds pursuant to the Contribution and Sale Agreement entered into in connection with the closing of the IPO on April 15, 2013. Management believes that the allocations included in these consolidated and combined carve-out financial statements are reasonable to present the financial position, results of operations and cash flows of the Partnership on a stand-alone basis. However, the financial position, results of operations and cash flows of the Combined Entity as presented may differ from those that would have been achieved had the Partnership operated autonomously for all years presented as the Partnership would have had additional general and administrative expenses, including legal, accounting, treasury and regulatory compliance and other costs normally incurred by a stand-alone listed publicly traded entity for the periods prior to the IPO. Accordingly, the consolidated and combined carve-out financial statements do not purport to be indicative of the future financial position, results of operations or cash flows of the Partnership. Business combinations Reorganization of entities under common control is accounted for similar to the pooling of interests method of accounting. Under this method, the carrying amount of net assets recognized in the balance sheets of each combining entity are carried forward to the balance sheet of the combined entity, and no other assets or liabilities are recognized as a result of the combination. The excess of the proceeds paid, if any, over the historical cost of the combining entity is accounted for as an equity distribution. In addition, re-organization of entities under common control is accounted for as if the transfer occurred from the date that both the combining entity and combined entity were both under common control. Therefore, the Partnership’s financial statements prior to the date the interests in the combining entity were actually acquired are retroactively adjusted to include the results of the combined entity during the periods it was under common control of KNOT. As discussed in Note 1—Description of Business, under the Partnership’s Partnership Agreement, the General Partner has irrevocably delegated to the Partnership’s board of directors the power to oversee and direct the operations of, manage and determine the strategies and policies of the Partnership. During the period from the IPO in April 2013 until the time of the Partnership’s first AGM on June 25, 2013, the General Partner retained the sole power to appoint, remove and replace all members of the Partnership’s board of directors. From the date of the Partnership’s first annual meeting of common unitholders, four of the seven board members became electable by the common unitholders and accordingly, from this date, KNOT, as the owner of the General Partner, no longer retains the power to control the Partnership’s board of directors and, hence, the Partnership. As a result, the Partnership is no longer considered to be under common control with KNOT and as a consequence, the Partnership has not accounted for any acquisitions from KNOT after June 25, 2013 as a transfer of equity interests between entities under common control. Business combinations are accounted for under the acquisition method. On acquisition, the identifiable assets, liabilities and contingent liabilities are measured at their fair values at the date of acquisition. Any excess of the cost of acquisition over the fair values of the identifiable net assets acquired is recognized as goodwill. Any deficiency of the cost of acquisition below the fair values of the identifiable net assets acquired (i.e. bargain purchase) is credited to the statement of operations in the period of acquisition. The consideration transferred for an acquisition is measured at fair value of the consideration given. Acquisition related costs are expensed as incurred. The results of operations of the acquired businesses are included in the consolidated results as of the date of the applicable acquisition. |
Reporting Currency | (b) Reporting Currency The consolidated and combined carve-out financial statements are prepared in the reporting currency of U.S. Dollars. The functional currency of the vessel-owning Partnership subsidiaries is the U.S. Dollar, because the subsidiaries operate in the international shipping market, in which all revenues are U.S. Dollar-denominated and the majority of expenditures are made in U.S. Dollars. Transactions involving other currencies during the year are converted into U.S. Dollars using the exchange rates in effect at the time of the transactions. As of the balance sheet dates, monetary assets and liabilities that are denominated in currencies other than the U.S. Dollar are translated to reflect the year-end exchange rates. Resulting gains or losses are reflected separately in the accompanying consolidated and combined carve-out statements of operations. |
Use of Estimates | (c) Use of Estimates The preparation of consolidated and combined carve-out financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives and impairment of Vessels, drydocking, the estimates of future cash flows and use of discount rate and impairment of Goodwill, the valuation of derivatives and income taxes. |
Revenues and Operating Expenses | (d) Revenues and Operating Expenses The Partnership recognizes revenues from time charters and bareboat charters as operating leases on a straight-line basis over the term of the charter, net of any commissions. Under time charters, revenue is not recognized during days the Vessel is off-hire. Revenue is recognized from delivery of the Vessel to the charterer, until the end of the contract period. Under time charters, the Partnership is responsible for providing the crewing and other services related to the Vessel’s operations, the cost of which is included in the daily hire rate, except when off-hire. Fees received from customers for customized equipment are deferred and recognized over the contract period. Under bareboat charters, the Partnership provides a specified Vessel for a fixed period of time at a specified day rate. The Partnership recognizes revenues from spot contracts as voyage revenues using the percentage of completion method on a discharge-to-discharge basis. Voyage expenses are all expenses unique to a particular voyage, including bunker fuel expenses, port fees, cargo loading and unloading expenses, canal tolls and agency fees. Voyage expenses are paid by the customer under time charter and bareboat charters. Voyage expenses are paid by the Partnership for spot contracts and during periods of off-hire and are recognized when incurred. Vessel operating expenses include crewing, repairs and maintenance, insurance, stores, lube oils and communication expenses. Vessel operating expenses are paid by the Partnership for time charters, spot contracts and during off-hire and are recognized when incurred. As further discussed in Note 18—Related Party Transactions, related parties have provided the management services for the Vessels and employ the crews that work on the Vessels. The Partnership has no direct employees and, accordingly, is not liable for any pension or post-retirement benefits. |
Financial Income (Expense) | (e) Financial Income (Expense) Interest expense incurred on the Partnership’s debt incurred during the construction of the Vessels exceeding one year are capitalized during the construction period. Other finance expense includes external bank fees, financing service fees paid to related parties and guarantee commissions paid to external and related parties in connection with the Partnership’s debt and other bank services. |
Cash and Cash Equivalents | (f) Cash and Cash Equivalents The Partnership considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. |
Restricted Cash | (g) Restricted Cash Restricted cash consists of bank deposits, which may only be used to settle principal payments under the Partnership’s Vessel financing agreements. |
Trade Accounts Receivable | (h) Trade Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. Under terms of the current time charters and bareboat charters, the customers are committed to pay for the full month’s charter the first day of each month. See Note 2(r)—Prepaid Charter and Deferred Revenue. The allowance for doubtful accounts is the Partnership’s best estimate of the amount of probable credit losses in existing accounts receivable. The Partnership establishes provisions for doubtful accounts on a case-by-case basis when it is unlikely that required payments of specific amounts will occur. In establishing these provisions, the Partnership considers the financial condition of the customer as well as specific circumstances related to the receivable. Receivable amounts determined to be unrecoverable are written-off. There were no allowances for doubtful accounts or amounts written off against the allowance for doubtful accounts as of December 31, 2015 and 2014. The Partnership does not have any off-balance-sheet credit exposure related to its customers. |
Inventories | (i) Inventories Inventories, which are comprised principally of lubricating oils, are stated at the lower of cost or market. For vessels on time charters or bareboat charters, there are no bunkers, as the charterer supplies the bunkers, which principally consist of fuel oil. Cost is determined using the first-in, first-out method for all inventories. |
Other Current Assets | (j) Other Current Assets Other current assets principally consist of prepaid expenses, the current portion of deferred cost and other receivables. |
Vessels and Equipment | (k) Vessels and Equipment Vessels and equipment are stated at the historical acquisition or construction cost, including capitalized interest, supervision and technical and delivery cost, net of accumulated depreciation and impairment loss, if any. Expenditures for subsequent conversions and major improvements are capitalized, provided that such costs increase the earnings capacity or improve the efficiency or safety of the vessels. Generally, the Partnership drydocks each vessel every 60 months until the vessel is 15 years old and every 30 months thereafter, as required for the renewal of certifications issued by classification societies. For vessels operating on time charters, the Partnership capitalizes the costs directly associated with the classification and regulatory requirements for inspection of the vessels, major repairs and improvements incurred during drydocking. Drydock cost is depreciated on a straight-line basis over the period until the next planned drydocking takes place. The Partnership expenses costs related to routine repairs and maintenance performed during drydocking or as otherwise incurred. For vessels that are newly built or acquired, an element of the cost of the vessel is initially allocated to a drydock component and depreciated on a straight-line basis over the period until the next planned drydocking. When significant drydocking expenditures occur prior to the expiration of this period, the Partnership expenses the remaining balance of the original drydocking cost in the month of the subsequent drydocking. For vessels operating on bareboat charters, the charterparty bears the cost of any drydocking. Depreciation on vessels and equipment is calculated on a straight-line basis over the asset’s estimated useful life, less an estimated residual value, as follows: Useful Life Hull 25 years Anchor-handling, loading and unloading equipment 25 years Main/auxiliary engine 25 years Thruster, dynamic positioning systems, cranes and other equipment 25 years Drydock costs 2.5–5 years A Vessel is depreciated to its estimated residual value, which is calculated based on the weight of the ship and estimated steel price. Any cost related to the disposal is deducted from the residual value. |
Capitalized Interest | (l) Capitalized Interest Interest expense incurred on the Partnership’s debt during the construction of the Vessels exceeding one year is capitalized during the construction period. |
Impairment of Long-Lived Assets | (m) Impairment of Long-Lived Assets Vessels and equipment, vessels under construction and intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Partnership first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. |
Goodwill and Intangibles | (n) Goodwill and Intangibles The Partnership allocates the cost of acquired companies to the identifiable tangible and intangible assets and liabilities acquired, with the remaining amount being classified as goodwill. Goodwill is not amortized but is reviewed for impairment annually or more frequently if impairment indicators are identified. The Partnership tests goodwill for impairment using a two-step analysis, with the option of performing a qualitative assessment before performing the first step of the two-step analysis, whereby the carrying value of the reporting unit is compared to its fair value in the first step. If the carrying value of the reporting unit is greater than its fair value, the second step is performed, where the implied fair value of goodwill is compared to its carrying value. An impairment charge is recognized for the amount by which the carrying amount of goodwill exceeds its fair value. The fair value is estimated using the net present value of discounted cash flows of the reporting unit. The Partnership has only one reporting unit. Other intangible assets represent contractual rights for charters obtained in connection with a step acquisition that had favorable contractual terms relative to market as of the acquisition date. Contractual rights for charters obtained in connection with a step acquisition that had unfavorable contractual terms are classified as contract liabilities in the consolidated and combined carve-out balance sheets. The favorable and unfavorable contract rights are amortized to revenues over the period of the contract. |
Debt Issuance Costs | (o) Debt Issuance Costs Debt issuance costs, including fees, commissions and legal expenses, are deferred. Debt issuance costs of term loans are amortized over the term of the relevant loan. Amortization of debt issuance costs is included in interest expense. |
Derivative Instruments | (p) Derivative Instruments The Partnership uses derivatives to reduce market risks associated with its operations. The Partnership uses interest rate swaps for the management of interest risk exposure. The interest rate swaps effectively convert a portion of the Partnership’s debt from a floating to a fixed rate over the life of the transactions without an exchange of underlying principal. The Partnership seeks to reduce its exposure to fluctuations in foreign exchange rates through the use of foreign currency forward contracts. All derivative instruments are initially recorded at fair value as either assets or liabilities in the accompanying consolidated and combined carve-out balance sheets and subsequently measured to fair value. The Partnership does not apply hedge accounting to its derivative instruments. Changes in the fair value of the derivative instruments are recognized in earnings. Gains and losses from the interest rate swap contracts of the Partnership related to long-term mortgage debt and foreign exchange forward contracts are recorded in realized and unrealized gain (loss) on derivative instruments in the consolidated and combined carve-out statements of operations. Cash flows related to interest rate swap contracts are presented as cash flows provided by operating activities. Cash flows related to foreign exchange forward contracts entered into to economically hedge operating expenses in currencies other than U.S. Dollars are presented as cash flows provided by operating activities in the consolidated and combined carve-out statements of cash flows, while cash flows related to foreign exchange forward contracts entered into to hedge contractual obligations to pay the shipyard in currencies other than functional currency of U.S. Dollars are presented as cash flows used in investing activities in the consolidated and combined carve-out statements of cash flows. |
Income Taxes | (q) Income Taxes Historically, part of the Partnership’s activities were subject to ordinary taxation and taxes were paid on taxable income (including operating income and net financial income and expense), while part of the activities were subject to the Norwegian Tonnage Tax regime (the “tonnage tax regime”). Under the tonnage tax regime, the tax is based on the tonnage of the vessel, and operating income is tax free. The net financial income and expense remains taxable as ordinary income tax for entities subject to the tonnage tax regime. Income taxes arising from the part of activities subject to ordinary taxation are included in income tax expense in the consolidated and combined carve-out statements of operations. For the portion of activities subject to the tonnage tax regime, tonnage taxes are classified as vessel operating expenses while the current and deferred taxes arising on net financial income and expense are reflected as income tax expense in the consolidated and combined carve-out statements of operations. The amounts of tonnage tax included in operating expenses for the years ended December 31, 2015, 2014 and 2013 were $132,000, $126,000 and $100,000, respectively. The Partnership accounts for deferred income taxes using the liability method. Under the liability method, deferred tax assets and liabilities are recognized for the anticipated future tax effects of temporary differences between the financial statement basis and the tax basis of the Partnership’s assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which these temporary differences are expected to be recovered or settled. A valuation allowance for deferred tax assets is recorded when it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized. Recognition of uncertain tax positions is dependent upon whether it is more-likely-than-not that a tax position taken or expected to be taken in a tax return will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. If a tax position meets the more-likely-than-not recognition threshold, it is measured to determine the amount of benefit to recognize in the financial statements based on U.S. GAAP guidance. The Partnership recognizes interest and penalties related to uncertain tax positions in income tax expense. |
Prepaid Charter and Deferred Revenue | (r) Prepaid Charter and Deferred Revenue Under terms of the time charters and bareboat charters, the customer pays for the month’s charter the first day of each month that is recorded as prepaid charter revenues. Deferred revenues for fees received from customers for customized equipment are classified as prepaid charter and deferred revenue for the current portion and as other long-term liabilities for the non-current portion. |
Commitments, Contingencies and Insurance Proceeds | (s) Commitments, Contingencies and Insurance Proceeds Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. See Note 19—Commitments and Contingencies. Insurance claims for property damage for recoveries up to the amount of loss recognized are recorded when the claims submitted to insurance carriers are probable of recovery. Claims for property damage in excess of the loss recognized and for loss off-hire are considered gain contingencies, which are generally recognized when the proceeds are received. |
Fair Value Measurements | (t) Fair Value Measurements The Partnership utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Partnership determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: • Level 1 Inputs: • Level 2 Inputs: • Level 3 Inputs: |
Accounting Pronouncement Not Yet Adopted | (u) Accounting Pronouncement Not Yet Adopted New Accounting Standards not yet adopted In May 2014, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) issued a comprehensive revenue recognition standard that will supersede virtually all of the existing revenue recognition guidance. The standard is intended to increase comparability across industries and jurisdictions. The single, global revenue recognition model applies to most contacts with customers. Leases, insurance contracts, financial instruments, guarantees and certain non-monetary transactions are excluded from the scope of the guidance. Revenue will be recognized in a manner that depicts the transfer of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled, subject to certain limitations. The FASB deferred by one year the effective date of its new revenue recognition standard for public and nonpublic entities reporting under U.S. GAAP. The new revenue recognition standard will be effective for public entities for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Public entities will be permitted to adopt the standard as early as the original public entity effective date (i.e., annual reporting periods beginning after December 15, 2016 and interim periods therein). Early adoption prior to that date is not permitted. The Partnership is assessing what impact, if any, the adoption of the guidance will have on its financial position, results of operations and cash flows. In August 2014, FASB issued Presentation of Financial Statements – Going Concern (Subtopic 205-40), Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern (Accounting Standards Update (ASU) 2014-15). ASU 2014-15 provides guidance in GAAP about management’s responsibility to evaluate whether there are conditions and events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the financial statements are issued (or available to be issued when applicable) and, if so, disclose that fact. Management will be required to make this evaluation for both annual and interim reporting periods, if applicable. Management also is required to evaluate and disclose whether its plans alleviate that doubt. The standard is effective for annual periods after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted. The Partnership is evaluating the effect of adopting this new accounting guidance. The Partnership does not expect the adoption of this standard to have a material impact on the consolidated and combined financial statements. In April 2015, FASB issued Interest – Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability rather than as an asset. This will make the presentation of debt issuance costs consistent with the presentation of debt discounts or premiums. The guidance also addresses the long-standing conflict with the conceptual framework and improves consistency with International Financial Reporting Standards (IFRS).The recognition and measurement guidance for debt issuance costs is not affected. The standard does not address the presentation of costs that does not have an associated liability. The guidance is effective for annual and interim periods beginning after December 15, 2015. Early adoption is permitted. The Partnership has not yet adopted ASU 2015-03. The adoption of the new standard will have an impact on the Partnership’s balance sheets and reduce total assets and total liabilities and will be applied retrospectively. In June 2015, FASB issued Technical Corrections and Improvements (ASU 2015-10) to correct differences between original guidance and the ASC, clarify the guidance, correct references and make minor improvements affecting a variety of topics. While most of the amendments are not expected to have a significant effect on practice, some of them could change practice for some entities. Amendments that the FSAB deemed more substantive are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The other amendments are effective immediately. The Partnership is assessing what impact, if any, this guidance will have on its consolidated and combined financial position, results of operations and cash flows. In August 2015, FASB issued ASU 2015-15 to incorporate into the Accounting Standards Codification (ASC) an SEC staff announcement that the SEC staff will not object to an entity presenting the cost of securing a revolving line of credit as a deferred asset, regardless of whether a balance is outstanding. The announcement came in response to questions that arose after the FASB issued ASU 2015-03 Interest – Imputation of interest (Subtopic 835-30) – Simplifying the Presentation of Debt Issuance Costs. The standard, as issued, did not address revolving lines of credit, which may not have outstanding balances. An entity that repeatedly draws on a revolving credit facility and then repays the balance could present the cost as a deferred asset and reclassify all or a portion of it as a direct deduction from the liability whenever a balance is outstanding. However, the SEC staff’s announcement provides a less cumbersome alternative. Either way, the cost should be amortized over the term of the arrangement. The guidance is effective upon announcement by the SEC staff on June 18, 2015. The Partnership is assessing what impact, if any, the adoption of this guidance will have its financial position and it may have an impact on the balance sheets depending on whether the Partnership withdraws and use it revolving line of credit. In November 2015, FASB issued guidance on Income Taxes (Topic 740), Balance Sheet Classification of Deferred Taxes (ASU 2015-17). Companies are required to classify all deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amount. Also, companies will no longer allocate valuation allowances between current and noncurrent deferred tax assets because those allowances also will be classified as noncurrent. The FASB staff is performing additional research on companion proposal requiring companies to immediately recognize income tax expenses or benefits on intercompany transactions. Since early adoption of the guidance is permitted, companies can start applying it in interim and annual financial statements that have not yet been issued. For public business entities the guidance is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. For all other entities, the guidance is effective for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. Companies can adopt the guidance either prospectively or retrospectively. The Partnership is assessing what impact, if any, this guidance will have on its consolidated and combined financial position. There are no other recent accounting pronouncements issued whose adoption would have a material impact on the Partnership’s combined consolidated and combined carve-out financial statements in the current year or are expected to have a material impact on future years. |
Summary of Significant Accoun35
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Net Liabilities Eliminated | Details of the net liabilities eliminated are as follows: (U.S. Dollars in thousands) Balance sheet captions: Other current assets $ 89 Other non-current assets — Other current liabilities (*) (6,321 ) Other long-term liabilities (*) (21,560 ) Net liabilities $ (27,792 ) (*) The majority of the assets and liabilities not transferred to the Partnership are related to interest swap derivatives (Note 10) and insurance proceeds pursuant to the Contribution and Sale Agreement entered into in connection with the closing of the IPO on April 15, 2013. |
Schedule of Depreciation on Vessels and Equipment | Depreciation on vessels and equipment is calculated on a straight-line basis over the asset’s estimated useful life, less an estimated residual value, as follows: Useful Life Hull 25 years Anchor-handling, loading and unloading equipment 25 years Main/auxiliary engine 25 years Thruster, dynamic positioning systems, cranes and other equipment 25 years Drydock costs 2.5–5 years |
Significant Risks and Uncerta36
Significant Risks and Uncertainties Including Business and Credit Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Schedule of Revenues and Percentage of Combined Revenues for Customers | The following table presents revenues and percentage of combined revenues for customers that accounted for more than 10% of the Partnership’s combined revenues during the years ended December 31, 2015, 2014 and 2013. All of these customers are subsidiaries of major international oil companies, except KNOT, which was chartering the Windsor Knutsen Year Ended December 31, (U.S. Dollars in thousands) 2015 2014 2013 Fronape International Company, a subsidiary of Petrobras Transporte S.A. $ 40,618 26 % $ 25,666 23 % $ 22,860 31 % Eni Trading and Shipping S.p.A. 46,806 30 % 23,512 21 % — — Statoil ASA 23,203 15 % 22,263 20 % 21,563 29 % Repsol Sinopec Brasil, S.A., a subsidiary of Repsol Sinopec Brasil, B.V. 19,789 13 % 20,338 18 % 8,417 12 % Brazil Shipping I Limited, a subsidiary of BG Group Plc 4,466 3 % 12,124 11 % $ 20,311 28 % KNOT $ 16,231 11 % $ 8,880 8 % — — |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Summary of Minimum Contractual Future Revenues | The time charters and bareboat charters of the Vessels with third parties are accounted for as operating leases. The minimum contractual future revenues to be received from time charters and bareboat charters as of December 31, 2015, were as follows: (U.S. Dollars in thousands) 2016 $ 166,669 2017 167,148 2018 124,753 2019 80,004 2020 80,745 2021 and thereafter 209,634 Total $ 828,953 |
Other Finance Expenses (Tables)
Other Finance Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift, Interest [Abstract] | |
Reconciliation of Total Interest Cost to Interest Expense | A reconciliation of total interest cost to interest expense as reported in the consolidated and combined carve-out statements of operations for the years ended December 31, 2015, 2014 and 2013 is as follows: Year Ended December 31, (U.S. Dollars in thousands) 2015 2014 2013 Interest cost capitalized $ — $ — $ — Interest expense 17,451 15,271 10,773 Total interest cost $ 17,451 $ 15,271 $ 10,773 |
Summary of Other Finance Expense | The following table presents the other finance expense for the years ended December 31, 2015, 2014 and 2013: Year Ended December 31, (U.S. Dollars in thousands) 2015 2014 2013 Bank fees, charges and external guarantee costs $ 504 $ 1,221 $ 1,414 Related party guarantee commissions (Note 18) — — 634 Related party financing service fee (Note 18) — 50 — Total other finance expense $ 504 $ 1,271 $ 2,048 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Realized and Unrealized Gains and Losses Recognized in Earnings | The following table presents the realized and unrealized gains and losses that are recognized in earnings as net gain (loss) on derivative instruments for the years ended December 31, 2015, 2014 and 2013: Year Ended December 31 (U.S. Dollars in thousands) 2015 2014 2013 Realized gain (loss) Interest rate swap contracts $ (4,957 ) $ (2,997 ) $ (1,265 ) Foreign exchange forward contracts (4,348 ) 500 — Unrealized gain (loss) Interest rate swap contracts (1,088 ) (919 ) 1,522 Foreign exchange forward contracts 698 (2,991 ) 248 Total $ (9,695 ) $ (6,407 ) $ 505 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts and Estimated Fair Values of Partnership 's Financial Instruments | The following table presents the carrying amounts and estimated fair values of the Partnership’s financial instruments as of December 31, 2015 and 2014. Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. December 31, 2015 December 31, 2014 (U.S. Dollars in thousands) Carrying Fair Value Carrying Fair Value Financial assets: Cash and cash equivalents $ 23,573 $ 23,573 $ 30,746 $ 30,746 Non-current derivative assets: Interest rate swap contracts 695 695 2,966 2,966 Financial liabilities: Current derivative liabilities: Interest rate swap contracts 3,799 3,799 4,708 4,708 Foreign exchange forward contract 1,339 1,339 2,742 2,742 Non-current derivative liabilities: Interest rate swap contracts 527 527 — — Foreign exchange forward contract 705 705 — — Long-term debt, current and non-current 671,690 671,690 613,221 613,221 |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the placement in the fair value hierarchy of assets and liabilities that are measured at fair value on a recurring basis (including items that are required to be measured at fair value or for which fair value is required to be disclosed) as of December 31, 2015 and 2014: Fair Value Measurements at (U.S. Dollars in thousands) December 31, Quoted Price Significant Significant Financial assets: Cash and cash equivalents $ 23,573 $ 23,573 $ — $ — Non-current derivative assets: Interest rate swap contracts 695 — 695 — Financial liabilities: Current derivative liabilities: Interest rate swap contracts 3,799 — 3,799 — Foreign exchange forward contracts 1,339 — 1,339 — Non-current derivative liabilities: Interest rate swap contracts 527 527 Foreign exchange forward contract 705 705 Long-term debt, current and non-current 671,690 — 671,690 — Fair Value Measurements at (U.S. Dollars in thousands) December 31, Quoted Price Significant Significant Financial assets: Cash and cash equivalents $ 30,746 $ 30,746 $ — $ — Restricted cash — — — — Current derivative asset: Foreign exchange forward contracts — — — — Non-current derivative assets: Interest rate swap contracts 2,966 — 2,966 — Financial liabilities: Current derivative liabilities: Interest rate swap contracts 4,708 — 4,708 — Foreign exchange forward contracts 2,742 — 2,742 — Non-current derivative liabilities: Interest rate swap contracts — — — — Foreign exchange forward contracts — — — — Long-term debt, current and non-current 613,221 — 613,221 — |
Trade Accounts Receivables an41
Trade Accounts Receivables and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Schedule of Other Current Assets | Other current assets consist of the following: Year Ended December 31, (U.S. Dollars in thousands) 2015 2014 Insurance claims for recoveries — 189 Refund of value added tax 596 453 Prepaid expenses 707 464 Current portion of deferred debt issuance cost 1,149 1,149 Other receivable 497 1,703 Total other current assets $ 2,949 $ 3,958 |
Vessels and Equipment (Tables)
Vessels and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property Plant and Equipment | (U.S. Dollars in thousands) Vessel & Accumulated Net vessels Balance December 31, 2013 $ 692,926 $ (75,141 ) $ 617,785 Additions 434,232 — 434,232 Drydock costs 4,277 — 4,277 Transfer from vessels under construction — — — Disposals (114 ) — (114 ) Depreciation — (34,322 ) (34,322 ) Balance December 31, 2014 $ 1,131,321 $ (109,464 ) $ 1,021,857 Additions 218,540 — 218,540 Drydock costs 1,625 — 1,625 Transfer from vessels under construction — — — Disposal (267 ) 16 (251 ) Depreciation — (48,844 ) (48,844 ) Balance December 31, 2015 $ 1,351,219 $ (158,292 ) $ 1,192,927 |
Summary of Drydocking Activity | Drydocking activity for the years ended December 31, 2015 and 2014 is summarized as follows: Year Ended (U.S. Dollars in thousands) 2015 2014 Balance at the beginning of the year $ 5,874 $ 3,369 Costs incurred for drydocking 362 69 Costs allocated to drydocking as part of acquisition of business 1,263 4,208 Drydock depreciation (2,232 ) (1,772 ) Balance at the end of the year $ 5,267 $ 5,874 |
Intangible Assets and Contrac43
Intangible Assets and Contract Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Contract Liabilities | The unfavorable contract rights are amortized over the period of the contract to time charter and bareboat revenues as follows: (U.S. Dollars in thousands) Balance as of Amortization Balance as of Amortization Balance as of Contract liabilities: Unfavorable contract rights $ (14,311 ) $ 1,518 $ (12,793 ) $ 1,518 $ (11,275 ) Total amortization income $ 1,518 $ 1,518 |
Amortization of Contract Liabilities Classified Under Time Charter and Bareboat Revenues on Consolidated Combined Carve-Out Income Statement for Next Five Years | The amortization of contract liabilities that is classified under time charter and bareboat revenues for the next five years is expected to be as follows: (U.S. Dollars in thousands) 2016 2017 2018 2019 2020 and Contract liabilities: Unfavorable contract rights $ (1,518 ) $ (1,518 ) $ (1,518 ) $ (1,518 ) $ (5,203 ) |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | The following table presents accrued expenses as of December 31, 2015 and 2014: Year Ended December 31, (U.S. Dollars in thousands) 2015 2014 Operating expenses $ 1,364 $ 1,035 Interest expenses 2,130 1,700 Other expenses 394 — Total accrued expenses $ 3,888 $ 2,735 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt as of December 31, 2015 and 2014, consisted of following: As of December 31, (U.S. Dollars in thousands) Vessel 2015 2014 $220 million loan facility Windsor Knutsen, Bodil Knutsen, Carmen Knutsen $ 196,429 $ 212,142 $20 million revolving credit facility Windsor Knutsen, Bodil Knutsen, Carmen Knutsen — 20,000 $140 million loan facility Fortaleza Knutsen & Recife Knutse n 126,875 135,625 $117 million loan facility Hilda Knutsen 81,797 86,724 $117 million loan facility Torill Knutsen 83,033 87,960 $172.5 million loan facility Dan Cisne & Dan Sabia 109,339 58,770 $77.5 million loan facility Ingrid Knutsen 74,217 — $12.0 million Seller’s Credit — 12,000 Total long-term debt 671,690 613,221 Less current installments 49,684 38,718 Less $12.0 million Seller’s Credit — 12,000 Long-term debt, excluding current installments and seller’s credit $ 622,006 $ 562,503 |
Summary of Partnership's Outstanding Debt Repayable | The Partnership’s outstanding debt of $671.7 million as of December 31, 2015 is repayable as follows: Year Ending December 31, U.S. Dollars in 2016 $ 49,684 2017 50,084 2018 203,422 2019 266,260 2020 17,650 2021- thereafter 84,590 Total $ 671,690 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income from Continuing Operations Before Income Taxes | All of the income from continuing operations before income taxes was taxable to Norway for the years ended December 31, 2015, 2014 and 2013 as follows: Year Ended December 31, (U.S. Dollars in thousands) 2015 2014 2013 Income before income taxes $ 40,383 $ 27,407 $ 17,891 |
Schedule of Components of Current and Deferred Income Tax Expense | The significant components of current and deferred income tax expense attributable to income from continuing operations for the years ended December 31, 2015, 2014 and 2013 are as follows: Year Ended December 31, (U.S. Dollars in thousands) 2015 2014 2013 Current tax benefit (expense) $ (11 ) $ (15 ) $ (686 ) Deferred tax benefit (expense) 70 — (2,141 ) Income tax benefit (expense) $ 59 $ (15 ) $ (2,827 ) |
Summary of Tax Rate Reconciliation | Income taxes attributable to income from continuing operations was an income tax benefit (expense) of $59, $(15) and $(2,827) for the years ended December 31, 2015, 2014 and 2013, respectively, and differed from the amounts computed by applying the Norwegian ordinary income tax rate of 27% in 2015 and 2014 and 28% in 2013 to pretax net income as a result of the following: Year Ended December 31, (U.S. Dollars in thousands, except for tax rate) 2015 2014 2013 Income tax benefit (expense) at Norwegian ordinary tax regime(1) $ — $ — $ (111 ) Income tax benefit (expense) at Norwegian tonnage tax regime 70 — (188 ) Income tax benefit (expense) within UK (11 ) (15 ) — Adjustments for amounts not taxable under tonnage tax regime — — — Adjustments due to permanent differences — — — Translation differences (1) — — 168 Entrance tax into the Norwegian tonnage tax regime — — (2,696 ) Reduction in income tax benefit resulting from a change in valuation allowance — — — Income tax benefit (expense) $ 59 $ (15 ) $ (2,827 ) Effective tax rate 0 % 0 % 16 % (1) These tax elements are related to the carve-out period in 2013, a total tax benefit of $57. |
Components of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2015 and 2014 are presented below. As of December 31, (U.S. Dollars in thousands) 2015 2014 Deferred tax assets: Interest rate swaps $ 6 $ — Financial loss carry forwards for tonnage tax 10,314 9,100 Total deferred tax asset 10,320 9,100 Less valuation allowance (10,320 ) (9,100 ) Net deferred tax asset — — Deferred tax liabilities: Entrance tax 877 1,402 Total deferred tax liabilities 877 1,402 Net deferred tax liabilities $ 877 $ 1,402 The net deferred tax liability is classified in the consolidated and combined carve-out balance sheets as follows: As of December 31, (U.S. Dollars in thousands) 2015 2014 Current deferred tax asset $ — $ — Non-current deferred tax liabilities (877 ) (1,402 ) Net deferred tax liabilities $ (877 ) $ (1,402 ) Changes in the net deferred tax liabilities at December 31, 2015 and 2014 are presented below: Year Ended December 31, (U.S. Dollars in thousands) 2015 2014 Net deferred tax liabilities at January 1 $ 1,402 $ 2,141 Change in temporary differences (307 ) (350 ) Translation differences (218 ) (389 ) Elimination of deferred tax not transferred to the partnership — — Changes in temporary differences after the IPO date — — Net deferred tax liabilities at December 31 $ 877 $ 1,402 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Costs and Expenses | The amounts of such costs and expenses included in the consolidated and combined carve-out statements of operations for the years ended December 31, 2015, 2014 and 2013 are as follows: Year Ended December 31, (U.S. Dollars in thousands) 2015 2014 2013 Statements of operations: Time charter and bareboat revenues: Charter revenues from KNOT (1) $ 16,231 $ 8,881 $ — Commercial commission fee from KNOT to Vessels (2) — — (95 ) Cancellation fee from KNOT to Vessels (3) — — (3,448 ) Other income: Guarantee income from KNOT(4) 122 — — Operating expenses: Technical and operational management fee from KNOT Management to Vessels (5) 2,420 1,764 1,073 General and administrative expenses: Administration fee from KNOT Management (6) 1,103 642 428 Administration fee from KOAS (6) 461 425 392 Administration fee from KOAS UK (6) 151 151 112 Administration and management fee from KNOT (7) 170 99 82 Accounting service fee from KNOT (8) 31 25 27 IPO administration cost from KNOT (9) — — 454 Finance income (expense): Financing service fee from KNOT to Vessels (10) — (50 ) — Interest expense charged from KNOT (11) and (12) (268 ) (277 ) (336 ) Interest income charged to TSSI (11) — — 10 Guarantee commission from TSSI to Vessels (13) — — (210 ) Guarantee commission from KNOT to Vessels (13) — — (424 ) Total income (expenses) $ 11,749 $ 5,448 $ (7,071 ) (1) Charter revenue from KNOT Bodil Knutsen Windsor Knutsen Windsor Knutsen Windsor Knutsen Windsor Knutsen (2) Commercial commission fee from KNOT to Vessels (3) Cancellation fee from KNOT to Vessels (4) Guarantee income from KNOT Bodil Knutsen Windsor Knutsen Windsor Knutsen (5) Technical and operational management fee from KNOT to Vessels (6) Administration fee from KNOT Management, KOAS and KOAS UK (7) Administration fee and management fee from KNOT (8) Accounting service fee from KNOT (9) IPO administration cost from KNOT (10) Financing service fee from KNOT to Vessels (11) Interest expense charged from, interest income charged to KNOT/TSSI Recife Knutsen Fortaleza Knutsen Bodil Knutsen Windsor Knutsen (12) Interest expense to KNOT on Sellers’ Credit: Carmen Knutsen , Dan Cisne (13) Guarantee commission from TSSI/KNOT to Vessels |
Summary of Amounts Due from and Due to Related Parties | Balances with related parties consisted of the following: (U.S. Dollars in thousands) At December 31, At December 31, Balance Sheets: Trading balances due from KOAS $ 10 $ 77 Trading balances due from KNOT and affiliates 48 53 Amount due from related parties $ 58 $ 130 Trading balances due to KOAS $ 448 $ 423 Trading balances due to KNOT and affiliates 400 205 Amount due to related parties $ 848 $ 628 |
Schedule of Trade Accounts Payables to Related Parties | Trade accounts payables to related parties are included in total trade accounts payables in the balance sheet. The balances to related parties consisted of the following: (U.S. Dollars in thousands) At December 31, At December 31, Balance Sheets: Trading balances due to KOAS $ 651 $ 792 Trading balances due to KNOT and affiliates 360 241 Trade accounts payables to related parties $ 1,011 $ 1,033 |
Supplemental Cash Flows Infor48
Supplemental Cash Flows Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Information Related to Consolidated and Combined Carve-Out Statements of Cash Flows | The following supplemental information is provided related to the Consolidated and Combined Carve-Out Statements of Cash Flows for the years ended December 31, 2015, 2014 and 2013: Year Ended December 31, (U.S. Dollars in thousands) 2015 2014 2013 Non-cash investing and financing activities: Payable to owner and affiliates converted to equity $ — $ — $ 27,051 |
Earnings per Unit and Cash Di49
Earnings per Unit and Cash Distributions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Calculations of Basic and Diluted Earnings per Unit | The calculations of basic and diluted earnings per unit (1) are presented below: Year Ended December 31, April 15th to (U.S. Dollars in thousands, except unit and per unit amounts) 2015 2014 2013 Post IPO net income attributable to the members of KNOT Offshore Partners LP $ 40,442 $ 27,392 $ 18,603 Less: Distributions (2) 56,921 40,481 20,779 Over distributed earnings (16,479 ) (13,089 ) (2,176 ) Over distributed earnings attributable to: Common unitholders (11,060 ) (7,916 ) (1,066 ) Subordinated unitholders (5,087 ) (4,912 ) (1,066 ) General Partner (332 ) (261 ) (44 ) Weighted average units outstanding (basic and diluted) (in thousands): Common unitholders 16,705 11,209 8,568 Subordinated unitholders 8,568 8,568 8,568 General Partner 516 404 350 Earnings per unit (basic and diluted): Common unitholders $ 1.499 $ 1.369 $ 1.063 Subordinated unitholders(3) $ 1.708 $ 1.343 $ 1.065 General Partner $ 1.487 $ 1.329 $ 1.063 Cash distributions declared and paid in the period per unit(4) $ 2.030 $ 1.795 $ 0.752 Subsequent event: Cash distributions declared and paid per unit relating to the period(5) $ 0.520 $ 0.490 $ 0.435 (1) Earnings per unit have been calculated in accordance with the cash distribution provisions set forth in the Partnership’s First Amended and Restated Agreement of Limited Partnership (the “Partnership Agreement”). (2) This refers to distributions made or to be made in relation to the period irrespective of the declaration and payment dates and based on the numbers of units outstanding at the record date. This includes cash distributions to the IDR holder (KNOT) for the years ended December 31, 2015 and 2014 of $2.1 million and $0.6 million, respectively and for the period April 15, 2013 to December 31, 2013 of $0.02 million. (3) This includes the net income attributable to the IDR holder. The IDRs generally may not be transferred by KNOT until March 31, 2018. The net income attributable to IDRs for the year ended December 31, 2015 and 2014 was $2.1 million and $0.6 million, respectively and for the period April 15 to December 31, 2013 was $0.02 million. (4) Refers to cash distributions declared and paid during the period. (5) Refers to cash distributions declared and paid subsequent to the fourth quarter. |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Purchase Price of Each Transaction | The Board and the Conflicts Committee approved the purchase price for each transaction. The Conflicts Committee retained a financial advisor to assist with its evaluation of the transactions. The details of each transaction are as follows: (U.S. Dollars in thousands) Final Ingrid October 15, Final Dan Sabia June 15, Final Dan Cisne December 15, Final Hilda Knutsen and Torill Knutsen June 30, 2014 Final Carmen August 1, Purchase price (1) $ 12,863 $ 41,186 $ 18,230 $ 114,293 $ 55,772 Less: Fair value of net assets acquired: Vessel and equipment (2) 115,000 103,389 103,400 335,000 145,000 Cash 4,744 4,343 1,574 8,997 89 Inventories 144 — — 395 234 Other current assets 188 25 — 1,939 108 Amounts due from related parties 1 935 — 4 — Long-term debt (84,275 ) (64,470 ) (82,164 ) (221,812 ) (89,125 ) Long-term debt from related parties (20,253 ) — — — — Other long-term liabilities — — — (4,774 ) — Derivatives liabilities — (802 ) (968 ) (348 ) — Trade accounts payable (94 ) (4 ) (35 ) (390 ) (91 ) Accrued expenses (1,555 ) (335 ) (825 ) (1,360 ) (387 ) Prepaid charter and deferred revenue (762 ) (442 ) — (1,487 ) — Amount due to related parties (275 ) (1,453 ) (2,752 ) (2,338 ) (56 ) Subtotal 12,863 41,186 18,230 113,826 55,772 Difference between the purchase price and fair value of net assets acquired $ — $ — $ — $ 467 $ — Goodwill (3) — — — 467 — Difference between the purchase price and allocated values $ — $ — $ — $ — $ — (1) The purchase price comprises the following: (U.S. Dollars in thousands) Final Ingrid Final Dan Sabia December 15, Final Dan Cisne December 15, Final Hilda Knutsen and Final Carmen August 1, Cash consideration paid to KNOT $ 10,472 $ 38,531 $ 8,836 $ 113,306 $ 45,423 Purchase price adjustments 2,391 2,655 (2,606 ) 987 — Seller’s credit — — 12,000 — 10,349 Purchase price $ 12,863 $ 41,186 $ 18,230 $ 114,293 $ 55,772 (2) Vessel and equipment includes allocation to dry docking for the following vessels (in thousands): Ingrid Knutsen Hilda Knutsen Torill Knutsen Carmen Knutsen Dan Sabia Dan Cisne (3) The goodwill recognized in connection with the acquisitions of the Hilda Knutsen Torill Knutsen |
Schedule of Summarized Consolidated Pro Forma Financial Information | The table below shows comparative summarized consolidated pro forma financial information for the Partnership for the years ended December 31, 2015, 2014 and 2013, giving effect to the Partnership’s acquisition and financing of the Dan Sabia Ingrid Knutsen (U.S. Dollars in thousands) Unaudited 2015 Unaudited 2014 Unaudited 2013 Revenue $ 173,116 $ 138,702 $ 83,349 Net income 43,810 30,395 18,482 |
Hilda Knutsen Torill Knutsen Dan Cisne [Member] | |
Schedule of Summarized Consolidated Pro Forma Financial Information | The table below shows comparative summarized consolidated pro forma financial information for the Partnership for the years ended December 31, 2014 and 2013, giving effect to the Partnership’s acquisition and financing of the Dan Cisne, Hilda Knutsen Torill Knutsen Dan Cisne, Hilda Knutsen Torill Knutsen (U.S. Dollars in thousands) Unaudited 2014 Unaudited 2013 Revenue $ 145,524 $ 106,616 Net income $ 36,621 $ 23,209 |
Carmen Knutsen [Member] | |
Schedule of Summarized Consolidated Pro Forma Financial Information | The Carmen Knutsen (U.S. Dollars in thousands) Unaudited 2013 Revenue $ 84,037 Net income $ 16,695 |
Equity Offerings (Tables)
Equity Offerings (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Schedule of Equity Offerings | (U.S. Dollars in thousands) 2015 2014 Gross proceeds received (1) $ 121,224 $ 152,014 Less: Underwriters’ discount 4,300 4,991 Less: Offering expenses 293 340 Net proceeds received 116,631 146,683 (1) Includes General Partner’s 2% proportional capital contribution |
Unit Activity (Tables)
Unit Activity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Schedule of Movement in Number of Common Units, Subordinated Units and General Partner Units | The following table shows the movement in the number of common units, subordinated units and general partner units during the years ended December 31, 2015, 2014 and 2013: (in units) Common Units Subordinated General Partner April 2013, Initial Public Offering (IPO) 8,567,500 8,567,500 349,694 December 31, 2013 8,567,500 8,567,500 349,694 June 2014 4,600,000 — 93,877 July 2014 640,000 — 13,062 December 31, 2014 13,807,500 8,567,500 456,633 June 2015 5,000,000 — 102,041 Repurchase program (180,906 ) — — December 31, 2015 18,626,594 8,567,500 558,674 |
Description of Business - Addit
Description of Business - Additional Information (Detail) $ in Thousands | Jun. 15, 2015shares | Jun. 02, 2015USD ($)shares | Jul. 24, 2014shares | Jul. 14, 2014shares | Jun. 27, 2014USD ($)shares | Jun. 30, 2015USD ($)shares | Jul. 31, 2014shares | Jun. 30, 2014USD ($)shares | Apr. 30, 2013USD ($)shares | Dec. 31, 2013shares | Dec. 31, 2015USD ($)Tankershares | Dec. 31, 2014USD ($)shares |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Number of shuttle tankers to be acquired | Tanker | 4 | |||||||||||
Initial public offering completion date | Apr. 15, 2013 | |||||||||||
Percentage of ownership interests to be acquired by Partnership in four shuttle tankers | 100.00% | |||||||||||
Ownership description | the Partnership acquired a 100% ownership interest in KNOT Shuttle Tankers AS, a wholly owned subsidiary of KNOT, which as of February 27, 2013 directly or indirectly owned (1) 100% of Knutsen Shuttle Tankers XII KS, the owner of the Recife Knutsen and the Fortaleza Knutsen, (2) 100% of Knutsen Shuttle Tankers XII AS, the general partner of Knutsen Shuttle Tankers XII KS, and (3) the Windsor Knutsen and the Bodil Knutsen and all of their related charters, inventory and long-term debt. In establishing the new KNOT Shuttle Tankers AS structure, KNOT formed three new Norwegian subsidiaries, which acquired 90% of Knutsen Shuttle Tankers XII KS, 100% of the Windsor Knutsen and 100% of the Bodil Knutsen, respectively. | |||||||||||
Percentage of ownership interest | 49.00% | |||||||||||
Percentage of interest held by general partner | 2.00% | 2.00% | 2.00% | 2.00% | ||||||||
Common units sold pursuant to the full exercise of underwriters' options | shares | 490,000 | 150,000 | ||||||||||
Issuance of additional partnership common units | shares | 690,000 | |||||||||||
Option to purchase additional common units | shares | 490,000 | 150,000 | ||||||||||
Capital contributions by general partner | $ | $ 2,400 | $ 2,700 | $ 400 | |||||||||
Debt, current | $ | 39,300 | |||||||||||
Current derivative liabilities | $ | 5,138 | $ 7,450 | ||||||||||
Prepaid charter and deferred revenue | $ | 3,365 | 6,751 | ||||||||||
Current portion of contract liabilities | $ | $ 1,518 | 1,518 | ||||||||||
Minimum [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Time charters expiration year | 2,017 | |||||||||||
Maximum [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Time charters expiration year | 2,029 | |||||||||||
Dan Sabia [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Net proceeds from offering and option exercises | $ | $ 114,200 | |||||||||||
Capital contributions by general partner | $ | $ 2,400 | |||||||||||
IPO [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Common units issued to public | shares | 8,567,500 | |||||||||||
Percentage of incentive distribution rights | 100.00% | |||||||||||
Common units sold pursuant to the full exercise of underwriters' options | shares | 1,117,500 | 1,117,500 | ||||||||||
Gross proceeds from IPO | $ | $ 179,900 | $ 179,900 | ||||||||||
Interest Rate Swap Contracts [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Current derivative liabilities | $ | $ 3,799 | 4,708 | ||||||||||
Interest Rate Swap Contracts [Member] | Minimum [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Derivative maturity date | 2,018 | |||||||||||
Interest Rate Swap Contracts [Member] | Maximum [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Derivative maturity date | 2,024 | |||||||||||
Foreign Exchange Forward Contracts [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Current derivative liabilities | $ | $ 1,339 | $ 2,742 | ||||||||||
Subordinated Units [Member] | IPO [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Common units issued to public | shares | 8,567,500 | |||||||||||
Percentage of ownership interest | 49.00% | |||||||||||
General Partner Unit [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Common units issued to public | shares | 102,041 | 13,062 | 93,877 | |||||||||
Percentage of interest held by general partner | 2.00% | |||||||||||
General Partner Unit [Member] | IPO [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Percentage of interest held by general partner | 2.00% | |||||||||||
Common Units [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Common units issued to public | shares | 5,000,000 | 4,600,000 | 5,000,000 | 640,000 | 4,600,000 | 8,567,500 | 5,000,000 | 5,240,000 | ||||
Common units sold pursuant to the full exercise of underwriters' options | shares | 1,117,500 | 640,000 | ||||||||||
Issuance of additional partnership common units | shares | 690,000 | |||||||||||
Percentage of general partner interest | 2.00% | |||||||||||
Common Units [Member] | Dan Sabia [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Common units issued to public | shares | 5,000,000 | |||||||||||
Common Units [Member] | IPO [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Common units issued to public | shares | 8,567,500 | |||||||||||
Percentage of ownership interest | 49.00% | |||||||||||
KNOT Offshore Partners UK LLC [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Ownership percentage of limited liability company | 100.00% | |||||||||||
Hilda Knutsen and Torill Knutsen [Member] | ||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||
Net proceeds from offering and option exercises | $ | $ 144,000 | |||||||||||
Capital contributions by general partner | $ | $ 3,000 |
Summary of Significant Accoun54
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2015USD ($)Reporting_Unit | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Apr. 16, 2013USD ($) | |
Summary Of Significant Accounting Policy [Line Items] | ||||
Ownership description | the Partnership acquired a 100% ownership interest in KNOT Shuttle Tankers AS, a wholly owned subsidiary of KNOT, which as of February 27, 2013 directly or indirectly owned (1) 100% of Knutsen Shuttle Tankers XII KS, the owner of the Recife Knutsen and the Fortaleza Knutsen, (2) 100% of Knutsen Shuttle Tankers XII AS, the general partner of Knutsen Shuttle Tankers XII KS, and (3) the Windsor Knutsen and the Bodil Knutsen and all of their related charters, inventory and long-term debt. In establishing the new KNOT Shuttle Tankers AS structure, KNOT formed three new Norwegian subsidiaries, which acquired 90% of Knutsen Shuttle Tankers XII KS, 100% of the Windsor Knutsen and 100% of the Bodil Knutsen, respectively. | |||
Net liabilities | $ (703,100,000) | $ (651,383,000) | $ (27,792,000) | |
Allowance for doubtful accounts | $ 0 | 0 | ||
Number of reporting unit | Reporting_Unit | 1 | |||
Tonnage tax included in operating expenses | $ 132,000 | $ 126,000 | $ 100,000 | |
KNOT Shuttle Tankers AS [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Ownership description | As of February 27, 2013, KNOT Shuttle Tankers AS acquired the 100% ownership in KNOT Shuttle Tankers 12 AS, KNOT Shuttle Tankers 17 AS, KNOT Shuttle Tankers 18 AS, and Knutsen Shuttle Tankers XII AS in a reorganization under common control. As of February 27, 2013, KNOT Shuttle Tankers 12 AS and Knutsen Shuttle Tankers XII AS owned a 90% and 10% ownership interest, respectively, in Knutsen Shuttle Tankers XII KS; and KNOT Shuttle Tankers 17 AS owned a 100% interest in the Bodil Knutsen and KNOT Shuttle Tankers 18 AS owned a 100% interest in the Windsor Knutsen. As a reorganization of entities under common control, the transfer of the subsidiaries and other net assets has been recorded at KNOT’s historical book value. |
Summary of Significant Accoun55
Summary of Significant Accounting Policies - Schedule of Net Liabilities Eliminated (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Apr. 16, 2013 |
Offsetting Liabilities [Line Items] | |||
Other current assets | $ 2,949 | $ 3,958 | |
Other long-term liabilities | (2,543) | (4,172) | |
Net liabilities | $ (703,100) | $ (651,383) | $ (27,792) |
Eliminations [Member] | |||
Offsetting Liabilities [Line Items] | |||
Other current assets | 89 | ||
Other non-current assets | 0 | ||
Other current liabilities | (6,321) | ||
Other long-term liabilities | (21,560) | ||
Net liabilities | $ (27,792) |
Summary of Significant Accoun56
Summary of Significant Accounting Policies - Schedule of Net Liabilities Eliminated (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Initial public offering completion date | Apr. 15, 2013 |
Summary of Significant Accoun57
Summary of Significant Accounting Policies - Schedule of Depreciation on Vessels and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Hull [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset's estimated useful life | 25 years |
Anchor-Handling, Loading and Unloading Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset's estimated useful life | 25 years |
Main/Auxiliary Engine [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset's estimated useful life | 25 years |
Thruster, Dynamic Positioning Systems, Cranes and Other Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset's estimated useful life | 25 years |
Minimum [Member] | Drydock Costs [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset's estimated useful life | 2 years 6 months |
Maximum [Member] | Drydock Costs [Member] | |
Property, Plant and Equipment [Line Items] | |
Asset's estimated useful life | 5 years |
Formation Transactions and In58
Formation Transactions and Initial Public Offering - Additional Information (Detail) - USD ($) | Jun. 02, 2015 | Jul. 24, 2014 | Jul. 14, 2014 | Jun. 27, 2014 | Jun. 30, 2015 | Jul. 31, 2014 | Jun. 30, 2014 | Apr. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Securities Financing Transaction [Line Items] | ||||||||||||||||
Percentage of contribution to subsidiary | 100.00% | |||||||||||||||
Increase in cash the partnership distributed in excess per unit | $ 0.43125 | |||||||||||||||
Percentage of partnership interest held by General Partner | 2.00% | 2.00% | 2.00% | 2.00% | ||||||||||||
Percentage of ownership interest | 49.00% | |||||||||||||||
Common units sold pursuant to the full exercise of the underwriters | 490,000 | 150,000 | ||||||||||||||
Net proceeds upon IPO | $ 116,924,000 | [1] | $ 147,023,000 | [1] | $ 168,313,000 | [2] | ||||||||||
Cash distribution | [2] | $ 21,954,000 | ||||||||||||||
Revolving credit facility, outstanding | 20,000,000 | |||||||||||||||
IPO [Member] | ||||||||||||||||
Securities Financing Transaction [Line Items] | ||||||||||||||||
Common units sold and issued | 8,567,500 | |||||||||||||||
Common unit, per share amount | $ 21 | |||||||||||||||
Gross proceeds upon IPO | $ 179,900,000 | $ 179,900,000 | ||||||||||||||
Common units sold pursuant to the full exercise of the underwriters | 1,117,500 | 1,117,500 | ||||||||||||||
Net proceeds upon IPO | $ 160,700,000 | |||||||||||||||
Repayment of outstanding debt | 118,900,000 | |||||||||||||||
One-time entrance tax | $ 3,000,000 | |||||||||||||||
General Partner Unit [Member] | ||||||||||||||||
Securities Financing Transaction [Line Items] | ||||||||||||||||
Number of general partner units issued to the General Partner | 349,694 | |||||||||||||||
Percentage of partnership interest held by General Partner | 2.00% | |||||||||||||||
Common units sold and issued | 102,041 | 13,062 | 93,877 | |||||||||||||
General Partner Unit [Member] | IPO [Member] | ||||||||||||||||
Securities Financing Transaction [Line Items] | ||||||||||||||||
Percentage of partnership interest held by General Partner | 2.00% | |||||||||||||||
KNOT Offshore Partners UK LLC [Member] | ||||||||||||||||
Securities Financing Transaction [Line Items] | ||||||||||||||||
Percentage of contribution to subsidiary | 100.00% | |||||||||||||||
KNOT [Member] | ||||||||||||||||
Securities Financing Transaction [Line Items] | ||||||||||||||||
Number of subordinated units issued | 8,567,500 | |||||||||||||||
Cash distribution | $ 20,000 | $ 2,100,000 | $ 600,000 | |||||||||||||
KNOT [Member] | IPO [Member] | ||||||||||||||||
Securities Financing Transaction [Line Items] | ||||||||||||||||
Cash distribution | $ 21,950,000 | |||||||||||||||
Partnership [Member] | ||||||||||||||||
Securities Financing Transaction [Line Items] | ||||||||||||||||
Percentage of limited partner interest | 49.00% | |||||||||||||||
Incentive Distribution Rights [Member] | ||||||||||||||||
Securities Financing Transaction [Line Items] | ||||||||||||||||
Percentage of limited partner interest | 100.00% | |||||||||||||||
[1] | 2015 and 2014 refers to the Consolidated Statements of Cash Flows | |||||||||||||||
[2] | 2013 refers to the Consolidated and Combined Carve-Out Statement of Cash Flows |
Significant Risks and Uncerta59
Significant Risks and Uncertainties Including Business and Credit Concentrations - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Minimum [Member] | ||
Revenue, Major Customer [Line Items] | ||
Benchmark percentage of revenues and combined revenues concentration | 10.00% | 10.00% |
Significant Risks and Uncerta60
Significant Risks and Uncertainties Including Business and Credit Concentrations - Schedule of Revenues and Percentage of Combined Revenues for Customers (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Revenue, Major Customer [Line Items] | ||||||
Revenues | $ 155,024 | [1] | $ 112,841 | [1] | $ 73,401 | [2] |
KNOT [Member] | ||||||
Revenue, Major Customer [Line Items] | ||||||
Revenues | 16,231 | 8,880 | ||||
Fronape International Company, a Subsidiary of Petrobras Transporte S.A. [Member] | ||||||
Revenue, Major Customer [Line Items] | ||||||
Revenues | 40,618 | 25,666 | 22,860 | |||
Eni Trading and Shipping S.p.A. [Member] | ||||||
Revenue, Major Customer [Line Items] | ||||||
Revenues | 46,806 | 23,512 | ||||
Statoil ASA [Member] | ||||||
Revenue, Major Customer [Line Items] | ||||||
Revenues | 23,203 | 22,263 | 21,563 | |||
Repsol Sinopec Brasil, S.A., a Subsidiary of Repsol Sinopec Brasil, B.V. [Member] | ||||||
Revenue, Major Customer [Line Items] | ||||||
Revenues | 19,789 | 20,338 | 8,417 | |||
Brazil Shipping I Limited, a Subsidiary of BG Group Plc [Member] | ||||||
Revenue, Major Customer [Line Items] | ||||||
Revenues | $ 4,466 | $ 12,124 | $ 20,311 | |||
Customer Concentration Risk [Member] | Revenues [Member] | KNOT [Member] | ||||||
Revenue, Major Customer [Line Items] | ||||||
Percentage of combined revenues for customers | 11.00% | 8.00% | ||||
Customer Concentration Risk [Member] | Revenues [Member] | Fronape International Company, a Subsidiary of Petrobras Transporte S.A. [Member] | ||||||
Revenue, Major Customer [Line Items] | ||||||
Percentage of combined revenues for customers | 26.00% | 23.00% | 31.00% | |||
Customer Concentration Risk [Member] | Revenues [Member] | Eni Trading and Shipping S.p.A. [Member] | ||||||
Revenue, Major Customer [Line Items] | ||||||
Percentage of combined revenues for customers | 30.00% | 21.00% | ||||
Customer Concentration Risk [Member] | Revenues [Member] | Statoil ASA [Member] | ||||||
Revenue, Major Customer [Line Items] | ||||||
Percentage of combined revenues for customers | 15.00% | 20.00% | 29.00% | |||
Customer Concentration Risk [Member] | Revenues [Member] | Repsol Sinopec Brasil, S.A., a Subsidiary of Repsol Sinopec Brasil, B.V. [Member] | ||||||
Revenue, Major Customer [Line Items] | ||||||
Percentage of combined revenues for customers | 13.00% | 18.00% | 12.00% | |||
Customer Concentration Risk [Member] | Revenues [Member] | Brazil Shipping I Limited, a Subsidiary of BG Group Plc [Member] | ||||||
Revenue, Major Customer [Line Items] | ||||||
Percentage of combined revenues for customers | 3.00% | 11.00% | 28.00% | |||
[1] | 2015 and 2014 refers to the Consolidated Statements of Operations | |||||
[2] | 2013 refers to the Consolidated and Combined Carve-Out Statement of Operations |
Operating Leases - Summary of M
Operating Leases - Summary of Minimum Contractual Future Revenues (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2,016 | $ 166,669 |
2,017 | 167,148 |
2,018 | 124,753 |
2,019 | 80,004 |
2,020 | 80,745 |
2021 and thereafter | 209,634 |
Total | $ 828,953 |
Operating Leases - Additional I
Operating Leases - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Fortaleza Knutsen [Member] | |
Operating Leased Assets [Line Items] | |
Lease expiration period | Mar. 23, 2023 |
Recife Knutsen [Member] | |
Operating Leased Assets [Line Items] | |
Lease expiration period | Aug. 23, 2023 |
Bodil Knutsen [Member] | |
Operating Leased Assets [Line Items] | |
Lease expiration period | May 31, 2017 |
Option to extend lease expiration date | 2019-05 |
Windsor Knutsen [Member] | |
Operating Leased Assets [Line Items] | |
Vessel operation time charter period | 2 years |
Option to extend lease expiration year | 2,023 |
Carmen Knutsen [Member] | |
Operating Leased Assets [Line Items] | |
Lease expiration period | Jan. 15, 2023 |
Option to extend lease expiration date | 2026-01 |
Hilda Knutsen [Member] | |
Operating Leased Assets [Line Items] | |
Lease expiration period | Aug. 31, 2018 |
Option to extend lease expiration date | 2023-08 |
Torill Knutsen [Member] | |
Operating Leased Assets [Line Items] | |
Lease expiration period | Nov. 30, 2018 |
Option to extend lease expiration date | 2023-11 |
Dan Cisne [Member] | |
Operating Leased Assets [Line Items] | |
Lease expiration period | Sep. 30, 2023 |
Ingrid Knutsen [Member] | |
Operating Leased Assets [Line Items] | |
Lease expiration period | Feb. 29, 2024 |
Option to extend lease expiration date | 2029-02 |
Dan Sabia [Member] | |
Operating Leased Assets [Line Items] | |
Lease expiration period | Jan. 31, 2024 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2015TimesBoatsSegment | Dec. 31, 2014TimesBoats | Dec. 31, 2013TimesBoats | |
Revenue, Major Customer [Line Items] | |||
Number of time charters | Times | 6 | 5 | 3 |
Number of bareboat charters | Boats | 4 | 3 | 2 |
Number of reportable segments | Segment | 1 | ||
Minimum [Member] | |||
Revenue, Major Customer [Line Items] | |||
Benchmark percentage of revenues and combined revenues concentration | 10.00% | 10.00% |
Goodwill Impairment Charge - Ad
Goodwill Impairment Charge - Additional Information (Detail) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Impairment of vessels | $ 0 | |||
Goodwill impairment charge | [1],[2] | $ 6,217,000 | ||
Goodwill | $ 0 | $ 0 | $ 6,217,000 | |
[1] | 2015 and 2014 refers to the Consolidated Statements of Cash Flows | |||
[2] | 2015 and 2014 refers to the Consolidated Statements of Operations |
Other Finance Expense - Reconci
Other Finance Expense - Reconciliation of Total Interest Cost to Interest Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Income Statement [Abstract] | ||||||
Interest cost capitalized | $ 0 | $ 0 | $ 0 | |||
Interest expense | 17,451 | [1] | 15,271 | [1] | 10,773 | [2] |
Total interest cost | $ 17,451 | $ 15,271 | $ 10,773 | |||
[1] | 2015 and 2014 refers to the Consolidated Statements of Operations | |||||
[2] | 2013 refers to the Consolidated and Combined Carve-Out Statement of Operations |
Other Finance Expense - Summary
Other Finance Expense - Summary of Other Finance Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Income Statement [Abstract] | ||||||
Bank fees, charges and external guarantee costs | $ 504 | $ 1,221 | $ 1,414 | |||
Related party guarantee commissions (Note 18) | 634 | |||||
Related party financing service fee (Note 18) | 50 | |||||
Total other finance expense | $ 504 | [1] | $ 1,271 | [1] | $ 2,048 | [2] |
[1] | 2015 and 2014 refers to the Consolidated Statements of Operations | |||||
[2] | 2013 refers to the Consolidated and Combined Carve-Out Statement of Operations |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) NOK in Millions, $ in Millions | Dec. 31, 2015USD ($) | Dec. 31, 2015NOK | Dec. 31, 2014USD ($) | Dec. 31, 2014NOK |
Interest Rate Swap Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Notional amount of outstanding obligations | $ 410 | $ 382.3 | ||
Carrying amount of derivative liabilities | 3.6 | 1.7 | ||
Foreign Exchange Forward Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Notional amount of outstanding obligations | NOK | NOK 289.8 | NOK 127.9 | ||
Carrying amount of derivative liabilities | $ 2.1 | $ 2.7 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Realized and Unrealized Gains and Losses Recognized in Earnings (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Realized gain (loss) | $ (9,695) | [1] | $ (6,407) | [1] | $ 505 | [2] |
Unrealized gain (loss) | (390) | [3] | (3,910) | [3] | 1,770 | [4] |
Interest Rate Swap Contracts [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Realized gain (loss) | (4,957) | (2,997) | (1,265) | |||
Unrealized gain (loss) | (1,088) | (919) | 1,522 | |||
Foreign Exchange Forward Contracts [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Realized gain (loss) | (4,348) | 500 | ||||
Unrealized gain (loss) | $ 698 | $ (2,991) | $ 248 | |||
[1] | 2015 and 2014 refers to the Consolidated Statements of Operations | |||||
[2] | 2013 refers to the Consolidated and Combined Carve-Out Statement of Operations | |||||
[3] | 2015 and 2014 refers to the Consolidated Statements of Cash Flows | |||||
[4] | 2013 refers to the Consolidated and Combined Carve-Out Statement of Cash Flows |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amounts and Estimated Fair Values of Partnership 's Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | [1],[2] | Dec. 31, 2012 | [2] | ||
Financial assets: | ||||||||
Cash and cash equivalents | $ 23,573 | [1] | $ 30,746 | [1] | $ 28,836 | $ 1,287 | ||
Non-current derivative assets | 695 | 2,966 | ||||||
Financial liabilities: | ||||||||
Current derivative liabilities | 5,138 | 7,450 | ||||||
Non-current derivative liabilities | 1,232 | |||||||
Long-term debt, current and non-current | 671,690 | 613,221 | ||||||
Interest Rate Swap Contracts [Member] | ||||||||
Financial assets: | ||||||||
Non-current derivative assets | 695 | 2,966 | ||||||
Financial liabilities: | ||||||||
Current derivative liabilities | 3,799 | 4,708 | ||||||
Non-current derivative liabilities | 527 | |||||||
Foreign Exchange Forward Contracts [Member] | ||||||||
Financial liabilities: | ||||||||
Current derivative liabilities | 1,339 | 2,742 | ||||||
Non-current derivative liabilities | 705 | |||||||
Carrying Amount [Member] | ||||||||
Financial assets: | ||||||||
Cash and cash equivalents | 23,573 | 30,746 | ||||||
Financial liabilities: | ||||||||
Long-term debt, current and non-current | 671,690 | 613,221 | ||||||
Carrying Amount [Member] | Interest Rate Swap Contracts [Member] | ||||||||
Financial assets: | ||||||||
Non-current derivative assets | 695 | 2,966 | ||||||
Financial liabilities: | ||||||||
Current derivative liabilities | 3,799 | 4,708 | ||||||
Non-current derivative liabilities | 527 | |||||||
Carrying Amount [Member] | Foreign Exchange Forward Contracts [Member] | ||||||||
Financial liabilities: | ||||||||
Current derivative liabilities | 1,339 | 2,742 | ||||||
Non-current derivative liabilities | 705 | |||||||
Fair Value [Member] | ||||||||
Financial assets: | ||||||||
Cash and cash equivalents | 23,573 | 30,746 | ||||||
Financial liabilities: | ||||||||
Long-term debt, current and non-current | 671,690 | 613,221 | ||||||
Fair Value [Member] | Interest Rate Swap Contracts [Member] | ||||||||
Financial assets: | ||||||||
Non-current derivative assets | 695 | 2,966 | ||||||
Financial liabilities: | ||||||||
Current derivative liabilities | 3,799 | 4,708 | ||||||
Non-current derivative liabilities | 527 | |||||||
Fair Value [Member] | Foreign Exchange Forward Contracts [Member] | ||||||||
Financial liabilities: | ||||||||
Current derivative liabilities | 1,339 | $ 2,742 | ||||||
Non-current derivative liabilities | $ 705 | |||||||
[1] | 2015 and 2014 refers to the Consolidated Statements of Cash Flows | |||||||
[2] | 2013 refers to the Consolidated and Combined Carve-Out Statement of Cash Flows |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - Interest Rate Swap Contracts [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted average remaining terms | 4 years 2 months 12 days | 4 years 6 months |
Minimum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional amount | $ 13,861 | |
Fixed interest rate | 1.25% | 1.25% |
Maximum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional amount | $ 50,000 | |
Fixed interest rate | 2.42% | 2.42% |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financial assets: | ||
Cash and cash equivalents | $ 23,573 | $ 30,746 |
Restricted cash | 0 | |
Non-current derivative assets | 695 | 2,966 |
Financial liabilities: | ||
Current derivative liabilities | 5,138 | 7,450 |
Non-current derivative liabilities | 1,232 | |
Long-term debt, current and non-current | 671,690 | 613,221 |
Foreign Exchange Forward Contracts [Member] | ||
Financial assets: | ||
Current derivative asset | 0 | |
Financial liabilities: | ||
Current derivative liabilities | 1,339 | 2,742 |
Non-current derivative liabilities | 705 | |
Interest Rate Swap Contracts [Member] | ||
Financial assets: | ||
Non-current derivative assets | 695 | 2,966 |
Financial liabilities: | ||
Current derivative liabilities | 3,799 | 4,708 |
Non-current derivative liabilities | 527 | |
Quoted Price in Active Markets for Identical Assets (Level 1) [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 23,573 | 30,746 |
Restricted cash | 0 | |
Quoted Price in Active Markets for Identical Assets (Level 1) [Member] | Foreign Exchange Forward Contracts [Member] | ||
Financial assets: | ||
Current derivative asset | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Financial assets: | ||
Restricted cash | 0 | |
Financial liabilities: | ||
Long-term debt, current and non-current | 671,690 | 613,221 |
Significant Other Observable Inputs (Level 2) [Member] | Foreign Exchange Forward Contracts [Member] | ||
Financial assets: | ||
Current derivative asset | 0 | |
Financial liabilities: | ||
Current derivative liabilities | 1,339 | 2,742 |
Non-current derivative liabilities | 705 | |
Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Swap Contracts [Member] | ||
Financial assets: | ||
Non-current derivative assets | 695 | 2,966 |
Financial liabilities: | ||
Current derivative liabilities | 3,799 | 4,708 |
Non-current derivative liabilities | $ 527 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Financial assets: | ||
Restricted cash | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Foreign Exchange Forward Contracts [Member] | ||
Financial assets: | ||
Current derivative asset | $ 0 |
Trade Accounts Receivables an72
Trade Accounts Receivables and Other Current Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Receivables [Abstract] | ||
Provision for doubtful accounts | $ 0 | $ 0 |
Trade Accounts Receivables an73
Trade Accounts Receivables and Other Current Assets - Schedule of Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Insurance claims for recoveries | $ 189 | |
Refund of value added tax | $ 596 | 453 |
Prepaid expenses | 707 | 464 |
Current portion of deferred debt issuance cost | 1,149 | 1,149 |
Other receivable | 497 | 1,703 |
Total other current assets | $ 2,949 | $ 3,958 |
Vessels and Equipment - Schedul
Vessels and Equipment - Schedule of Property Plant and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Property, Plant and Equipment [Line Items] | ||||||
Accumulated depreciation, beginning balance | $ (109,464) | $ (75,141) | ||||
Accumulated depreciation, disposals for the period | 16 | |||||
Depreciation | (48,844) | [1],[2] | (34,322) | [1],[2] | $ (23,768) | [3],[4] |
Accumulated depreciation, ending balance | (158,292) | (109,464) | (75,141) | |||
Net vessels, beginning balance | 1,021,857 | 617,785 | ||||
Additions | 218,540 | 434,232 | ||||
Drydock costs | 1,625 | 4,277 | ||||
Transfer from vessels under construction | 0 | 0 | ||||
Disposal | (251) | (114) | ||||
Depreciation | (48,844) | [1],[2] | (34,322) | [1],[2] | (23,768) | [3],[4] |
Net vessels, ending balance | 1,192,927 | 1,021,857 | 617,785 | |||
Vessel & Equipment [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Vessel and equipment, beginning balance | 1,131,321 | 692,926 | ||||
Additions | 218,540 | 434,232 | ||||
Drydock costs | 1,625 | 4,277 | ||||
Transfer from vessels under construction | 0 | 0 | ||||
Disposal | (267) | (114) | ||||
Vessel and equipment, ending balance | $ 1,351,219 | $ 1,131,321 | $ 692,926 | |||
[1] | 2015 and 2014 refers to the Consolidated Statements of Cash Flows | |||||
[2] | 2015 and 2014 refers to the Consolidated Statements of Operations | |||||
[3] | 2013 refers to the Consolidated and Combined Carve-Out Statement of Cash Flows | |||||
[4] | 2013 refers to the Consolidated and Combined Carve-Out Statement of Operations |
Vessels and Equipment - Additio
Vessels and Equipment - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Book value of assets pledged | $ 1,193 | $ 1,022 |
Vessels and Equipment - Summary
Vessels and Equipment - Summary of Drydocking Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | ||
Balance at the beginning of the year | $ 5,874 | $ 3,369 |
Costs incurred for drydocking | 362 | 69 |
Costs allocated to drydocking as part of acquisition of business | 1,263 | 4,208 |
Drydock depreciation | (2,232) | (1,772) |
Balance at the end of the year | $ 5,267 | $ 5,874 |
Intangible Assets and Contrac77
Intangible Assets and Contract Liabilities - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2010 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Finite-lived intangible assets | $ 533 | ||
Accumulated amortization for contract liabilities | $ 6,940 | $ 5,422 |
Intangible Assets and Contrac78
Intangible Assets and Contract Liabilities - Schedule of Intangible Assets and Contract Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Unfavorable contract rights, Beginning Balance | $ (12,793) | $ (14,311) |
Amortization | 1,518 | 1,518 |
Unfavorable contract rights, Ending Balance | $ (11,275) | $ (12,793) |
Intangible Assets and Contrac79
Intangible Assets and Contract Liabilities - Amortization of Contract Liabilities Classified Under Time Charter and Bareboat Revenues on Consolidated Combined Carve-Out Income Statement for Next Five Years (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Below Market Lease, Net, Amortization Income, Fiscal Year Maturity [Abstract] | |
2,016 | $ (1,518) |
2,017 | (1,518) |
2,018 | (1,518) |
2,019 | (1,518) |
2020 and thereafter | $ (5,203) |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule Of Accrued Expenses [Abstract] | ||
Operating expenses | $ 1,364 | $ 1,035 |
Interest expenses | 2,130 | 1,700 |
Other expenses | 394 | |
Total accrued expenses | $ 3,888 | $ 2,735 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2014USD ($)CreditFacility | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Nov. 30, 2013USD ($) | |
Debt Instrument [Line Items] | ||||
Senior secured credit facilities partnership | CreditFacility | 2 | |||
Number of term loans | CreditFacility | 2 | |||
Deferred financing fees and expenses written off | $ 1,800,000 | |||
Total long-term debt | $ 671,700,000 | |||
Total long-term debt | $ 671,690,000 | $ 613,221,000 | ||
Fortaleza Knutsen and Recife Knutsen [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility replaced by new credit facility | $ 160,000,000 | |||
Partnership's Loan Agreements [Member] | ||||
Debt Instrument [Line Items] | ||||
Long term debt interest rate description | London Interbank Offered Rate ("LIBOR") plus a fixed margin ranging from 2.125% to 2.5% | |||
Partnership's Loan Agreements [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Long term debt fixed margin percentage | 2.125% | |||
Partnership's Loan Agreements [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Long term debt fixed margin percentage | 2.50% | |||
77.5 Million Loan Facility, Tranche Two [Member] | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 55,100,000 | |||
Long term debt interest rate percentage | 3.85% | |||
120 Million Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Repayment of existing credit facility | 120,000,000 | |||
85 Million Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Repayment of existing credit facility | 85,000,000 | |||
93 Million Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Repayment of existing credit facility | 93,000,000 | |||
140 Million Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior secured credit facility | $ 140,000,000 | |||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility established | $ 20,000,000 | |||
Senior secured credit facility | 20,000,000 | |||
Term Loan A [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior secured credit facility | 220,000,000 | |||
Term Loan B [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior secured credit facility | $ 140,000,000 | |||
Guarantee Commission [Member] | 77.5 Million Loan Facility, Tranche Two [Member] | ||||
Debt Instrument [Line Items] | ||||
Long term debt interest rate percentage | 1.35% | |||
Bank Facility Rate [Member] | 77.5 Million Loan Facility, Tranche Two [Member] | ||||
Debt Instrument [Line Items] | ||||
Long term debt interest rate percentage | 2.50% |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Total | $ 671,690 | $ 613,221 |
Less current installments | 49,684 | 38,718 |
Less long-term debt from related parties | 12,000 | |
Long-term debt, excluding current installments and seller's credit | 622,006 | 562,503 |
220 Million Secured Loan Facility [Member] | Windsor Knutsen Bodil Knutsen Carmen Knutsen [Member] | ||
Debt Instrument [Line Items] | ||
Total | 196,429 | 212,142 |
20 Million Revolving Credit Facility [Member] | Windsor Knutsen Bodil Knutsen Carmen Knutsen [Member] | ||
Debt Instrument [Line Items] | ||
Total | 20,000 | |
140 Million Loan Facility [Member] | Fortaleza Knutsen and Recife Knutsen [Member] | ||
Debt Instrument [Line Items] | ||
Total | 126,875 | 135,625 |
117 Million Loan Facility [Member] | Hilda Knutsen [Member] | ||
Debt Instrument [Line Items] | ||
Total | 81,797 | 86,724 |
117 Million Loan Facility [Member] | Torill Knutsen [Member] | ||
Debt Instrument [Line Items] | ||
Total | 83,033 | 87,960 |
172.5 Million Loan Facility [Member] | Dan Cisne Dan Sabia [Member] | ||
Debt Instrument [Line Items] | ||
Total | 109,339 | 58,770 |
77.5 Million Loan Facility [Member] | Ingrid Knutsen [Member] | ||
Debt Instrument [Line Items] | ||
Total | $ 74,217 | |
12.0 Million Seller's Credit [Member] | ||
Debt Instrument [Line Items] | ||
Total | 12,000 | |
Less long-term debt from related parties | $ 12,000 |
Long-Term Debt - Schedule of 83
Long-Term Debt - Schedule of Long-Term Debt (Parenthetical) (Detail) | Dec. 31, 2015USD ($) |
220 Million Secured Loan Facility [Member] | Windsor Knutsen Bodil Knutsen Carmen Knutsen [Member] | |
Debt Instrument [Line Items] | |
Debt instrument face amount | $ 220,000,000 |
20 Million Revolving Credit Facility [Member] | Windsor Knutsen Bodil Knutsen Carmen Knutsen [Member] | |
Debt Instrument [Line Items] | |
Debt instrument face amount | 20,000,000 |
140 Million Loan Facility [Member] | Fortaleza Knutsen and Recife Knutsen [Member] | |
Debt Instrument [Line Items] | |
Debt instrument face amount | 140,000,000 |
117 Million Loan Facility [Member] | Hilda Knutsen [Member] | |
Debt Instrument [Line Items] | |
Debt instrument face amount | 117,000,000 |
117 Million Loan Facility [Member] | Torill Knutsen [Member] | |
Debt Instrument [Line Items] | |
Debt instrument face amount | 117,000,000 |
172.5 Million Loan Facility [Member] | Dan Cisne Dan Sabia [Member] | |
Debt Instrument [Line Items] | |
Debt instrument face amount | 172,500,000 |
77.5 Million Loan Facility [Member] | Ingrid Knutsen [Member] | |
Debt Instrument [Line Items] | |
Debt instrument face amount | 77,500,000 |
12.0 Million Seller's Credit [Member] | |
Debt Instrument [Line Items] | |
Debt instrument face amount | $ 12,000,000 |
Long-Term Debt - Summary of Par
Long-Term Debt - Summary of Partnership's Outstanding Debt Repayable (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instruments [Abstract] | ||
2,016 | $ 49,684 | |
2,017 | 50,084 | |
2,018 | 203,422 | |
2,019 | 266,260 | |
2,020 | 17,650 | |
2021- thereafter | 84,590 | |
Total | $ 671,690 | $ 613,221 |
Long-Term Debt - Additional I85
Long-Term Debt - Additional Information - $240 Million Secured Loan Facility (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Line of credit facility expiration date | Dec. 31, 2018 | ||
Minimum liquidity of Partnership | $ 17,000,000 | ||
Minimum EBITDA to interest ratio | 250.00% | ||
Vessel Acquired [Member] | |||
Debt Instrument [Line Items] | |||
Increase in minimum liquidity of partnership | $ 1,000,000 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Senior secured credit facility | $ 20,000,000 | ||
240 Million Secured Loan Facility [Member] | |||
Debt Instrument [Line Items] | |||
Minimum liquidity of Partnership | $ 17,000,000 | ||
Minimum book equity ratio for Partnership | 30.00% | ||
Minimum EBITDA to interest ratio | 250.00% | ||
240 Million Secured Loan Facility [Member] | Vessel Acquired [Member] | |||
Debt Instrument [Line Items] | |||
Increase in minimum liquidity of partnership | $ 1,000,000 | ||
240 Million Secured Loan Facility [Member] | Vessel Owned [Member] | |||
Debt Instrument [Line Items] | |||
Increase in minimum liquidity of partnership | $ 1,500,000 | ||
240 Million Secured Loan Facility [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Senior secured credit facility | 20,000,000 | ||
Long term debt interest rate description | LIBOR plus a fixed margin of 2.125% | ||
Long term debt interest rate percentage | 2.125% | ||
Line of credit facility commitment fee percentage | 40.00% | ||
Line of credit facility expiration date | Jun. 30, 2019 | ||
240 Million Secured Loan Facility [Member] | First Two Years [Member] | Windsor Knutsen Bodil Knutsen Carmen Knutsen [Member] | |||
Debt Instrument [Line Items] | |||
Market value percentage of secured loan facility outstanding balance | 110.00% | ||
240 Million Secured Loan Facility [Member] | Third and Fourth Years [Member] | Windsor Knutsen Bodil Knutsen Carmen Knutsen [Member] | |||
Debt Instrument [Line Items] | |||
Market value percentage of secured loan facility outstanding balance | 120.00% | ||
240 Million Secured Loan Facility [Member] | Thereafter [Member] | Windsor Knutsen Bodil Knutsen Carmen Knutsen [Member] | |||
Debt Instrument [Line Items] | |||
Market value percentage of secured loan facility outstanding balance | 125.00% | ||
240 Million Secured Loan Facility [Member] | Senior Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Senior secured credit facility | 240,000,000 | ||
240 Million Secured Loan Facility [Member] | Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Senior secured credit facility | 220,000,000 | ||
Long term debt interest rate description | LIBOR plus a margin of 2.125% | ||
Long term debt interest rate percentage | 2.125% | ||
Line of credit facility expiration date | Jun. 30, 2019 | ||
Line of credit facility expiration period | 5 years | ||
10.5 Million Seller's Credit [Member] | |||
Debt Instrument [Line Items] | |||
Repayment of existing credit facility | $ 10,500,000 |
Long-Term Debt - Additional I86
Long-Term Debt - Additional Information - $117 Million Hilda Loan Facility (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |
Jul. 31, 2011 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Total long-term debt | $ 671,690,000 | $ 613,221,000 | |
Line of credit facility expiration date | Dec. 31, 2018 | ||
Minimum liquidity of Partnership | 17,000,000 | ||
Minimum EBITDA to interest ratio | 250.00% | ||
Vessel Acquired [Member] | |||
Debt Instrument [Line Items] | |||
Increase in minimum liquidity of partnership | $ 1,000,000 | ||
117 Million Loan Facility [Member] | Hilda Facility [Member] | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 117,000,000 | ||
Line of credit facility expiration period | 5 years | ||
Line of credit facility expiration date | Jul. 31, 2018 | ||
Minimum liquidity of Partnership | $ 17,000,000 | ||
Minimum book equity ratio for Partnership | 30.00% | ||
Minimum EBITDA to interest ratio | 250.00% | ||
117 Million Loan Facility [Member] | Hilda Facility [Member] | Vessel Acquired [Member] | |||
Debt Instrument [Line Items] | |||
Increase in minimum liquidity of partnership | $ 1,000,000 | ||
117 Million Loan Facility [Member] | Hilda Facility [Member] | Vessel Owned [Member] | |||
Debt Instrument [Line Items] | |||
Increase in minimum liquidity of partnership | $ 1,500,000 | ||
117 Million Loan Facility [Member] | Hilda Facility [Member] | First Two Years [Member] | |||
Debt Instrument [Line Items] | |||
Market value percentage of secured loan facility outstanding balance | 110.00% | ||
117 Million Loan Facility [Member] | Hilda Facility [Member] | Third and Fourth Years [Member] | |||
Debt Instrument [Line Items] | |||
Market value percentage of secured loan facility outstanding balance | 120.00% | ||
117 Million Loan Facility [Member] | Hilda Facility [Member] | Thereafter [Member] | |||
Debt Instrument [Line Items] | |||
Market value percentage of secured loan facility outstanding balance | 125.00% | ||
117 Million Loan Facility [Member] | Hilda Facility [Member] | Libor Plus [Member] | |||
Debt Instrument [Line Items] | |||
Percentage of fixed interest margin rate | 2.50% |
Long-Term Debt - Additional I87
Long-Term Debt - Additional Information - $117 Million Torill Loan Facility (Detail) - USD ($) | Nov. 30, 2011 | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | |||
Total long-term debt | $ 671,690,000 | $ 613,221,000 | |
Maturity date of secured loan facility | Dec. 31, 2018 | ||
Minimum liquidity of Partnership | 17,000,000 | ||
Minimum EBITDA to interest ratio | 250.00% | ||
Vessel Acquired [Member] | |||
Debt Instrument [Line Items] | |||
Increase in minimum liquidity of partnership | $ 1,000,000 | ||
117 Million Loan Facility [Member] | Torill Facility [Member] | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 117,000,000 | ||
Line of credit facility expiration period | 5 years | ||
Maturity date of secured loan facility | Oct. 31, 2018 | ||
Percentage of fixed interest margin rate | 2.50% | ||
Minimum liquidity of Partnership | $ 17,000,000 | ||
Minimum book equity ratio for Partnership | 30.00% | ||
Minimum EBITDA to interest ratio | 250.00% | ||
117 Million Loan Facility [Member] | Torill Facility [Member] | Vessel Acquired [Member] | |||
Debt Instrument [Line Items] | |||
Increase in minimum liquidity of partnership | $ 1,000,000 | ||
117 Million Loan Facility [Member] | Torill Facility [Member] | Vessel Owned [Member] | |||
Debt Instrument [Line Items] | |||
Increase in minimum liquidity of partnership | $ 1,500,000 | ||
117 Million Loan Facility [Member] | Torill Facility [Member] | First Two Years [Member] | |||
Debt Instrument [Line Items] | |||
Market value percentage of secured loan facility outstanding balance | 110.00% | ||
117 Million Loan Facility [Member] | Torill Facility [Member] | Third and Fourth Years [Member] | |||
Debt Instrument [Line Items] | |||
Market value percentage of secured loan facility outstanding balance | 120.00% | ||
117 Million Loan Facility [Member] | Torill Facility [Member] | Thereafter [Member] | |||
Debt Instrument [Line Items] | |||
Market value percentage of secured loan facility outstanding balance | 125.00% |
Long-Term Debt - Additional I88
Long-Term Debt - Additional Information - $140 Million Secured Loan Facility (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Nov. 30, 2014 | Nov. 30, 2013 | |
Debt Instrument [Line Items] | ||||||
Maturity date of secured loan facility | Dec. 31, 2018 | |||||
Minimum liquidity of Partnership | $ 17,000,000 | |||||
Minimum EBITDA to interest ratio | 250.00% | |||||
Vessel Acquired [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Increase in minimum liquidity of partnership | $ 1,000,000 | |||||
Libor Plus [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long term debt interest rate description | LIBOR, plus a margin of 2.25% | |||||
140 Million Loan Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior secured credit facility | $ 140,000,000 | |||||
140 Million Loan Facility [Member] | New Fortaleza and Recife Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility expiration period | 5 years | |||||
Maturity date of secured loan facility | Jun. 30, 2019 | |||||
Minimum liquidity of Partnership | $ 17,000,000 | |||||
Minimum book equity ratio for Partnership | 30.00% | |||||
Minimum EBITDA to interest ratio | 250.00% | |||||
140 Million Loan Facility [Member] | New Fortaleza and Recife Facility [Member] | Vessel Acquired [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Increase in minimum liquidity of partnership | $ 1,000,000 | |||||
140 Million Loan Facility [Member] | New Fortaleza and Recife Facility [Member] | Vessel Owned [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Increase in minimum liquidity of partnership | $ 1,500,000 | |||||
140 Million Loan Facility [Member] | New Fortaleza and Recife Facility [Member] | First Two Years [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Market value percentage of secured loan facility outstanding balance | 110.00% | |||||
140 Million Loan Facility [Member] | New Fortaleza and Recife Facility [Member] | Third and Fourth Years [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Market value percentage of secured loan facility outstanding balance | 120.00% | |||||
140 Million Loan Facility [Member] | New Fortaleza and Recife Facility [Member] | Thereafter [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Market value percentage of secured loan facility outstanding balance | 125.00% | |||||
140 Million Loan Facility [Member] | New Fortaleza and Recife Facility [Member] | Libor Plus [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long term debt interest rate percentage | 2.125% | 2.125% | ||||
Long term debt interest rate description | LIBOR plus a margin of 2.125% | |||||
140 Million Loan Facility [Member] | Senior Term Loan [Member] | New Fortaleza and Recife Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior secured credit facility | $ 140,000,000 | $ 140,000,000 | ||||
Credit facility replaced by new credit facility | $ 160,000,000 |
Long-Term Debt - Additional I89
Long-Term Debt - Additional Information - $172.5 Million Secured Loan Facility (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Maturity date of secured loan facility | Dec. 31, 2018 | ||
Minimum liquidity of Partnership | $ 17,000,000 | ||
Vessel Acquired [Member] | |||
Debt Instrument [Line Items] | |||
Increase in minimum liquidity of partnership | $ 1,000,000 | ||
77.5 Million Loan Facility [Member] | Dan Cisne [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date of secured loan facility | Sep. 30, 2023 | ||
Minimum liquidity of Partnership | $ 17,000,000 | ||
Minimum book equity ratio for Partnership | 30.00% | ||
77.5 Million Loan Facility [Member] | Dan Cisne [Member] | Vessel Acquired [Member] | |||
Debt Instrument [Line Items] | |||
Increase in minimum liquidity of partnership | $ 1,000,000 | ||
77.5 Million Loan Facility [Member] | Dan Cisne [Member] | Vessel Owned [Member] | |||
Debt Instrument [Line Items] | |||
Increase in minimum liquidity of partnership | $ 1,500,000 | ||
77.5 Million Loan Facility [Member] | Dan Cisne [Member] | First Three Years [Member] | |||
Debt Instrument [Line Items] | |||
Market value percentage of secured loan facility outstanding balance | 100.00% | ||
77.5 Million Loan Facility [Member] | Dan Cisne [Member] | Thereafter [Member] | |||
Debt Instrument [Line Items] | |||
Market value percentage of secured loan facility outstanding balance | 125.00% | ||
77.5 Million Loan Facility [Member] | Dan Cisne [Member] | Libor Plus [Member] | |||
Debt Instrument [Line Items] | |||
Percentage of fixed interest margin rate | 2.40% | ||
77.5 Million Loan Facility [Member] | Dan Sabia [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date of secured loan facility | Jan. 31, 2024 | ||
77.5 Million Loan Facility [Member] | Dan Sabia [Member] | Libor Plus [Member] | |||
Debt Instrument [Line Items] | |||
Percentage of fixed interest margin rate | 2.40% | ||
77.5 Million Loan Facility [Member] | Senior Term Loan [Member] | Dan Cisne [Member] | |||
Debt Instrument [Line Items] | |||
Senior secured credit facility | $ 172,500,000 |
Long-Term Debt - Additional I90
Long-Term Debt - Additional Information - $77.5 Million Secured Loan Facility (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2012 | |
Debt Instrument [Line Items] | |||
Total long-term debt | $ 671,690,000 | $ 613,221,000 | |
Maturity date of secured loan facility | Dec. 31, 2018 | ||
Minimum liquidity of Partnership | 17,000,000 | ||
Minimum EBITDA to interest ratio | 250.00% | ||
Libor Plus [Member] | |||
Debt Instrument [Line Items] | |||
Long term debt interest rate description | LIBOR, plus a margin of 2.25% | ||
Vessel Acquired [Member] | |||
Debt Instrument [Line Items] | |||
Increase in minimum liquidity of partnership | 1,000,000 | ||
Vessel Owned [Member] | Less Than 12 Months Remaining Tenor [Member] | |||
Debt Instrument [Line Items] | |||
Increase in minimum liquidity of partnership | $ 1,500,000 | ||
Ingrid Knutsen [Member] | |||
Debt Instrument [Line Items] | |||
Market value percentage of secured loan facility outstanding balance | 125.00% | ||
77.5 Million Loan Facility [Member] | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 90,000,000 | ||
Long term debt interest rate percentage | 3.85% | ||
77.5 Million Loan Facility [Member] | Libor Plus [Member] | |||
Debt Instrument [Line Items] | |||
Long term debt interest rate percentage | 2.25% | ||
77.5 Million Loan Facility [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 55,100,000 | ||
77.5 Million Loan Facility [Member] | Commercial Loan [Member] | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 22,400,000 | ||
93 Million Secured Loan Facility [Member] | |||
Debt Instrument [Line Items] | |||
Minimum book equity ratio for Partnership | 30.00% |
Long-Term Debt - Additional I91
Long-Term Debt - Additional Information - $12 Million Seller's Credit (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 671,690 | $ 613,221 |
Maturity date of secured loan facility | Dec. 31, 2018 | |
12.0 Million Seller's Credit [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 12,000 | |
Maturity date of secured loan facility | Dec. 31, 2019 | |
12.0 Million Seller's Credit [Member] | After Amendment [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt interest rate percentage | 4.50% |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income from Continuing Operations Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Income Tax Disclosure [Abstract] | ||||||
Income before income taxes | $ 40,383 | [1] | $ 27,407 | [1] | $ 17,891 | [2] |
[1] | 2015 and 2014 refers to the Consolidated Statements of Operations | |||||
[2] | 2013 refers to the Consolidated and Combined Carve-Out Statement of Operations |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Current and Deferred Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Income Tax Disclosure [Abstract] | ||||||
Current tax benefit (expense) | $ (11) | $ (15) | $ (686) | |||
Deferred tax benefit (expense) | 70 | (2,141) | ||||
Income tax benefit (expense) | $ 59 | [1],[2] | $ (15) | [1],[2] | $ (2,827) | [3],[4] |
[1] | 2015 and 2014 refers to the Consolidated Statements of Cash Flows | |||||
[2] | 2015 and 2014 refers to the Consolidated Statements of Operations | |||||
[3] | 2013 refers to the Consolidated and Combined Carve-Out Statement of Cash Flows | |||||
[4] | 2013 refers to the Consolidated and Combined Carve-Out Statement of Operations |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Jan. 01, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | |||
Income Taxes [Line Items] | ||||||||||
Income tax benefit (expense) (Notes 2(q) and 17) | $ 59,000 | [1],[2] | $ (15,000) | [1],[2] | $ (2,827,000) | [3],[4] | ||||
Norwegian corporate tax rate | 27.00% | 27.00% | 27.00% | 28.00% | 28.00% | |||||
Valuation allowances | $ 10,320,000 | $ 9,100,000 | ||||||||
Deferred tax assets | 0 | 0 | ||||||||
Entrance tax | 877,000 | 1,402,000 | $ 3,000,000 | |||||||
Entrance tax, annual decline in gain | 20.00% | |||||||||
Entrance tax payable | $ 1,100,000 | 1,800,000 | $ 2,700,000 | |||||||
Income tax rate, deferred tax liabilities | 27.00% | |||||||||
Entrance tax payable, current | 600,000 | |||||||||
Estimated ordinary tonnage taxes payable current | 100,000 | |||||||||
Estimated income tax payable | $ 200,000 | 400,000 | $ 700,000 | |||||||
Entrance tax paid, current | 300,000 | 600,000 | ||||||||
Entrance tax payable, non current | 900,000 | |||||||||
Unrecognized tax benefits | 0 | 0 | ||||||||
Interest or penalties on tax return | $ 0 | 0 | ||||||||
Period for income tax returns | 10 years | |||||||||
UK [Member] | ||||||||||
Income Taxes [Line Items] | ||||||||||
Norwegian corporate tax rate | 20.00% | |||||||||
Income tax expense | $ 11,000 | $ 15,000 | ||||||||
Subsequent Event [Member] | ||||||||||
Income Taxes [Line Items] | ||||||||||
Norwegian corporate tax rate | 25.00% | |||||||||
Income tax rate, deferred tax liabilities | 25.00% | |||||||||
Scenario, Forecast [Member] | ||||||||||
Income Taxes [Line Items] | ||||||||||
Entrance tax paid, current | $ 200,000 | |||||||||
[1] | 2015 and 2014 refers to the Consolidated Statements of Cash Flows | |||||||||
[2] | 2015 and 2014 refers to the Consolidated Statements of Operations | |||||||||
[3] | 2013 refers to the Consolidated and Combined Carve-Out Statement of Cash Flows | |||||||||
[4] | 2013 refers to the Consolidated and Combined Carve-Out Statement of Operations |
Income Taxes - Summary of Tax R
Income Taxes - Summary of Tax Rate Reconciliation (Detail) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Income Tax Rate Reconciliation [Line Items] | ||||||
Adjustments due to permanent differences | $ 0 | $ 0 | $ 0 | |||
Translation differences | (218,000) | (389,000) | 168,000 | |||
Reduction in income tax benefit resulting from a change in valuation allowance | 0 | 0 | 0 | |||
Income tax benefit (expense) | $ 59,000 | [1],[2] | $ (15,000) | [1],[2] | $ (2,827,000) | [3],[4] |
Effective tax rate | 0.00% | 0.00% | 16.00% | |||
Norwegian Ordinary Tax Regime [Member] | ||||||
Income Tax Rate Reconciliation [Line Items] | ||||||
Income tax benefit (expense) | $ (111,000) | |||||
Norwegian Tonnage Tax Regime [Member] | ||||||
Income Tax Rate Reconciliation [Line Items] | ||||||
Income tax benefit (expense) | $ 70,000 | (188,000) | ||||
Adjustments for amounts not taxable under tonnage tax regime | 0 | $ 0 | 0 | |||
Entrance tax into the Norwegian tonnage tax regime | $ (2,696,000) | |||||
UK [Member] | ||||||
Income Tax Rate Reconciliation [Line Items] | ||||||
Income tax benefit (expense) | $ (11,000) | $ (15,000) | ||||
[1] | 2015 and 2014 refers to the Consolidated Statements of Cash Flows | |||||
[2] | 2015 and 2014 refers to the Consolidated Statements of Operations | |||||
[3] | 2013 refers to the Consolidated and Combined Carve-Out Statement of Cash Flows | |||||
[4] | 2013 refers to the Consolidated and Combined Carve-Out Statement of Operations |
Income Taxes - Summary of Tax96
Income Taxes - Summary of Tax Rate Reconciliation (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | [1],[2] | Dec. 31, 2013 | [3],[4] | ||
Income Tax Rate Reconciliation [Line Items] | ||||||
Total tax benefit | $ 59 | [1],[2] | $ (15) | $ (2,827) | ||
Carve-Out [Member] | ||||||
Income Tax Rate Reconciliation [Line Items] | ||||||
Total tax benefit | $ 57 | |||||
[1] | 2015 and 2014 refers to the Consolidated Statements of Cash Flows | |||||
[2] | 2015 and 2014 refers to the Consolidated Statements of Operations | |||||
[3] | 2013 refers to the Consolidated and Combined Carve-Out Statement of Cash Flows | |||||
[4] | 2013 refers to the Consolidated and Combined Carve-Out Statement of Operations |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 |
Deferred tax assets: | ||||
Total deferred tax asset | $ 10,320 | $ 9,100 | ||
Less valuation allowance | (10,320) | (9,100) | ||
Net deferred tax asset | 0 | 0 | ||
Deferred tax liabilities: | ||||
Entrance tax | 877 | 1,402 | $ 3,000 | |
Total deferred tax liabilities | 877 | 1,402 | ||
Net deferred tax liabilities | 877 | 1,402 | $ 2,141 | |
Norwegian Ordinary Tax Regime [Member] | ||||
Deferred tax assets: | ||||
Tax loss carry forwards | 10,314 | $ 9,100 | ||
Interest Rate Swap Contracts [Member] | ||||
Deferred tax assets: | ||||
Interest rate swaps | $ 6 |
Income Taxes - Classification o
Income Taxes - Classification of Net Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | |||
Current deferred tax asset | $ 0 | $ 0 | |
Non-current deferred tax liabilities | (877) | (1,402) | |
Net deferred tax liabilities | $ (877) | $ (1,402) | $ (2,141) |
Income Taxes - Changes in Net D
Income Taxes - Changes in Net Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Net deferred tax liabilities at January 1 | $ 1,402 | $ 2,141 | |
Change in temporary differences | (307) | (350) | |
Translation differences | (218) | (389) | $ 168 |
Elimination of deferred tax not transferred to the partnership | 0 | 0 | |
Changes in temporary differences after the IPO date | 0 | 0 | |
Net deferred tax liabilities at December 31 | $ 877 | $ 1,402 | $ 2,141 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | Oct. 15, 2015 | Jun. 30, 2015 | Dec. 15, 2014 | Jun. 30, 2014 | Aug. 01, 2013 | Dec. 31, 2015 | Jul. 01, 2012 |
Related Party Transaction [Line Items] | |||||||
Ownership percentage by parent | 100.00% | ||||||
Limited partnership (LP), ownership structure | KNOT is owned 50% by TSSI and 50% by Nippon Yusen Kaisha ("NYK"). TSSI also controls 99% of KOAS, which subcontracts services from Knutsen OAS Management AS, which served as the vessel management companies for KNOT and its subsidiaries until June 30, 2012. As of July 1, 2012, KNOT Management, a 100% owned subsidiary of KNOT, assumed responsibility for the commercial and technical management of the Vessels. | ||||||
Commercial Management Agreement termination, date | Feb. 18, 2013 | ||||||
Partnership agreement, description | On March 25, 2013, the Partnership entered into an administrative services agreement with KNOT UK, pursuant to which KNOT UK provides administrative services, and KNOT UK is permitted to subcontract certain of the administrative services provided under the administrative services agreement to KOAS UK and KOAS. | ||||||
Guarantor obligations, related party disclosure | Pursuant to the Omnibus Agreement, KNOT agreed to guarantee the payments of the hire rate under the existing charters of each of the Bodil Knutsen and the Windsor Knutsen for a period of five years from the closing date of the IPO. The Partnership will not incur any guarantee commissions in the future relating to such guarantees. | ||||||
Initial public offering completion date | Apr. 15, 2013 | ||||||
Knutsen Shuttle Tankers 13 AS [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Partnership, ownership interest | 100.00% | ||||||
Knutsen Shuttle Tankers 14 AS [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Partnership, ownership interest | 100.00% | ||||||
KNOT Shuttle Tankers 20 AS [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Partnership, ownership interest | 100.00% | ||||||
KNOT Shuttle Tankers 21 AS [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Partnership, ownership interest | 100.00% | ||||||
Knutsen NYK Shuttle Tankers 21 AS [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Partnership, ownership interest | 100.00% | ||||||
Director Fee [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Management and Directors, Compensation | $ 40,000 | ||||||
Committee Fee [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Management and Directors, Compensation | $ 5,000 | ||||||
Seller's Credit [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Business acquisition purchase price settlement, loan | $ 10,500,000 | ||||||
Seller's Credit [Member] | KNOT Shuttle Tankers 20 AS [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Business acquisition purchase price settlement, loan | $ 12,000,000 | ||||||
Omnibus Agreement [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Guarantor obligations, related party disclosure | In addition, pursuant to the Omnibus Agreement, KNOT agreed to indemnify the Partnership for any defects in title to certain assets contributed or sold to the Partnership and any failure to obtain, prior to April 15, 2013, certain consents and permits necessary to conduct the Partnership's business, which liabilities arise within three years after the closing of the IPO on April 15, 2013. | ||||||
Environmental claims indemnification deductible | $ 500,000 | ||||||
Environmental claims indemnification liabilities aggregate cap | $ 5,000,000 | ||||||
Initial public offering completion date | Apr. 15, 2013 | ||||||
TSSI [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership percentage by parent | 50.00% | ||||||
TSSI [Member] | Chief Executive Officer [Member] | Seglem Holding AS [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership percentage by parent | 100.00% | ||||||
NYK [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership percentage by parent | 50.00% | ||||||
KNOT Management [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership percentage by parent | 100.00% |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Costs and Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | |||
Total income (expenses) | $ 11,749 | $ 5,448 | $ (7,071) |
KNOT [Member] | Charter Revenues [Member] | |||
Related Party Transaction [Line Items] | |||
Time charter and bareboat revenues | 16,231 | 8,881 | |
KNOT [Member] | Commercial Commission Fee [Member] | |||
Related Party Transaction [Line Items] | |||
Time charter and bareboat fees | (95) | ||
KNOT [Member] | Cancellation Fee [Member] | |||
Related Party Transaction [Line Items] | |||
Time charter and bareboat fees | (3,448) | ||
KNOT [Member] | Guarantee Income [Member] | |||
Related Party Transaction [Line Items] | |||
Other income | 122 | ||
KNOT [Member] | Technical and Operational Management Fee [Member] | |||
Related Party Transaction [Line Items] | |||
Operating expenses | 2,420 | 1,764 | 1,073 |
KNOT [Member] | General and Administrative Expenses [Member] | |||
Related Party Transaction [Line Items] | |||
Administration fee | 1,103 | 642 | 428 |
KNOT [Member] | Administration and Management Fee [Member] | |||
Related Party Transaction [Line Items] | |||
Administration fee | 170 | 99 | 82 |
KNOT [Member] | Accounting Service Fee [Member] | |||
Related Party Transaction [Line Items] | |||
Administration fee | 31 | 25 | 27 |
KNOT [Member] | IPO Administration Cost [Member] | |||
Related Party Transaction [Line Items] | |||
Administration fee | 454 | ||
KNOT [Member] | Financing Service Fee [Member] | |||
Related Party Transaction [Line Items] | |||
Finance income (expense) | (50) | ||
KNOT [Member] | Interest Expenses [Member] | |||
Related Party Transaction [Line Items] | |||
Interest expense charged from KNOT | (268) | (277) | (336) |
KNOT [Member] | Guarantee Commission [Member] | |||
Related Party Transaction [Line Items] | |||
Finance income (expense) | (424) | ||
KOAS [Member] | General and Administrative Expenses [Member] | |||
Related Party Transaction [Line Items] | |||
Administration fee | 461 | 425 | 392 |
KOAS UK [Member] | General and Administrative Expenses [Member] | |||
Related Party Transaction [Line Items] | |||
Administration fee | $ 151 | $ 151 | 112 |
TSSI [Member] | Interest Income [Member] | |||
Related Party Transaction [Line Items] | |||
Interest income charged to TSSI | 10 | ||
TSSI [Member] | Guarantee Commission [Member] | |||
Related Party Transaction [Line Items] | |||
Finance income (expense) | $ (210) |
Related Party Transactions -102
Related Party Transactions - Schedule of Related Party Costs and Expenses (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
KOAS [Member] | |||
Related Party Transaction [Line Items] | |||
Margin rate on administration cost | 5.00% | ||
KOAS UK [Member] | |||
Related Party Transaction [Line Items] | |||
Margin rate on administration cost | 5.00% | ||
Seller's Credit [Member] | |||
Related Party Transaction [Line Items] | |||
Long-term debt interest rate percentage | 4.50% | 4.50% | 4.50% |
Related Party Transactions - Su
Related Party Transactions - Summary of Amounts Due from and Due to Related Parties (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Balance Sheets: | ||
Amount due from related parties | $ 58 | $ 130 |
Amount due to related parties | 848 | 628 |
KOAS [Member] | ||
Balance Sheets: | ||
Amount due from related parties | 10 | 77 |
Amount due to related parties | 448 | 423 |
KNOT [Member] | ||
Balance Sheets: | ||
Amount due from related parties | 48 | 53 |
Amount due to related parties | $ 400 | $ 205 |
Related Party Transactions -104
Related Party Transactions - Schedule of Trade Accounts Payables to Related Parties (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Balance Sheets: | ||
Amount due to related parties | $ 848 | $ 628 |
Trade Accounts Payables [Member] | ||
Balance Sheets: | ||
Amount due to related parties | 1,011 | 1,033 |
Trade Accounts Payables [Member] | KOAS [Member] | ||
Balance Sheets: | ||
Amount due to related parties | 651 | 792 |
Trade Accounts Payables [Member] | KNOT [Member] | ||
Balance Sheets: | ||
Amount due to related parties | $ 360 | $ 241 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2013USD ($)InsurancePolicy | Dec. 31, 2014USD ($) | |
Loss Contingencies [Line Items] | |||
Book value of assets pledged as security | $ 1,193,000,000 | $ 1,022,000,000 | |
Insurance incidents | InsurancePolicy | 0 | ||
Probable liability and insurance claim | $ 0 | ||
Accrued claim | 0 | $ 0 | |
Insurance coverage deductible amount per vessel | $ 150,000 | ||
Lost hire compensation insurance coverage, description | Under the loss of hire policies, the insurer will pay a compensation for the lost hire rate agreed in respect of each Vessel for each day, in excess of 14 deductible days, for the time that the Vessel is out of service as a result of damage, for a maximum of 180 days. | ||
Insurance coverage for pollution, maximum liability per vessel | $ 1,000,000,000 | ||
Lost hire compensation insurance coverage, deductible days | 14 days | ||
Maximum [Member] | |||
Loss Contingencies [Line Items] | |||
Lost hire compensation insurance coverage, deductible days | 180 days |
Supplemental Cash Flows Info106
Supplemental Cash Flows Information - Supplemental Information Related to Consolidated and Combined Carve-Out Statements of Cash Flows (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2013USD ($) | |
Non-cash investing and financing activities: | |
Payable to owner and affiliates converted to equity | $ 27,051 |
Earnings per Unit and Cash D107
Earnings per Unit and Cash Distributions - Schedule of Calculations of Basic and Diluted Earnings per Unit (Detail) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | [2] | |||
Earnings Per Unit Basic And Diluted [Line Items] | |||||||
Post IPO net income attributable to the members of KNOT Offshore Partners LP | $ 18,603 | $ 40,442 | $ 27,392 | ||||
Less: Distributions | 20,779 | 56,921 | 40,481 | ||||
Net income (loss) | $ (2,176) | (16,479) | (13,089) | ||||
Over distributed earnings attributable to: | |||||||
Over distributed earnings to limited partners | 39,675 | [1] | 26,856 | [1] | $ 14,764 | ||
Over distributed earnings to general partners | $ 767 | [1] | $ 536 | [1] | $ 301 | ||
Earnings per unit (basic and diluted): | |||||||
Cash distributions declared and paid in the period per unit | $ 0.752 | $ 2.030 | [1] | $ 1.795 | [1] | $ 0.752 | |
Subsequent event: Cash distributions declared and paid per unit relating to the period | $ 0.435 | $ 0.520 | $ 0.490 | ||||
Common Units [Member] | |||||||
Over distributed earnings attributable to: | |||||||
Over distributed earnings to limited partners | $ (1,066) | $ (11,060) | $ (7,916) | ||||
Weighted average units outstanding (basic and diluted) | |||||||
Weighted average units outstanding, basic and diluted | 8,568 | 16,705 | 11,209 | ||||
Earnings per unit (basic and diluted): | |||||||
Earnings per unit, basic and diluted | $ 1.063 | $ 1.499 | [1],[3] | $ 1.369 | [1],[3] | 1.063 | [3] |
Subordinated Units [Member] | |||||||
Over distributed earnings attributable to: | |||||||
Over distributed earnings to limited partners | $ (1,066) | $ (5,087) | $ (4,912) | ||||
Weighted average units outstanding (basic and diluted) | |||||||
Weighted average units outstanding, basic and diluted | 8,568 | 8,568 | 8,568 | ||||
Earnings per unit (basic and diluted): | |||||||
Earnings per unit, basic and diluted | $ 1.065 | $ 1.708 | [1],[3] | $ 1.343 | [1],[3] | 1.065 | [3] |
General Partner Unit [Member] | |||||||
Over distributed earnings attributable to: | |||||||
Over distributed earnings to general partners | $ (44) | $ (332) | $ (261) | ||||
Weighted average units outstanding (basic and diluted) | |||||||
Weighted average units outstanding, basic and diluted | 350 | 516 | 404 | ||||
Earnings per unit (basic and diluted): | |||||||
Earnings per unit, basic and diluted | $ 1.063 | $ 1.487 | [1],[3] | $ 1.329 | [1],[3] | $ 1.063 | [3] |
[1] | 2015 and 2014 refers to the Consolidated Statements of Operations | ||||||
[2] | 2013 refers to the Consolidated and Combined Carve-Out Statement of Operations | ||||||
[3] | Earnings per unit information for the year ended December 31, 2013 is in respect of the period from the closing of the IPO (April 15, 2013) to December 31, 2013. |
Earnings per Unit and Cash D108
Earnings per Unit and Cash Distributions - Schedule of Calculations of Basic and Diluted Earnings per Unit (Parenthetical) (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Earnings Per Unit Basic And Diluted [Line Items] | |||||
Cash distributions | [1] | $ 21,954 | |||
Net Income | $ (2,176) | $ (16,479) | $ (13,089) | ||
IDR Holders [Member] | |||||
Earnings Per Unit Basic And Diluted [Line Items] | |||||
Net Income | 20 | 2,100 | 600 | ||
KNOT [Member] | |||||
Earnings Per Unit Basic And Diluted [Line Items] | |||||
Cash distributions | $ 20 | $ 2,100 | $ 600 | ||
[1] | 2013 refers to the Consolidated and Combined Carve-Out Statement of Cash Flows |
Earnings per Unit and Cash D109
Earnings per Unit and Cash Distributions - Additional Information (Detail) - $ / shares | Jun. 02, 2015 | Jun. 27, 2014 | Apr. 15, 2013 | Apr. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of general partner interest | 2.00% | 2.00% | 2.00% | 2.00% | |||
KNOT [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of limited partner interest | 0.30% | ||||||
Number of common units and subordinated units outstanding | 90,368 | ||||||
First Target Distribution [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Distributions to each unitholder, Per unit | $ 0.43125 | ||||||
Second Target Distribution [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Distributions to each unitholder, Per unit | 0.46875 | ||||||
Third Target Distribution [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Distributions to each unitholder, Per unit | 0.5625 | ||||||
Minimum Quarterly Distribution [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Distribution, per unit | $ 0.375 | ||||||
Additional Available Cash From Operating Surplus [Member] | First Target Distribution [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of operating surplus distributed to unitholders | 98.00% | ||||||
Additional Available Cash From Operating Surplus [Member] | Second Target Distribution [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of operating surplus distributed to unitholders | 85.00% | ||||||
Additional Available Cash From Operating Surplus [Member] | Third Target Distribution [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of operating surplus distributed to unitholders | 75.00% | ||||||
Additional Available Cash From Operating Surplus [Member] | Target Distribution Thereafter [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of operating surplus distributed to unitholders | 50.00% | ||||||
Distribution of Available Cash from Operating Surplus After End of Subordination Period [Member] | First Target Distribution [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of operating surplus distributed to unitholders | 98.00% | ||||||
Distribution of Available Cash from Operating Surplus After End of Subordination Period [Member] | Second Target Distribution [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of operating surplus distributed to unitholders | 98.00% | ||||||
Distribution of Available Cash from Operating Surplus After End of Subordination Period [Member] | Third Target Distribution [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of operating surplus distributed to unitholders | 85.00% | ||||||
Distribution of Available Cash from Operating Surplus After End of Subordination Period [Member] | Target Distribution Thereafter [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of operating surplus distributed to unitholders | 50.00% | ||||||
Distribution of Available Cash from Operating Surplus After End of Subordination Period [Member] | Fourth Target Distribution [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of operating surplus distributed to unitholders | 75.00% | ||||||
IDR Holders [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Earnings per unit, basic and diluted | $ 0 | ||||||
IDR Holders [Member] | Additional Available Cash From Operating Surplus [Member] | Second Target Distribution [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of operating surplus distributed to unitholders | 13.00% | ||||||
IDR Holders [Member] | Additional Available Cash From Operating Surplus [Member] | Third Target Distribution [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of operating surplus distributed to unitholders | 23.00% | ||||||
IDR Holders [Member] | Additional Available Cash From Operating Surplus [Member] | Target Distribution Thereafter [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of operating surplus distributed to unitholders | 48.00% | ||||||
IDR Holders [Member] | Distribution of Available Cash from Operating Surplus After End of Subordination Period [Member] | Third Target Distribution [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of operating surplus distributed to unitholders | 13.00% | ||||||
IDR Holders [Member] | Distribution of Available Cash from Operating Surplus After End of Subordination Period [Member] | Target Distribution Thereafter [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of operating surplus distributed to unitholders | 48.00% | ||||||
IDR Holders [Member] | Distribution of Available Cash from Operating Surplus After End of Subordination Period [Member] | Fourth Target Distribution [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of operating surplus distributed to unitholders | 23.00% | ||||||
Common Units [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of limited partner interest | 66.80% | ||||||
Number of common units and subordinated units outstanding | 18,536,226 | ||||||
Common Units [Member] | Distributions of Available Cash from Operating Surplus During Subordination Period [Member] | First Target Distribution [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of operating surplus distributed to unitholders | 98.00% | ||||||
Common Units [Member] | Distributions of Available Cash from Operating Surplus During Subordination Period [Member] | Second Target Distribution [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of operating surplus distributed to unitholders | 98.00% | ||||||
General Partner Unit [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of general partner interest | 2.00% | ||||||
Number of General Partner Units Outstanding | 558,674 | 456,633 | 349,694 | ||||
Percentage of operating surplus distributed to unitholders | 2.00% | ||||||
General Partner Unit [Member] | KNOT [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of general partner interest | 2.01% | ||||||
Number of General Partner Units Outstanding | 558,674 | ||||||
General Partner Unit [Member] | Distributions of Available Cash from Operating Surplus During Subordination Period [Member] | First Target Distribution [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of operating surplus distributed to unitholders | 2.00% | ||||||
General Partner Unit [Member] | Distributions of Available Cash from Operating Surplus During Subordination Period [Member] | Second Target Distribution [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of operating surplus distributed to unitholders | 2.00% | ||||||
General Partner Unit [Member] | Distributions of Available Cash from Operating Surplus During Subordination Period [Member] | Third Target Distribution [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of operating surplus distributed to unitholders | 2.00% | ||||||
General Partner Unit [Member] | Additional Available Cash From Operating Surplus [Member] | First Target Distribution [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of operating surplus distributed to unitholders | 2.00% | ||||||
General Partner Unit [Member] | Additional Available Cash From Operating Surplus [Member] | Second Target Distribution [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of operating surplus distributed to unitholders | 2.00% | ||||||
General Partner Unit [Member] | Additional Available Cash From Operating Surplus [Member] | Third Target Distribution [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of operating surplus distributed to unitholders | 2.00% | ||||||
General Partner Unit [Member] | Additional Available Cash From Operating Surplus [Member] | Target Distribution Thereafter [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of operating surplus distributed to unitholders | 2.00% | ||||||
General Partner Unit [Member] | Distribution of Available Cash from Operating Surplus After End of Subordination Period [Member] | First Target Distribution [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of operating surplus distributed to unitholders | 2.00% | ||||||
General Partner Unit [Member] | Distribution of Available Cash from Operating Surplus After End of Subordination Period [Member] | Second Target Distribution [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of operating surplus distributed to unitholders | 2.00% | ||||||
General Partner Unit [Member] | Distribution of Available Cash from Operating Surplus After End of Subordination Period [Member] | Third Target Distribution [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of operating surplus distributed to unitholders | 2.00% | ||||||
General Partner Unit [Member] | Distribution of Available Cash from Operating Surplus After End of Subordination Period [Member] | Target Distribution Thereafter [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of operating surplus distributed to unitholders | 2.00% | ||||||
General Partner Unit [Member] | Distribution of Available Cash from Operating Surplus After End of Subordination Period [Member] | Fourth Target Distribution [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of operating surplus distributed to unitholders | 2.00% | ||||||
Subordinated Units [Member] | KNOT [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of limited partner interest | 30.90% | ||||||
Number of common units and subordinated units outstanding | 8,567,500 | ||||||
Subordinated Units [Member] | Distributions of Available Cash from Operating Surplus During Subordination Period [Member] | Third Target Distribution [Member] | |||||||
Distribution Made to Limited Partner [Line Items] | |||||||
Percentage of operating surplus distributed to unitholders | 98.00% |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Oct. 15, 2015 | Jun. 15, 2015 | Jun. 02, 2015 | Dec. 31, 2014 | Dec. 15, 2014 | Jun. 30, 2014 | Jun. 27, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Jun. 30, 2015 | Jul. 31, 2014 | Jun. 30, 2014 | Aug. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | [2] | Aug. 01, 2013 | ||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Acquisition related costs | $ 100 | $ 100 | $ 100 | |||||||||||||||||||||||
Revenues | $ 155,024 | [1] | $ 112,841 | [1] | $ 73,401 | |||||||||||||||||||||
Net Income | $ (2,176) | $ (16,479) | $ (13,089) | |||||||||||||||||||||||
Dan Sabia [Member] | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Business acquisition, percentage of interest acquired | 100.00% | |||||||||||||||||||||||||
Business acquisition, fair value of vessel and equipment acquired | $ 103,389 | |||||||||||||||||||||||||
Business acquisition, outstanding debt | 64,470 | |||||||||||||||||||||||||
Purchase price adjustments | $ 2,700 | $ 2,655 | ||||||||||||||||||||||||
Revenues | $ 5,500 | |||||||||||||||||||||||||
Net Income | $ 2,200 | |||||||||||||||||||||||||
Dan Cisne [Member] | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Business acquisition, percentage of interest acquired | 100.00% | |||||||||||||||||||||||||
Business acquisition, fair value of vessel and equipment acquired | $ 103,400 | |||||||||||||||||||||||||
Business acquisition, outstanding debt | 82,164 | |||||||||||||||||||||||||
Purchase price adjustments | $ (2,606) | |||||||||||||||||||||||||
Revenues | $ 500 | |||||||||||||||||||||||||
Net Income | $ 900 | |||||||||||||||||||||||||
Hilda Knutsen [Member] | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Business acquisition, percentage of interest acquired | 100.00% | 100.00% | ||||||||||||||||||||||||
Business acquisition, fair value of vessel and equipment acquired | $ 166,000 | $ 166,000 | ||||||||||||||||||||||||
Business acquisition, outstanding debt | 109,600 | 109,600 | ||||||||||||||||||||||||
Torill Knutsen [Member] | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Business acquisition, fair value of vessel and equipment acquired | 169,000 | 169,000 | ||||||||||||||||||||||||
Business acquisition, outstanding debt | 112,100 | 112,100 | ||||||||||||||||||||||||
Hilda Knutsen and Torill Knutsen [Member] | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Business acquisition, fair value of vessel and equipment acquired | 335,000 | 335,000 | ||||||||||||||||||||||||
Business acquisition, outstanding debt | 221,812 | $ 221,812 | ||||||||||||||||||||||||
Purchase price adjustments | 987 | |||||||||||||||||||||||||
Business acquisition, other purchase price adjustments | $ 1,000 | |||||||||||||||||||||||||
Ingrid Knutsen [Member] | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Business acquisition, percentage of interest acquired | 100.00% | |||||||||||||||||||||||||
Business acquisition, fair value of vessel and equipment acquired | $ 115,000 | |||||||||||||||||||||||||
Business acquisition, outstanding debt | 84,275 | |||||||||||||||||||||||||
Purchase price adjustments | $ 2,391 | |||||||||||||||||||||||||
Revenues | $ 3,600 | |||||||||||||||||||||||||
Net Income | $ 1,000 | |||||||||||||||||||||||||
Carmen Knutsen [Member] | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Business acquisition, percentage of interest acquired | 100.00% | |||||||||||||||||||||||||
Business acquisition, fair value of vessel and equipment acquired | $ 145,000 | $ 145,000 | ||||||||||||||||||||||||
Business acquisition, outstanding debt | $ 89,125 | |||||||||||||||||||||||||
Revenues | $ 8,400 | $ 23,500 | ||||||||||||||||||||||||
Net Income | $ 2,500 | $ 10,000 | ||||||||||||||||||||||||
Business acquisition, other purchase price adjustments | 100 | |||||||||||||||||||||||||
Business acquisition, outstanding debt | $ 89,100 | |||||||||||||||||||||||||
Common Units [Member] | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Common units issued | 5,000,000 | 4,600,000 | 5,000,000 | 640,000 | 4,600,000 | 8,567,500 | 5,000,000 | 5,240,000 | ||||||||||||||||||
Common Units [Member] | Dan Sabia [Member] | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Common units issued | 5,000,000 | |||||||||||||||||||||||||
[1] | 2015 and 2014 refers to the Consolidated Statements of Operations | |||||||||||||||||||||||||
[2] | 2013 refers to the Consolidated and Combined Carve-Out Statement of Operations |
Business Acquisitions - Schedul
Business Acquisitions - Schedule of Purchase Price of Each Transaction (Detail) - USD ($) | Oct. 15, 2015 | Jun. 15, 2015 | Dec. 15, 2014 | Jun. 30, 2014 | Aug. 01, 2013 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Aug. 31, 2013 |
Less: Fair value of net assets acquired: | |||||||||
Goodwill | $ 0 | $ 0 | $ 6,217,000 | ||||||
Ingrid Knutsen [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase price | $ 12,863,000 | ||||||||
Less: Fair value of net assets acquired: | |||||||||
Vessel and equipment | 115,000,000 | ||||||||
Cash | 4,744,000 | ||||||||
Inventories | 144,000 | ||||||||
Other current assets | 188,000 | ||||||||
Amounts due from related parties | 1,000 | ||||||||
Long-term debt | (84,275,000) | ||||||||
Long-term debt from related parties | (20,253,000) | ||||||||
Trade accounts payable | (94,000) | ||||||||
Accrued expenses | (1,555,000) | ||||||||
Prepaid charter and deferred revenue | (762,000) | ||||||||
Amount due to related parties | (275,000) | ||||||||
Subtotal | 12,863,000 | ||||||||
Difference between the purchase price and allocated values | $ 0 | ||||||||
Dan Sabia [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase price | $ 41,186,000 | $ 41,186,000 | |||||||
Less: Fair value of net assets acquired: | |||||||||
Vessel and equipment | 103,389,000 | ||||||||
Cash | 4,343,000 | ||||||||
Other current assets | 25,000 | ||||||||
Amounts due from related parties | 935,000 | ||||||||
Long-term debt | (64,470,000) | ||||||||
Derivatives liabilities | (802,000) | ||||||||
Trade accounts payable | (4,000) | ||||||||
Accrued expenses | (335,000) | ||||||||
Prepaid charter and deferred revenue | (442,000) | ||||||||
Amount due to related parties | (1,453,000) | ||||||||
Subtotal | 41,186,000 | ||||||||
Difference between the purchase price and allocated values | $ 0 | ||||||||
Dan Cisne [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase price | 18,230,000 | ||||||||
Less: Fair value of net assets acquired: | |||||||||
Vessel and equipment | 103,400,000 | ||||||||
Cash | 1,574,000 | ||||||||
Long-term debt | (82,164,000) | ||||||||
Derivatives liabilities | (968,000) | ||||||||
Trade accounts payable | (35,000) | ||||||||
Accrued expenses | (825,000) | ||||||||
Amount due to related parties | (2,752,000) | ||||||||
Subtotal | 18,230,000 | ||||||||
Difference between the purchase price and allocated values | $ 0 | ||||||||
Hilda Knutsen and Torill Knutsen [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase price | $ 114,293,000 | ||||||||
Less: Fair value of net assets acquired: | |||||||||
Vessel and equipment | 335,000,000 | ||||||||
Cash | 8,997,000 | ||||||||
Inventories | 395,000 | ||||||||
Other current assets | 1,939,000 | ||||||||
Amounts due from related parties | 4,000 | ||||||||
Long-term debt | (221,812,000) | ||||||||
Other long-term liabilities | (4,774,000) | ||||||||
Derivatives liabilities | (348,000) | ||||||||
Trade accounts payable | (390,000) | ||||||||
Accrued expenses | (1,360,000) | ||||||||
Prepaid charter and deferred revenue | (1,487,000) | ||||||||
Amount due to related parties | (2,338,000) | ||||||||
Subtotal | 113,826,000 | ||||||||
Difference between the purchase price and fair value of net assets acquired | 467,000 | ||||||||
Goodwill | 467,000 | ||||||||
Difference between the purchase price and allocated values | $ 0 | ||||||||
Carmen Knutsen [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase price | $ 55,772,000 | ||||||||
Less: Fair value of net assets acquired: | |||||||||
Vessel and equipment | 145,000,000 | $ 145,000,000 | |||||||
Cash | 89,000 | ||||||||
Inventories | 234,000 | ||||||||
Other current assets | 108,000 | ||||||||
Long-term debt | (89,125,000) | ||||||||
Trade accounts payable | (91,000) | ||||||||
Accrued expenses | (387,000) | ||||||||
Amount due to related parties | (56,000) | ||||||||
Subtotal | 55,772,000 | ||||||||
Difference between the purchase price and allocated values | $ 0 |
Business Acquisitions - Sche112
Business Acquisitions - Schedule of Purchase Price of Each Transaction (Parenthetical) (Detail) - USD ($) $ in Thousands | Oct. 15, 2015 | Jun. 15, 2015 | Dec. 15, 2014 | Jun. 30, 2014 | Aug. 01, 2013 | Dec. 31, 2015 | Aug. 31, 2013 |
Ingrid Knutsen [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash consideration paid to KNOT | $ 10,472 | ||||||
Purchase price adjustments | 2,391 | ||||||
Purchase price | 12,863 | ||||||
Vessels and equipment | $ 115,000 | ||||||
Dan Sabia [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash consideration paid to KNOT | $ 38,531 | ||||||
Purchase price adjustments | $ 2,700 | 2,655 | |||||
Purchase price | 41,186 | 41,186 | |||||
Vessels and equipment | $ 103,389 | ||||||
Dan Cisne [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash consideration paid to KNOT | 8,836 | ||||||
Purchase price adjustments | (2,606) | ||||||
Seller's credit | 12,000 | ||||||
Purchase price | 18,230 | ||||||
Vessels and equipment | $ 103,400 | ||||||
Hilda Knutsen and Torill Knutsen [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash consideration paid to KNOT | $ 113,306 | ||||||
Purchase price adjustments | 987 | ||||||
Purchase price | 114,293 | ||||||
Vessels and equipment | 335,000 | ||||||
Carmen Knutsen [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash consideration paid to KNOT | $ 45,423 | ||||||
Seller's credit | 10,349 | ||||||
Purchase price | 55,772 | ||||||
Vessels and equipment | $ 145,000 | $ 145,000 | |||||
Hilda Knutsen [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Vessels and equipment | 166,000 | ||||||
Torill Knutsen [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Vessels and equipment | $ 169,000 | ||||||
Dry Docking [Member] | Ingrid Knutsen [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Vessels and equipment | $ 1,263 | ||||||
Dry Docking [Member] | Carmen Knutsen [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Vessels and equipment | 1,769 | ||||||
Dry Docking [Member] | Hilda Knutsen [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Vessels and equipment | 2,042 | ||||||
Dry Docking [Member] | Torill Knutsen [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Vessels and equipment | 2,166 | ||||||
Vessel Acquired [Member] | Dry Docking [Member] | Dan Sabia [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price adjustments | 389 | ||||||
Vessel Acquired [Member] | Dry Docking [Member] | Dan Cisne [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price adjustments | $ 400 |
Business Acquisitions - Sche113
Business Acquisitions - Schedule of Summarized Consolidated Pro Forma Financial Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Hilda Knutsen Torill Knutsen Dan Cisne [Member] | |||
Business Acquisition [Line Items] | |||
Revenue | $ 145,524 | $ 106,616 | |
Net income | 36,621 | 23,209 | |
Ingrid Knutsen Dan Sabia [Member] | |||
Business Acquisition [Line Items] | |||
Revenue | $ 173,116 | 138,702 | 83,349 |
Net income | $ 43,810 | $ 30,395 | 18,482 |
Carmen Knutsen [Member] | |||
Business Acquisition [Line Items] | |||
Revenue | 84,037 | ||
Net income | $ 16,695 |
Equity Offerings - Schedule of
Equity Offerings - Schedule of Equity Offerings (Detail) - USD ($) $ in Thousands | Jun. 02, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | [2] | ||
Equity [Abstract] | ||||||||
Gross proceeds received | $ 121,224 | $ 152,014 | ||||||
Less: Underwriters' discount | 4,300 | 4,991 | ||||||
Less: Offering expenses | 293 | [1] | 340 | [1] | $ 2,201 | |||
Net proceeds received | $ 116,600 | $ 146,700 | $ 116,631 | $ 146,683 | ||||
[1] | 2015 and 2014 refers to the Consolidated Statements of Cash Flows | |||||||
[2] | 2013 refers to the Consolidated and Combined Carve-Out Statement of Cash Flows |
Equity Offerings - Schedule 115
Equity Offerings - Schedule of Equity Offerings (Parenthetical) (Detail) | Jun. 02, 2015 | Jun. 27, 2014 | Dec. 31, 2015 | Dec. 31, 2014 |
Equity [Abstract] | ||||
General Partner's proportional capital contribution, percentage | 2.00% | 2.00% | 2.00% | 2.00% |
Equity Offerings - Additional I
Equity Offerings - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 02, 2015 | Dec. 31, 2014 | Jul. 24, 2014 | Jul. 14, 2014 | Jun. 27, 2014 | Jun. 30, 2015 | Jul. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 |
Subsidiary or Equity Method Investee [Line Items] | |||||||||||
Aggregate additional general partner capital contribution | $ 2,400 | $ 2,700 | $ 400 | ||||||||
General partner interest in Partnership, percentage | 2.00% | 2.00% | 2.00% | 2.00% | |||||||
Net proceeds from public offering and related General Partner's contribution | $ 116,600 | $ 146,700 | $ 116,631 | $ 146,683 | |||||||
Issuance of additional partnership common units | 690,000 | ||||||||||
Period of option granted to underwriters to purchase additional units | 30 days | ||||||||||
Partnership units issued | 490,000 | 150,000 | |||||||||
Seller Credit [Member] | |||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||
Repayment of credit facility | $ 12,000 | ||||||||||
Dan Sabia Facility [Member] | |||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||
Repayment of credit facility | $ 7,500 | ||||||||||
Common Units [Member] | |||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||
Limited partnership common units sold | 5,000,000 | 4,600,000 | 5,000,000 | 640,000 | 4,600,000 | 8,567,500 | 5,000,000 | 5,240,000 | |||
Issuance of additional partnership common units | 690,000 | ||||||||||
Partnership units issued | 1,117,500 | 640,000 |
Unit Activity - Schedule of Mov
Unit Activity - Schedule of Movement in Number of Common Units, Subordinated Units and General Partner Units (Detail) - shares | Jun. 02, 2015 | Jun. 27, 2014 | Jun. 30, 2015 | Jul. 31, 2014 | Jun. 30, 2014 | Apr. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 |
IPO [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of Units Issued | 8,567,500 | ||||||||
Common Units [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of Units Issued | 5,000,000 | 4,600,000 | 5,000,000 | 640,000 | 4,600,000 | 8,567,500 | 5,000,000 | 5,240,000 | |
Repurchasing program | (180,906) | ||||||||
Number of Units | 8,567,500 | 18,626,594 | 13,807,500 | ||||||
Common Units [Member] | IPO [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of Units Issued | 8,567,500 | ||||||||
April 2013, Initial Public Offering (IPO) | 8,567,500 | ||||||||
General Partner Unit [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of Units Issued | 102,041 | 13,062 | 93,877 | ||||||
Number of General Partner Units Outstanding | 349,694 | 558,674 | 456,633 | ||||||
General Partner Unit [Member] | IPO [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
April 2013, Initial Public Offering (IPO) | 349,694 | ||||||||
Subordinated Units [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of Units | 8,567,500 | 8,567,500 | 8,567,500 | ||||||
Subordinated Units [Member] | IPO [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of Units Issued | 8,567,500 | ||||||||
April 2013, Initial Public Offering (IPO) | 8,567,500 |
Unit Activity - Additional Info
Unit Activity - Additional Information (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Aug. 12, 2015 | |
Common Units [Member] | ||
Class of Stock [Line Items] | ||
Partners' Capital Account, Units Purchased | 180,906 | |
Partners capital account weighted average purchase price | $ 12.71 | |
Common Units [Member] | KNOT [Member] | ||
Class of Stock [Line Items] | ||
Partners' Capital Account, Units Purchased | 180,906 | |
Common Units [Member] | General Partner [Member] | ||
Class of Stock [Line Items] | ||
Partners' Capital Account, Units Purchased | 90,368 | |
Maximum [Member] | ||
Class of Stock [Line Items] | ||
Partnership authorized to repurchase common units | 666,667 | |
General Partner authorized to repurchase common units | 333,333 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Feb. 15, 2016 | Dec. 31, 2013 | |
Subsequent Event [Line Items] | |||
Cash distribution paid, aggregate | [1] | $ 21,954 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Cash distribution paid, date paid | Feb. 15, 2016 | ||
Cash distribution paid, per unit | $ 0.52 | ||
Cash distribution paid, aggregate | $ 15,000 | ||
[1] | 2013 refers to the Consolidated and Combined Carve-Out Statement of Cash Flows |