Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2016shares | |
Document And Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2016 |
Document Fiscal Year Focus | 2,016 |
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 |
Entity Common Stock, Shares Outstanding | 27,194,094 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating revenues: (Notes 2(d), 5 and 18) | |||
Time charter and bareboat revenues | $ 172,878 | $ 154,750 | $ 112,784 |
Other income | 793 | 274 | 57 |
Total revenues (Notes 2(d), 5, 6, and 18) | 173,671 | 155,024 | 112,841 |
Operating expenses: (Note 18) | |||
Vessel operating expenses (Note 2(d)) | 30,903 | 27,543 | 23,879 |
Depreciation (Note 13) | 56,230 | 48,844 | 34,322 |
General and administrative expenses | 4,371 | 4,290 | 4,323 |
Goodwill impairment charge (Note 8) | 6,217 | ||
Total operating expenses | 91,504 | 86,894 | 62,524 |
Operating income | 82,167 | 68,130 | 50,317 |
Finance income (expense): (Notes 2(e) and 18) | |||
Interest income | 24 | 8 | 13 |
Interest expense (Note 9(a)) | (20,867) | (17,451) | (15,271) |
Other finance expense (Note 9(b)) | (1,311) | (504) | (1,271) |
Realized and unrealized gain (loss) on derivative instruments (Note 10) | 1,213 | (9,695) | (6,407) |
Net gain (loss) on foreign currency transactions | (139) | (105) | 26 |
Total finance expense | (21,080) | (27,747) | (22,910) |
Income before income taxes | 61,087 | 40,383 | 27,407 |
Income tax benefit (expense) | 15 | 59 | (15) |
Net income | 61,102 | 40,442 | 27,392 |
Net income | 61,102 | 40,442 | 27,392 |
General Partner's interest in net income | 1,256 | 767 | 536 |
Limited Partners' interest in net income | $ 59,846 | $ 39,675 | $ 26,856 |
Earnings per unit: (Note 20) | |||
Cash distributions declared and paid per unit (Note 20) | $ 2.080 | $ 2.030 | $ 1.795 |
Common Units [Member] | |||
Finance income (expense): (Notes 2(e) and 18) | |||
Net income | $ 54,794 | $ 25,038 | $ 15,349 |
Net income | 54,794 | 25,038 | 15,349 |
Limited Partners' interest in net income | $ (417) | $ (11,060) | $ (7,916) |
Earnings per unit: (Note 20) | |||
Earnings per unit (basic and diluted) | $ 2.291 | $ 1.499 | $ 1.369 |
Subordinated Units [Member] | |||
Finance income (expense): (Notes 2(e) and 18) | |||
Net income | $ 5,052 | $ 14,637 | $ 11,507 |
Net income | $ 5,052 | 14,637 | 11,507 |
Limited Partners' interest in net income | $ (5,087) | $ (4,912) | |
Earnings per unit: (Note 20) | |||
Earnings per unit (basic and diluted) | $ 1.542 | $ 1.708 | $ 1.343 |
General Partner Unit [Member] | |||
Finance income (expense): (Notes 2(e) and 18) | |||
Net income | $ 1,256 | $ 767 | $ 536 |
Net income | 1,256 | 767 | 536 |
General Partner's interest in net income | $ (9) | $ (332) | $ (261) |
Earnings per unit: (Note 20) | |||
Earnings per unit (basic and diluted) | $ 2.248 | $ 1.487 | $ 1.329 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 61,102 | $ 40,442 | $ 27,392 |
Other comprehensive income, net of tax | 0 | 0 | 0 |
Comprehensive income | $ 61,102 | $ 40,442 | $ 27,392 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents (Notes 2(f) and 11) | $ 27,664 | $ 23,573 |
Trade accounts receivable, less allowance for doubtful accounts of $0 in, 2016 and $0 in 2015 (Notes 2(h) and 12(a)) | 0 | 0 |
Amounts due from related parties (Note 18(d)) | 150 | 58 |
Inventories (Note 2(i)) | 1,176 | 849 |
Other current assets (Notes 2(j) and 12(b)) | 2,089 | 1,800 |
Total current assets | 31,079 | 26,280 |
Vessels and equipment (Notes 2(k), 2(l), 2(m), 13 and 18(f)): | ||
Vessels | 1,468,913 | 1,351,219 |
Less accumulated depreciation and amortization | (212,024) | (158,292) |
Vessels and equipment, net | 1,256,889 | 1,192,927 |
Derivative assets (Notes 2(p), 10 and 11) | 3,154 | 695 |
Accrued income | 1,153 | |
Total assets | 1,292,275 | 1,219,902 |
Current liabilities: | ||
Trade accounts payable (Note 18(e)) | 2,221 | 1,995 |
Accrued expenses (Note 15) | 3,368 | 3,888 |
Current portion of long-term debt (Notes 11 and 16) | 58,984 | 48,535 |
Current portion derivative liabilities (Notes 2(p), 10 and 11) | 3,304 | 5,138 |
Income taxes payable (Notes 2(q) and 17) | 190 | 249 |
Current portion of contract liabilities (Notes 2(n) and 14) | 1,518 | 1,518 |
Prepaid charter and deferred revenue (Note 2(r)) | 7,218 | 3,365 |
Amount due to related parties (Note 18(d)) | 834 | 848 |
Total current liabilities | 77,637 | 65,536 |
Long-term liabilities: | ||
Long-term debt (Notes 11 and 16) | 657,662 | 619,187 |
Derivative liabilities (Notes 2(p), 10 and 11) | 285 | 1,232 |
Contract liabilities (Notes 2(n) and 14) | 8,239 | 9,757 |
Deferred tax liabilities (Notes 2(q) and 17) | 685 | 877 |
Long-term debt from related parties (Notes 11, 16 and 18) | 25,000 | |
Other long-term liabilities (Note 2(r)) | 1,056 | 2,543 |
Total liabilities | 770,564 | 699,132 |
Commitments and contingencies (Notes 2(s) and 19) | ||
Partners' capital: | ||
Total partners' capital | 521,712 | 520,770 |
Total liabilities and equity | 1,292,275 | 1,219,902 |
Common Units [Member] | ||
Partners' capital: | ||
Common and subordinated unitholders | 511,413 | 411,317 |
Total partners' capital | 511,414 | 411,317 |
Subordinated Units [Member] | ||
Partners' capital: | ||
Common and subordinated unitholders | 99,158 | |
Total partners' capital | 99,158 | |
General Partner Unit [Member] | ||
Partners' capital: | ||
General partner interest: 558,674 units issued and outstanding at December 31, 2016, and 2015 | 10,297 | 10,295 |
Total partners' capital | $ 10,298 | $ 10,295 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 30, 2013 |
Allowance for doubtful accounts | $ 0 | $ 0 | |||
Common Units [Member] | |||||
Limited partners' capital account, units issued | 27,194,094 | 18,626,594 | 13,807,500 | 8,567,500 | |
Limited partners' capital account, units outstanding | 27,194,094 | 18,626,594 | |||
Subordinated Units [Member] | |||||
Limited partners' capital account, units issued | 8,567,500 | 8,567,500 | 8,567,500 | ||
Limited partners' capital account, units outstanding | 8,567,500 | ||||
General Partner Unit [Member] | |||||
General partners' capital account, units issued | 558,674 | 558,674 | 349,694 | ||
General partners' capital account, units outstanding | 558,674 | 558,674 | 456,633 | 349,694 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Partners' Capital - USD ($) $ in Thousands | Total | Common Units [Member] | Subordinated Units [Member] | General Partner Unit [Member] | Accumulated Other Comprehensive Income [Member] |
Beginning Balance at Dec. 31, 2013 | $ 281,927 | $ 168,773 | $ 107,857 | $ 5,297 | |
Net income | 27,392 | 15,349 | 11,507 | 536 | |
Cash distribution | (36,637) | (20,226) | (15,684) | (727) | |
Proceeds from public offering | 147,023 | 143,983 | 3,040 | ||
Offering cost (Note 22) | (340) | (335) | (5) | ||
Other comprehensive income | 0 | 0 | 0 | 0 | $ 0 |
Ending Balance at Dec. 31, 2014 | 419,365 | 307,544 | 103,680 | 8,141 | |
Net income | 40,442 | 25,038 | 14,637 | 767 | |
Cash distribution | (53,370) | (33,179) | (19,159) | (1,032) | |
Proceeds from public offering | 116,924 | 114,500 | 2,424 | ||
Offering cost (Note 22) | (293) | (288) | (5) | ||
Repurchase common units | (2,298) | (2,298) | |||
Other comprehensive income | 0 | 0 | 0 | 0 | 0 |
Ending Balance at Dec. 31, 2015 | 520,770 | 411,317 | 99,158 | 10,295 | |
Net income | 61,102 | 54,794 | 5,052 | 1,256 | |
Cash distribution | (60,161) | (48,820) | (10,088) | (1,253) | |
Conversion of subordinated units to common units | 94,123 | (94,123) | |||
Other comprehensive income | 0 | 0 | $ 0 | 0 | $ 0 |
Ending Balance at Dec. 31, 2016 | $ 521,712 | $ 511,414 | $ 10,298 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Partners' Capital (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Underwriting discount | $ 4,300 | $ 4,991 |
Common Units [Member] | ||
Common units issued | 5,000,000 | 5,240,000 |
Common units sold pursuant to the full exercise of underwriters' options | 640,000 | |
Underwriting discount | $ 4,300 | $ 4,991 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows provided by operating activities: | |||
Net income | $ 61,102 | $ 40,442 | $ 27,392 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation | 56,230 | 48,844 | 34,322 |
Amortization of contract intangibles / liabilities | (1,518) | (1,518) | (1,518) |
Amortization of deferred revenue | (1,629) | (1,913) | (1,170) |
Amortization of deferred debt issuance cost | 1,198 | 1,149 | 3,021 |
Goodwill impairment charge | 6,217 | ||
Drydocking expenditure | (2,595) | ||
Income tax expense | (15) | (59) | 15 |
Income taxes paid | (255) | (348) | (731) |
Unrealized (gain) loss on derivative instruments | (5,033) | 390 | 3,910 |
Unrealized (gain) loss on foreign currency transactions | 93 | 22 | (136) |
Other items | (16) | ||
Changes in operating assets and liabilities | |||
Decrease (increase) in amounts due from related parties | (33) | 1,008 | (49) |
Decrease (increase) in inventories | (20) | 210 | 58 |
Decrease (increase) in other current assets | (110) | 1,222 | (172) |
Increase (decrease) in trade accounts payable | 45 | 45 | 337 |
Increase (decrease) in accrued expenses | (1,699) | (737) | (2,092) |
Increase (decrease) in accrued revenue | (1,153) | ||
Increase (decrease) prepaid revenue | 3,995 | (4,306) | 793 |
Increase (decrease) in amounts due to related parties | (159) | (1,508) | (4,625) |
Net cash provided by operating activities | 108,445 | 89,160 | 59,339 |
Cash flows from investing activities: | |||
Disposals (additions) to vessel and equipment | (846) | (1,526) | 6 |
Net cash used in investing activities | (13,952) | (46,488) | (121,946) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt (Note 16) | 30,000 | 377,813 | |
Proceeds from issuance of long-term debt from related parties (Note 16 and 18) | 25,000 | 12,000 | |
Repayment of long-term debt (Note 16) | (60,992) | (78,276) | (420,196) |
Repayment of long-term debt from related parties | (24,018) | (32,253) | (10,612) |
Accumulated interest from related party | 263 | ||
Payments of debt issuance cost | (174) | (9) | (5,004) |
Repurchase of common units | (2,298) | ||
Proceeds from public offerings, net of underwriters' discount | 116,924 | 147,023 | |
Offering cost | (293) | (340) | |
Cash distribution | (60,161) | (53,370) | (36,637) |
Change in restricted cash | 458 | ||
Net cash provided by (used in) financing activities | (90,345) | (49,575) | 64,768 |
Effect of exchange rate changes on cash | (57) | (270) | (251) |
Net increase in cash and cash equivalents | 4,091 | 7,173 | 1,910 |
Cash and cash equivalents at the beginning of the year | 23,573 | 30,746 | 28,836 |
Cash and cash equivalents at the end of the year | 27,664 | 23,573 | 30,746 |
Raquel Knutsen [Member] | |||
Cash flows from investing activities: | |||
Payments for acquisition, net of cash acquired | $ (13,106) | ||
Hilda Knutsen and Torill Knutsen [Member] | |||
Cash flows from investing activities: | |||
Payments for acquisition, net of cash acquired | (105,296) | ||
Dan Cisne [Member] | |||
Cash flows from investing activities: | |||
Payments for acquisition, net of cash acquired | $ (16,656) | ||
Dan Sabia [Member] | |||
Cash flows from investing activities: | |||
Payments for acquisition, net of cash acquired | (36,843) | ||
Ingrid Knutsen [Member] | |||
Cash flows from investing activities: | |||
Payments for acquisition, net of cash acquired | $ (8,119) |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Description of Business | 1) Description of Business 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, all as further described in Note 3—Formation Transactions and Initial Public Offering. Pursuant to the Partnership’s 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. All acquisitions have been consolidated into the Partnership’s results as of the date of acquisition. Please read Note 2(a)–Summary of Significant Accounting Policies and Note 21–Business Acquisitions. As of December 31, 2016, the Partnership had a fleet of eleven shuttle tankers, the Windsor Knutsen Bodil Knutsen Recife Knutsen Fortaleza Knutsen Carmen Knutsen, Hilda Knutsen, Torill Knutsen Dan Cisne Dan Sabia, Ingrid Knutsen Raquel Knutsen The consolidated financial statements have been prepared assuming that the Partnership will continue as a going concern. On January 10, 2017, the Partnership sold 2,500,000 common units in a public offering, raising approximately $54.9 million in net proceeds. On February 2, 2017, the Partnership issued and sold in a private placement 2,083,333 Series A preferred Units at a price of $24.00 per unit. After deducting estimated fees and expenses the net proceeds from the sale were approximately $48.5 million. The Partnership expects that its primary future sources of funds will be available cash, cash from operations, borrowings under any new loan agreements and the proceeds of any equity financings. The Partnership believes that these sources of funds (assuming the current rates earned from existing charters) will be sufficient to cover operational cash outflows and ongoing obligations under the Partnership’s financing commitments to pay loan interest and make scheduled loan repayments and to make distributions on its outstanding units. Accordingly, as of March 17, 2017, the Partnership believes that its current resources, including the undrawn revolving credit facility of $30.0 million, are sufficient to meet working capital requirements for its current business for at least the next twelve months. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2) Summary of Significant Accounting Policies (a) Basis of Preparation The consolidated 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 financial statements include the financial statements of the entities listed in Note 4—Subsidiaries. Business combinations 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 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 (c) Use of Estimates The preparation of consolidated 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 depreciation and impairment of vessels, purchase price allocation, goodwill impairment (for year ended December 31, 2015) 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. off-hire. discharge-to-discharge 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 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 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 written-off. off-balance-sheet (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 (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 two-step 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 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 and presented net of debt. 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 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 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 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 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 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 statements of operations. The amounts of tonnage tax included in operating expenses for the years ended December 31, 2016, 2015 and 2014 were $161,655, $132,000 and $126,000, 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 more-likely-than-not (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 (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 (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) Recently Adopted Accounting Pronouncements In April 2015, the Financial Accounting Standards Board (“FASB”) issued revised guidance for the classification of debt issuance cost; Simplifying the Presentation of Debt Issuance Cost . Under the new guidance, deferred debt issuance cost will no longer be classified as assets but presented as a direct deduction from the carrying amount of the associated debt in the balance sheet. The presentation in the balance sheet is required to be adjusted on a retrospective basis. The amendments are effective for annual and interim periods beginning after December 31, 2015 and early adoption is permitted. The Partnership implemented the guidance as of December 31, 2016 and has adjusted the balance sheet as of December 31, 2015 on a retrospective basis. The deduction from the carrying amount of long-term debt for deferred debt issuance cost was $4.0 million as of December 31, 2015, which reduced current assets by $1.2 million and long-term assets by $2.8 million. In August 2014, the FASB issued new guidance for Presentation of Financial Statements – Going Concern. The amendments provide guidance for management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern within one year after the date the financial statements are issued and to provide related footnote disclosures. No disclosure is required if there is no substantial doubt regarding an entity’s ability to continue as a going concern. The Partnership implemented this guidance which did not impact the Partnership’s consolidated financial statements. In February 2015, the FASB issued revised guidance for consolidation, Amendments to the Consolidation Analysis. This guidance modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities and affects the consolidation analysis of reporting entities that are involved with variable interest entities. All legal entities are subject to re-evaluation There are no other recent accounting pronouncements whose adoption had a material impact on the consolidated financial statements in the current year. (v) New Accounting Standards Not Yet Adopted In February 2016, the FASB issued revised guidance for leasing. The objective is to establish the principles that lessors and lessees shall apply to report useful information to users of financial statements about the amount, timing and uncertainty of cash flows arising from a lease. The standard is effective for annual periods beginning after December 15, 2018. The Partnership is currently assessing the impact the adoption of this standard will have on the consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, In August 2016, the FASB issued ASU 2016-15, In November 2016, the FASB issued ASU 2016-18, In January 2017, the FASB issued revised guidance for Business Combinations: Clarifying the Definition of a Business. The amendments clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions of businesses. The amendments provide a screen to determine when an acquisition is not a business. The screen may apply when substantially all of the fair value related to a single, or group of similar, identifiable asset(s). If the screen is not met, it (1) requires that to be considered a business, an acquisition must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) removes the evaluation of whether a market participant could replace the missing elements. The guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The Partnership is currently assessing the impact the adoption of this standard will have on future acquisitions. |
Formation Transactions and Init
Formation Transactions and Initial Public Offering | 12 Months Ended |
Dec. 31, 2016 | |
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 KNOT’s transfer of the interests in KNOT Shuttle Tankers AS and the subsequent IPO: Capital Contribution (i) KNOT contributed to the Partnership’s subsidiary KNOT Offshore Partners UK LLC (“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 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 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 were 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) were 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 one-time 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 pursuant to which the Partnership acquired the entities that comprised its initial fleet; • 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, 2016 | |
Text Block [Abstract] | |
Subsidiaries | 4) Subsidiaries The following table lists the Partnership’s subsidiaries and their purpose as of December 31, 2016. 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 Knutsen Shuttle Tankers 19 AS Norway Owner of the Raquel Knutsen |
Significant Risks and Uncertain
Significant Risks and Uncertainties Including Business and Credit Concentrations | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016, 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, 2016, 2015 and 2014. The following table presents revenues and percentage of revenues for customers that accounted for more than 10% of the Partnership’s revenues during the years ended December 31, 2016, 2015 and 2014. 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) 2016 2015 2014 Eni Trading and Shipping S.p.A. $ 47,001 27 % $ 46,806 30 % $ 23,512 21 % Fronape International Company, a subsidiary of Petrobras Transporte S.A. 45,236 26 % 40,618 26 % 25,666 23 % Statoil ASA 21,760 13 % 23,203 15 % 22,263 20 % Repsol Sinopec Brasil, S.A., a subsidiary of Repsol Sinopec Brasil, B.V. 20,904 12 % 19,789 13 % 20,338 18 % Brazil Shipping I Limited, a subsidiary of Royal Dutch Shell $ 20,496 12 % 4,466 3 % 12,124 11 % Standard Marine Tønsberg, a subsidiary of ExxonMobil $ 17,482 10 % 3,637 2 % 12,124 — % 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 |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016, were as follows: (U.S. Dollars in thousands) 2017 $ 184,944 2018 158,747 2019 104,597 2020 98,589 2021 98,847 2022 and thereafter 190,676 Total $ 836,400 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 The Partnership’s fleet as of December 31, 2016 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 • the Raquel Knutsen |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016, the Partnership’s fleet operated under seven time charters and four bareboat charters. At December 31, 2015, the Partnership’s fleet operated under six time charters and four bareboat charters, and during 2014 the Partnership’s fleet operated under five time charters and three 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 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, 2016 | |
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 non-cash |
Other Finance Expenses
Other Finance Expenses | 12 Months Ended |
Dec. 31, 2016 | |
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 statements of operations for the years ended December 31, 2016, 2015 and 2014 is as follows: Year Ended December 31, (U.S. Dollars in thousands) 2016 2015 2014 Interest cost capitalized $ — $ — $ — Interest expense 20,867 17,451 15,271 Total interest cost $ 20,867 $ 17,451 $ 15,271 (b) Other Finance Expense The following table presents the other finance expense for the years ended December 31, 2016, 2015 and 2014: Year Ended December 31, (U.S. Dollars in thousands) 2016 2015 2014 Bank fees, charges and external guarantee costs $ 1,311 $ 504 $ 1,221 Related party financing service fee (Note 18) — — 50 Total other finance expense $ 1,311 $ 504 $ 1,271 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 10) Derivative Instruments Interest Rate Risk Management The consolidated 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 currency other than the U.S. Dollar 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 vessels. 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. As of December 31, 2016 and 2015, 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 $446.7 million and $410.0 million, respectively. As of December 31, 2016 and 2015 the carrying amount of the interest rate swaps contracts were net assets of $0.8 million and net liabilities of $3.6 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. 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, 2016 and 2015, 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 290.1 million and NOK 289.8 million, respectively. As of December 31, 2016 and 2015, the carrying amount of the Partnership’s foreign exchange forward contracts was a liability of $1.3 million and $2.1 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, 2016, 2015 and 2014: Year Ended December 31 (U.S. Dollars in thousands) 2016 2015 2014 Realized gain (loss) Interest rate swap contracts $ (3,886 ) $ (4,957 ) $ (2,997 ) Foreign exchange forward contracts 66 (4,348 ) 500 Unrealized gain (loss) Interest rate swap contracts 4,254 (1,088 ) (919 ) Foreign exchange forward contracts 779 698 (2,991 ) Total $ 1,213 $ (9,695 ) $ (6,407 ) |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015. 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, 2016 December 31, 2015 (U.S. Dollars in thousands) Carrying Fair Value Carrying Fair Value Financial assets: Cash and cash equivalents $ 27,664 $ 27,664 $ 23,573 $ 23,573 Non-current Interest rate swap contracts 3,154 3,154 695 695 December 31, 2016 December 31, 2015 (U.S. Dollars in thousands) Carrying Fair Value Carrying Fair Value Financial liabilities: Current derivative liabilities: Interest rate swap contracts 2,039 2,039 3,799 3,799 Foreign exchange forward contract 1,265 1,265 1,339 1,339 Non-current Interest rate swap contracts 285 285 527 527 Foreign exchange forward contract — — 705 705 Long-term debt, current and non-current 745,649 745,434 671,690 671,690 The carrying amounts shown in the table above are included in the consolidated balance sheets under the indicated captions. Carrying amount of long-term debt, current and non-current, The fair values of the financial instruments shown in the above table as of December 31, 2016 and 2015 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: mid-rates • 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, 2016 and 2015: Fair Value Measurements at Reporting Date Using (U.S. Dollars in thousands) December 31, 2016 Quoted Price in Active Markets for Identical Assets (Level 1) Significant Other Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets: Cash and cash equivalents $ 27,664 $ 27,664 $ — $ — Non-current Interest rate swap contracts 3,154 — 3,154 — Financial liabilities: Current derivative liabilities: Interest rate swap contracts 2,039 — 2,039 — Foreign exchange forward contracts 1,265 — 1,265 — Non-current Interest rate swap contracts 285 285 Foreign exchange forward contract — — Long-term debt, current and non-current 745,649 — 743,898 — Fair Value Measurements at Reporting Date Using (U.S. Dollars in thousands) December 31, 2015 Quoted Price in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets: Cash and cash equivalents $ 23,573 $ 23,573 $ — $ — Non-current 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 Interest rate swap contracts 527 527 Foreign exchange forward contract 705 705 Long-term debt, current and non-current 671,690 — 671,690 — 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, 2016 and 2015. |
Trade Accounts Receivables and
Trade Accounts Receivables and Other Current Assets | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015, 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) 2016 2015 Refund of value added tax 653 596 Prepaid expenses 1,109 707 Other receivable 327 497 Total other current assets $ 2,089 $ 1,800 |
Vessels and Equipment
Vessels and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Vessels and Equipment | 13) Vessels and Equipment (U.S. Dollars in thousands) Vessel & equipment Accumulated depreciation Net vessels Balance December 31, 2014 $ 1,131,321 $ (109,464 ) $ 1,021,857 Additions 218,540 — 218,540 Drydock costs 1,625 — 1,625 Disposals (267 ) 16 (251 ) Depreciation — (48,844 ) (48,844 ) Balance December 31, 2015 $ 1,351,219 $ (158,292 ) $ 1,192,927 Additions 115,934 — 115,934 Drydock costs 4,258 — 4,258 Disposal (2,498 ) 2,498 — Depreciation — (56,230 ) (56,230 ) Balance December 31, 2016 $ 1,468,913 $ (212,024 ) $ 1,256,889 As of December 31, 2016 and 2015, Vessels with a book value of $1,257 million and $1,193 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, 2016 and 2015 is summarized as follows: Year Ended December 31, (U.S. Dollars in thousands) 2016 2015 Balance at the beginning of the year $ 5,267 $ 5,874 Costs incurred for drydocking 2,595 362 Costs allocated to drydocking as part of acquisition of business 1,663 1,263 Drydock depreciation (2,563 ) (2,232 ) Balance at the end of the year $ 6,962 $ 5,267 |
Intangible Assets and Contract
Intangible Assets and Contract Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
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 December 31, 2014 Amortization for the year ended December 31, 2015 Balance as of December 31, 2015 Amortization ended December 31, 2016 Balance as of December 31, 2016 Contract liabilities: Unfavorable contract rights $ (12,793 ) $ 1,518 $ (11,275 ) $ 1,518 $ (9,757 ) Total amortization income $ 1,518 $ 1,518 Accumulated amortization for contract liabilities was $8,458 and $6,940 as of December 31, 2016 and 2015, 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) 2017 2018 2019 2020 2021 and thereafter Contract liabilities: Unfavorable contract rights $ (1,518 ) $ (1,518 ) $ (1,518 ) $ (1,518 ) $ (3,685 ) |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | 15) Accrued Expenses The following table presents accrued expenses as of December 31, 2016 and 2015: Year Ended December 31, (U.S. Dollars in thousands) 2016 2015 Operating expenses $ 116 $ 1,364 Interest expenses 2,587 2,130 Other expenses 665 394 Total accrued expenses $ 3,368 $ 3,888 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 16) Long-Term 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, 2016 and 2015, consisted of the following: (U.S. Dollars in thousands) Vessel December 31, December 31, $220 million loan facility Windsor Knutsen, Bodil Knutsen, Carmen Knutsen $ 180,714 $ 196,429 $35 million revolving credit facility Windsor Knutsen, Bodil Knutsen, Carmen Knutsen 25,000 — $140 million loan facility Fortaleza Knutsen & Recife Knutsen 118,125 126,875 $117 million loan facility Hilda Knutsen 76,871 81,797 $117 million loan facility Torill Knutsen 78,105 83,033 $172.5 million loan facility Dan Cisne, Dan Sabia 100,539 109,339 $77.5 million loan facility Ingrid Knutsen 67,652 74,217 $74.5 million loan facility Raquel Knutsen 73,643 — $25 million Seller’s Credit and Seller’s Loan Raquel Knutsen 25,000 — Total long-term debt 745,649 671,690 Less: current installments 60,314 49,684 Less: unamortized deferred loan issuance costs 1,330 1,149 Current portion of long-term debt 58,984 48,535 Amounts due after one year 685,335 622,006 Less: unamortized deferred loan issuance costs 2,673 2,819 Less: $25 million Seller’s Credit and Seller’s Loan 25,000 — Long-term debt less current installments, Seller’s Credit and Seller’s Loan and unamortized deferred loan issuance costs $ 657,662 $ 619,187 The Partnership’s outstanding debt of $745.7 million as of December 31, 2016 is repayable as follows: Year Ending December 31, U.S. Dollars in thousands 2017 $ 60,314 2018 208,651 2019 291,490 2020 22,879 2021 48,479 2022- thereafter 113,836 Total $ 745,649 As of December 31, 2016, 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 2.0% to 4.5%. 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, the annual rate is 3.85% composed of a 2.5% bank facility rate plus a commission of 1.35% to the export credit guarantor. The guarantee commission of 1.35% is classified as other finance expense. See Note 2(e)—Financial Income (Expense). $220 Million Term Loan Facility and $35 Million Revolving Credit 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. As of December 31, 2016, the Revolving Credit Facility was fully drawn. The Term Loan Facility is repayable in quarterly installments 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%. On June 30, 2016, the Partnership’s subsidiaries, KNOT Shuttle Tankers 18 AS, KNOT Shuttle Tankers 17 AS and Knutsen Shuttle Tankers 13 AS, as borrowers, entered into an amended and restated senior secured credit facility (the “Amended Senior Secured Loan Facility”), which amended the Senior Secured Loan Facility. The Amended Senior Secured Loan Facility includes a new revolving credit facility tranche of $15 million, bringing the total revolving credit commitments under the facility to $35 million. The new revolving credit facility matures in June 2019, bears interest at LIBOR plus a fixed margin of 2.5% and has a commitment fee equal to 40% of the margin of the revolving facility tranche calculated on the daily undrawn portion of such tranche. As of December 31, 2016, the new revolving credit facility was drawn by $5.0 million, leaving $10.0 million as undrawn. The other material terms of the Senior Secured Loan Facility remain unaltered. The Windsor Knutsen, Bodil Knutsen Carmen Knutsen, Windsor Knutsen, Bodil Knutsen Carmen Knutsen The Amended 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 $18 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 Amended 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, 2016, 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 $18 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, 2016, 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 $18 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, 2016, 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 $18 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, 2016, 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 $18 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, 2016, 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 $18 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, 2016, the borrower and the guarantors were in compliance with all covenants under this facility. $74.5 Million Secured Loan Facility In December 2014, Knutsen Shuttle Tankers 19 AS, the subsidiary owning the Raquel Knutsen Raquel Knutsen Raquel Knutsen Raquel Knutsen The Raquel Facility contains the following financial covenants: • Market value of the Raquel Knutsen • Minimum liquidity of the Partnership of $18 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; and • Minimum book equity ratio for the Partnership of 30%. The Raquel 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, 2016, the borrower and the guarantors were in compliance with all covenants under this facility. $25 Million Seller’s Credit and Seller’s Loan As part of financing for the purchase of the Raquel Knutsen |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016, 2015 and 2014 as follows: Year Ended December 31, (U.S. Dollars in thousands) 2016 2015 2014 Income before income taxes $ 61,087 $ 40,383 $ 27,407 The significant components of current and deferred income tax expense attributable to income from continuing operations for the years ended December 31, 2016, 2015 and 2014 are as follows: Year Ended December 31, (U.S. Dollars in thousands) 2016 2015 2014 Current tax benefit (expense) $ (14 ) $ (11 ) $ (15 ) Deferred tax benefit (expense) 29 70 — Income tax benefit (expense) $ 15 $ 59 $ (15 ) (b) Taxation Income taxes attributable to income from continuing operations was an income tax benefit (expense) of $15, $59 and $(15) for the years ended December 31, 2016, 2015 and 2014, respectively, and differed from the amounts computed by applying the Norwegian ordinary income tax rate of 25% in 2016 and 27% in 2015 and 2014 to pretax net income as a result of the following: Year Ended December 31, (U.S. Dollars in thousands, except for tax rate) 2016 2015 2014 Income tax benefit (expense) at Norwegian tonnage tax regime $ 29 $ 70 $ — Income tax benefit (expense) within UK (14 ) (11 ) (15 ) Income tax benefit (expense) $ 15 $ 59 $ (15 ) Effective tax rate 0 % 0 % 0 % (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, 2016 and 2015 are presented below. As of December 31, (U.S. Dollars in thousands) 2016 2015 Deferred tax assets: Interest rate swaps $ 14 $ 6 Financial loss carry forwards for tonnage tax 12,352 10,314 Total deferred tax asset 12,366 10,320 Less valuation allowance (12,366 ) (10,320 ) Net deferred tax asset — — Deferred tax liabilities: Entrance tax 685 877 Total deferred tax liabilities 685 877 Net deferred tax liabilities $ 685 $ 877 The net deferred tax liability is classified in the consolidated balance sheets as follows: As of December 31, (U.S. Dollars in thousands) 2016 2015 Current deferred tax asset $ — $ — Non-current 685 877 Net deferred tax liabilities $ 685 $ 877 Changes in the net deferred tax liabilities at December 31, 2016 and 2015 are presented below: Year Ended December 31, (U.S. Dollars in thousands) 2016 2015 Net deferred tax liabilities at January 1 $ 877 $ 1,402 Change in temporary differences (207 ) (307 ) Translation differences 15 (218 ) Net deferred tax liabilities at December 31 $ 685 $ 877 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 $12.4 million and $10.3 million respectively, as of December 31, 2016 and 2015. 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 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 Fortaleza Knutsen Recife Knutsen In 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. As of December 31, 2016, the total income taxes payable are estimated to be $0.2 million and consist of payable entrance tax and ordinary UK corporation tax. Approximately $0.3 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 non-current 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, 2016 and 2015. During the years ended December 31, 2016 and 2015, the Partnership did not incur any interest or penalties on its tax return. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 18) Related Party Transactions (a) Related Parties Prior to the IPO, the Partnership’s predecessor operated as an integrated part of KNOT. KNOT is owned 50% by TSSI and 50% by Nippon Yusen Kaisha (“NYK”). The Windsor Knutsen Bodil Knutsen Carmen Knutsen Hilda Knutsen Torill Knutsen Ingrid Knutsen Raquel Knutsen Fortaleza Knutsen Recife Knutsen Dan Cisne Dan Sabia The Partnership is a party to 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 statements of operations for the years ended December 31, 2016, 2015 and 2014 are as follows: Year Ended December 31, (U.S. Dollars in thousands) 2016 2015 2014 Statements of operations: Time charter and bareboat revenues: Charter revenues from KNOT (1) $ — $ 16,231 $ 8,881 Other income: Guarantee income from KNOT(2) 770 122 — Operating expenses: Technical and operational management fee from KNOT Management to Vessels (3) 2,971 2,420 1,764 General and administrative expenses: Administration fee from KNOT Management (4) 1,279 1,134 667 Administration fee from KOAS (4) 382 461 425 Administration fee from KOAS UK (4) 145 151 151 Administration and management fee from KNOT (5) 203 170 99 Finance income (expense): Financing service fee from KNOT to Vessels (6) — — (50 ) Interest expense charged from KNOT (7) (8) (128 ) (268 ) (277 ) Total income (expenses) $ (4,338 ) $ 11,749 $ 5,448 (U.S. Dollars in thousands) At December 31, At December 31, 2015 At December 31, Balance Sheet: Vessels: Drydocking supervision fee from KNOT (9) $ 38 $ — $ — Drydocking supervision fee from KOAS (9) 16 — — Total $ 54 $ — $ — (1) Charter revenue from KNOT Bodil Knutsen Windsor Knutsen Windsor Knutsen Windsor Knutsen Windsor Knutsen (2) Guarantee income from KNOT Bodil Knutsen Windsor Knutsen Windsor Knutsen (3) Technical and operational management fee from KNOT to Vessels 24-hour (4) Administration fee from KNOT Management, KOAS and KOAS UK (5) Administration fee and management fee from KNOT (6) Financing service fee from KNOT to Vessels (7) Interest expense charged from, interest income charged to KNOT/TSSI Recife Knutsen Fortaleza Knutsen Bodil Knutsen Windsor Knutsen (8) Interest expense to KNOT on Sellers’ Credit and Seller’s Loan: Dan Cisne Raquel Knutsen (9) Drydocking supervision fee from KNOT and KOAS: (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 Shell would not exercise its option to extend the Windsor Knutsen re-delivered Under the Omnibus Agreement, KNOT has agreed to indemnify the Partnership until April 15, 2018 (or for a period of at least three years after the purchase of the Hilda Knutsen Torill Knutsen Ingrid Knutsen Raquel Knutsen (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 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 $12,000 and the Chairman of such committees receive a fee of $3,000 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, 2016 At December 31, 2015 Balance Sheets: Trading balances due from KOAS $ 108 $ 10 Trading balances due from KNOT and affiliates 42 48 Amount due from related parties $ 150 $ 58 Trading balances due to KOAS $ 543 $ 448 Trading balances due to KNOT and affiliates 291 400 Amount due to related parties $ 834 $ 848 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, 2016 At December 31, 2015 Balance Sheets: Trading balances due to KOAS $ 727 $ 651 Trading balances due to KNOT and affiliates 394 360 Trade accounts payables to related parties $ 1,121 $ 1,011 (f) Acquisitions from KNOT 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. On December 1, 2016, the Partnership acquired KNOT’s 100% interest in Knutsen Shuttle Tankers 19 AS, the company that owns and operates the Raquel Knutsen Raquel Knutsen, The board of directors of the Partnership and the Conflicts Committee of the board 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—21 Business Acquisitions. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 19) Commitments and Contingencies Assets Pledged As of December 31, 2016 and 2015, Vessels with a book value of $1,257 million and $1,193 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 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, 2016, 2015 and 2014. 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 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 $0.15 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. |
Earnings per Unit and Cash Dist
Earnings per Unit and Cash Distributions | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Unit and Cash Distributions | 20) Earnings per Unit and Cash Distributions The calculations of basic and diluted earnings per unit (1) are presented below: Year Ended December 31, (U.S. Dollars in thousands, except unit and per unit amounts) 2016 2015 2014 Net income attributable to the members of KNOT Offshore Partners LP $ 61,102 $ 40,442 $ 27,392 Less: Distributions (2) 61,528 56,921 40,481 Over distributed earnings (426 ) (16,479 ) (13,089 ) Over distributed earnings attributable to: Common unitholders (3) (417 ) (11,060 ) (7,916 ) Subordinated unitholders (3) — (5,087 ) (4,912 ) General Partner (9 ) (332 ) (261 ) Weighted average units outstanding (basic and diluted) (in thousands): Common unitholders 23,917 16,705 11,209 Subordinated unitholders 3,277 8,568 8,568 General Partner 559 516 404 Earnings per unit (basic and diluted): Common unitholders (4) $ 2.291 $ 1.499 $ 1.369 Subordinated unitholders(4) $ 1.542 $ 1.708 $ 1.343 General Partner $ 2.248 $ 1.487 $ 1.329 Cash distributions declared and paid in the period per unit(5) $ 2.080 $ 2.030 $ 1.795 Subsequent event: Cash distributions declared and paid per unit relating to the period(6) $ 0.520 $ 0.520 $ 0.490 (1) Earnings per unit have been calculated in accordance with the cash distribution provisions set forth in 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, 2016, 2015 and 2014 of $2.4 million, $2.1 million and $0.6 million, respectively. (3) On May 18, 2016, all subordinated units converted into common units on a one-for-one (4) 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, 2016, 2015 and 2014 was $2.4 million, $2.1 million and $0.6 million, respectively. (5) Refers to cash distributions declared and paid during the period. (6) Refers to cash distributions declared and paid subsequent to December 31, 2016. As of December 31, 2016, 66.8% of the Partnership’s total number of units outstanding representing limited partner interests were held by the public (in the form of 18,536,226 common units, representing 68.2% of the Partnership’s common units) and 30.9% of such units were held by KNOT (in the form of 8,567,500 common units, representing 31.5% of the Partnership’s common units). In addition, KNOT, through its ownership of the General Partner, held 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 was 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 was 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 Under the Partnership Agreement, during the subordination period, the common units had 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 were made on the subordinated units. Distributions of available cash from operating surplus were made in the following manner for each quarter during the subordination period: • first • second • third If for any quarter during the subordination period: • the Partnership distributed available cash from operating surplus to the common and subordinated unitholders in an amount equal to the MQD; and • the Partnership 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 was required to 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 ended were required to be made in the following manner: • first • second • third • fourth • thereafter The percentage interests set forth above assumed that the General Partner owns a 2.0% general partner interest. See Note 24 – Subsequent events |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Acquisitions | 21) Business Acquisitions During the years ended December 31, 2014 through 2016, the Partnership acquired from KNOT equity interests in certain subsidiaries which own and operate the Hilda Knutsen Torill Knutsen Dan Cisne, Dan Sabia, Ingrid Knutsen Raquel Knutsen The board of directors of the Partnership 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, 2016, 2015 and 2014, respectively, were expensed as incurred under general and administrative expenses. 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 Raquel Knutsen December 1, 2016 Final Ingrid Knutsen October 15, 2015 Final Dan Sabia June 15, 2015 Final Dan Cisne December 15, 2014 Final Hilda Knutsen and Torill Knutsen June 30, 2014 Purchase price (1) $ 20,252 $ 12,863 $ 41,186 $ 18,230 $ 114,293 Less: Fair value of net assets acquired: Vessel and equipment (2) 116,751 115,000 103,389 103,400 335,000 Cash 7,146 4,744 4,343 1,574 8,997 Inventories 307 144 — — 395 Other current assets 183 188 25 — 1,939 Amounts due from related parties 59 1 935 — 4 Long-term debt (79,950 ) (84,275 ) (64,470 ) (82,164 ) (221,812 ) Long-term debt from related parties (24,019 ) (20,253 ) — — — Deferred debt issuance 1,059 — — — — Other long-term liabilities — — — — (4,774 ) Derivatives liabilities 207 — (802 ) (968 ) (348 ) Trade accounts payable (167 ) (94 ) (4 ) (35 ) (390 ) Accrued expenses (1,179 ) (1,555 ) (335 ) (825 ) (1,360 ) Prepaid charter and deferred revenue — (762 ) (442 ) — (1,487 ) Amount due to related parties (145 ) (275 ) (1,453 ) (2,752 ) (2,338 ) Subtotal 20,252 12,863 41,186 18,230 113,826 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 Raquel Knutsen December 1, 2016 Final Ingrid Knutsen October 15, 2015 Final Dan Sabia December 15, 2014 Final Dan Cisne December 15, 2014 Final Hilda Knutsen and Torill Knutsen June 30, 2014 Cash consideration paid to KNOT (from KNOT) $ (12,019 ) $ 10,472 $ 38,531 $ 8,836 $ 113,306 Purchase price adjustments 7,271 2,391 2,655 (2,606 ) 987 Seller’s credit 12,981 — — 12,000 — Seller’s loan 12,019 — — — — Purchase price $ 20,252 $ 12,863 $ 41,186 $ 18,230 $ 114,293 (2) Vessel and equipment includes allocation to dry docking for the following vessels (in thousands): Raquel Knutsen Knutsen Hilda Knutsen Torill Knutsen Dan Sabia Dan Cisne (3) The goodwill recognized in connection with the acquisitions of the Hilda Knutsen Torill Knutsen Raquel Knutsen On December 1, 2016, the Partnership’s wholly owned subsidiary, KNOT Shuttle Tankers AS, acquired KNOT’s 100% interest in Knutsen Shuttle Tankers 19 AS, the company that owns and operates the Raquel Knutsen Revenue and profit contributions Since the Raquel 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 Pro forma financial information – Raquel Knutsen The table below shows comparative summarized consolidated pro forma financial information for the Partnership for the years ended December 31, 2016 and 2015, giving effect to the Partnership’s acquisition and financing of the Raquel Knutsen Raquel Knutsen Raquel Knutsen Raquel Knutsen Raquel Knutsen (U.S. Dollars in thousands) Unaudited 2016 Unaudited 2015 Revenue $ 190,229 $ 164,477 Net income 65,101 38,401 Included in the pro forma adjustments are depreciation related to the purchase price allocations performed on the acquired identifiable assets as if the acquisition had taken place on January 1, 2015. In addition, the pro forma adjustments reflect new capital structure and changes in guarantors as if the acquisition had taken place from the date of delivery of the vessel. 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 and 2014, giving effect to the Partnership’s acquisition and financing of the Dan Sabia Ingrid Knutsen Dan Sabia Ingrid Knutsen (U.S. Dollars in thousands) Unaudited 2015 Unaudited 2014 Revenue $ 173,116 $ 138,702 Net income 43,810 30,395 Included in the pro forma adjustments are depreciation related to the purchase price allocations performed on the acquired identifiable assets as if the acquisitions had taken place on January 1, 2014. In addition, the pro forma adjustments reflect new capital structure and changes in guarantors as if the acquisitions had taken place from the date of delivery of the vessels. 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 year ended December 31, 2014, 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 Revenue $ 145,524 Net income $ 36,621 Included in the pro forma adjustments are depreciation related to the purchase price allocations performed on the acquired identifiable assets as if the acquisitions had taken place on January 1, 2014. 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. |
Equity Offerings
Equity Offerings | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Equity Offerings | 22) Equity Offerings (U.S. Dollars in thousands) 2016 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 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, 2016 | |
Equity [Abstract] | |
Unit Activity | 23) 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, 2016, 2015 and 2014: (in units) Common Units Subordinated Units General Partner Units 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 Subordinated units converted to common units 8,567,500 (8,567,500 ) — December 31, 2016 27,194,094 — 558,674 On August 12, 2015, the board of directors of the Partnership 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. On August 10, 2016, both boards authorized an extension of the common unit purchase program to August 31, 2017. As of December 31, 2015, the Partnership and the General Partner had purchased 180,906 and 90,368 common units, respectively, pursuant to the program at an average purchase price of $12.71 per unit. No additional common units were purchased by the Partnership or the General Partner in 2016. The Partnership and the General Partner may therefore purchase up to an additional 485,761 and 242,965 common units, respectively, under the extended program. All purchases are made pursuant to a single program and are allocated approximately two-thirds one-third The subordination period for the 8,567,500 subordinated units ended on May 18, 2016. All of the subordinated units, which were owned by KNOT, converted to common units on a one-for-one |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 24) Subsequent Events The Partnership has evaluated subsequent events from the balance sheet date through March 17, 2017, the date at which the audited consolidated financial statements were available to be issued, and determined that there are no other items to disclose, except as follows: On January 10, 2017, the Partnership sold 2,500,000 common units in a public offering. The total net proceeds of the offering were approximately $54.9 million. Because the General Partner did not make a capital contribution to the Partnership in connection with the offering in order to maintain its 2.0% general partner interest, such interest was reduced to 1.85%. On February 15, 2017, the Partnership paid a quarterly cash distribution of $0.52 per unit with respect to the quarter ended December 31, 2016. The aggregate amount of the paid distribution was $16.4 million. On February 2, 2017 (the “Closing Date”), the Partnership issued and sold in a private placement 2,083,333 Series A Convertible Preferred Units (the “Series A Preferred Units”) at a price of $24.00 per unit (the “Issue Price”). After deducting estimated fees and expenses the net proceeds from the sale were approximately $48.5 million. The Series A Preferred Units represent limited partner interests in the Partnership, are perpetual and will pay cumulative, quarterly distributions in arrears at an annual rate of 8.0% of the Issue Price, on or prior to the date of payment of distributions on the Partnership’s common units. The Series A Preferred Units are a new class of security that rank senior to all of the common units with respect to distribution rights and liquidation preference. The Partnership has an option to sell, at any time prior to June 30, 2017, up to an additional $49 million of Series A Preferred Units. The Series A Preferred Units are convertible, under certain circumstances, at the then applicable conversion rate, which is subject to adjustment under certain circumstances. The conversion rate will be redetermined on a quarterly basis and will be equal to the Issue Price divided by the product of (x) the book value per common unit at the end of the immediately preceding quarter (pro forma for per unit cash distributions payable with respect to such quarter) multiplied by (y) the quotient of (i) the Issue Price divided by (ii) the book value per common unit on the Closing Date. The Series A Preferred Units will be generally convertible, at the option of the holders of the Series A Preferred Units, into common units after February 2, 2019 at the then applicable conversion rate. In addition, the Partnership may redeem the Series A Preferred Units at any time between February 2, 2019 and February 2, 2027 at the redemption price applicable on any such redemption date, provided, however, that upon notice from the Partnership to the holders of Series A Preferred Units of its intent to redeem, such holders may elect, instead, to convert their Series A Preferred Units into common units at the then applicable conversion rate. Upon a change of control of the Partnership, the holders of Series A Preferred Units may require the Partnership to redeem the Series A Preferred Units, in cash, at 100% of the Issue Price. In addition, the holders of Series A Preferred Units may cause the Partnership to redeem the Series A Preferred Units on February 2, 2027, at its option, in (i) cash at a price equal to 70% of the Issue Price or (ii) common units such that each Series A Preferred Unit receives common units worth 80% of the Issue Price (based on the volume-weighted average trading price, as adjusted for splits, combinations and other similar transactions, of the common units as reported on the NYSE for the 30 trading day period ending on the fifth trading day immediately prior to the redemption date). In addition, at any time following February 2, 2019 and subject to certain conditions, the Partnership may convert the Series A Preferred Units into common units at the then applicable conversion rate if the aggregate market value (for 20 trading days out of the 30 day trading period immediately preceding the notice of conversion) of the common units into which the then outstanding Series A Preferred Units are convertible, based on the then applicable conversion rate, is greater than 130% of the aggregate Issue Price of the then outstanding Series A Preferred Units. The Series A Preferred Units will be presented as equity on the Partnership’s balance sheet. The Partnership has entered into a registration rights agreement with the holders of the Series A Preferred Units, pursuant to which it agreed to use commercially reasonable efforts to file a traditional shelf registration statement registering resales of the common units underlying the Series A Preferred Units and to have such registration statement declared effective by the SEC by February 2, 2019. The holders of the Series A Preferred Units also have certain demand and piggyback rights with respect to the underlying common units. In connection with the issuance of the Series A Preferred Units, on February 2, 2017, the Partnership amended and restated its partnership agreement and adopted the Second Amended and Restated Agreement of Limited Partnership. On March 1, 2017 the Partnership’s wholly owned subsidiary, KNOT Shuttle Tankers AS, acquired 100% of the shares of Knutsen Shuttle Tankers 24 AS (“KNOT 24”), the company that owns the shuttle tanker Tordis Knutsen Tordis Knutsen. The Tordis Knutsen The Partnership has accounted for the acquisition of the Tordis Knutsen (US $ in thousands) March 1, 2017 Purchase consideration (1) $ 31,243 Less: Fair value of net assets acquired: Vessel and equipment 147,000 Long-term debt (137,655 ) Receivable 21,103 Capitalized fee financing of the vessel 795 Other (2) Sub total 31,243 Difference between the purchase price and fair value of net assets acquired — (1) This includes the purchase consideration for KNOT 24 less the assumed bank debt plus certain intercompany balances and capitalized fees related to the financing of the Tordis Knutsen (2) This information (working capital adjustment) will be available upon finalization of the Tordis Knutsen On February 22, 2017 the Raquel Knutsen Raquel Knutsen off-hire Raquel Knutsen off-hire, off-hire |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Preparation | (a) Basis of Preparation The consolidated 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 financial statements include the financial statements of the entities listed in Note 4—Subsidiaries. Business combinations 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 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 |
Use of Estimates | (c) Use of Estimates The preparation of consolidated 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 depreciation and impairment of vessels, purchase price allocation, goodwill impairment (for year ended December 31, 2015) 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. off-hire. discharge-to-discharge 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 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 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 written-off. off-balance-sheet |
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 |
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 two-step 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 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 and presented net of debt. 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 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 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 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 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 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 statements of operations. The amounts of tonnage tax included in operating expenses for the years ended December 31, 2016, 2015 and 2014 were $161,655, $132,000 and $126,000, 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 more-likely-than-not |
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 |
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 |
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: |
Recently Adopted Accounting Pronouncements | u) Recently Adopted Accounting Pronouncements In April 2015, the Financial Accounting Standards Board (“FASB”) issued revised guidance for the classification of debt issuance cost; Simplifying the Presentation of Debt Issuance Cost . Under the new guidance, deferred debt issuance cost will no longer be classified as assets but presented as a direct deduction from the carrying amount of the associated debt in the balance sheet. The presentation in the balance sheet is required to be adjusted on a retrospective basis. The amendments are effective for annual and interim periods beginning after December 31, 2015 and early adoption is permitted. The Partnership implemented the guidance as of December 31, 2016 and has adjusted the balance sheet as of December 31, 2015 on a retrospective basis. The deduction from the carrying amount of long-term debt for deferred debt issuance cost was $4.0 million as of December 31, 2015, which reduced current assets by $1.2 million and long-term assets by $2.8 million. In August 2014, the FASB issued new guidance for Presentation of Financial Statements – Going Concern. The amendments provide guidance for management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern within one year after the date the financial statements are issued and to provide related footnote disclosures. No disclosure is required if there is no substantial doubt regarding an entity’s ability to continue as a going concern. The Partnership implemented this guidance which did not impact the Partnership’s consolidated financial statements. In February 2015, the FASB issued revised guidance for consolidation, Amendments to the Consolidation Analysis. This guidance modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities and affects the consolidation analysis of reporting entities that are involved with variable interest entities. All legal entities are subject to re-evaluation There are no other recent accounting pronouncements whose adoption had a material impact on the consolidated financial statements in the current year. |
New Accounting Standards Not Yet Adopted | (v) New Accounting Standards Not Yet Adopted In February 2016, the FASB issued revised guidance for leasing. The objective is to establish the principles that lessors and lessees shall apply to report useful information to users of financial statements about the amount, timing and uncertainty of cash flows arising from a lease. The standard is effective for annual periods beginning after December 15, 2018. The Partnership is currently assessing the impact the adoption of this standard will have on the consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, In August 2016, the FASB issued ASU 2016-15, In November 2016, the FASB issued ASU 2016-18, In January 2017, the FASB issued revised guidance for Business Combinations: Clarifying the Definition of a Business. The amendments clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions of businesses. The amendments provide a screen to determine when an acquisition is not a business. The screen may apply when substantially all of the fair value related to a single, or group of similar, identifiable asset(s). If the screen is not met, it (1) requires that to be considered a business, an acquisition must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) removes the evaluation of whether a market participant could replace the missing elements. The guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The Partnership is currently assessing the impact the adoption of this standard will have on future acquisitions. |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
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 Uncerta35
Significant Risks and Uncertainties Including Business and Credit Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Schedule of Revenues and Percentage of Combined Revenues for Customers | The following table presents revenues and percentage of revenues for customers that accounted for more than 10% of the Partnership’s revenues during the years ended December 31, 2016, 2015 and 2014. 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) 2016 2015 2014 Eni Trading and Shipping S.p.A. $ 47,001 27 % $ 46,806 30 % $ 23,512 21 % Fronape International Company, a subsidiary of Petrobras Transporte S.A. 45,236 26 % 40,618 26 % 25,666 23 % Statoil ASA 21,760 13 % 23,203 15 % 22,263 20 % Repsol Sinopec Brasil, S.A., a subsidiary of Repsol Sinopec Brasil, B.V. 20,904 12 % 19,789 13 % 20,338 18 % Brazil Shipping I Limited, a subsidiary of Royal Dutch Shell $ 20,496 12 % 4,466 3 % 12,124 11 % Standard Marine Tønsberg, a subsidiary of ExxonMobil $ 17,482 10 % 3,637 2 % 12,124 — % KNOT — — $ 16,231 11 % $ 8,880 8 % |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016, were as follows: (U.S. Dollars in thousands) 2017 $ 184,944 2018 158,747 2019 104,597 2020 98,589 2021 98,847 2022 and thereafter 190,676 Total $ 836,400 |
Other Finance Expenses (Tables)
Other Finance Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 statements of operations for the years ended December 31, 2016, 2015 and 2014 is as follows: Year Ended December 31, (U.S. Dollars in thousands) 2016 2015 2014 Interest cost capitalized $ — $ — $ — Interest expense 20,867 17,451 15,271 Total interest cost $ 20,867 $ 17,451 $ 15,271 |
Summary of Other Finance Expense | The following table presents the other finance expense for the years ended December 31, 2016, 2015 and 2014: Year Ended December 31, (U.S. Dollars in thousands) 2016 2015 2014 Bank fees, charges and external guarantee costs $ 1,311 $ 504 $ 1,221 Related party financing service fee (Note 18) — — 50 Total other finance expense $ 1,311 $ 504 $ 1,271 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016, 2015 and 2014: Year Ended December 31 (U.S. Dollars in thousands) 2016 2015 2014 Realized gain (loss) Interest rate swap contracts $ (3,886 ) $ (4,957 ) $ (2,997 ) Foreign exchange forward contracts 66 (4,348 ) 500 Unrealized gain (loss) Interest rate swap contracts 4,254 (1,088 ) (919 ) Foreign exchange forward contracts 779 698 (2,991 ) Total $ 1,213 $ (9,695 ) $ (6,407 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015. 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, 2016 December 31, 2015 (U.S. Dollars in thousands) Carrying Fair Value Carrying Fair Value Financial assets: Cash and cash equivalents $ 27,664 $ 27,664 $ 23,573 $ 23,573 Non-current Interest rate swap contracts 3,154 3,154 695 695 December 31, 2016 December 31, 2015 (U.S. Dollars in thousands) Carrying Fair Value Carrying Fair Value Financial liabilities: Current derivative liabilities: Interest rate swap contracts 2,039 2,039 3,799 3,799 Foreign exchange forward contract 1,265 1,265 1,339 1,339 Non-current Interest rate swap contracts 285 285 527 527 Foreign exchange forward contract — — 705 705 Long-term debt, current and non-current 745,649 745,434 671,690 671,690 |
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, 2016 and 2015: Fair Value Measurements at Reporting Date Using (U.S. Dollars in thousands) December 31, 2016 Quoted Price in Active Markets for Identical Assets (Level 1) Significant Other Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets: Cash and cash equivalents $ 27,664 $ 27,664 $ — $ — Non-current Interest rate swap contracts 3,154 — 3,154 — Financial liabilities: Current derivative liabilities: Interest rate swap contracts 2,039 — 2,039 — Foreign exchange forward contracts 1,265 — 1,265 — Non-current Interest rate swap contracts 285 285 Foreign exchange forward contract — — Long-term debt, current and non-current 745,649 — 743,898 — Fair Value Measurements at Reporting Date Using (U.S. Dollars in thousands) December 31, 2015 Quoted Price in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets: Cash and cash equivalents $ 23,573 $ 23,573 $ — $ — Non-current 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 Interest rate swap contracts 527 527 Foreign exchange forward contract 705 705 Long-term debt, current and non-current 671,690 — 671,690 — |
Trade Accounts Receivables an40
Trade Accounts Receivables and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Schedule of Other Current Assets | Other current assets consist of the following: Year Ended December 31, (U.S. Dollars in thousands) 2016 2015 Refund of value added tax 653 596 Prepaid expenses 1,109 707 Other receivable 327 497 Total other current assets $ 2,089 $ 1,800 |
Vessels and Equipment (Tables)
Vessels and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property Plant and Equipment | (U.S. Dollars in thousands) Vessel & equipment Accumulated depreciation Net vessels Balance December 31, 2014 $ 1,131,321 $ (109,464 ) $ 1,021,857 Additions 218,540 — 218,540 Drydock costs 1,625 — 1,625 Disposals (267 ) 16 (251 ) Depreciation — (48,844 ) (48,844 ) Balance December 31, 2015 $ 1,351,219 $ (158,292 ) $ 1,192,927 Additions 115,934 — 115,934 Drydock costs 4,258 — 4,258 Disposal (2,498 ) 2,498 — Depreciation — (56,230 ) (56,230 ) Balance December 31, 2016 $ 1,468,913 $ (212,024 ) $ 1,256,889 |
Summary of Drydocking Activity | Drydocking activity for the years ended December 31, 2016 and 2015 is summarized as follows: Year Ended December 31, (U.S. Dollars in thousands) 2016 2015 Balance at the beginning of the year $ 5,267 $ 5,874 Costs incurred for drydocking 2,595 362 Costs allocated to drydocking as part of acquisition of business 1,663 1,263 Drydock depreciation (2,563 ) (2,232 ) Balance at the end of the year $ 6,962 $ 5,267 |
Intangible Assets and Contrac42
Intangible Assets and Contract Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 December 31, 2014 Amortization for the year ended December 31, 2015 Balance as of December 31, 2015 Amortization ended December 31, 2016 Balance as of December 31, 2016 Contract liabilities: Unfavorable contract rights $ (12,793 ) $ 1,518 $ (11,275 ) $ 1,518 $ (9,757 ) 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) 2017 2018 2019 2020 2021 and thereafter Contract liabilities: Unfavorable contract rights $ (1,518 ) $ (1,518 ) $ (1,518 ) $ (1,518 ) $ (3,685 ) |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | The following table presents accrued expenses as of December 31, 2016 and 2015: Year Ended December 31, (U.S. Dollars in thousands) 2016 2015 Operating expenses $ 116 $ 1,364 Interest expenses 2,587 2,130 Other expenses 665 394 Total accrued expenses $ 3,368 $ 3,888 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt as of December 31, 2016 and 2015, consisted of the following: (U.S. Dollars in thousands) Vessel December 31, December 31, $220 million loan facility Windsor Knutsen, Bodil Knutsen, Carmen Knutsen $ 180,714 $ 196,429 $35 million revolving credit facility Windsor Knutsen, Bodil Knutsen, Carmen Knutsen 25,000 — $140 million loan facility Fortaleza Knutsen & Recife Knutsen 118,125 126,875 $117 million loan facility Hilda Knutsen 76,871 81,797 $117 million loan facility Torill Knutsen 78,105 83,033 $172.5 million loan facility Dan Cisne, Dan Sabia 100,539 109,339 $77.5 million loan facility Ingrid Knutsen 67,652 74,217 $74.5 million loan facility Raquel Knutsen 73,643 — $25 million Seller’s Credit and Seller’s Loan Raquel Knutsen 25,000 — Total long-term debt 745,649 671,690 Less: current installments 60,314 49,684 Less: unamortized deferred loan issuance costs 1,330 1,149 Current portion of long-term debt 58,984 48,535 Amounts due after one year 685,335 622,006 Less: unamortized deferred loan issuance costs 2,673 2,819 Less: $25 million Seller’s Credit and Seller’s Loan 25,000 — Long-term debt less current installments, Seller’s Credit and Seller’s Loan and unamortized deferred loan issuance costs $ 657,662 $ 619,187 |
Summary of Partnership's Outstanding Debt Repayable | The Partnership’s outstanding debt of $745.7 million as of December 31, 2016 is repayable as follows: Year Ending December 31, U.S. Dollars in thousands 2017 $ 60,314 2018 208,651 2019 291,490 2020 22,879 2021 48,479 2022- thereafter 113,836 Total $ 745,649 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016, 2015 and 2014 as follows: Year Ended December 31, (U.S. Dollars in thousands) 2016 2015 2014 Income before income taxes $ 61,087 $ 40,383 $ 27,407 |
Components of Current and Deferred Income Tax Expense Attributable to Income from Continuing Operations | The significant components of current and deferred income tax expense attributable to income from continuing operations for the years ended December 31, 2016, 2015 and 2014 are as follows: Year Ended December 31, (U.S. Dollars in thousands) 2016 2015 2014 Current tax benefit (expense) $ (14 ) $ (11 ) $ (15 ) Deferred tax benefit (expense) 29 70 — Income tax benefit (expense) $ 15 $ 59 $ (15 ) |
Summary of Taxation | Income taxes attributable to income from continuing operations was an income tax benefit (expense) of $15, $59 and $(15) for the years ended December 31, 2016, 2015 and 2014, respectively, and differed from the amounts computed by applying the Norwegian ordinary income tax rate of 25% in 2016 and 27% in 2015 and 2014 to pretax net income as a result of the following: Year Ended December 31, (U.S. Dollars in thousands, except for tax rate) 2016 2015 2014 Income tax benefit (expense) at Norwegian tonnage tax regime $ 29 $ 70 $ — Income tax benefit (expense) within UK (14 ) (11 ) (15 ) Income tax benefit (expense) $ 15 $ 59 $ (15 ) Effective tax rate 0 % 0 % 0 % |
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, 2016 and 2015 are presented below. As of December 31, (U.S. Dollars in thousands) 2016 2015 Deferred tax assets: Interest rate swaps $ 14 $ 6 Financial loss carry forwards for tonnage tax 12,352 10,314 Total deferred tax asset 12,366 10,320 Less valuation allowance (12,366 ) (10,320 ) Net deferred tax asset — — Deferred tax liabilities: Entrance tax 685 877 Total deferred tax liabilities 685 877 Net deferred tax liabilities $ 685 $ 877 The net deferred tax liability is classified in the consolidated balance sheets as follows: As of December 31, (U.S. Dollars in thousands) 2016 2015 Current deferred tax asset $ — $ — Non-current 685 877 Net deferred tax liabilities $ 685 $ 877 Changes in the net deferred tax liabilities at December 31, 2016 and 2015 are presented below: Year Ended December 31, (U.S. Dollars in thousands) 2016 2015 Net deferred tax liabilities at January 1 $ 877 $ 1,402 Change in temporary differences (207 ) (307 ) Translation differences 15 (218 ) Net deferred tax liabilities at December 31 $ 685 $ 877 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Costs and Expenses | The amounts of such costs and expenses included in the consolidated statements of operations for the years ended December 31, 2016, 2015 and 2014 are as follows: Year Ended December 31, (U.S. Dollars in thousands) 2016 2015 2014 Statements of operations: Time charter and bareboat revenues: Charter revenues from KNOT (1) $ — $ 16,231 $ 8,881 Other income: Guarantee income from KNOT(2) 770 122 — Operating expenses: Technical and operational management fee from KNOT Management to Vessels (3) 2,971 2,420 1,764 General and administrative expenses: Administration fee from KNOT Management (4) 1,279 1,134 667 Administration fee from KOAS (4) 382 461 425 Administration fee from KOAS UK (4) 145 151 151 Administration and management fee from KNOT (5) 203 170 99 Finance income (expense): Financing service fee from KNOT to Vessels (6) — — (50 ) Interest expense charged from KNOT (7) (8) (128 ) (268 ) (277 ) Total income (expenses) $ (4,338 ) $ 11,749 $ 5,448 (1) Charter revenue from KNOT Bodil Knutsen Windsor Knutsen Windsor Knutsen Windsor Knutsen Windsor Knutsen (2) Guarantee income from KNOT Bodil Knutsen Windsor Knutsen Windsor Knutsen (3) Technical and operational management fee from KNOT to Vessels 24-hour (4) Administration fee from KNOT Management, KOAS and KOAS UK (5) Administration fee and management fee from KNOT (6) Financing service fee from KNOT to Vessels (7) Interest expense charged from, interest income charged to KNOT/TSSI Recife Knutsen Fortaleza Knutsen Bodil Knutsen Windsor Knutsen (8) Interest expense to KNOT on Sellers’ Credit and Seller’s Loan: Dan Cisne Raquel Knutsen (9) Drydocking supervision fee from KNOT and KOAS: |
Schedule of Dues Payables to Related Party | (U.S. Dollars in thousands) At December 31, At December 31, 2015 At December 31, Balance Sheet: Vessels: Drydocking supervision fee from KNOT (9) $ 38 $ — $ — Drydocking supervision fee from KOAS (9) 16 — — Total $ 54 $ — $ — |
Summary of Amounts Due from (to) Related Parties | Balances with related parties consisted of the following: (U.S. Dollars in thousands) At December 31, 2016 At December 31, 2015 Balance Sheets: Trading balances due from KOAS $ 108 $ 10 Trading balances due from KNOT and affiliates 42 48 Amount due from related parties $ 150 $ 58 Trading balances due to KOAS $ 543 $ 448 Trading balances due to KNOT and affiliates 291 400 Amount due to related parties $ 834 $ 848 |
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, 2016 At December 31, 2015 Balance Sheets: Trading balances due to KOAS $ 727 $ 651 Trading balances due to KNOT and affiliates 394 360 Trade accounts payables to related parties $ 1,121 $ 1,011 |
Earnings per Unit and Cash Di47
Earnings per Unit and Cash Distributions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, (U.S. Dollars in thousands, except unit and per unit amounts) 2016 2015 2014 Net income attributable to the members of KNOT Offshore Partners LP $ 61,102 $ 40,442 $ 27,392 Less: Distributions (2) 61,528 56,921 40,481 Over distributed earnings (426 ) (16,479 ) (13,089 ) Over distributed earnings attributable to: Common unitholders (3) (417 ) (11,060 ) (7,916 ) Subordinated unitholders (3) — (5,087 ) (4,912 ) General Partner (9 ) (332 ) (261 ) Weighted average units outstanding (basic and diluted) (in thousands): Common unitholders 23,917 16,705 11,209 Subordinated unitholders 3,277 8,568 8,568 General Partner 559 516 404 Earnings per unit (basic and diluted): Common unitholders (4) $ 2.291 $ 1.499 $ 1.369 Subordinated unitholders(4) $ 1.542 $ 1.708 $ 1.343 General Partner $ 2.248 $ 1.487 $ 1.329 Cash distributions declared and paid in the period per unit(5) $ 2.080 $ 2.030 $ 1.795 Subsequent event: Cash distributions declared and paid per unit relating to the period(6) $ 0.520 $ 0.520 $ 0.490 (1) Earnings per unit have been calculated in accordance with the cash distribution provisions set forth in 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, 2016, 2015 and 2014 of $2.4 million, $2.1 million and $0.6 million, respectively. (3) On May 18, 2016, all subordinated units converted into common units on a one-for-one (4) 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, 2016, 2015 and 2014 was $2.4 million, $2.1 million and $0.6 million, respectively. (5) Refers to cash distributions declared and paid during the period. (6) Refers to cash distributions declared and paid subsequent to December 31, 2016. |
Subsequent Events (Tables)
Subsequent Events (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Purchase Price of Each Transaction | 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 Raquel Knutsen December 1, 2016 Final Ingrid Knutsen October 15, 2015 Final Dan Sabia June 15, 2015 Final Dan Cisne December 15, 2014 Final Hilda Knutsen and Torill Knutsen June 30, 2014 Purchase price (1) $ 20,252 $ 12,863 $ 41,186 $ 18,230 $ 114,293 Less: Fair value of net assets acquired: Vessel and equipment (2) 116,751 115,000 103,389 103,400 335,000 Cash 7,146 4,744 4,343 1,574 8,997 Inventories 307 144 — — 395 Other current assets 183 188 25 — 1,939 Amounts due from related parties 59 1 935 — 4 Long-term debt (79,950 ) (84,275 ) (64,470 ) (82,164 ) (221,812 ) Long-term debt from related parties (24,019 ) (20,253 ) — — — Deferred debt issuance 1,059 — — — — Other long-term liabilities — — — — (4,774 ) Derivatives liabilities 207 — (802 ) (968 ) (348 ) Trade accounts payable (167 ) (94 ) (4 ) (35 ) (390 ) Accrued expenses (1,179 ) (1,555 ) (335 ) (825 ) (1,360 ) Prepaid charter and deferred revenue — (762 ) (442 ) — (1,487 ) Amount due to related parties (145 ) (275 ) (1,453 ) (2,752 ) (2,338 ) Subtotal 20,252 12,863 41,186 18,230 113,826 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 Raquel Knutsen December 1, 2016 Final Ingrid Knutsen October 15, 2015 Final Dan Sabia December 15, 2014 Final Dan Cisne December 15, 2014 Final Hilda Knutsen and Torill Knutsen June 30, 2014 Cash consideration paid to KNOT (from KNOT) $ (12,019 ) $ 10,472 $ 38,531 $ 8,836 $ 113,306 Purchase price adjustments 7,271 2,391 2,655 (2,606 ) 987 Seller’s credit 12,981 — — 12,000 — Seller’s loan 12,019 — — — — Purchase price $ 20,252 $ 12,863 $ 41,186 $ 18,230 $ 114,293 (2) Vessel and equipment includes allocation to dry docking for the following vessels (in thousands): Raquel Knutsen Knutsen Hilda Knutsen Torill Knutsen Dan Sabia Dan Cisne (3) The goodwill recognized in connection with the acquisitions of the Hilda Knutsen Torill Knutsen |
Tordis Facility [Member] | |
Schedule of Purchase Price of Each Transaction | The provisional fair values allocated to each class of identifiable assets of KNOT 24 and the difference between the purchase price and net assets acquired was calculated as follows: (US $ in thousands) March 1, 2017 Purchase consideration (1) $ 31,243 Less: Fair value of net assets acquired: Vessel and equipment 147,000 Long-term debt (137,655 ) Receivable 21,103 Capitalized fee financing of the vessel 795 Other (2) Sub total 31,243 Difference between the purchase price and fair value of net assets acquired — (1) This includes the purchase consideration for KNOT 24 less the assumed bank debt plus certain intercompany balances and capitalized fees related to the financing of the Tordis Knutsen (2) This information (working capital adjustment) will be available upon finalization of the Tordis Knutsen |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 and 2014, giving effect to the Partnership’s acquisition and financing of the Dan Sabia Ingrid Knutsen Dan Sabia Ingrid Knutsen (U.S. Dollars in thousands) Unaudited 2015 Unaudited 2014 Revenue $ 173,116 $ 138,702 Net income 43,810 30,395 |
Raquel Knutsen [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, 2016 and 2015, giving effect to the Partnership’s acquisition and financing of the Raquel Knutsen Raquel Knutsen Raquel Knutsen Raquel Knutsen Raquel Knutsen (U.S. Dollars in thousands) Unaudited 2016 Unaudited 2015 Revenue $ 190,229 $ 164,477 Net income 65,101 38,401 |
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 year ended December 31, 2014, 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 Revenue $ 145,524 Net income $ 36,621 |
Equity Offerings (Tables)
Equity Offerings (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of Equity Offerings | (U.S. Dollars in thousands) 2016 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, 2016 | |
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, 2016, 2015 and 2014: (in units) Common Units Subordinated Units General Partner Units 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 Subordinated units converted to common units 8,567,500 (8,567,500 ) — December 31, 2016 27,194,094 — 558,674 |
Description of Business - Addit
Description of Business - Additional Information (Detail) $ / shares in Units, $ in Thousands | Feb. 02, 2017USD ($)$ / sharesshares | Jan. 10, 2017USD ($)shares | Jun. 02, 2015shares | Jul. 24, 2014shares | Jul. 14, 2014shares | Jun. 27, 2014shares | Jun. 30, 2015shares | Jul. 31, 2014shares | Jun. 30, 2014shares | Apr. 30, 2013shares | Dec. 31, 2016Tankershares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | Mar. 17, 2017USD ($) |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||||
Number of shuttle tankers to be acquired | Tanker | 4 | |||||||||||||
Initial public offering completion date | 2013-04 | |||||||||||||
Percentage of ownership interests to be acquired by Partnership in four shuttle tankers | 100.00% | |||||||||||||
Percentage of ownership interest | 49.00% | |||||||||||||
Percentage of interest held by general partner | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | |||||||||
Common units sold pursuant to the full exercise of underwriters' options | 490,000 | 150,000 | ||||||||||||
Total net proceeds from offering | $ | $ 121,224 | $ 152,014 | ||||||||||||
Subsequent Event [Member] | ||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||||
Percentage of interest held by general partner | 2.00% | |||||||||||||
Total net proceeds from offering | $ | $ 54,900 | |||||||||||||
Undrawn revolving credit facility amount | $ | $ 30,000 | |||||||||||||
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 | 2,025 | |||||||||||||
IPO [Member] | ||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||||
Common units issued to public | 8,567,500 | |||||||||||||
Percentage of incentive distribution rights | 100.00% | |||||||||||||
Common units sold pursuant to the full exercise of underwriters' options | 1,117,500 | 1,117,500 | ||||||||||||
Private Placement [Member] | Series A Preferred Unit [Member] | Subsequent Event [Member] | ||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||||
Preferred Units issued | 2,083,333 | |||||||||||||
Preferred Units issued, price per unit | $ / shares | $ 24 | |||||||||||||
Proceeds from private placement of Preferred Units | $ | $ 48,500 | |||||||||||||
Subordinated Units [Member] | IPO [Member] | ||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||||
Common units issued to public | 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 | 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 | 5,000,000 | 4,600,000 | 5,000,000 | 640,000 | 4,600,000 | 5,000,000 | 5,240,000 | |||||||
Common units sold pursuant to the full exercise of underwriters' options | 640,000 | |||||||||||||
Common Units [Member] | Subsequent Event [Member] | ||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||||
Common units issued to public | 2,500,000 | |||||||||||||
Common Units [Member] | IPO [Member] | ||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||||
Common units issued to public | 8,567,500 | |||||||||||||
Percentage of ownership interest | 49.00% |
Summary of Significant Accoun53
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2016USD ($)Reporting_Unit | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Summary Of Significant Accounting Policy [Line Items] | |||
Allowance for doubtful accounts | $ 0 | $ 0 | |
Number of reporting unit | Reporting_Unit | 1 | ||
Tonnage tax included in operating expenses | $ 161,655 | 132,000 | $ 126,000 |
Deferred debt issuance cost | $ 4,000,000 | 4,000,000 | |
Current Assets [Member] | Restatement Adjustment [Member] | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Deferred debt issuance cost | 1,200,000 | ||
Long-Term Assets [Member] | Restatement Adjustment [Member] | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Deferred debt issuance cost | $ 2,800,000 |
Summary of Significant Accoun54
Summary of Significant Accounting Policies - Schedule of Depreciation on Vessels and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
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 In55
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
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% | 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 | $ 147,023,000 | |||||||||
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 | ||||||||||
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 | 558,674 | 558,674 | ||||||||
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 | $ 2,400,000 | $ 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% |
Significant Risks and Uncerta56
Significant Risks and Uncertainties Including Business and Credit Concentrations - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Minimum [Member] | Revenues [Member] | Customer Concentration Risk [Member] | |||
Revenue, Major Customer [Line Items] | |||
Benchmark percentage of revenues and combined revenues concentration | 10.00% | 10.00% | 10.00% |
Significant Risks and Uncerta57
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue, Major Customer [Line Items] | |||
Revenues | $ 173,671 | $ 155,024 | $ 112,841 |
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 | 45,236 | 40,618 | 25,666 |
Eni Trading and Shipping S.p.A. [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenues | 47,001 | 46,806 | 23,512 |
Statoil ASA [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenues | 21,760 | 23,203 | 22,263 |
Repsol Sinopec Brasil, S.A., a Subsidiary of Repsol Sinopec Brasil, B.V. [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenues | 20,904 | 19,789 | 20,338 |
Brazil Shipping I Limited, a Subsidiary of Royal Dutch Shell [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenues | 20,496 | 4,466 | 12,124 |
Standard Marine Tonsberg, a Subsidiary of ExxonMobil [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenues | $ 17,482 | $ 3,637 | $ 12,124 |
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% | 26.00% | 23.00% |
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 | 27.00% | 30.00% | 21.00% |
Customer Concentration Risk [Member] | Revenues [Member] | Statoil ASA [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of combined revenues for customers | 13.00% | 15.00% | 20.00% |
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 | 12.00% | 13.00% | 18.00% |
Customer Concentration Risk [Member] | Revenues [Member] | Brazil Shipping I Limited, a Subsidiary of Royal Dutch Shell [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of combined revenues for customers | 12.00% | 3.00% | 11.00% |
Customer Concentration Risk [Member] | Revenues [Member] | Standard Marine Tonsberg, a Subsidiary of ExxonMobil [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of combined revenues for customers | 10.00% | 2.00% |
Operating Leases - Summary of M
Operating Leases - Summary of Minimum Contractual Future Revenues (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2,017 | $ 184,944 |
2,018 | 158,747 |
2,019 | 104,597 |
2,020 | 98,589 |
2,021 | 98,847 |
2022 and thereafter | 190,676 |
Total | $ 836,400 |
Operating Leases - Additional I
Operating Leases - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2019 |
Option to extend lease expiration date | 2024-05 |
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 |
Raquel Knutsen [Member] | |
Operating Leased Assets [Line Items] | |
Lease expiration period | Jun. 30, 2025 |
Option to extend lease expiration date | 2030-06 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2016BoatsTimesSegment | Dec. 31, 2015BoatsTimes | Dec. 31, 2014BoatsTimes | |
Revenue, Major Customer [Line Items] | |||
Number of reportable segments | Segment | 1 | ||
Number of time charters | Times | 7 | 6 | 5 |
Number of bareboat charters | Boats | 4 | 4 | 3 |
Minimum [Member] | Revenues [Member] | Customer Concentration Risk [Member] | |||
Revenue, Major Customer [Line Items] | |||
Benchmark percentage of revenues and combined revenues concentration | 10.00% | 10.00% | 10.00% |
Goodwill Impairment Charge - Ad
Goodwill Impairment Charge - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Impairment of vessels | $ 0 | ||
Goodwill impairment charge | $ 6,217,000 | ||
Goodwill | $ 0 | $ 0 | $ 0 |
Other Finance Expense - Reconci
Other Finance Expense - Reconciliation of Total Interest Cost to Interest Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Interest cost capitalized | $ 0 | $ 0 | $ 0 |
Interest expense | 20,867 | 17,451 | 15,271 |
Total interest cost | $ 20,867 | $ 17,451 | $ 15,271 |
Other Finance Expense - Summary
Other Finance Expense - Summary of Other Finance Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Bank fees, charges and external guarantee costs | $ 1,311 | $ 504 | $ 1,221 |
Related party financing service fee (Note 18) | 50 | ||
Total other finance expense | $ 1,311 | $ 504 | $ 1,271 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) NOK in Millions, $ in Millions | Dec. 31, 2016USD ($) | Dec. 31, 2016NOK | Dec. 31, 2015USD ($) | Dec. 31, 2015NOK |
Interest Rate Swap Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Notional amount of outstanding obligations | $ 446.7 | $ 410 | ||
Carrying amount of derivative liabilities | 0.8 | 3.6 | ||
Foreign Exchange Forward Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Notional amount of outstanding obligations | NOK | NOK 290.1 | NOK 289.8 | ||
Carrying amount of derivative liabilities | $ 1.3 | $ 2.1 |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized gain (loss) | $ 1,213 | $ (9,695) | $ (6,407) |
Unrealized gain (loss) | 5,033 | (390) | (3,910) |
Interest Rate Swap Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized gain (loss) | (3,886) | (4,957) | (2,997) |
Unrealized gain (loss) | 4,254 | (1,088) | (919) |
Foreign Exchange Forward Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized gain (loss) | 66 | (4,348) | 500 |
Unrealized gain (loss) | $ 779 | $ 698 | $ (2,991) |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amounts and Estimated Fair Values of Partnership 's Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Financial assets: | ||||
Cash and cash equivalents | $ 27,664 | $ 23,573 | $ 30,746 | $ 28,836 |
Non-current derivative assets | 3,154 | 695 | ||
Financial liabilities: | ||||
Current derivative liabilities | 3,304 | 5,138 | ||
Non-current derivative liabilities | 285 | 1,232 | ||
Long-term debt, current and non-current | 745,649 | 671,690 | ||
Interest Rate Swap Contracts [Member] | ||||
Financial assets: | ||||
Non-current derivative assets | 3,154 | 695 | ||
Financial liabilities: | ||||
Current derivative liabilities | 2,039 | 3,799 | ||
Non-current derivative liabilities | 285 | 527 | ||
Foreign Exchange Forward Contracts [Member] | ||||
Financial liabilities: | ||||
Current derivative liabilities | 1,265 | 1,339 | ||
Non-current derivative liabilities | 705 | |||
Carrying Amount [Member] | ||||
Financial assets: | ||||
Cash and cash equivalents | 27,664 | 23,573 | ||
Financial liabilities: | ||||
Long-term debt, current and non-current | 745,649 | 671,690 | ||
Carrying Amount [Member] | Interest Rate Swap Contracts [Member] | ||||
Financial assets: | ||||
Non-current derivative assets | 3,154 | 695 | ||
Financial liabilities: | ||||
Current derivative liabilities | 2,039 | 3,799 | ||
Non-current derivative liabilities | 285 | 527 | ||
Carrying Amount [Member] | Foreign Exchange Forward Contracts [Member] | ||||
Financial liabilities: | ||||
Current derivative liabilities | 1,265 | 1,339 | ||
Non-current derivative liabilities | 705 | |||
Fair Value [Member] | ||||
Financial assets: | ||||
Cash and cash equivalents | 27,664 | 23,573 | ||
Financial liabilities: | ||||
Long-term debt, current and non-current | 745,434 | 671,690 | ||
Fair Value [Member] | Interest Rate Swap Contracts [Member] | ||||
Financial assets: | ||||
Non-current derivative assets | 3,154 | 695 | ||
Financial liabilities: | ||||
Current derivative liabilities | 2,039 | 3,799 | ||
Non-current derivative liabilities | 285 | 527 | ||
Fair Value [Member] | Foreign Exchange Forward Contracts [Member] | ||||
Financial liabilities: | ||||
Current derivative liabilities | $ 1,265 | 1,339 | ||
Non-current derivative liabilities | $ 705 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred debt issuance cost | $ 4,000,000 | $ 4,000,000 |
Restricted cash | $ 0 | $ 0 |
Interest Rate Swap Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted average remaining terms | 3 years 6 months | 4 years 2 months 12 days |
Minimum [Member] | Interest Rate Swap Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional amount | $ 12,663 | |
Fixed interest rate | 1.25% | 1.25% |
Maximum [Member] | Interest Rate Swap Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional amount | $ 50,000 | |
Fixed interest rate | 2.49% | 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, 2016 | Dec. 31, 2015 |
Financial assets: | ||
Cash and cash equivalents | $ 27,664 | $ 23,573 |
Non-current derivative assets | 3,154 | 695 |
Financial liabilities: | ||
Current derivative liabilities | 3,304 | 5,138 |
Non-current derivative liabilities | 285 | 1,232 |
Long-term debt, current and non-current | 745,649 | 671,690 |
Foreign Exchange Forward Contracts [Member] | ||
Financial liabilities: | ||
Current derivative liabilities | 1,265 | 1,339 |
Non-current derivative liabilities | 705 | |
Interest Rate Swap Contracts [Member] | ||
Financial assets: | ||
Non-current derivative assets | 3,154 | 695 |
Financial liabilities: | ||
Current derivative liabilities | 2,039 | 3,799 |
Non-current derivative liabilities | 285 | 527 |
Quoted Price in Active Markets for Identical Assets (Level 1) [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 27,664 | 23,573 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Financial liabilities: | ||
Long-term debt, current and non-current | 743,898 | 671,690 |
Significant Other Observable Inputs (Level 2) [Member] | Foreign Exchange Forward Contracts [Member] | ||
Financial liabilities: | ||
Current derivative liabilities | 1,265 | 1,339 |
Non-current derivative liabilities | 705 | |
Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Swap Contracts [Member] | ||
Financial assets: | ||
Non-current derivative assets | 3,154 | 695 |
Financial liabilities: | ||
Current derivative liabilities | 2,039 | 3,799 |
Non-current derivative liabilities | $ 285 | $ 527 |
Trade Accounts Receivables an69
Trade Accounts Receivables and Other Current Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Receivables [Abstract] | ||
Provision for doubtful accounts | $ 0 | $ 0 |
Trade Accounts Receivables an70
Trade Accounts Receivables and Other Current Assets - Schedule of Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Refund of value added tax | $ 653 | $ 596 |
Prepaid expenses | 1,109 | 707 |
Other receivable | 327 | 497 |
Total other current assets | $ 2,089 | $ 1,800 |
Vessels and Equipment - Schedul
Vessels and Equipment - Schedule of Property Plant and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation, beginning balance | $ (158,292) | $ (109,464) | |
Accumulated depreciation, disposals for the period | 2,498 | 16 | |
Depreciation | (56,230) | (48,844) | $ (34,322) |
Accumulated depreciation, ending balance | (212,024) | (158,292) | (109,464) |
Net vessels, beginning balance | 1,192,927 | 1,021,857 | |
Additions | 115,934 | 218,540 | |
Drydock costs | 4,258 | 1,625 | |
Disposal | (251) | ||
Depreciation | (56,230) | (48,844) | (34,322) |
Net vessels, ending balance | 1,256,889 | 1,192,927 | 1,021,857 |
Vessel & Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Vessel and equipment, beginning balance | 1,351,219 | 1,131,321 | |
Additions | 115,934 | 218,540 | |
Drydock costs | 4,258 | 1,625 | |
Disposal | (2,498) | (267) | |
Vessel and equipment, ending balance | $ 1,468,913 | $ 1,351,219 | $ 1,131,321 |
Vessels and Equipment - Additio
Vessels and Equipment - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Abstract] | ||
Book value of assets pledged | $ 1,257 | $ 1,193 |
Vessels and Equipment - Summary
Vessels and Equipment - Summary of Drydocking Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | ||
Balance at the beginning of the year | $ 5,267 | $ 5,874 |
Costs incurred for drydocking | 2,595 | 362 |
Costs allocated to drydocking as part of acquisition of business | 1,663 | 1,263 |
Drydock depreciation | (2,563) | (2,232) |
Balance at the end of the year | $ 6,962 | $ 5,267 |
Intangible Assets and Contrac74
Intangible Assets and Contract Liabilities - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2010 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Finite-lived intangible assets | $ 533 | ||
Accumulated amortization for contract liabilities | $ 8,458 | $ 6,940 |
Intangible Assets and Contrac75
Intangible Assets and Contract Liabilities - Schedule of Intangible Assets and Contract Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Unfavorable contract rights, Beginning Balance | $ (11,275) | $ (12,793) |
Amortization | 1,518 | 1,518 |
Unfavorable contract rights, Ending Balance | $ (9,757) | $ (11,275) |
Intangible Assets and Contrac76
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, 2016USD ($) |
Below Market Lease, Net, Amortization Income, Fiscal Year Maturity [Abstract] | |
2,017 | $ (1,518) |
2,018 | (1,518) |
2,019 | (1,518) |
2,020 | (1,518) |
2021 and thereafter | $ (3,685) |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule Of Accrued Expenses [Abstract] | ||
Operating expenses | $ 116 | $ 1,364 |
Interest expenses | 2,587 | 2,130 |
Other expenses | 665 | 394 |
Total accrued expenses | $ 3,368 | $ 3,888 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2014USD ($)CreditFacility | Dec. 31, 2016USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($) | Nov. 30, 2014USD ($) | |
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 | $ 745,649,000 | $ 671,690,000 | |||
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 2.0% to 4.5%. | ||||
Partnership's Loan Agreements [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Long term debt fixed margin percentage | 2.00% | ||||
Partnership's Loan Agreements [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Long term debt fixed margin percentage | 4.50% | ||||
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 | ||||
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% | ||||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
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 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Total | $ 745,649 | $ 671,690 |
Less: current installments | 60,314 | 49,684 |
Less: unamortized deferred loan issuance costs | 1,330 | 1,149 |
Current portion of long-term debt | 58,984 | 48,535 |
Amounts due after one year | 685,335 | 622,006 |
Less: unamortized deferred loan issuance costs | 2,673 | 2,819 |
Less long-term debt from related parties | 25,000 | |
Long-term debt less current installments, Seller's Credit and Seller's Loan and unamortized deferred loan issuance costs | 657,662 | 619,187 |
220 Million Secured Loan Facility [Member] | Windsor Knutsen Bodil Knutsen Carmen Knutsen [Member] | ||
Debt Instrument [Line Items] | ||
Total | 180,714 | 196,429 |
35 Million Revolving Credit Facility [Member] | Windsor Knutsen Bodil Knutsen Carmen Knutsen [Member] | ||
Debt Instrument [Line Items] | ||
Total | 25,000 | |
140 Million Loan Facility [Member] | Fortaleza Knutsen and Recife Knutsen [Member] | ||
Debt Instrument [Line Items] | ||
Total | 118,125 | 126,875 |
117 Million Loan Facility [Member] | Hilda Knutsen [Member] | ||
Debt Instrument [Line Items] | ||
Total | 76,871 | 81,797 |
117 Million Loan Facility [Member] | Torill Knutsen [Member] | ||
Debt Instrument [Line Items] | ||
Total | 78,105 | 83,033 |
172.5 Million Loan Facility [Member] | Dan Cisne Dan Sabia [Member] | ||
Debt Instrument [Line Items] | ||
Total | 100,539 | 109,339 |
77.5 Million Loan Facility [Member] | Ingrid Knutsen [Member] | ||
Debt Instrument [Line Items] | ||
Total | 67,652 | $ 74,217 |
74.5 Million Secured Loan Facility [Member] | Raquel Knutsen [Member] | ||
Debt Instrument [Line Items] | ||
Total | 73,643 | |
25 Million Seller's Credit and Seller's Loan [Member] | ||
Debt Instrument [Line Items] | ||
Less long-term debt from related parties | 25,000 | |
25 Million Seller's Credit and Seller's Loan [Member] | Raquel Knutsen [Member] | ||
Debt Instrument [Line Items] | ||
Total | $ 25,000 |
Long-Term Debt - Schedule of 80
Long-Term Debt - Schedule of Long-Term Debt (Parenthetical) (Detail) | Dec. 31, 2016USD ($) |
220 Million Secured Loan Facility [Member] | Windsor Knutsen Bodil Knutsen Carmen Knutsen [Member] | |
Debt Instrument [Line Items] | |
Debt instrument face amount | $ 220,000,000 |
35 Million Revolving Credit Facility [Member] | Windsor Knutsen Bodil Knutsen Carmen Knutsen [Member] | |
Debt Instrument [Line Items] | |
Debt instrument face amount | 35,000,000 |
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 |
74.5 Million Secured Loan Facility [Member] | Raquel Knutsen [Member] | |
Debt Instrument [Line Items] | |
Debt instrument face amount | 74,500,000 |
25 Million Seller's Credit and Seller's Loan [Member] | Raquel Knutsen [Member] | |
Debt Instrument [Line Items] | |
Debt instrument face amount | $ 25,000,000 |
Long-Term Debt - Summary of Par
Long-Term Debt - Summary of Partnership's Outstanding Debt Repayable (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instruments [Abstract] | ||
2,017 | $ 60,314 | |
2,018 | 208,651 | |
2,019 | 291,490 | |
2,020 | 22,879 | |
2,021 | 48,479 | |
2022- thereafter | 113,836 | |
Total | $ 745,649 | $ 671,690 |
Long-Term Debt - Additional I82
Long-Term Debt - Additional Information - $220 Million Term Loan Facility and $35 Million Revolving Credit Facility (Detail) - USD ($) | Jun. 30, 2016 | Jun. 30, 2014 | Dec. 31, 2016 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||||
Line of credit facility expiration date | Dec. 31, 2018 | |||
Minimum liquidity of Partnership | $ 18,000,000 | |||
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 | |||
10.5 Million Seller's Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Repayment of existing credit facility | 10,500,000 | |||
240 Million Secured Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Minimum liquidity of Partnership | $ 18,000,000 | |||
Minimum book equity ratio for Partnership | 30.00% | |||
Minimum EBITDA to interest ratio | 2.50% | |||
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] | 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% | |||
35 Million Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior secured credit facility | 35,000,000 | $ 5,000,000 | ||
Long term debt interest rate percentage | 2.125% | |||
Long term debt interest rate description | LIBOR plus a fixed margin of 2.125% | |||
Line of credit facility commitment fee percentage | 40.00% | |||
Line of credit facility expiration date | Jun. 30, 2019 | |||
Line of credit facility remaining borrowing capacity | $ 10,000,000 | |||
Amended Senior Secured Loan Facility [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior secured credit facility | $ 35,000,000 | |||
Long term debt interest rate percentage | 2.50% | |||
Line of credit facility commitment fee percentage | 40.00% | |||
Line of credit facility expiration date | Jun. 30, 2019 | |||
Additional borrowing capacity after amendment | $ 15,000,000 | |||
Term Loan Facility [Member] | 220 Million Secured Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior secured credit facility | 220,000,000 | |||
Senior Secured Loan Facility [Member] | 240 Million Secured Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior secured credit facility | $ 240,000,000 | |||
Term Loan [Member] | 240 Million Secured Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Long term debt interest rate percentage | 2.125% | |||
Long term debt interest rate description | LIBOR plus a margin of 2.125%. | |||
Line of credit facility expiration date | Jun. 30, 2019 | |||
Line of credit facility expiration period | 5 years |
Long-Term Debt - Additional I83
Long-Term Debt - Additional Information - $117 Million Hilda Loan Facility (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2011 | Dec. 31, 2016 | Dec. 31, 2014 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 745,649,000 | $ 671,690,000 | ||
Line of credit facility expiration date | Dec. 31, 2018 | |||
Minimum liquidity of Partnership | $ 18,000,000 | |||
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 | $ 18,000,000 | |||
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 I84
Long-Term Debt - Additional Information - $117 Million Torill Loan Facility (Detail) - USD ($) | Nov. 30, 2011 | Dec. 31, 2016 | Dec. 31, 2014 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 745,649,000 | $ 671,690,000 | ||
Maturity date of secured loan facility | Dec. 31, 2018 | |||
Minimum liquidity of Partnership | $ 18,000,000 | |||
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 | $ 18,000,000 | |||
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 I85
Long-Term Debt - Additional Information - $140 Million Secured Loan Facility (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2014 | Dec. 31, 2016 | Dec. 31, 2014 | Jun. 30, 2014 | Nov. 30, 2014 | |
Debt Instrument [Line Items] | |||||
Maturity date of secured loan facility | Dec. 31, 2018 | ||||
Minimum liquidity of Partnership | $ 18,000,000 | ||||
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 | $ 18,000,000 | ||||
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 I86
Long-Term Debt - Additional Information - $172.5 Million Secured Loan Facility (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2014 | Dec. 31, 2016 | Dec. 31, 2014 | Apr. 01, 2014 | |
Debt Instrument [Line Items] | ||||
Maturity date of secured loan facility | Dec. 31, 2018 | |||
Minimum liquidity of Partnership | $ 18,000,000 | |||
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 | $ 18,000,000 | |||
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 I87
Long-Term Debt - Additional Information - $77.5 Million Secured Loan Facility (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2014 | Dec. 31, 2015 | Jun. 30, 2012 | |
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 745,649,000 | $ 671,690,000 | ||
Maturity date of secured loan facility | Dec. 31, 2018 | |||
Minimum liquidity of Partnership | $ 18,000,000 | |||
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 I88
Long-Term Debt - Additional Information - $74.5 Million Secured Loan Facility (Detail) | 1 Months Ended | 12 Months Ended |
Dec. 31, 2014USD ($) | Dec. 31, 2014USD ($) | |
Debt Instrument [Line Items] | ||
Minimum liquidity of Partnership | $ 18,000,000 | |
Vessel Acquired [Member] | ||
Debt Instrument [Line Items] | ||
Increase in minimum liquidity of partnership | 1,000,000 | |
74.5 Million Secured Loan Facility [Member] | Raquel Facility [Member] | ||
Debt Instrument [Line Items] | ||
Senior secured credit facility | $ 90,000,000 | 90,000,000 |
Aggregate amount outstanding | 74,500,000 | 74,500,000 |
Final balloon payment to be paid | $ 30,500,000 | $ 30,500,000 |
Credit facility maturity date | Mar. 31, 2025 | |
Credit facility interest rate | 2.00% | |
Long term debt interest rate description | LIBOR plus a margin of 2.0% | |
Minimum liquidity of Partnership | $ 18,000,000 | |
Minimum book equity ratio for Partnership | 30.00% | |
74.5 Million Secured Loan Facility [Member] | Raquel Facility [Member] | First Three Years [Member] | ||
Debt Instrument [Line Items] | ||
Market value percentage of secured loan facility outstanding balance | 100.00% | |
74.5 Million Secured Loan Facility [Member] | Raquel Facility [Member] | Thereafter [Member] | ||
Debt Instrument [Line Items] | ||
Market value percentage of secured loan facility outstanding balance | 125.00% | |
74.5 Million Secured Loan Facility [Member] | Raquel Facility [Member] | Vessel Acquired [Member] | ||
Debt Instrument [Line Items] | ||
Increase in minimum liquidity of partnership | $ 1,000,000 | |
74.5 Million Secured Loan Facility [Member] | Raquel Facility [Member] | Vessel Owned [Member] | ||
Debt Instrument [Line Items] | ||
Increase in minimum liquidity of partnership | $ 1,500,000 |
Long-Term Debt - Additional I89
Long-Term Debt - Additional Information - $25 Million Secured Loan Facility (Detail) | 1 Months Ended | 12 Months Ended |
Dec. 31, 2016USD ($) | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||
Credit facility amount | $ 20,000,000 | $ 20,000,000 |
Sellers Credit [Member] | Raquel Knutsen [Member] | 25 Million Seller's Credit and Seller's Loan [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility amount | 13,000,000 | 13,000,000 |
Sellers Loan [Member] | Raquel Knutsen [Member] | 25 Million Seller's Credit and Seller's Loan [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility amount | 12,000,000 | 12,000,000 |
Sellers Credit and Sellers Loan [Member] | Raquel Knutsen [Member] | 25 Million Seller's Credit and Seller's Loan [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility amount | $ 25,000,000 | $ 25,000,000 |
Credit facility maturity date | Dec. 31, 2021 | |
Credit facility interest rate description | LIBOR plus a fixed margin of 4.5% | |
Credit facility interest rate | 4.50% | |
Credit facility repayment date | Jan. 13, 2017 |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Income before income taxes | $ 61,087 | $ 40,383 | $ 27,407 |
Income Taxes - Components of Cu
Income Taxes - Components of Current and Deferred Income Tax Expense Attributable to Income from Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Current tax benefit (expense) | $ (14) | $ (11) | $ (15) |
Deferred tax benefit (expense) | 29 | 70 | |
Income tax benefit (expense) | $ 15 | $ 59 | $ (15) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Jan. 01, 2017 | Jan. 01, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 |
Income Tax Rate Reconciliation [Line Items] | |||||||||
Income tax expense from continuing operations | $ 15,000 | $ 59,000 | $ (15,000) | ||||||
Norwegian corporate tax rate | 25.00% | 27.00% | 27.00% | ||||||
Valuation allowances | $ 12,366,000 | $ 10,320,000 | |||||||
Deferred tax assets | 0 | 0 | |||||||
Entrance tax | $ 685,000 | 877,000 | $ 3,000,000 | ||||||
Entrance tax, annual decline in gain | 20.00% | ||||||||
Entrance tax payable | $ 900,000 | $ 1,100,000 | $ 1,800,000 | $ 2,700,000 | |||||
Income tax rate, deferred tax liabilities | 25.00% | 25.00% | 27.00% | ||||||
Estimated income tax payable | $ 200,000 | $ 200,000 | 400,000 | ||||||
Entrance tax paid, current | $ 200,000 | 300,000 | |||||||
Entrance tax payable, non current | 700,000 | 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 Tax Rate Reconciliation [Line Items] | |||||||||
Norwegian corporate tax rate | 20.00% | ||||||||
Income tax expense | $ (14,000) | $ (11,000) | $ (15,000) | ||||||
Scenario, Forecast [Member] | |||||||||
Income Tax Rate Reconciliation [Line Items] | |||||||||
Entrance tax paid, current | $ 200,000 | ||||||||
Subsequent Event [Member] | |||||||||
Income Tax Rate Reconciliation [Line Items] | |||||||||
Norwegian corporate tax rate | 24.00% | ||||||||
Income tax rate, deferred tax liabilities | 24.00% |
Income Taxes - Summary of Taxat
Income Taxes - Summary of Taxation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Rate Reconciliation [Line Items] | |||
Income tax benefit (expense) | $ 15 | $ 59 | $ (15) |
Effective tax rate | 0.00% | 0.00% | 0.00% |
Norwegian Tonnage Tax Regime [Member] | |||
Income Tax Rate Reconciliation [Line Items] | |||
Income tax benefit (expense) | $ 29 | $ 70 | |
UK [Member] | |||
Income Tax Rate Reconciliation [Line Items] | |||
Income tax benefit (expense) | $ 14 | $ 11 | $ 15 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2013 |
Deferred tax assets: | ||||
Total deferred tax asset | $ 12,366 | $ 10,320 | ||
Less valuation allowance | (12,366) | (10,320) | ||
Net deferred tax asset | 0 | 0 | ||
Deferred tax liabilities: | ||||
Entrance tax | 685 | 877 | $ 3,000 | |
Total deferred tax liabilities | 685 | 877 | ||
Net deferred tax liabilities | 685 | 877 | $ 1,402 | |
Norwegian Ordinary Tax Regime [Member] | ||||
Deferred tax assets: | ||||
Tax loss carry forwards | 12,352 | 10,314 | ||
Interest Rate Swap Contracts [Member] | ||||
Deferred tax assets: | ||||
Interest rate swaps | $ 14 | $ 6 |
Income Taxes - Classification o
Income Taxes - Classification of Net Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | |||
Current deferred tax asset | $ 0 | $ 0 | |
Non-current deferred tax liabilities | 685 | 877 | |
Net deferred tax liabilities | $ 685 | $ 877 | $ 1,402 |
Income Taxes - Changes in Net D
Income Taxes - Changes in Net Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Net deferred tax liabilities at January 1 | $ 877 | $ 1,402 |
Change in temporary differences | (207) | (307) |
Translation differences | 15 | (218) |
Net deferred tax liabilities at December 31 | $ 685 | $ 877 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | Oct. 15, 2015 | Jun. 30, 2015 | Dec. 15, 2014 | Jun. 30, 2014 | Dec. 31, 2016 | Dec. 01, 2016 |
Related Party Transaction [Line Items] | ||||||
Ownership percentage by parent | 100.00% | |||||
Partnership agreement, description | The Partnership is a party to 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. | |||||
Credit facility amount | $ 20,000,000 | |||||
Raquel Knutsen [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Business acquisition purchase price settlement, loan | $ 12,981,000 | |||||
Business acquisition, percentage of interest acquired | 100.00% | 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 | 12,000 | |||||
Chairman Fee [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Management and Directors, Compensation | 3,000 | |||||
Seller's Credit [Member] | KNOT Shuttle Tankers 20 AS [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Business acquisition purchase price settlement, loan | $ 12,000,000 | |||||
Sellers Credit and Sellers Loan [Member] | 25 Million Seller's Credit and Seller's Loan [Member] | Raquel Knutsen [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Credit facility amount | $ 25,000,000 | |||||
Credit facility repayment date | Jan. 13, 2017 | |||||
Omnibus Agreement [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Environmental claims indemnification deductible | $ 500,000 | |||||
Environmental claims indemnification liabilities aggregate cap | $ 5,000,000 | |||||
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% |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Costs and Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Total income (expenses) | $ (4,338) | $ 11,749 | $ 5,448 |
KNOT [Member] | Charter Revenues [Member] | |||
Related Party Transaction [Line Items] | |||
Time charter and bareboat revenues | 16,231 | 8,881 | |
KNOT [Member] | Guarantee Income [Member] | |||
Related Party Transaction [Line Items] | |||
Other income | 770 | 122 | |
KNOT [Member] | Technical and Operational Management Fee [Member] | |||
Related Party Transaction [Line Items] | |||
Operating expenses | 2,971 | 2,420 | 1,764 |
KNOT [Member] | General and Administrative Expenses [Member] | |||
Related Party Transaction [Line Items] | |||
Administration fee | 1,279 | 1,134 | 667 |
KNOT [Member] | Administration and Management Fee [Member] | |||
Related Party Transaction [Line Items] | |||
Administration fee | 203 | 170 | 99 |
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 | (128) | (268) | (277) |
KOAS [Member] | General and Administrative Expenses [Member] | |||
Related Party Transaction [Line Items] | |||
Administration fee | 382 | 461 | 425 |
KOAS UK [Member] | General and Administrative Expenses [Member] | |||
Related Party Transaction [Line Items] | |||
Administration fee | $ 145 | $ 151 | $ 151 |
Related Party Transactions - 99
Related Party Transactions - Schedule of Dues Payables to Related Party (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Related Party Transaction [Line Items] | |
Drydocking supervision fee | $ 54 |
KNOT [Member] | |
Related Party Transaction [Line Items] | |
Drydocking supervision fee | 38 |
KOAS [Member] | |
Related Party Transaction [Line Items] | |
Drydocking supervision fee | $ 16 |
Related Party Transactions -100
Related Party Transactions - Schedule of Related Party Costs and Expenses (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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 (to) Related Parties (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Balance Sheets: | ||
Amount due from related parties | $ 150 | $ 58 |
Amount due to related parties | 834 | 848 |
KOAS [Member] | ||
Balance Sheets: | ||
Amount due from related parties | 108 | 10 |
Amount due to related parties | 543 | 448 |
KNOT [Member] | ||
Balance Sheets: | ||
Amount due from related parties | 42 | 48 |
Amount due to related parties | $ 291 | $ 400 |
Related Party Transactions -102
Related Party Transactions - Schedule of Trade Accounts Payables to Related Parties (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Balance Sheets: | ||
Amount due to related parties | $ 834 | $ 848 |
Trade Accounts Payables [Member] | ||
Balance Sheets: | ||
Amount due to related parties | 1,121 | 1,011 |
Trade Accounts Payables [Member] | KOAS [Member] | ||
Balance Sheets: | ||
Amount due to related parties | 727 | 651 |
Trade Accounts Payables [Member] | KNOT [Member] | ||
Balance Sheets: | ||
Amount due to related parties | $ 394 | $ 360 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Loss Contingencies [Line Items] | |||
Book value of assets pledged as security | $ 1,257,000,000 | $ 1,193,000,000 | |
Accrued claim | 0 | $ 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 |
Earnings per Unit and Cash D104
Earnings per Unit and Cash Distributions - Schedule of Calculations of Basic and Diluted Earnings per Unit (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Unit Basic And Diluted [Line Items] | |||
Net income attributable to the members of KNOT Offshore Partners LP | $ 61,102 | $ 40,442 | $ 27,392 |
Less: Distributions | 61,528 | 56,921 | 40,481 |
Over distributed earnings | (426) | (16,479) | (13,089) |
Under (over) distributed earnings attributable to: | |||
Under (over) distributed earnings to limited partners | 59,846 | 39,675 | 26,856 |
Under (over) distributed earnings to general partners | $ 1,256 | $ 767 | $ 536 |
Earnings per unit (basic and diluted): | |||
Cash distributions declared and paid in the period per unit | $ 2.080 | $ 2.030 | $ 1.795 |
Subsequent event: Cash distributions declared and paid per unit relating to the period | $ 0.520 | $ 0.520 | $ 0.490 |
Common Units [Member] | |||
Earnings Per Unit Basic And Diluted [Line Items] | |||
Net income attributable to the members of KNOT Offshore Partners LP | $ 54,794 | $ 25,038 | $ 15,349 |
Under (over) distributed earnings attributable to: | |||
Under (over) distributed earnings to limited partners | $ (417) | $ (11,060) | $ (7,916) |
Weighted average units outstanding (basic and diluted) | |||
Weighted average units outstanding, basic and diluted | 23,917 | 16,705 | 11,209 |
Earnings per unit (basic and diluted): | |||
Earnings per unit, basic and diluted | $ 2.291 | $ 1.499 | $ 1.369 |
Subordinated Units [Member] | |||
Earnings Per Unit Basic And Diluted [Line Items] | |||
Net income attributable to the members of KNOT Offshore Partners LP | $ 5,052 | $ 14,637 | $ 11,507 |
Under (over) distributed earnings attributable to: | |||
Under (over) distributed earnings to limited partners | $ (5,087) | $ (4,912) | |
Weighted average units outstanding (basic and diluted) | |||
Weighted average units outstanding, basic and diluted | 3,277 | 8,568 | 8,568 |
Earnings per unit (basic and diluted): | |||
Earnings per unit, basic and diluted | $ 1.542 | $ 1.708 | $ 1.343 |
General Partner Unit [Member] | |||
Earnings Per Unit Basic And Diluted [Line Items] | |||
Net income attributable to the members of KNOT Offshore Partners LP | $ 1,256 | $ 767 | $ 536 |
Under (over) distributed earnings attributable to: | |||
Under (over) distributed earnings to general partners | $ (9) | $ (332) | $ (261) |
Weighted average units outstanding (basic and diluted) | |||
Weighted average units outstanding, basic and diluted | 559 | 516 | 404 |
Earnings per unit (basic and diluted): | |||
Earnings per unit, basic and diluted | $ 2.248 | $ 1.487 | $ 1.329 |
Earnings per Unit and Cash D105
Earnings per Unit and Cash Distributions - Schedule of Calculations of Basic and Diluted Earnings per Unit (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Unit Basic And Diluted [Line Items] | |||
Subordinated units converted in to common units | One-for-one basis | ||
Net Income | $ (426) | $ (16,479) | $ (13,089) |
KNOT [Member] | |||
Earnings Per Unit Basic And Diluted [Line Items] | |||
Cash distributions | 2,400 | 2,100 | 600 |
IDR Holders [Member] | |||
Earnings Per Unit Basic And Diluted [Line Items] | |||
Net Income | $ 2,400 | $ 2,100 | $ 600 |
Earnings per Unit and Cash D106
Earnings per Unit and Cash Distributions - Additional Information (Detail) - $ / shares | Jun. 02, 2015 | Jun. 27, 2014 | Apr. 30, 2013 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2016 | 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% | 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 | 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 | $ 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] | KNOT [Member] | Maximum [Member] | |||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||
Percentage of operating surplus distributed to unitholders | 48.00% | 48.00% | 48.00% | 48.00% | |||||||
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 | 27,194,094 | 27,194,094 | 18,626,594 | ||||||||
Percentage of partnership's units | 68.20% | ||||||||||
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 | 558,674 | 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 | 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] | |||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||
Number of common units and subordinated units outstanding | 8,567,500 | ||||||||||
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 | 8,567,500 | |||||||||
Percentage of partnership's units | 31.50% | ||||||||||
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, 2016 | Dec. 01, 2016 | 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, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Jul. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||||||||||||||||||||
Acquisition related costs | $ 100 | $ 100 | $ 100 | ||||||||||||||||||
Revenues | $ 173,671 | $ 155,024 | $ 112,841 | ||||||||||||||||||
Net Income | $ (426) | $ (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 | ||||||||||||||||||||
Purchase price adjustments | 2,700 | $ 2,655 | |||||||||||||||||||
Revenues | $ 5,500 | ||||||||||||||||||||
Net Income | $ 2,200 | ||||||||||||||||||||
Business acquisition, outstanding debt | $ 64,470 | ||||||||||||||||||||
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 | ||||||||||||||||||||
Purchase price adjustments | (2,606) | ||||||||||||||||||||
Revenues | $ 500 | ||||||||||||||||||||
Net Income | $ 900 | ||||||||||||||||||||
Business acquisition, outstanding debt | $ 82,164 | ||||||||||||||||||||
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 | |||||||||||||||||||
Purchase price adjustments | 987 | ||||||||||||||||||||
Business acquisition, outstanding debt | 221,812 | $ 221,812 | |||||||||||||||||||
Purchase price, working capital 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 | 104,500 | ||||||||||||||||||||
Purchase price adjustments | 2,391 | ||||||||||||||||||||
Revenues | $ 3,600 | ||||||||||||||||||||
Net Income | $ 1,000 | ||||||||||||||||||||
Business acquisition, outstanding debt | $ 84,275 | ||||||||||||||||||||
Carmen Knutsen [Member] | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Revenues | $ 23,500 | ||||||||||||||||||||
Net Income | $ 10,000 | ||||||||||||||||||||
Raquel Knutsen [Member] | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Business acquisition, percentage of interest acquired | 100.00% | 100.00% | 100.00% | 100.00% | |||||||||||||||||
Business acquisition, fair value of vessel and equipment acquired | $ 116,751 | ||||||||||||||||||||
Business acquisition, outstanding debt | 103,500 | ||||||||||||||||||||
Purchase price adjustments | 7,271 | ||||||||||||||||||||
Revenues | $ 1,500 | ||||||||||||||||||||
Net Income | $ 200 | ||||||||||||||||||||
Business acquisition, outstanding debt | $ 79,950 | ||||||||||||||||||||
Common Units [Member] | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Common units issued | 5,000,000 | 4,600,000 | 5,000,000 | 640,000 | 4,600,000 | 5,000,000 | 5,240,000 | ||||||||||||||
Common Units [Member] | Dan Sabia [Member] | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Common units issued | 5,000,000 |
Business Acquisitions - Schedul
Business Acquisitions - Schedule of Purchase Price of Each Transaction (Detail) - USD ($) | Dec. 01, 2016 | Oct. 15, 2015 | Jun. 15, 2015 | Dec. 15, 2014 | Jun. 30, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Less: Fair value of net assets acquired: | ||||||||
Deferred debt issuance | $ 4,000,000 | $ 4,000,000 | ||||||
Goodwill | $ 0 | $ 0 | $ 0 | |||||
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 | |||||||
Raquel Knutsen [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase price | $ 20,252,000 | |||||||
Less: Fair value of net assets acquired: | ||||||||
Vessel and equipment | 116,751,000 | |||||||
Cash | 7,146,000 | |||||||
Inventories | 307,000 | |||||||
Other current assets | 183,000 | |||||||
Amounts due from related parties | 59,000 | |||||||
Long-term debt | (79,950,000) | |||||||
Long-term debt from related parties | (24,019,000) | |||||||
Deferred debt issuance | 1,059,000 | |||||||
Derivatives liabilities | 207,000 | |||||||
Trade accounts payable | (167,000) | |||||||
Accrued expenses | (1,179,000) | |||||||
Amount due to related parties | (145,000) | |||||||
Subtotal | 20,252,000 | |||||||
Difference between the purchase price and allocated values | $ 0 |
Business Acquisitions - Sche109
Business Acquisitions - Schedule of Purchase Price of Each Transaction (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 01, 2016 | Oct. 15, 2015 | Jun. 15, 2015 | Dec. 15, 2014 | Jun. 30, 2014 | Dec. 31, 2016 |
Ingrid Knutsen [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash consideration paid to KNOT (from 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 (from 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 (from 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 (from KNOT) | $ 113,306 | |||||
Purchase price adjustments | 987 | |||||
Purchase price | 114,293 | |||||
Vessels and equipment | 335,000 | |||||
Hilda Knutsen [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Vessels and equipment | 166,000 | |||||
Torill Knutsen [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Vessels and equipment | $ 169,000 | |||||
Raquel Knutsen [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash consideration paid to KNOT (from KNOT) | $ (12,019) | |||||
Purchase price adjustments | 7,271 | |||||
Seller's credit | 12,981 | |||||
Seller's loan | 12,019 | |||||
Purchase price | 20,252 | |||||
Vessels and equipment | $ 116,751 | |||||
Dry Docking [Member] | Ingrid Knutsen [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Vessels and equipment | $ 1,263 | |||||
Dry Docking [Member] | Dan Sabia [Member] | Vessel Acquired [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price adjustments | 389 | |||||
Dry Docking [Member] | Dan Cisne [Member] | Vessel Acquired [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price adjustments | 400 | |||||
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 | |||||
Dry Docking [Member] | Raquel Knutsen [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Vessels and equipment | $ 1,663 |
Business Acquisitions - Sche110
Business Acquisitions - Schedule of Summarized Consolidated Pro Forma Financial Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Hilda Knutsen Torill Knutsen Dan Cisne [Member] | |||
Business Acquisition [Line Items] | |||
Revenue | $ 145,524 | ||
Net income | 36,621 | ||
Ingrid Knutsen Dan Sabia [Member] | |||
Business Acquisition [Line Items] | |||
Revenue | $ 173,116 | 138,702 | |
Net income | 43,810 | $ 30,395 | |
Raquel Knutsen [Member] | |||
Business Acquisition [Line Items] | |||
Revenue | $ 190,229 | 164,477 | |
Net income | $ 65,101 | $ 38,401 |
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 |
Equity [Abstract] | ||||
Gross proceeds received | $ 121,224 | $ 152,014 | ||
Less: Underwriters' discount | 4,300 | 4,991 | ||
Less: Offering expenses | 293 | 340 | ||
Net proceeds received | $ 116,600 | $ 146,700 | $ 116,631 | $ 146,683 |
Equity Offerings - Schedule 112
Equity Offerings - Schedule of Equity Offerings (Parenthetical) (Detail) | Jun. 02, 2015 | Jun. 27, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Equity [Abstract] | |||||
General Partner's proportional capital contribution, percentage | 2.00% | 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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Subsidiary or Equity Method Investee [Line Items] | |||||||||||
General partner's contribution | $ 2,400 | $ 2,700 | $ 400 | ||||||||
General partner interest in Partnership, percentage | 2.00% | 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 | |||||||
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 | 5,000,000 | 5,240,000 | ||||
Issuance of additional partnership common units | 690,000 | ||||||||||
Partnership units issued | 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 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Common Units [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Subordinated units converted to common units | 8,567,500 | |||||||||
Number of Units Issued | 5,000,000 | 4,600,000 | 5,000,000 | 640,000 | 4,600,000 | 5,000,000 | 5,240,000 | |||
Repurchase program | (180,906) | |||||||||
Number of Units | 27,194,094 | 18,626,594 | 13,807,500 | 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 | 558,674 | 558,674 | 456,633 | 349,694 | ||||||
Subordinated Units [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Subordinated units converted to common units | (8,567,500) | |||||||||
Number of Units | 8,567,500 | 8,567,500 | 8,567,500 |
Unit Activity - Additional Info
Unit Activity - Additional Information (Detail) - $ / shares | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Aug. 12, 2015 | |
Class of Stock [Line Items] | ||||
Subordinated units converted in to common units | One-for-one basis | |||
Common Units [Member] | ||||
Class of Stock [Line Items] | ||||
Partners' Capital Account, Units Purchased | 180,906 | |||
Partners capital account weighted average purchase price | $ 12.71 | |||
Number of Units | 8,567,500 | |||
Common Units [Member] | KNOT [Member] | ||||
Class of Stock [Line Items] | ||||
Partners' Capital Account, Units Purchased | 0 | 180,906 | ||
Common Units [Member] | General Partner [Member] | ||||
Class of Stock [Line Items] | ||||
Partners' Capital Account, Units Purchased | 0 | 90,368 | ||
Subordinated Units [Member] | ||||
Class of Stock [Line Items] | ||||
Number of Units | (8,567,500) | |||
Maximum [Member] | ||||
Class of Stock [Line Items] | ||||
Partnership authorized to repurchase common units | 485,761 | 666,667 | ||
General Partner authorized to repurchase common units | 242,965 | 333,333 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | Jun. 30, 2017 | Mar. 01, 2017 | Feb. 22, 2017 | Feb. 15, 2017 | Feb. 02, 2017 | Jan. 10, 2017 | Jun. 02, 2015 | Jun. 27, 2014 | Jun. 30, 2015 | Jul. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Subsequent Event [Line Items] | ||||||||||||||
Total net proceeds from offering | $ 121,224,000 | $ 152,014,000 | ||||||||||||
General partner interest in Partnership, percentage | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | |||||||||
Goodwill | $ 0 | $ 0 | $ 0 | |||||||||||
Series A Preferred Unit [Member] | Scenario, Forecast [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Additional preferred units issued | $ 49,000,000 | |||||||||||||
Common Units [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Common units issued | 5,000,000 | 4,600,000 | 5,000,000 | 640,000 | 4,600,000 | 5,000,000 | 5,240,000 | |||||||
Subsequent Event [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Total net proceeds from offering | $ 54,900,000 | |||||||||||||
General partner interest in Partnership, percentage | 2.00% | |||||||||||||
Decreased percentage of capital contribution by general partner | 1.85% | |||||||||||||
Cash distribution paid date | Feb. 15, 2017 | |||||||||||||
Cash distribution paid per unit | $ 0.52 | |||||||||||||
Cash distribution paid | $ 16,400,000 | |||||||||||||
Propeller maintenance expenses | $ 900,000 | |||||||||||||
Subsequent Event [Member] | Private Placement [Member] | Series A Preferred Unit [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Preferred Units issued, price per unit | $ 24 | |||||||||||||
Preferred Units, interest rate on issue price | 8.00% | |||||||||||||
Preferred Units issued | 2,083,333 | |||||||||||||
Proceeds from private placement of Preferred Units | $ 48,500,000 | |||||||||||||
Subsequent Event [Member] | Common Units [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Common units issued | 2,500,000 | |||||||||||||
Subsequent Event [Member] | Limited Partner [Member] | Series A Preferred Unit [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Percentage to redeemable preferred units of issue price | 100.00% | |||||||||||||
Percentage of common units cash equal to issue price | 70.00% | |||||||||||||
Percentage of common units receivable of issue price | 80.00% | |||||||||||||
Conversion percentage of issue price of outstanding Series A preferred units | 130.00% | |||||||||||||
Subsequent Event [Member] | Minimum [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Expected insurance cost to be recovered | $ 150,000 | |||||||||||||
Subsequent Event [Member] | Tordis Facility [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Business acquisition, fair value of vessel and equipment acquired | $ 147,000,000 | |||||||||||||
Business acquisition, outstanding indebtedness | 137,655,000 | |||||||||||||
Business acquisition, receivable owned | 21,103,000 | |||||||||||||
Indebtedness repaid | 42,800,000 | |||||||||||||
Secured credit facility outstanding | 94,900,000 | |||||||||||||
Final balloon payment to be paid | $ 70,800,000 | |||||||||||||
Credit facility maturity date | Nov. 30, 2021 | |||||||||||||
Credit facility interest rate description | LIBOR plus a margin of 1.9% | |||||||||||||
Credit facility interest rate | 1.90% | |||||||||||||
Business acquisition, percentage of interest acquired | 100.00% | |||||||||||||
Purchase price adjustment for capitalized fees related to financing | $ 795,000 | |||||||||||||
Time charter period | 5 years | |||||||||||||
Time charter expiration period | 2 years | |||||||||||||
Time charter additional expiration period | 5 years | |||||||||||||
Goodwill | $ 0 |
Subsequent Events - Schedule of
Subsequent Events - Schedule of Purchase Price of Each Transaction (Detail) - Subsequent Event [Member] - Tordis Facility [Member] $ in Thousands | Mar. 01, 2017USD ($) |
Business Acquisition [Line Items] | |
Purchase consideration | $ 31,243 |
Less: Fair value of net assets acquired: | |
Vessel and equipment | 147,000 |
Long-term debt | (137,655) |
Receivable | 21,103 |
Capitalized fee financing of the vessel | 795 |
Other | 0 |
Sub total | 31,243 |
Difference between the purchase price and fair value of net assets acquired | $ 0 |