Exhibit Number | Description | |
101 | The following financial information from Teekay LNG Partners L.P.’s Report on Form 6-K for the quarter ended September 30, 2016, filed with the SEC on November 28, 2016, formatted in Extensible Business Reporting Language (XBRL): | |
(i) Unaudited Consolidated Statements of Income for the three and nine months ended September 30, 2016 and 2015; (ii) Unaudited Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2016 and 2015; (iii) Unaudited Consolidated Balance Sheets as at September 30, 2016 and December 31, 2015; (iv) Unaudited Consolidated Statements of Cash Flows for the nine months ended September 30, 2016 and 2015; (v) Unaudited Consolidated Statement of Changes in Total Equity for the nine months ended September 30, 2016; and (vi) Notes to the Unaudited Consolidated Financial Statements. |
• | REGISTRATION STATEMENT ON FORM S-8 (NO.333-124647) FILED WITH THE SEC ON MAY 5, 2005 |
• | REGISTRATION STATEMENT ON FORM F-3 (NO.333-170838) FILED WITH THE SEC ON NOVEMBER 24, 2010 |
• | REGISTRATION STATEMENT ON FORM F-3 (NO.333-190783) FILED WITH THE SEC ON AUGUST 22, 2013 |
• | REGISTRATION STATEMENT ON FORM F-3ASR (NO.333-197479) FILED WITH THE SEC ON JULY 17, 2014 |
• | REGISTRATION STATEMENT ON FORM F-3 (NO.333-197651) FILED WITH THE SEC ON JULY 25, 2014 |
TEEKAY LNG PARTNERS L.P. | ||||||
By: | Teekay GP L.L.C., its General Partner | |||||
Date: December 7, 2016 | By: | /s/ Peter Evensen | ||||
Peter Evensen | ||||||
Chief Executive Officer and Chief Financial Officer | ||||||
(Principal Financial and Accounting Officer) |
Document and Entity Information |
9 Months Ended |
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Sep. 30, 2016 | |
Document And Entity Information [Abstract] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2016 |
Document Fiscal Year Focus | 2016 |
Document Fiscal Period Focus | Q3 |
Trading Symbol | TGP |
Entity Registrant Name | Teekay LNG Partners L.P. |
Entity Central Index Key | 0001308106 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Unaudited Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
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Income Statement [Abstract] | ||||
Net income | $ 54,853 | $ 10,309 | $ 66,596 | $ 140,395 |
Other comprehensive income (loss): | ||||
Unrealized gain (loss) on qualifying cash flow hedging instruments, net of tax (note 10) | 2,517 | (4,829) | (15,689) | (5,474) |
Realized loss on qualifying cash flow hedging instruments | 868 | 585 | 2,591 | 1,538 |
Other comprehensive income (loss) | 3,385 | (4,244) | (13,098) | (3,936) |
Comprehensive income | 58,238 | 6,065 | 53,498 | 136,459 |
Non-controlling interest in comprehensive income | 4,999 | 2,811 | 7,954 | 11,736 |
General and limited partners' interest in comprehensive income | $ 53,239 | $ 3,254 | $ 45,544 | $ 124,723 |
Unaudited Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
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Statement of Financial Position [Abstract] | ||
Non-trade accounts receivable | $ 11,915 | $ 7,058 |
Accumulated depreciation on vessel and equipment | 678,728 | 666,710 |
Accumulated depreciation on vessels under capital leases | $ 64,971 | $ 56,316 |
Unaudited Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands |
9 Months Ended | |
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Sep. 30, 2016 |
Sep. 30, 2015 |
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Statement of Cash Flows [Abstract] | ||
Dividends received | $ 32,851 | $ 89,041 |
Unaudited Consolidated Statement of Changes in Total Equity - 9 months ended Sep. 30, 2016 - USD ($) shares in Thousands, $ in Thousands |
Total |
General Partner [Member] |
Common Stock [Member]
Limited Partners [Member]
|
Accumulated Other Comprehensive Loss [Member] |
Non-controlling Interest [Member] |
---|---|---|---|---|---|
Beginning balance at Dec. 31, 2015 | $ 1,543,679 | $ 48,786 | $ 1,472,327 | $ (2,051) | $ 24,617 |
Beginning balance, units at Dec. 31, 2015 | 79,551 | ||||
Net income | 66,596 | 1,121 | $ 54,919 | 10,556 | |
Other comprehensive loss | (13,098) | (10,496) | (2,602) | ||
Cash distributions | (34,099) | (682) | (33,417) | ||
Dividends paid to non-controlling interest | (1,167) | (1,167) | |||
Equity based compensation, net of tax of $210 (note 13) | 1,038 | 21 | $ 1,017 | ||
Equity based compensation, net of tax of $210 (note 13), units | 21 | ||||
Ending balance at Sep. 30, 2016 | $ 1,562,949 | $ 49,246 | $ 1,494,846 | $ (12,547) | $ 31,404 |
Ending balance, units at Sep. 30, 2016 | 79,572 |
Unaudited Consolidated Statement of Changes in Total Equity (Parenthetical) $ in Thousands |
9 Months Ended |
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Sep. 30, 2016
USD ($)
| |
Statement of Partners' Capital [Abstract] | |
Equity based compensation, tax (note 13) | $ 210 |
Basis of Presentation |
9 Months Ended |
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Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited interim consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (or GAAP). These financial statements include the accounts of Teekay LNG Partners L.P., which is a limited partnership formed under the laws of the Republic of The Marshall Islands, and its wholly-owned or controlled subsidiaries (collectively, the Partnership). The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Certain information and footnote disclosures required by GAAP for complete annual financial statements have been omitted and, therefore, these interim financial statements should be read in conjunction with the Partnership’s audited consolidated financial statements for the year ended December 31, 2015, which are included in the Partnership’s Annual Report on Form 20-F for the year ended December 31, 2015 filed with the U.S. Securities and Exchange Commission (or SEC) on April 27, 2016. In the opinion of management of Teekay GP L.L.C., the general partner of the Partnership (or the General Partner), these interim unaudited consolidated financial statements reflect all adjustments consisting solely of a normal recurring nature, necessary to present fairly, in all material respects, the Partnership’s consolidated financial position, results of operations, changes in total equity and cash flows for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of those for a full fiscal year. Significant intercompany balances and transactions have been eliminated upon consolidation. |
Accounting Pronouncements |
9 Months Ended |
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Sep. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Pronouncements | Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers, (or ASU 2014-09). ASU 2014-09 will require an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update creates a five-step model that requires entities to exercise judgment when considering the terms of the contract(s) which include (i) identifying the contract(s) with the customer, (ii) identifying the separate performance obligations in the contract, (iii) determining the transaction price, (iv) allocating the transaction price to the separate performance obligations, and (v) recognizing revenue as each performance obligation is satisfied. ASU 2014-09 is effective for the Partnership January 1, 2018 and shall be applied, at the Partnership’s option, retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Partnership is evaluating the effect of adopting this new accounting guidance. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (or ASU 2016-02). ASU 2016-02 establishes a right-of-use model that requires a lessee to record a right of use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 is effective for the Partnership January 1, 2019, including interim periods within those fiscal years. Early adoption is permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Partnership is evaluating the effect of adopting this new accounting guidance. In March 2016, the FASB issued Accounting Standards Update 2016-09, Improvements to Employee Share-Based Payment Accounting (or ASU 2016-09). ASU 2016-09 simplifies aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. ASU 2016-09 is effective for the Partnership January 1, 2017 with early adoption permitted. The Partnership expects the impact of adopting this new accounting guidance will be a change in presentation of cash payments for tax withholdings on share settled equity awards from an operating cash outflow to a financing cash outflow on the Partnership's statement of cash flows. The Partnership is planning to adopt this new accounting guidance effective January 1, 2017 and expects the impact of adopting this new accounting guidance to be insignificant. In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments. This update replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This update is effective for the Partnership January 1, 2020, with a modified-retrospective approach. The Partnership is currently evaluating the effect of adopting this new guidance. In August 2016, the FASB issued Accounting Standards Update 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments, which, among other things, provides guidance on two acceptable approaches of classifying distributions received from equity method investees in the statement of cash flows. This update is effective for the Partnership January 1, 2018, with a retrospective approach. The Partnership is currently evaluating the effect of adopting this new guidance. |
Financial Instruments |
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Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments | Financial Instruments a) Fair Value Measurements For a description of how the Partnership estimates fair value and for a description of the fair value hierarchy levels, see Note 3 to the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year ended December 31, 2015. The following table includes the estimated fair value and carrying value of those assets and liabilities that are measured at fair value on a recurring and non-recurring basis, as well as the estimated fair value of the Partnership’s financial instruments that are not accounted for at a fair value on a recurring basis.
Changes in fair value during the nine months ended September 30, 2016 and 2015 for the Partnership’s other derivative instrument, the Toledo Spirit time-charter derivative, which is described below and is measured at fair value on a recurring basis using significant unobservable inputs (Level 3), is as follows:
The Partnership’s Suezmax tanker, the Toledo Spirit, operates pursuant to a time-charter contract that increases or decreases the otherwise fixed-hire rate established in the charter depending on the spot charter rates that the Partnership would have earned had it traded the vessel in the spot tanker market. The time-charter contract ends in August 2025, although the charterer has the right to terminate the time-charter contract in July 2018. In order to reduce the variability of its revenue under the Toledo Spirit time-charter, the Partnership entered into an agreement with Teekay Corporation under which Teekay Corporation pays the Partnership any amounts payable to the charterer of the Toledo Spirit as a result of spot rates being below the fixed rate, and the Partnership pays Teekay Corporation any amounts payable to the Partnership by the charterer of the Toledo Spirit as a result of spot rates being in excess of the fixed rate. The estimated fair value of this other derivative is based in part upon the Partnership’s projection of future spot market tanker rates, which has been derived from current spot market tanker rates and long-term historical average rates, as well as an estimated discount rate. The estimated fair value of this other derivative as of September 30, 2016 is based upon an average daily tanker rate of $22,875 (September 30, 2015 – $33,500) over the remaining duration of the charter contract and a discount rate of 8.0% (September 30, 2015 – 7.4%). In developing and evaluating this estimate, the Partnership considers the current tanker market fundamentals as well as the short and long-term outlook. A higher or lower average daily tanker rate would result in a higher or lower fair value liability or a lower or higher fair value asset. A higher or lower discount rate would result in a lower or higher fair value asset or liability. b) Financing Receivables The following table contains a summary of the Partnership’s loan receivables and other financing receivables by type of borrower and the method by which the Partnership monitors the credit quality of its financing receivables on a quarterly basis.
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Segment Reporting |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | Segment Reporting The following table includes results for the Partnership’s segments for the periods presented in these financial statements.
A reconciliation of total segment assets to total assets presented in the consolidated balance sheets is as follows:
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Vessel Charters |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vessel Charters | Vessel Charters a) The minimum estimated charter hire payments for the remainder of the year and the next four fiscal years, as at September 30, 2016, for the Partnership’s vessels chartered-in and vessels chartered-out are as follows:
The carrying amount of tax indemnification guarantees of the Partnership relating to the leasing arrangement through the Teekay Tangguh Joint Venture as at September 30, 2016 was $7.6 million (December 31, 2015 – $8.0 million) and is included as part of other long-term liabilities in the Partnership’s consolidated balance sheets. The tax indemnification is for the duration of the lease contracts with the third parties plus the years it would take for the lease payments to be statute barred, which will end in 2033 for the vessels. Although there is no maximum potential amount of future payments, the Teekay Tangguh Joint Venture may terminate the lease arrangement on a voluntary basis at any time. If the lease arrangement terminates, the Teekay Tangguh Joint Venture will be required to pay termination sums to the lessor sufficient to repay the lessor’s investment in the vessels and to compensate it for the tax effect of the terminations, including recapture of any tax depreciation.
The Partnership was also a party to capital leases on two of its LNG carriers, the Creole Spirit and Oak Spirit. Upon delivery of the Creole Spirit in February 2016 and the Oak Spirit in July 2016, the Partnership sold these vessels to a third party and leased them back under 10-year bareboat charter contracts ending in 2026. The bareboat charter contracts are accounted for as capital leases. The obligations of the Partnership under the bareboat charter contracts are guaranteed by the Partnership. In addition, the guarantee agreements require the Partnership to maintain minimum levels of tangible net worth and aggregate liquidity, and not to exceed a maximum amount of leverage.
b) During February and March 2016, Centrofin Management Inc. (or Centrofin), the charterer for both the Bermuda Spirit and Hamilton Spirit Suezmax tankers, exercised its option under the charter contracts to purchase both vessels. As a result of Centrofin exercising its purchase options, the Partnership recorded an accounting loss of $27.4 million for the nine months ended September 30, 2016. The vessels were delivered to Centrofin during April and May 2016 on the closing of the purchase options. |
Advances to Equity Accounted Joint Ventures |
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Sep. 30, 2016 | |
Receivables [Abstract] | |
Advances to Equity Accounted Joint Ventures | Advances to Equity Accounted Joint Ventures a) As of September 30, 2016, the Partnership had advanced $57.8 million to Exmar LPG BVBA (December 31, 2015 – $57.8 million), which bears interest at LIBOR plus 0.50% and has no fixed repayment terms. As at September 30, 2016, the interest receivable on the advances was $0.9 million (December 31, 2015 – $0.4 million). Both the advances and the interest receivable on these advances are included in investments and advances to equity accounted joint ventures in the Partnership’s consolidated balance sheets. b) As of September 30, 2016, the Partnership had advanced $114.9 million to TC LNG Shipping L.L.C., the Partnership's 50/50 joint venture with China LNG Shipping (Holdings) Limited (or the Yamal LNG Joint Venture) (December 31, 2015 – $96.9 million). The advances bear interest at LIBOR plus 3.00% compounded semi-annually. As of September 30, 2016, the interest accrued on these advances was $8.1 million (December 31, 2015 – $4.8 million). Both the advances and the accrued interest on these advances are included in investments and advances to equity accounted joint ventures in the Partnership’s consolidated balance sheets. c) As of September 30, 2016, the Partnership had advanced $3.6 million to Bahrain LNG W.L.L., the Partnership's joint venture with National Oil and Gas Authority (or Nogaholding), Samsung C&T and Gulf Investment Corporation (or the Bahrain LNG Joint Venture) (December 31, 2015 – nil). The advances are non-interest bearing and are included in investments and advances to equity accounted joint ventures in the Partnership’s consolidated balance sheets. |
Long-Term Debt |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | Long-Term Debt
As at September 30, 2016, the Partnership had three revolving credit facilities available of which two credit facilities are long-term and one is current. The three credit facilities, as at such date, provided for borrowings of up to $438.0 million, of which $47.4 million was undrawn. Interest payments are based on LIBOR plus margins, which ranged from 0.55% to 1.50%. In November 2016, the Partnership refinanced its $150.0 million revolving credit facility maturing in 2016 with a new $170.0 million revolving credit facility maturing in November 2017. The amount available under the three revolving credit facilities, including the impact of the refinancing completed in November 2016, reduces by $6.1 million (remainder of 2016), $178.2 million (2017) and $253.7 million (2018). The revolving credit facilities may be used by the Partnership to fund general partnership purposes and to fund cash distributions. The Partnership is required to repay all borrowings used to fund cash distributions within 12 months of their being drawn, from a source other than further borrowings. One of the revolving credit facilities is unsecured while the other two revolving credit facilities are collateralized by first-priority mortgages granted on four of the Partnership’s vessels, together with other related securities, and include a guarantee from the Partnership or its subsidiaries of all outstanding amounts. As at September 30, 2016, the Partnership had six U.S. Dollar-denominated term loans outstanding which totaled $1.0 billion in aggregate principal amount. Interest payments on the term loans are based on LIBOR plus a margin, which ranged from 0.30% to 2.80% The six term loans require quarterly interest and principal payments and have balloon or bullet repayments due at maturity. The term loans are collateralized by first-priority mortgages on 15 of the Partnership’s vessels to which the loans relate, together with certain other related securities. In addition, at September 30, 2016, all of the outstanding term loans were guaranteed by either the Partnership or Teekay Nakilat Corporation (or the Teekay Nakilat Joint Venture). The Partnership previously issued in the Norwegian bond market a total of Norwegian Kroner (or NOK) 2.6 billion of senior unsecured bonds that mature through 2020. As at September 30, 2016, the total amount of the bonds was $325.6 million and the bonds are listed on the Oslo Stock Exchange. The interest payments on the bonds are based on NIBOR plus a margin, which ranges from 3.70% to 5.25%. The Partnership entered into cross-currency rate swaps, to swap all interest and principal payments of the bonds into U.S. Dollars, with the interest payments fixed at rates ranging from 5.92% to 6.88% (see Note 10) and the transfer of principal fixed at $409.0 million upon maturity in exchange for NOK 2.6 billion. In October 2016, the Partnership issued NOK 900 million unsecured bonds that mature in October 2021 and is equivalent to approximately $110 million. In connection with the new bond issuance, the Partnership repurchased a portion of the Partnership's NOK bonds maturing in May 2017, at a price equal to 101.50% of the principal amount of the repurchased bond of NOK 292 million ($36.5 million) for a total purchase price of NOK 296 million (see Note 15c). The Partnership has two Euro-denominated term loans outstanding, which as at September 30, 2016, totaled 212.4 million Euros ($238.7 million). Interest payments are based on EURIBOR plus margins, which ranged from 0.60% to 2.25% as at September 30, 2016, and the loans require monthly interest and principal payments. The term loans have varying maturities through 2023. The term loans are collateralized by first-priority mortgages on two vessels to which the loans relate, together with certain other related securities and are guaranteed by the Partnership and one of its subsidiaries. The weighted-average effective interest rate for the Partnership’s long-term debt outstanding at September 30, 2016 and December 31, 2015 were 2.64% and 2.33%, respectively. These rates do not reflect the effect of related interest rate swaps that the Partnership has used to economically hedge certain of its floating-rate debt (see Note 10). At September 30, 2016, the margins on the Partnership’s outstanding revolving credit facilities and term loans ranged from 0.30% to 2.80%. All Euro-denominated term loans and NOK-denominated bonds are revalued at the end of each period using the then-prevailing U.S. Dollar exchange rate. Due primarily to the revaluation of the Partnership’s NOK-denominated bonds, the Partnership’s Euro-denominated term loans and restricted cash, and the change in the valuation of the Partnership’s cross-currency swaps, the Partnership incurred foreign exchange gains (losses) of $0.5 million and $(8.2) million for the three months ended September 30, 2016 and 2015, respectively, and foreign exchange(losses) gains $(10.1) million and $8.2 million for the nine months ended September 30, 2016 and 2015, respectively, of which these amounts were primarily unrealized. The aggregate annual long-term debt principal repayments required subsequent to September 30, 2016, including the impact of the NOK bond refinancing completed in October 2016 and the revolving credit facility refinancing completed in November 2016, are $25.1 million (remainder of 2016), $319.8 million (2017), $781.5 million (2018), $95.9 million (2019), $188.2 million (2020) and $567.5 million (thereafter). The Partnership and a subsidiary of Teekay Corporation are borrowers under a loan arrangement and are jointly and severally liable for the obligations to the lender. Obligations resulting from long-term debt joint and several liability arrangements are measured at the sum of the amount the Partnership agreed to pay, on the basis of its arrangement with the co-obligor, and any additional amount the Partnership expects to pay on behalf of the co-obligor. This loan arrangement matures in 2021, and as of September 30, 2016 had an outstanding balance of $79.9 million, of which the Partnership’s share was nil as the Partnership repaid its share of the loan balance during 2016. Teekay Corporation has agreed to indemnify the Partnership in respect of any losses and expenses arising from any breach by the co-obligor of the terms and conditions of the loan facility. Certain loan agreements require that (a) the Partnership maintains minimum levels of tangible net worth and aggregate liquidity, (b) the Partnership maintain certain ratios of vessel values related to the relevant outstanding loan principal balance, (c) the Partnership not exceed a maximum amount of leverage, and (d) certain of the Partnership’s subsidiaries maintains restricted cash deposits. As at September 30, 2016, the Partnership had two facilities with an aggregate outstanding loan balance of $133.0 million that require it to maintain minimum vessel-value-to-outstanding-loan-principal-balance ratios ranging from 110% to 115%, which as at September 30, 2016 ranged from 128% to 209%. The vessel values were determined using second-hand market comparables or using a depreciated replacement cost approach. Since vessel values can be volatile, the Partnership’s estimates of market value may not be indicative of either the current or future prices that could be obtained if the Partnership sold any of the vessels. The Partnership’s ship-owning subsidiaries may not, among other things, pay dividends or distributions if the Partnership's subsidiaries are in default under their term loans or revolving credit facilities. As at September 30, 2016, the Partnership was in compliance with all covenants relating to the Partnership’s credit facilities and term loans. The Partnership maintains restricted cash deposits relating to certain term loans, collateral for cross-currency swaps, project tenders, leasing arrangements (see Note 11b) and amounts received from charterers to be used only for dry-docking expenditures and emergency repairs, which cash totaled $100.2 million and $111.5 million as at September 30, 2016 and December 31, 2015, respectively. |
Income Tax |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax | Income Tax The components of the provision for income taxes were as follows:
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Related Party Transactions |
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Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | Related Party Transactions a) Two of the Partnership’s LNG carriers, the Arctic Spirit and Polar Spirit, are employed on long-term charter contracts with subsidiaries of Teekay Corporation. In addition, the Partnership and certain of its operating subsidiaries have entered into service agreements with certain subsidiaries of Teekay Corporation pursuant to which the Teekay Corporation subsidiaries provide the Partnership and its subsidiaries with administrative, commercial, crew training, advisory, business development, technical and strategic consulting services. The Partnership also has an agreement with a subsidiary of Teekay Corporation whereby Teekay Corporation’s subsidiary will, on behalf of the Partnership, provide shipbuilding supervision and crew training services for the four LNG carrier newbuildings in the Partnership’s joint venture with China LNG, CETS Investment Management (HK) Co. Ltd. and BW LNG Investments Pte. Ltd. (or the BG Joint Venture), up to their delivery dates. All costs incurred by these Teekay Corporation’s subsidiaries related to these services are charged to the Partnership and recorded as part of vessel operating expenses and general and administrative expenses. Finally, the Partnership reimburses the General Partner for expenses incurred by the General Partner that are necessary for the conduct of the Partnership’s business. Such related party transactions were as follows for the periods indicated:
(i) Commencing in 2008, the Arctic Spirit and Polar Spirit were time-chartered to Teekay Corporation at a fixed-rate for a period of 10 years (plus options exercisable by Teekay Corporation to extend up to an additional 15 years). (ii) Includes commercial, strategic, advisory, business development and administrative management fees charged by Teekay Corporation and reimbursements to Teekay Corporation and the Partnership's General Partner for costs incurred on the Partnership’s behalf. (iii) Includes the Partnership's proportionate costs associated with the Bahrain LNG Joint Venture including pre-operation, engineering and financing-related expenses, which are recorded as part of investments in and advances to equity accounted joint ventures in the Partnership's consolidated balance sheets. b) As at September 30, 2016 and December 31, 2015, non-interest bearing advances to affiliates totaled $15.6 million and $13.0 million, respectively, and non-interest bearing advances from affiliates totaled $13.1 million and $23.0 million, respectively. These advances are unsecured and have no fixed repayment terms. Affiliates are entities that are under common control. c) The Partnership’s Suezmax tanker the Toledo Spirit operates pursuant to a time-charter contract that increases or decreases the otherwise fixed-hire rate established in the charter depending on the spot charter rates that the Partnership would have earned had it traded the vessel in the spot tanker market. The time-charter contract ends in August 2025, although the charterer has the right to terminate the time-charter in July 2018. The Partnership has entered into an agreement with Teekay Corporation under which Teekay Corporation pays the Partnership any amounts payable to the charterer as a result of spot rates being below the fixed rate, and the Partnership pays Teekay Corporation any amounts payable to the Partnership as a result of spot rates being in excess of the fixed rate. The amounts receivable or payable to Teekay Corporation are settled annually (see Notes 3 and 10). d) The Partnership entered into services agreements with certain subsidiaries of Teekay Corporation pursuant to which the Teekay Corporation subsidiaries provide the Partnership with shipbuilding and site supervision services relating to the nine LNG carrier newbuildings the Partnership has ordered (December 31, 2015 – 11 LNG carrier newbuildings). These costs are capitalized and included as part of advances on newbuilding contracts in the Partnership’s consolidated balance sheets. For the three and nine months ended September 30, 2016 and 2015, the Partnership incurred shipbuilding and site supervision costs of $2.1 million, $7.0 million, $1.1 million and $2.6 million, respectively. |
Derivative Instruments and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Partnership uses derivative instruments in accordance with its overall risk management policy. Foreign Exchange Risk From 2012 through 2015, concurrently with the issuance of NOK 700 million, NOK 900 million and NOK 1,000 million of senior unsecured bonds (see Note 7), the Partnership entered into cross-currency swaps, and pursuant to these swaps the Partnership receives the principal amount in NOK on maturity dates of the swaps in exchange for payments of a fixed U.S. Dollar amount. In addition, the cross-currency swaps exchange a receipt of floating interest in NOK based on NIBOR plus a margin for a payment of U.S. Dollar fixed interest. The purpose of the cross-currency swaps is to economically hedge the foreign currency exposure on the payment of interest and principal of the Partnership’s NOK-denominated bonds due in 2017, 2018 and 2020, and to economically hedge the interest rate exposure. The following table reflects information relating to the cross-currency swaps as at September 30, 2016.
In connection with the Partnership’s NOK 900 million bond issuance in October 2016, the Partnership entered into cross-currency swaps to economically hedge the foreign currency exposure on the payment of interest and principal of the Partnership’s NOK-denominated bonds maturing in 2021 (see Note 15c). Interest Rate Risk The Partnership enters into interest rate swaps which exchange a receipt of floating interest for a payment of fixed interest to reduce the Partnership’s exposure to interest rate variability on certain of its outstanding floating-rate debt. As at September 30, 2016, the Partnership was committed to the following interest rate swap agreements:
During 2015, as part of its economic hedging program, the Partnership entered into three interest rate swaption agreements. Pursuant to each swaption, the Partnership has a one-time option (or Call Option) to enter into an interest rate swap with a third party, and the third party has a one-time option (or Put Option) to require the Partnership to enter into an interest swap. If the Partnership or the third party exercises its option, there will be a cash settlement for the fair value of the interest rate swap, in lieu of taking delivery of the actual interest rate swap. At September 30, 2016, the terms of the interest rate swaps underlying the interest rate swaptions were as follows:
As at September 30, 2016, the Partnership had multiple interest rate swaps, interest rate swaptions, and cross-currency swaps with the same counterparty that are subject to the same master agreements. Each of these master agreements provides for the net settlement of all swaps subject to that master agreement through a single payment in the event of default or termination of any one swap. The fair value of these derivative instruments are presented on a gross basis in the Partnership’s consolidated balance sheets. As at September 30, 2016, these interest rate swaps, interest rate swaptions, and cross-currency swaps had an aggregate fair value asset of $1.4 million and an aggregate fair value liability of $216.2 million. As at September 30, 2016, the Partnership had $30.3 million on deposit as security for swap liabilities under certain master agreements. The deposit is presented in restricted cash – current and – long-term on the Partnership’s consolidated balance sheets. Credit Risk The Partnership is exposed to credit loss in the event of non-performance by the counterparties to the interest rate swap agreements. In order to minimize counterparty risk, the Partnership only enters into derivative transactions with counterparties that are rated A- or better by Standard & Poor’s or A3 or better by Moody’s at the time of the transactions. In addition, to the extent practical, interest rate swaps are entered into with different counterparties to reduce concentration risk. Other Derivative In order to reduce the variability of its revenue, the Partnership has entered into an agreement with Teekay Corporation under which Teekay Corporation pays the Partnership any amounts payable to the charterer of the Toledo Spirit as a result of spot rates being below the fixed rate, and the Partnership pays Teekay Corporation any amounts payable to the Partnership by the charterer of the Toledo Spirit as a result of spot rates being in excess of the fixed rate. The fair value of the derivative asset at September 30, 2016 was $0.8 million (December 31, 2015 – a liability of $6.3 million). The following table presents the classification and fair value amounts of derivative instruments, segregated by type of contract, on the Partnership’s consolidated balance sheets.
Realized and unrealized gains (losses) relating to non-designated interest rate swap agreements, interest rate swaption agreements, and the Toledo Spirit time-charter derivative are recognized in earnings and reported in realized and unrealized gain (loss) on non-designated derivative instruments in the Partnership’s consolidated statements of income. The effect of the gain (loss) on these derivatives on the Partnership’s consolidated statements of income is as follows:
Unrealized and realized gains (losses) relating to cross-currency swap agreements are recognized in earnings and reported in foreign currency exchange gain (loss) in the Partnership’s consolidated statements of income. For the three and nine months ended September 30, 2016, unrealized gains relating to the cross-currency swap agreements of $20.2 million and $35.0 million, respectively, and realized losses of $(2.3) million and $(6.9) million, respectively, were recognized in earnings. For the three and nine months ended September 30, 2015, unrealized losses of $(31.0) million and $(49.8) million, respectively, and realized losses of $(2.3) million and $(5.2) million, respectively, were recognized in earnings. For the periods indicated, the following table presents the effective and ineffective portion of losses on interest rate swap agreements designated and qualifying as cash flow hedges. The following table excludes any interest rate swap agreements designated and qualifying as cash flow hedges in the Partnership’s equity accounted joint ventures.
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Commitments and Contingencies |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies a) The Partnership’s share of commitments to fund newbuilding and other construction contract costs as at September 30, 2016 are as follows:
b) Teekay Nakilat Joint Venture was the lessee under three separate 30-year capital lease arrangements with a third party for three LNG carriers (or the RasGas II LNG Carriers). Under the terms of the leasing arrangements for the RasGas II LNG Carriers, the lessor claimed tax depreciation on the capital expenditures it incurred to acquire these vessels. As is typical in these leasing arrangements, tax and change of law risks were assumed by the lessee, in this case the Teekay Nakilat Joint Venture. Lease payments under the lease arrangements were based on certain tax and financial assumptions at the commencement of the leases and subsequently adjusted to maintain the lessor’s agreed after-tax margin. On December 22, 2014, the Teekay Nakilat Joint Venture terminated the leasing of the RasGas II LNG Carriers. However, the Teekay Nakilat Joint Venture remains obligated to the lessor to maintain the lessor’s agreed after-tax margin from the commencement of the lease to the lease termination date and placed $6.8 million on deposit with the lessor as security against any future claims and recorded as part of restricted cash - long-term in the Partnership’s consolidated balance sheets. The UK taxing authority (or HMRC) has been challenging the use of similar lease structures in the UK courts. One of those challenges was eventually decided in favor of HMRC (Lloyds Bank Equipment Leasing No. 1), with the lessor and lessee choosing not to appeal further. That case concluded that capital allowances were not available to the lessor. On the basis of this conclusion, HMRC is now asking lessees on other leases, including the Teekay Nakilat Joint Venture, to accept that capital allowances are not available to their lessor. The Teekay Nakilat Joint Venture does not accept this contention and has informed HMRC of this position. It is uncertain at this time whether the Teekay Nakilat Joint Venture would eventually prevail in court. If the former lessor of the RasGas II LNG Carriers were to lose on a similar claim from HMRC, the Partnership’s 70% share of the potential exposure in the Teekay Nakilat Joint Venture is estimated to be approximately $60 million. Such estimate is primarily based on information received from the lessor. c) In May 2016, the joint venture between the Partnership and Marubeni Corporation (the Teekay LNG-Marubeni Joint Venture) reached a settlement agreement with a charterer relating to a disputed charter contract termination for the Magellan Spirit that occurred in 2015. The charterer paid $39.0 million to the Teekay LNG-Marubeni Joint Venture in June 2016 for lost revenues, of which the Partnership’s share of $20.3 million was recorded in equity income for the nine months ended September 30, 2016. |
Total Capital and Net Income Per Unit |
9 Months Ended |
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Sep. 30, 2016 | |
Equity [Abstract] | |
Total Capital and Net Income Per Unit | Total Capital and Net Income Per Unit At September 30, 2016, approximately 68.3% of the Partnership’s common units outstanding were held by the public. The remaining common units, as well as the 2% general partner interest, were held by a subsidiary of Teekay Corporation. In October 2016, the Partnership issued 5 million 9.0% series A Cumulative Redeemable Perpetual Preferred Units (or Series A Preferred Units) for net proceeds of approximately $120.7 million (see Note 15b). Net Income Per Unit Net income per common unit is determined by dividing net income, after deducting the non-controlling interest and the General Partner’s interest, by the weighted-average number of units outstanding during the period. The computation of limited partners’ interest in net income per common unit - diluted assumes the exercise of all dilutive restricted units using the treasury stock method. The computation of limited partners’ interest in net loss per common unit - diluted does not assume such exercises as the effect would be anti-dilutive. The General Partner’s and common unitholders’ interests in net income are calculated as if all net income was distributed according to the terms of the Partnership’s partnership agreement, regardless of whether those earnings would or could be distributed. The partnership agreement does not provide for the distribution of net income; rather, it provides for the distribution of Available Cash, which is a contractually defined term that generally means all cash on hand at the end of each quarter after establishment of cash reserves determined by the Partnership’s board of directors to provide for the proper conduct of the Partnership’s business, including reserves for maintenance and replacement capital expenditures and anticipated credit needs. In addition, the General Partner is entitled to incentive distributions if the amount the Partnership distributes to unitholders with respect to any quarter exceeds specified target levels. Unlike available cash, net income is affected by non-cash items, such as depreciation and amortization, unrealized gains or losses on non-designated derivative instruments and foreign currency translation gains or losses. During the three and nine months ended September 30, 2016, cash distributions were below $0.4625 per common unit and, consequently, the assumed distribution of net income was based on the limited partners' and General Partner’s ownership percentage for the purposes of the net income per common unit calculation. During the three and nine months ended September 30, 2015, cash distributions exceeded $0.4625 per unit and, consequently, the assumed distribution of net income resulted in the use of the increasing percentages to calculate the General Partner’s interest in net income for the purposes of the net income per common unit calculation. For more information on the increasing percentages to calculate the General Partner’s interest in net income, please refer to the Partnership’s Annual Report on Form 20-F for the year ended December 31, 2015. Pursuant to the Partnership's partnership agreement, allocations to partners are made on a quarterly basis. |
Unit-Based Compensation |
9 Months Ended |
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Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Unit-Based Compensation | Unit-Based Compensation In March 2016, a total of 32,723 common units, with an aggregate value of $0.4 million, were granted to the non-management directors of the General Partner as part of their annual compensation for 2016. The Partnership grants restricted unit awards as incentive-based compensation under the Teekay LNG Partners L.P. 2005 Long-Term Incentive Plan to certain of the Partnership’s employees and to certain employees of Teekay Corporation’s subsidiaries that provide services to the Partnership. The Partnership measures the cost of such awards using the grant date fair value of the award and recognizes that cost, net of estimated forfeitures, over the requisite service period. The requisite service period consists of the period from the grant date of the award to the earlier of the date of vesting or the date the recipient becomes eligible for retirement. For unit-based compensation awards subject to graded vesting, the Partnership calculates the value for the award as if it was one single award with one expected life and amortizes the calculated expense for the entire award on a straight-line basis over the requisite service period. The compensation cost of the Partnership’s unit-based compensation awards are reflected in general and administrative expenses in the Partnership’s consolidated statements of income. During March 2016 and 2015, the Partnership granted 132,582 and 32,054 restricted units, respectively, with grant date fair values of $1.5 million and $1.1 million, respectively, to certain of the Partnership’s employees and to certain employees of Teekay Corporation’s subsidiaries who provide services to the Partnership, based on the Partnership’s closing unit price on the grant date. Each restricted unit is equal in value to one of the Partnership’s common units plus reinvested distributions from the grant date to the vesting date. The restricted units vest equally over three years from the grant date. Any portion of a restricted unit award that is not vested on the date of a recipient’s termination of service is canceled, unless their termination arises as a result of the recipient’s retirement, in which case, the restricted unit award will continue to vest in accordance with the vesting schedule. Upon vesting, the value of the restricted unit awards is paid to each recipient in the form of units, net of withholding tax. During the three and nine months ended September 30, 2016, a total of nil and 20,808 restricted units, respectively (three and nine months ended September 30, 2015 nil and 13,783, respectively), with fair values of nil and $0.8 million, respectively (three and nine months ended September 30, 2015 nil and $0.6 million, respectively), vested. During the three and nine months ended September 30, 2016, the Partnership recognized expenses of $0.1 million and $1.2 million, respectively, relating to the restricted units (three and nine months ended September 30, 2015, $0.1 million and $1.1 million, respectively). |
Restructuring Charges |
9 Months Ended |
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Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges In July 2015, pursuant to a request by the charterer of the Alexander Spirit, the Partnership changed the crew on the vessel which resulted in a restructuring charge of $3.5 million relating to seafarer severance payments. The Partnership recovered the full amount of the restructuring charge from the charterer and this amount is included in voyage revenues in the Partnership's consolidated statements of income for the three and nine months ended September 30, 2015. |
Subsequent Events |
9 Months Ended |
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Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events a) On October 3, 2016, the Partnership entered into an agreement to acquire I.M. Skaugen SE’s (or Skaugen) 35% ownership interest in Skaugen Gulf Petchem Carriers B.S.C.(c) (or the Skaugen LPG Joint Venture) which owns the LPG carrier Norgas Sonoma. The Partnership entered into this transaction in exchange for a portion of past due amounts owed to the Partnership by Skaugen. The Skaugen LPG Joint Venture’s other shareholders include Nogaholding, which has a 35% ownership interest and Suffun Bahrain W.L.L., which has a 30% ownership interest. The purchase and sale is subject to consent from the two other shareholders. b) On October 5, 2016, the Partnership issued 5.0 million of its Series A Preferred Units at $25.00 per unit in a public offering for net proceeds of approximately $120.7 million. Distributions will be payable on the Series A Preferred Units at a rate of 9.0% per annum of the stated liquidation preference of $25.00. At any time on or after October 5, 2021, the Partnership may redeem the Series A Preferred Units, in whole or in part, at a redemption price of $25.00 per unit plus an amount equal to all accumulated and unpaid distributions thereon to the date of redemption, whether or not declared. The Partnership expects to use the net proceeds from the public offering for general partnership purposes, which may include debt repayments or funding installment payments on future newbuilding deliveries. The Series A Preferred Units are listed on the New York Stock Exchange. c) On October 28, 2016, the Partnership issued, in the Norwegian bond market, NOK 900 million in new senior unsecured bonds that mature in October 2021. The new bond issuance has an aggregate principal amount equivalent to approximately $110 million and all payments were swapped into a U.S. Dollar fixed-rate coupon of approximately 7.72%. In connection with the new bond issuance, the Partnership repurchased a portion of the Partnership’s NOK bonds maturing in May 2017, at a price equal to 101.50% of the principal amount of the repurchased bonds of NOK 292 million for a total purchase price of NOK 296 million. The Partnership intends to use the remaining proceeds of the new bond issuance for general partnership purposes, which may include funding of newbuilding installments. The Partnership will apply for listing of the new bonds on the Oslo Stock Exchange. d) On November 16, 2016, the Partnership refinanced its $150 million revolving credit facility, which was scheduled to mature in 2016, with a new $170 million revolving credit facility maturing in November 2017. |
Accounting Pronouncements (Policies) |
9 Months Ended |
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Sep. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Pronouncements | In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers, (or ASU 2014-09). ASU 2014-09 will require an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update creates a five-step model that requires entities to exercise judgment when considering the terms of the contract(s) which include (i) identifying the contract(s) with the customer, (ii) identifying the separate performance obligations in the contract, (iii) determining the transaction price, (iv) allocating the transaction price to the separate performance obligations, and (v) recognizing revenue as each performance obligation is satisfied. ASU 2014-09 is effective for the Partnership January 1, 2018 and shall be applied, at the Partnership’s option, retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Partnership is evaluating the effect of adopting this new accounting guidance. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (or ASU 2016-02). ASU 2016-02 establishes a right-of-use model that requires a lessee to record a right of use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 is effective for the Partnership January 1, 2019, including interim periods within those fiscal years. Early adoption is permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Partnership is evaluating the effect of adopting this new accounting guidance. In March 2016, the FASB issued Accounting Standards Update 2016-09, Improvements to Employee Share-Based Payment Accounting (or ASU 2016-09). ASU 2016-09 simplifies aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. ASU 2016-09 is effective for the Partnership January 1, 2017 with early adoption permitted. The Partnership expects the impact of adopting this new accounting guidance will be a change in presentation of cash payments for tax withholdings on share settled equity awards from an operating cash outflow to a financing cash outflow on the Partnership's statement of cash flows. The Partnership is planning to adopt this new accounting guidance effective January 1, 2017 and expects the impact of adopting this new accounting guidance to be insignificant. In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments. This update replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This update is effective for the Partnership January 1, 2020, with a modified-retrospective approach. The Partnership is currently evaluating the effect of adopting this new guidance. In August 2016, the FASB issued Accounting Standards Update 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments, which, among other things, provides guidance on two acceptable approaches of classifying distributions received from equity method investees in the statement of cash flows. This update is effective for the Partnership January 1, 2018, with a retrospective approach. The Partnership is currently evaluating the effect of adopting this new guidance. |
Financial Instruments (Tables) |
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Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Estimated Fair Value of Partnership's Financial Instruments on Recurring Basis | The following table includes the estimated fair value and carrying value of those assets and liabilities that are measured at fair value on a recurring and non-recurring basis, as well as the estimated fair value of the Partnership’s financial instruments that are not accounted for at a fair value on a recurring basis.
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Changes in Fair Value of Assets Measured on Recurring Basis Using Significant Unobservable Inputs (Level 3) | Changes in fair value during the nine months ended September 30, 2016 and 2015 for the Partnership’s other derivative instrument, the Toledo Spirit time-charter derivative, which is described below and is measured at fair value on a recurring basis using significant unobservable inputs (Level 3), is as follows:
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Summary of Partnership's Loan Receivables and Other Financing Receivables | The following table contains a summary of the Partnership’s loan receivables and other financing receivables by type of borrower and the method by which the Partnership monitors the credit quality of its financing receivables on a quarterly basis.
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Segment Reporting (Tables) |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information | The following table includes results for the Partnership’s segments for the periods presented in these financial statements.
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Reconciliation of Total Segment Assets | A reconciliation of total segment assets to total assets presented in the consolidated balance sheets is as follows:
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Vessel Charters (Tables) |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum Estimated Charter Hire Payments for Remainder of Year and Next Four Fiscal Years for Partnership's Vessels Chartered-In and Vessels Chartered-Out | The minimum estimated charter hire payments for the remainder of the year and the next four fiscal years, as at September 30, 2016, for the Partnership’s vessels chartered-in and vessels chartered-out are as follows:
The carrying amount of tax indemnification guarantees of the Partnership relating to the leasing arrangement through the Teekay Tangguh Joint Venture as at September 30, 2016 was $7.6 million (December 31, 2015 – $8.0 million) and is included as part of other long-term liabilities in the Partnership’s consolidated balance sheets. The tax indemnification is for the duration of the lease contracts with the third parties plus the years it would take for the lease payments to be statute barred, which will end in 2033 for the vessels. Although there is no maximum potential amount of future payments, the Teekay Tangguh Joint Venture may terminate the lease arrangement on a voluntary basis at any time. If the lease arrangement terminates, the Teekay Tangguh Joint Venture will be required to pay termination sums to the lessor sufficient to repay the lessor’s investment in the vessels and to compensate it for the tax effect of the terminations, including recapture of any tax depreciation.
The Partnership was also a party to capital leases on two of its LNG carriers, the Creole Spirit and Oak Spirit. Upon delivery of the Creole Spirit in February 2016 and the Oak Spirit in July 2016, the Partnership sold these vessels to a third party and leased them back under 10-year bareboat charter contracts ending in 2026. The bareboat charter contracts are accounted for as capital leases. The obligations of the Partnership under the bareboat charter contracts are guaranteed by the Partnership. In addition, the guarantee agreements require the Partnership to maintain minimum levels of tangible net worth and aggregate liquidity, and not to exceed a maximum amount of leverage.
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Long-Term Debt (Tables) |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Long-Term Debt |
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Income Tax (Tables) |
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Components of Provision for Income Taxes | The components of the provision for income taxes were as follows:
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Related Party Transactions (Tables) |
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Schedule of Related Party Transactions | Such related party transactions were as follows for the periods indicated:
(i) Commencing in 2008, the Arctic Spirit and Polar Spirit were time-chartered to Teekay Corporation at a fixed-rate for a period of 10 years (plus options exercisable by Teekay Corporation to extend up to an additional 15 years). (ii) Includes commercial, strategic, advisory, business development and administrative management fees charged by Teekay Corporation and reimbursements to Teekay Corporation and the Partnership's General Partner for costs incurred on the Partnership’s behalf. (iii) Includes the Partnership's proportionate costs associated with the Bahrain LNG Joint Venture including pre-operation, engineering and financing-related expenses, which are recorded as part of investments in and advances to equity accounted joint ventures in the Partnership's consolidated balance sheets. |
Derivative Instruments and Hedging Activities (Tables) |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Cross Currency Swap Agreements | The following table reflects information relating to the cross-currency swaps as at September 30, 2016.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Rate Swap Agreements | As at September 30, 2016, the Partnership was committed to the following interest rate swap agreements:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Location and Fair Value Amounts of Derivative Instruments | The following table presents the classification and fair value amounts of derivative instruments, segregated by type of contract, on the Partnership’s consolidated balance sheets.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (Loss) for Derivative Instruments Not Designated or Qualifying as Hedging Instruments | The effect of the gain (loss) on these derivatives on the Partnership’s consolidated statements of income is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) | For the periods indicated, the following table presents the effective and ineffective portion of losses on interest rate swap agreements designated and qualifying as cash flow hedges. The following table excludes any interest rate swap agreements designated and qualifying as cash flow hedges in the Partnership’s equity accounted joint ventures.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Rate Swaption [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Rate Swap Agreements | At September 30, 2016, the terms of the interest rate swaps underlying the interest rate swaptions were as follows:
|
Commitments and Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrecorded Unconditional Purchase Obligations Disclosure | The Partnership’s share of commitments to fund newbuilding and other construction contract costs as at September 30, 2016 are as follows:
|
Financial Instruments - Changes in Fair Value of Asset Measured on Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Investments, All Other Investments [Abstract] | ||
Fair value at beginning of period | $ (6,296) | $ (2,137) |
Realized and unrealized gains (losses) included in earnings | 4,550 | (3,624) |
Settlement payments | 2,556 | 1,207 |
Fair value at end of period | $ 810 | $ (4,554) |
Financial Instruments - Additional Information (Detail) - Toledo Spirit time-charter derivative [Member] - USD ($) |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Average daily tanker rate over remaining duration of charter contract | $ 22,875 | $ 33,500 |
Discount rate over remaining duration of contract | 8.00% | 7.40% |
Financial Instruments - Summary of Partnership's Loan Receivables and Other Financing Receivables (Detail) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Other receivables: | ||
Total loans receivables and other financing receivables | $ 847,027 | $ 854,784 |
Payment activity [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Direct financing leases | 648,396 | 666,658 |
Other receivables: | ||
Long-term receivable and accrued revenue included in accounts receivable and other assets | 13,351 | 28,256 |
Other internal metrics [Member] | Performing [Member] | ||
Other receivables: | ||
Advances to equity accounted joint ventures (note 6) | $ 185,280 | $ 159,870 |
Segment Reporting - Segment Reporting Information (Detail) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
Jul. 31, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Segment Reporting Information [Line Items] | |||||
Voyage revenues | $ 100,658 | $ 98,415 | $ 295,670 | $ 294,349 | |
Voyage expenses | (355) | (240) | (1,354) | (931) | |
Vessel operating expenses | (22,055) | (24,319) | (66,320) | (70,055) | |
Depreciation and amortization | (24,041) | (22,473) | (70,521) | (69,251) | |
General and administrative expenses | (3,573) | (5,676) | (14,865) | (19,452) | |
Restructuring charges | $ (3,500) | 0 | (3,510) | 0 | (3,510) |
Loss on sale of vessels | 0 | 0 | (27,439) | 0 | |
Income from vessel operations | 50,634 | 42,197 | 115,171 | 131,150 | |
Equity income | 13,514 | 13,523 | 52,579 | 60,583 | |
Liquefied Gas Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Voyage revenues | 87,260 | 75,142 | 250,342 | 228,542 | |
Voyage expenses | (175) | 0 | (418) | 0 | |
Vessel operating expenses | (16,751) | (16,260) | (48,717) | (46,693) | |
Depreciation and amortization | (19,317) | (17,268) | (58,476) | (53,578) | |
General and administrative expenses | (3,008) | (3,916) | (12,049) | (14,755) | |
Restructuring charges | 0 | 0 | 0 | ||
Loss on sale of vessels | 0 | 0 | |||
Income from vessel operations | 48,009 | 37,698 | 130,682 | 113,516 | |
Equity income | 13,514 | 13,523 | 52,579 | 60,583 | |
Conventional Tanker Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Voyage revenues | 13,398 | 23,273 | 45,328 | 65,807 | |
Voyage expenses | (180) | (240) | (936) | (931) | |
Vessel operating expenses | (5,304) | (8,059) | (17,603) | (23,362) | |
Depreciation and amortization | (4,724) | (5,205) | (12,045) | (15,673) | |
General and administrative expenses | (565) | (1,760) | (2,816) | (4,697) | |
Restructuring charges | 0 | (3,510) | 0 | (3,510) | |
Loss on sale of vessels | (27,439) | 0 | |||
Income from vessel operations | 2,625 | 4,499 | (15,511) | 17,634 | |
Equity income | $ 0 | $ 0 | $ 0 | $ 0 |
Segment Reporting - Reconciliation of Total Segment Assets (Detail) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Dec. 31, 2014 |
---|---|---|---|---|
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | $ 268,395 | $ 102,481 | $ 154,173 | $ 159,639 |
Accounts receivable and prepaid expenses | 20,676 | 26,550 | ||
Advances to affiliates | 15,568 | 13,026 | ||
Total assets | 4,326,495 | 4,052,980 | ||
Liquefied Gas Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 3,813,347 | 3,550,396 | ||
Conventional Tanker Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | $ 208,509 | $ 360,527 |
Long-Term Debt - Components of Long-Term Debt (Detail) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Debt Instrument [Line Items] | ||
Total principal | $ 1,978,015 | $ 2,015,472 |
Unamortized discount and debt issuance costs | (11,818) | (16,263) |
Total debt | 1,966,197 | 1,999,209 |
Less current portion | (168,927) | (197,197) |
Long-term debt | 1,797,270 | 1,802,012 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total principal | 390,583 | 329,222 |
Term Loans [Member] | ||
Debt Instrument [Line Items] | ||
Total principal | 1,023,153 | 1,150,436 |
Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total principal | 325,627 | 294,016 |
Euro Denominated Term Loans [Member] | ||
Debt Instrument [Line Items] | ||
Total principal | $ 238,652 | $ 241,798 |
Long-Term Debt - Additional Information - USD Term Loans (Detail) $ in Billions |
9 Months Ended |
---|---|
Sep. 30, 2016
USD ($)
Term_loan
Vessel
| |
Minimum [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate on Debt | 0.30% |
Maximum [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate on Debt | 2.80% |
Term Loans [Member] | |
Debt Instrument [Line Items] | |
Number of term loans | Term_loan | 6 |
Long-term debt | $ | $ 1.0 |
Collateral, number of vessels | Vessel | 15 |
Term Loans [Member] | LIBOR [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate on Debt | 0.30% |
Term Loans [Member] | LIBOR [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate on Debt | 2.80% |
Long-Term Debt - Euro-denominated term loans- Additional Information (Detail) - 9 months ended Sep. 30, 2016 € in Millions, $ in Millions |
USD ($)
CreditFacility
Vessel
|
EUR (€)
CreditFacility
Vessel
|
---|---|---|
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate on Debt | 0.30% | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate on Debt | 2.80% | |
Euro Denominated Term Loans [Member] | ||
Debt Instrument [Line Items] | ||
Number of credit facilities | CreditFacility | 2 | 2 |
Long-term debt | $ 238.7 | € 212.4 |
Reference rate for the variable rate of the debt instrument | EURIBOR | |
Collateral, number of vessels | Vessel | 2 | 2 |
Euro Denominated Term Loans [Member] | EURIBOR [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate on Debt | 0.60% | |
Euro Denominated Term Loans [Member] | EURIBOR [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate on Debt | 2.25% |
Income Tax - Components of Provision for Income Taxes (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Income Tax Disclosure [Abstract] | ||||
Current | $ (209) | $ (258) | $ (722) | $ (517) |
Deferred | 0 | 0 | 0 | 226 |
Income tax expense | $ (209) | $ (258) | $ (722) | $ (291) |
Related Party Transactions - Arctic Spirit and Polar Spirit - Additional Information (Detail) - Vessel |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Related Party Transaction [Line Items] | ||
Number of vessels | 9 | 11 |
BG Joint Venture [Member] | Shipbuilding supervision and crew training services [Member] | Newbuildings [Member] | ||
Related Party Transaction [Line Items] | ||
Number of vessels | 4 | |
Subsidiary of Common Parent [Member] | Liquefied Natural Gas [Member] | Charters-out [Member] | ||
Related Party Transaction [Line Items] | ||
Number of vessels | 2 |
Related Party Transactions - Schedule of Related Party Transactions (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Related Party Transaction [Line Items] | ||||
Voyage revenues | $ 100,658 | $ 98,415 | $ 295,670 | $ 294,349 |
General and administrative expenses | (3,573) | (5,676) | $ (14,865) | (19,452) |
Teekay Corporation [Member] | ||||
Related Party Transaction [Line Items] | ||||
Operating lease arrangement period, lessor | 10 years | |||
Teekay Corporation [Member] | Maximum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Additional time period for fixed-rate time-charters contract | 15 years | |||
Affiliated Entity [Member] | ||||
Related Party Transaction [Line Items] | ||||
Voyage revenues | 9,429 | 7,727 | $ 28,075 | 27,735 |
Vessel operating expenses | (5,107) | (4,714) | (15,023) | (14,337) |
General and administrative expenses | (3,437) | (3,658) | (8,666) | (11,326) |
General and administrative expenses deferred and capitalized | $ (116) | $ 0 | $ (442) | $ 0 |
Related Party Transactions - Non-interest Bearing Advances - Additional Information (Detail) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Related Party Transactions [Abstract] | ||
Advances to affiliates | $ 15,568 | $ 13,026 |
Advances from affiliates | $ 13,053 | $ 22,987 |
Related Party Transactions - Shipbuilding and Site Supervision Services Additional Information (Detail) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2016
USD ($)
Vessel
|
Sep. 30, 2015
USD ($)
|
Sep. 30, 2016
USD ($)
Vessel
|
Sep. 30, 2015
USD ($)
|
Dec. 31, 2015
Vessel
|
|
Related Party Transaction [Line Items] | |||||
Number of vessels | Vessel | 9 | 9 | 11 | ||
Liquefied Natural Gas [Member] | Daewoo Shipbuilding [Member] | |||||
Related Party Transaction [Line Items] | |||||
Shipbuilding and site supervision costs | $ | $ 2.1 | $ 1.1 | $ 7.0 | $ 2.6 |
Derivative Instruments and Hedging Activities - Effective Portion of Gains (Losses) on Interest Rate Swap Agreements (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Derivative [Line Items] | ||||
Effective Portion Recognized in AOCI | $ 842 | $ 0 | $ (8,673) | $ 0 |
Statement of Income | 0 | 0 | 0 | 0 |
Ineffective Portion | (130) | 0 | (1,044) | 0 |
Interest Expense [Member] | ||||
Derivative [Line Items] | ||||
Effective Portion Recognized in AOCI | 842 | 0 | (8,673) | 0 |
Statement of Income | 0 | 0 | 0 | 0 |
Ineffective Portion | $ (130) | $ 0 | $ (1,044) | $ 0 |
Commitments and Contingencies - Commitments to Fund Newbuilding and Other Construction Contract Costs (Details) $ in Thousands |
Sep. 30, 2016
USD ($)
Vessel
|
Dec. 31, 2015
Vessel
|
---|---|---|
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Total | $ 3,044,568 | |
Remainder of 2016 | 158,406 | |
2017 | 1,054,634 | |
2018 | 1,072,789 | |
2019 | 558,834 | |
2020 | $ 199,905 | |
Number of vessels | Vessel | 9 | 11 |
Capital Addition Purchase Commitments, Consolidated Entities [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Total | $ 1,537,362 | |
Remainder of 2016 | 39,129 | |
2017 | 708,539 | |
2018 | 540,580 | |
2019 | 249,114 | |
2020 | 0 | |
Capital Addition Purchase Commitments, Equity Method Investee [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Total | 1,507,206 | |
Remainder of 2016 | 119,277 | |
2017 | 346,095 | |
2018 | 532,209 | |
2019 | 309,720 | |
2020 | 199,905 | |
Debt facility used to finance a portion of estimated fully built-up cost | 269,000 | |
Unrecorded unconditional purchase obligation, funded by debt | $ 236,000 |
Commitments and Contingencies - RasGas II Leases (Detail) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2016
USD ($)
Agreement
Vessel
| |
RasGas II LNG Carriers [Member] | |
Long-term Purchase Commitment [Line Items] | |
Percentage of ownership interest | 70.00% |
HMRC [Member] | RasGas II LNG Carriers [Member] | |
Long-term Purchase Commitment [Line Items] | |
Present value of the lease rental increase claim | $ 60.0 |
Teekay Nakilat Corporation [Member] | |
Long-term Purchase Commitment [Line Items] | |
Number of lease agreements | Agreement | 3 |
Capital lease arrangement period, lessor | 30 years |
Number of vessels leased | Vessel | 3 |
Security deposit against future claims | $ 6.8 |
Commitments and Contingencies - Teekay LNG-Marubeni Joint Venture (Detail) - Settled Litigation [Member] - USD ($) $ in Millions |
1 Months Ended | 9 Months Ended |
---|---|---|
Jun. 30, 2016 |
Sep. 30, 2016 |
|
Equity Income [Member] | ||
Loss Contingencies [Line Items] | ||
Litigation settlement, amount | $ 20.3 | |
Teekay LNG-Marubeni Joint Venture [Member] | ||
Loss Contingencies [Line Items] | ||
Litigation settlement, amount | $ 39.0 |
Total Capital and Net Income Per Unit - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions |
1 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 05, 2016 |
Oct. 31, 2016 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Capital Unit [Line Items] | ||||
Quarterly cash distribution per unit, threshold, below in 2016 and above in 2015 (usd per share) | $ 0.4625 | $ 0.4625 | ||
Teekay Corporation [Member] | ||||
Capital Unit [Line Items] | ||||
General Partner's proportionate contribution, percentage | 2.00% | |||
Public [Member] | ||||
Capital Unit [Line Items] | ||||
Unit held by public, percentage | 68.30% | |||
Series A Preferred Units [Member] | Subsequent Event [Member] | ||||
Capital Unit [Line Items] | ||||
Number of units issued in public offering (in units) | 5,000,000 | 5,000,000 | ||
Dividend rate on preferred stock, percentage | 9.00% | 9.00% | ||
Net proceeds from units issued in public offering (in units) | $ 120.7 | $ 120.7 |
Unit-Based Compensation - Additional Information (Detail) - USD ($) |
1 Months Ended | 3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Aggregate value of units issued | $ 1,500,000 | $ 1,100,000 | ||||
Restricted unit-based compensation granted to Partnership's employee (in units) | 132,582 | 32,054 | ||||
Restricted units, vesting period | 3 years | |||||
Restricted units, vested (in units) | 0 | 0 | 20,808 | 13,783 | ||
Restricted units, vested in period, fair value | $ 0 | $ 0 | $ 800,000 | $ 600,000 | ||
Restricted units expense | $ 100,000 | $ 100,000 | $ 1,200,000 | $ 1,100,000 | ||
Non-management directors [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common units granted (in units) | 32,723 | |||||
Aggregate value of units issued | $ 400,000 |
Restructuring Charges (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
Jul. 31, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Restructuring and Related Activities [Abstract] | |||||
Restructuring charges | $ 3,500 | $ 0 | $ 3,510 | $ 0 | $ 3,510 |
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