| Fair Value of Financial Instruments and Other Non-Financial Assets |
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 Company’s financial instruments that are not
accounted for at a fair value on a recurring basis.
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December 31,
2012 |
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December 31,
2011 |
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Fair
Value
Hierarchy
Level |
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Carrying
Amount
Asset
(Liability)
$ |
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Fair
Value
Asset
(Liability)
$ |
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Carrying
Amount
Asset
(Liability)
$ |
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Fair Value
Asset
(Liability)
$ |
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Recurring
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Cash and cash equivalents,
restricted cash, and marketable securities
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Level 1 |
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1,178,118 |
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1,178,118 |
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1,200,063 |
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1,200,063 |
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Derivative
instruments(note 15)
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Interest rate swap
agreements—assets(1)
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Level 2 |
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165,688 |
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165,688 |
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159,603 |
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159,603 |
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Interest rate swap
agreements—liabilities(1)
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Level 2 |
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(667,825 |
) |
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(667,825 |
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(707,437 |
) |
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(707,437 |
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Cross currency interest
swap agreement
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Level 2 |
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13,886 |
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13,886 |
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2,677 |
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2,677 |
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Foreign currency
contracts
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Level 2 |
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2,885 |
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2,885 |
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(4,362 |
) |
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(4,362 |
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Foinaven embedded
derivative
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Level 2 |
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— |
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— |
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3,385 |
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3,385 |
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Non-recurring
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Vessels and
equipment(note 18b)
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Level 2 |
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287,983 |
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287,983 |
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118,682 |
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118,682 |
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Equity accounted
investments(2)
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Level 3 |
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— |
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— |
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9,623 |
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9,623 |
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Vessels held for
sale(note 18b)
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Level 2 |
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22,364 |
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22,364 |
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19,000 |
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19,000 |
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Other
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Investment in term
loans
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Level 3 |
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188,756 |
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186,048 |
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189,666 |
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190,939 |
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Loans to equity accounted
investees and joint venture partners—Current
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Level 3 |
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139,183 |
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139,183 |
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— |
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— |
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Loans to equity accounted
investees and joint venture partners—Long-term
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(3 |
) |
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67,720 |
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(3 |
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85,248 |
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(3 |
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Long-term
debt—public(note 8)
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Level 1 |
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(914,338 |
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(949,326 |
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(547,242 |
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(533,999 |
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Long-term
debt—non-public(note 8)
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Level 2 |
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(4,645,376 |
) |
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(4,329,117 |
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(4,897,131 |
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(4,538,215 |
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| (1) |
The fair value of the
Company’s interest rate swap agreements at December 31,
2012 includes $21.6 million (December 31, 2011- $24.5 million) of
net accrued interest which is recorded in accrued liabilities and
accounts receivable on the consolidated balance sheets. |
| (2) |
The fair value measurement
used to determine the impairment of the investment in Petrotrans
Holdings Ltd. (or PTH) was based upon the estimated
liquidation values of the underlying net assets of the
investment. |
| (3) |
In these consolidated
financial statements the Company’s loans to and equity
investments in equity accounted investees form the aggregate
carrying value of the Company’s interests in entities
accounted for by the equity method. In addition, the loans to joint
venture partners together with the joint venture partner’s
equity investment in joint venture form the net aggregate carrying
value of the joint venture partner’s interest in the joint
venture. The fair value of the individual components of such
aggregate interests is not determinable. |
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