Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2013

Investments All Other Investments [Abstract]

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 fair value on a recurring basis.


		June 30, 2013						December 31, 2012
	Fair Value Hierarchy Level	Carrying Amount Asset (Liability) $			Fair Value Asset (Liability) $			Carrying Amount Asset (Liability) $			Fair Value Asset (Liability) $
Recurring
Cash and cash equivalents, restricted cash, and marketable securities	Level 1		1,076,022			1,076,022			1,178,118			1,178,118
Derivative instruments (note 14)
Interest rate swap agreements—assets	Level 2		118,683			118,683			165,688			165,688
Interest rate swap agreements—liabilities	Level 2		(504,429	)		(504,429	)		(667,825	)		(667,825	)
Cross currency swap agreement	Level 2		(40,963	)		(40,963	)		13,886			13,886
Foreign currency contracts	Level 2		(4,671	)		(4,671	)		2,885			2,885
Non-recurring
Vessels and equipment	Level 2		—			—			287,983			287,983
Vessels held for sale	Level 2		6,800			6,800			22,364			22,364
Other
Investment in term loans	Level 3		188,895			184,246			188,756			186,048
Loans to equity accounted investees and joint venture partners—Current	Level 3		2,743			2,743			139,183			139,183
Loans to equity accounted investees and joint venture partners—Long-term	⁽¹⁾		177,111			⁽¹	⁾		67,720			⁽¹	⁾
Long-term debt—public (note 7)	Level 1		(1,025,778	)		(1,072,211	)		(914,338	)		(949,326	)
Long-term debt—non-public (note 7)	Level 2		(4,717,331	)		(4,441,873	)		(4,645,376	)		(4,329,117	)

(1)

In these consolidated financial statements, the Company’s long-term 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 long-term loans to joint venture partners together with the joint venture partner’s equity investment in joint ventures form the net aggregate carrying value of the Company’s interest in the joint ventures. The fair value of the individual components of such aggregate interests is not determinable.

Summary of Financing Receivables

The following table contains a summary of the Company’s financing receivables by type of borrower and the method by which the Company monitors the credit quality of its financing receivables on a quarterly basis.

Class of Financing Receivable

Credit Quality Indicator

Grade

June 30,
2013
$

December 31,
2012
$

Direct financing leases

Payment activity

Performing

430,414

436,601

Other loan receivables

Investment in term loans (note 6b)

Collateral

Non-Performing

188,895

188,756

Loans to equity accounted investees and joint venture partners ⁽¹⁾

Other internal metrics

Performing

179,854

206,903

Long term receivable included in other assets

Payment activity

Performing

—

1,704

799,163

833,964

(1)

Teekay LNG owns a 99% interest in Teekay Tangguh, which owns a 70% interest in Teekay BLT Corporation (or Teekay Tangguh Subsidiary). During the year ended December 31, 2012, one of Teekay LNG‘s joint venture partner‘s parent company, PT Berlian Laju Tanker (or BLT), suspended trading on the Jakarta Stock Exchange and entered into a court-supervised debt restructuring in Indonesia. The Company believes the loans to BLT and Teekay LNG‘s joint venture partner, BLT LNG Tangguh Corporation, totaling $24.0 million as at June 30, 2013 (December 31, 2012—$24.0 million), are collectible given the expected cash flows anticipated to be generated by the Teekay Tangguh Subsidiary that can be used to repay the loan and given the underlying collateral securing the loans to BLT.