2.	Segment Reporting

The Company has four primary lines of business: offshore logistics (shuttle tankers, the HiLoad DP unit, FSO units, UMS and long-distance towing and offshore installation vessels), offshore production (FPSO units), liquefied gas carriers (LNG and LPG carriers) and conventional tankers. The Company manages these businesses for the benefit of all stakeholders. The Company allocates capital and assesses performance both from the separate perspectives of our publicly-traded subsidiaries Teekay Offshore, Teekay LNG, Teekay Tankers (together, the Daughter Companies) and Teekay and its remaining subsidiaries (or Teekay Parent) as well as from the perspective of the lines of business. Historically, the Company’s organizational structure and internal reporting has been primarily based on the lines of business (the Line of Business approach), resulting in the Company’s segment disclosure presentation on a lines-of-business basis, without reference to the legal entities. With the establishment of the Daughter Companies and subsequent dropdown of vessels from Teekay Parent to the Daughter Companies, the Company’s organizational structure and internal reporting has gradually evolved to focus less on lines of business and more on the Daughter Companies and Teekay Parent (the Legal Entity approach). As a result of an internal re-organization that was completed in the third quarter of 2015, the primary focus of the Company’s organizational structure, internal reporting and allocation of resources by the chief operating decision maker is now the Legal Entity approach. As such, the Company has modified the presentation of its segments to incorporate the Legal Entity approach. However, the Company has continued to incorporate the Line of Business approach within its segments, as in certain cases there is more than one line of business in each Daughter Company and the Company believes this information allows a better understanding of the Company’s performance and prospects for future net cash flows. All segment information for prior periods has been retroactively adjusted to be consistent with the change in segment presentation beginning with the third quarter of 2015.

The following table includes results for the Company’s revenue and income from vessel operations by segment for the periods presented in these financial statements.


	Revenues⁽¹⁾									Income (Loss) from Vessel Operations⁽²⁾
	Year Ended									Year Ended
	December 31,									December 31,
	2015			2014			2013			2015			2014			2013
Teekay Offshore
Offshore Logistics		667,629			631,455			611,035			108,119			146,756			40,127
Offshore Production		531,554			354,518			284,932			165,152			95,991			48,170
Conventional Tankers		30,230			33,566			55,010			10,128			13,471			10,594

		1,229,413			1,019,539			950,977			283,399			256,218			98,891


Teekay LNG
Liquefied Gas Carriers		305,056			307,426			285,694			151,200			156,868			144,430
Conventional Tankers		92,935			95,502			113,582			30,172			26,955			31,926

		397,991			402,928			399,276			181,372			183,823			176,356


Teekay Tankers⁽³⁾
Conventional Tankers		504,347			235,593			170,087			184,083			58,271			3,411


Teekay Parent
Offshore Production		277,842			259,945			282,687			(40,227	)		(78,804	)		(67,486	)
Conventional Tankers		65,777			94,376			83,520			4,984			(12,407	)		(158,091	)
Other		75,547			95,791			73,801			5,015			17,488			12,365

		419,166			450,112			440,008			(30,228	)		(73,723	)		(213,212	)

Eliminations and other		(100,535	)		(114,252	)		(130,263	)		6,506			2,570			(2,700	)

		2,450,382			1,993,920			1,830,085			625,132			427,159			62,746

(1)	Certain vessels are chartered between the Daughter Companies and Teekay Parent. The amounts in the table below represent revenue earned by each segment from other segments within the group. Such intersegment revenue for the year ended 2015, 2014 and 2013 is as follows:


	Year Ended
	December 31,
	2015		2014		2013
Teekay Offshore - Offshore Logistics		38,734		34,603		37,876
Teekay Offshore - Conventional Tankers		29,259		32,411		44,269
Teekay LNG - Liquefied Gas Carriers		35,887		37,596		34,573
Teekay Tankers - Conventional Tankers		1,380		13,707		13,545
Teekay Parent - Conventional Tankers		3,080		—		—

		108,340		118,317		130,263

(2)	Includes direct general and administrative expenses and indirect general and administrative expenses (allocated to each segment based on estimated use of corporate resources).

(3)	Financial information for Teekay Tankers includes operations of the SPT Explorer and Navigator Spirit from December 18, 2015, the date Teekay Tankers acquired the vessels from Teekay Offshore.

The following table presents revenues and percentage of consolidated revenues for customers that accounted for more than 10% of the Company’s consolidated revenues during the periods presented. All of these customers are international oil companies.


	Year Ended	Year Ended	Year Ended
	December 31,	December 31,	December 31,
(U.S. dollars in millions)	2015	2014	2013
BG Group⁽¹⁾	$263.4 or 11%	⁽⁵⁾	⁽⁵⁾
Petroleo Brasileiro SA ⁽²⁾	$231.8 or 10%	$248.2 or 12%	$244.3 or 13%
Statoil ASA ⁽³⁾	⁽⁵⁾	$239.8 or 12%	$250.5 or 14%
BP PLC ⁽⁴⁾	⁽⁵⁾	⁽⁵⁾	$182.5 or 10%

(1)	Teekay Offshore - Offshore Logistics and Offshore Production. In February 2016, Royal Dutch Shell Plc acquired BG Group Plc.

(2)	Teekay Offshore - Offshore Logistics and Offshore Production, Teekay Tankers - Conventional Tankers and Teekay Parent – Conventional Tankers

(3)	Teekay Offshore - Offshore Logistics, Teekay Tankers - Conventional Tankers, Teekay Parent – Offshore Production and Teekay Parent – Conventional Tankers

(4)	Teekay Offshore - Offshore Logistics, Teekay LNG - Liquefied Gas, Teekay Parent – Offshore Production and Teekay Parent – Conventional Tankers

(5)	Less than 10%

The following table includes other income statement items by segment for the periods presented in these financial statements.


	Depreciation and Amortization									Asset Impairment and Loan Loss (Provisions) Recoveries									Equity Income (Loss)
	Year Ended									Year Ended									Year Ended
	December 31,									December 31,									December 31,
	2015			2014			2013			2015			2014			2013			2015			2014			2013
Teekay Offshore
Offshore Logistics		(130,102	)		(118,968	)		(126,091	)		(67,744	)		(4,759	)		(76,782	)		—			—			—
Offshore Production		(137,914	)		(72,905	)		(66,404	)		—			—			—			7,672			10,341			6,731
Conventional Tankers		(6,583	)		(6,680	)		(7,747	)		(3,897	)		—			(18,164	)		—			—			—

		(274,599	)		(198,553	)		(200,242	)		(71,641	)		(4,759	)		(94,946	)		7,672			10,341			6,731

Teekay LNG
Liquefied Gas Carriers		(71,323	)		(71,711	)		(71,485	)		—			—			—			84,171			115,478			123,282
Conventional Tankers		(20,930	)		(22,416	)		(26,399	)		—			—			—			—			—			—

		(92,253	)		(94,127	)		(97,884	)		—			—			—			84,171			115,478			123,282

Teekay Tankers⁽¹⁾
Conventional Tankers		(71,429	)		(50,152	)		(47,833	)		—			—			—			14,411			5,228			854

Teekay Parent
Offshore Production		(69,508	)		(78,630	)		(77,551	)		—			2,521			(2,634	)		(12,196	)		(1,357	)		4,649
Conventional Tankers		(2,852	)		(2,216	)		(9,882	)		—			—			(92,699	)		16,712			3,052			1,291
Other		451			774			2,306			—			—			21,926			(1,101	)		(2,546	)		(269	)

		(71,909	)		(80,072	)		(85,127	)		—			2,521			(73,407	)		3,415			(851	)		5,671

Other		690			—			—			—			—			—			(6,798	)		(2,082	)		—

		(509,500	)		(422,904	)		(431,086	)		(71,641	)		(2,238	)		(168,353	)		102,871			128,114			136,538

(1)	Financial information for Teekay Tankers includes operations of the SPT Explorer and Navigator Spirit from December 18, 2015, the date Teekay Tankers acquired the vessels from Teekay Offshore.

A reconciliation of total segment assets to total assets presented in the accompanying consolidated balance sheets is as follows:


	December 31, 2015 $			December 31, 2014 $
	December 31, 2015 $			December 31, 2014 $
Teekay Offshore - Offshore Logistics		2,591,489			2,186,789
Teekay Offshore - Offshore Production		2,717,193			1,261,569
Teekay Offshore - Conventional Tankers		63,900			150,044
Teekay LNG - Liquefied Gas Carriers		3,550,396			3,379,279
Teekay LNG - Conventional Tankers		360,527			381,175
Teekay Tankers - Conventional Tankers		2,073,059			1,000,864
Teekay Parent - Offshore Production		710,533			2,138,445
Teekay Parent - Conventional Tankers		142,236			138,504
Teekay Parent - Other		17,256			31,328
Cash and cash equivalents		678,392			806,904
Other assets not allocated		301,586			394,341
Eliminations		(145,319	)		(89,552	)

Consolidated total assets		13,061,248			11,779,690

The following table includes capital expenditures by segment for the periods presented in these financial statements.


	December 31, 2015 $		December 31, 2014 $
	December 31, 2015 $		December 31, 2014 $
Teekay Offshore - Offshore Logistics		552,219		154,896
Teekay Offshore - Offshore Production		120,160		17,022
Teekay Offshore - Conventional Tankers		97		251
Teekay LNG - Liquefied Gas Carriers		191,642		193,669
Teekay LNG - Conventional Tankers		327		586
Teekay Tankers - Conventional Tankers		848,250		2,063
Teekay Parent - Offshore Production		57,778		671,277
Teekay Parent - Conventional Tankers		92		(44	)
Teekay Parent - Other		199		13

		1,770,764		1,039,733