Segment Reporting

The Company allocates capital and assesses performance from the separate perspectives of its two publicly-traded subsidiaries Teekay LNG and Teekay Tankers (together, the Daughter Companies), Teekay and its remaining subsidiaries (or Teekay Parent), and its equity-accounted investment in Teekay Offshore, as well as from the perspective of the Company's lines of business. The primary focus of the Company’s organizational structure, internal reporting and allocation of resources by the chief operating decision maker is on the Daughter Companies, Teekay Parent and its equity-accounted investment in Teekay Offshore (the Legal Entity approach) and its segments are presented accordingly on this basis. The Company (excluding its equity-accounted investment in Teekay Offshore) has three primary lines of business: (1) offshore production (floating production, storage and off-loading (or FPSO) units), (2) liquefied gas carriers (liquefied natural gas (or LNG) and liquefied petroleum gas (or LPG) carriers), and (3) conventional tankers. The Company manages these businesses for the benefit of all stakeholders. The Company incorporates the primary lines of business 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. Subsequent to the Brookfield Transaction on September 25, 2017, the Company assesses the performance of, and makes decisions to allocate resources to, its investment in Teekay Offshore as a whole and not at the level of the individual lines of business within Teekay Offshore, which are (1) offshore production (FPSO units), (2) offshore logistics (shuttle tankers, the HiLoad DP unit, floating storage and offtake (or FSO) units, a unit for maintenance and safety (or UMS) and long-distance towing and offshore installation vessels), and (3) conventional tankers. The Company has therefore determined that its equity-accounted investment in Teekay Offshore represents a separate operating segment and that individual lines of business within Teekay Offshore are no longer disclosed in the Company's operating segments. All segment information for prior periods has been retroactively adjusted to be consistent with the change in segment presentation of Teekay Offshore, beginning with the third quarter of 2017.

The following table includes results for the Company’s revenues by segment for the three and nine months ended September 30, 2017 and 2016:



	Revenues
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
	$		$		$		$
Teekay Offshore⁽¹⁾⁽²⁾	255,781		286,298		796,711		877,470

Teekay LNG
Liquefied Gas Carriers⁽²⁾	92,700		87,260		271,078		250,342
Conventional Tankers	11,585		13,398		35,291		45,328
	104,285		100,658		306,369		295,670

Teekay Tankers⁽³⁾
Conventional Tankers⁽²⁾	91,238		109,554		330,512		427,349

Teekay Parent
Offshore Production	51,254		53,592		143,769		167,398
Conventional Tankers⁽²⁾	1,041		6,982		4,965		30,566
Other	19,727		17,258		47,149		60,698
	72,022		77,832		195,883		258,662

Eliminations and other	(22,545	)	(26,703	)	(71,266	)	(82,785	)
	500,781		547,639		1,558,209		1,776,366


(1)	On September 25, 2017, the Company deconsolidated Teekay Offshore (see Note 3). The revenue figures above are those of Teekay Offshore until the date of deconsolidation.


(2)	Certain vessels are chartered between the Daughter Companies or Teekay Offshore 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 three and nine months ended September 30, 2017 and 2016 is as follows:



	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2017	2016	2017	2016
	$	$	$	$
Teekay Offshore	9,211	13,554	33,429	38,472
Teekay LNG - Liquefied Gas Carriers	9,296	9,429	26,851	28,075
Teekay Tankers - Conventional Tankers	—	417	—	5,405
Teekay Parent - Conventional Tankers	—	—	—	—
	18,507	23,400	60,280	71,952

(3) On May 31, 2017, Teekay Tankers acquired from Teekay Parent the remaining 50% interest in Teekay Tanker Operations Ltd. (or TTOL); Teekay Tankers acquired its initial 50% interest in TTOL in August 2014. As a result of the acquisition, the financial information for Teekay Tankers prior to the date that Teekay Tankers acquired its remaining 50% interest in TTOL is retroactively adjusted to include 100% of the results of TTOL during the periods they were under common control of Teekay and had begun operations.

The following table includes results for the Company’s (loss) income from vessel operations by segment for the three and nine months ended September 30, 2017 and 2016:



	(Loss) Income from Vessel Operations⁽¹⁾
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
	$		$		$		$
Teekay Offshore⁽²⁾	40,384		61,739		147,060		174,309

Teekay LNG
Liquefied Gas Carriers	44,902		48,009		128,281		130,682
Conventional Tankers	(34,580	)	2,625		(42,010	)	(15,511	)
	10,322		50,634		86,271		115,171

Teekay Tankers⁽³⁾
Conventional Tankers	(13,734	)	(3,207	)	(1,406	)	86,565

Teekay Parent
Offshore Production	(223,957	)	(13,116	)	(262,986	)	(39,159	)
Conventional Tankers	(3,077	)	(363	)	(8,524	)	(13,644	)
Other	216		(5,922	)	(20,370	)	(22,174	)
	(226,818	)	(19,401	)	(291,880	)	(74,977	)

	(189,846	)	89,765		(59,955	)	301,068


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


(2)	On September 25, 2017, the Company deconsolidated Teekay Offshore (see Note 3). The income from vessel operations figures above are those of Teekay Offshore until the date of deconsolidation.

(3)

On May 31, 2017, Teekay Tankers acquired from Teekay Parent, the remaining 50% interest in TTOL; Teekay Tankers acquired its initial 50% interest in TTOL in August 2014. As a result of the acquisition, the financial information for Teekay Tankers prior to the date that Teekay Tankers acquired its remaining 50% interest in TTOL is retroactively adjusted to include 100% of the results of TTOL during the periods they were under common control of Teekay and had begun operations.

Commencing on September 25, 2017, the Company accounts for its investment in Teekay Offshore using the equity method, and recognized an equity loss of $3.1 million for the three and nine months ended September 30, 2017. In the period after deconsolidation of Teekay Offshore to September 30, 2017, Teekay Offshore incurred impairment charges of $316.7 million which did not impact the equity loss recognized by Teekay as Teekay recorded its equity-accounted investment in Teekay Offshore at fair value on September 25, 2017.

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



	September 30, 2017		December 31, 2016
	$		$
Teekay Offshore	302,706		5,354,702
Teekay LNG - Liquefied Gas Carriers	4,307,812		3,957,088
Teekay LNG - Conventional Tankers	115,168		193,553
Teekay Tankers - Conventional Tankers	1,675,347		1,870,211
Teekay Parent - Offshore Production	382,790		635,364
Teekay Parent - Conventional Tankers	32,153		55,937
Teekay Parent - Other	59,882		13,208
Cash and cash equivalents	453,283		567,994
Other assets not allocated	124,793		281,244
Eliminations	(23,086	)	(114,549	)
Consolidated total assets	7,430,848		12,814,752