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 Controlled Daughter Entities), Teekay and its remaining subsidiaries (or Teekay Parent), and its equity-accounted investee, Teekay Offshore (collectively with the Controlled Daughter Entities, the Daughter Entities), 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 Controlled Daughter Entities, Teekay Parent and its equity-accounted investee, Teekay Offshore (the Legal Entity approach), and its segments are presented accordingly on this basis. The Company (which excludes Teekay Offshore) has three primary lines of business: (1) offshore production (FPSO units), (2) 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 Controlled Daughter Entity and the Company believes this information allows a better understanding of the Company’s performance and prospects for future net cash flows.

The following table includes the Company’s revenues by segment for the three and six months ended June 30, 2018 and 2017:



	Revenues ⁽¹⁾
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
	$		$		$		$
Teekay LNG
Liquefied Gas Carriers⁽²⁾	112,172		89,431		217,221		178,378
Conventional Tankers	10,143		11,473		20,400		23,706
	122,315		100,904		237,621		202,084

Teekay Tankers
Conventional Tankers	171,659		108,789		340,124		239,274

Teekay Parent
Offshore Production	66,429		48,173		132,399		92,515
Conventional Tankers	—		1,757		—		3,924
Other	46,183		15,565		98,127		27,422
	112,612		65,495		230,526		123,861

Teekay Offshore⁽²⁾⁽³⁾	—		264,792		—		540,930

Eliminations and other	(944	)	(26,057	)	(8,607	)	(48,721	)
	405,642		513,923		799,664		1,057,428


(1)	The comparative periods do not include the impact of the January 1, 2018 adoption of ASU 2014-09 (see Note 2).


(2)	Certain vessels are chartered between the Daughter Entities 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 six months ended June 30, 2018 and 2017 is as follows:



	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2018	2017	2018	2017
	$	$	$	$
Teekay LNG - Liquefied Gas Carriers	1,439	8,564	9,418	17,555
Teekay Offshore	—	14,207	—	24,218
	1,439	22,771	9,418	41,773

(3) On September 25, 2017, the Company deconsolidated Teekay Offshore (see Note 4).

The following table includes the Company’s income (loss) from vessel operations by segment for the three and six months ended June 30, 2018 and 2017:



	Income (loss) from Vessel Operations⁽¹⁾
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
	$		$		$		$
Teekay LNG
Liquefied Gas Carriers	9,445		40,043		53,990		83,379
Conventional Tankers	1,060		(10,172	)	(18,343	)	(7,430	)
	10,505		29,871		35,647		75,949

Teekay Tankers
Conventional Tankers	(13,415	)	1,587		(21,836	)	12,328

Teekay Parent
Offshore Production	5,541		(18,618	)	12,423		(39,029	)
Conventional Tankers	—		(2,988	)	—		(5,447	)
Other	(710	)	(7,784	)	(5,808	)	(20,586	)
	4,831		(29,390	)	6,615		(65,062	)

Teekay Offshore⁽²⁾	—		46,218		—		106,676

	1,921		48,286		20,426		129,891


(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 4).

Commencing on September 25, 2017, the Company accounts for its investment in Teekay Offshore using the equity method, and recognized equity losses of $9.3 million and $8.7 million in respect of Teekay Offshore for the three and six months ended June 30, 2018, respectively.

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



	June 30, 2018		December 31, 2017
	$		$
Teekay LNG - Liquefied Gas Carriers	4,857,355		4,624,321
Teekay LNG - Conventional Tankers	70,782		112,844
Teekay Tankers - Conventional Tankers	2,092,239		2,125,909
Teekay Parent - Offshore Production	343,547		366,229
Teekay Parent - Conventional Tankers	13,043		13,620
Teekay Parent - Other	30,065		26,527
Teekay Offshore	257,896		280,774
Cash and cash equivalents	454,933		445,452
Other assets not allocated	117,321		118,493
Eliminations	(20,273	)	(21,732	)
Consolidated total assets	8,216,908		8,092,437