Segment Reporting

The Company’s segments are described in "Item 18 – Financial Statements: Note 3" to the Company’s Annual Report on Form 20-F for the year ended December 31, 2018. 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, prior to the completion of the 2019 Brookfield Transaction, 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 Controlled Daughter Entities, Teekay Parent and, prior to the completion of the 2019 Brookfield Transaction, its equity-accounted investment in 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, 2019 and 2018:



	Revenues
	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
	$		$		$		$
Teekay LNG
Liquefied Gas Carriers⁽¹⁾	150,691		112,172		297,673		217,221
Conventional Tankers	2,369		10,143		5,131		20,400
	153,060		122,315		302,804		237,621

Teekay Tankers
Conventional Tankers⁽¹⁾	202,277		171,659		434,778		340,124

Teekay Parent
Offshore Production	57,828		66,429		107,266		132,399
Other	47,989		46,183		98,648		98,127
	105,817		112,612		205,914		230,526

Eliminations and other	(3,487	)	(944	)	(4,616	)	(8,607	)
	457,667		405,642		938,880		799,664

(1)

The amounts in the table below represent revenue earned by each segment from other segments within the group. During 2019, Teekay Tankers' ship-to-ship transfer business provided operational and maintenance services to Teekay LNG Bahrain Operations L.L.C., an entity wholly-owned by Teekay LNG, for the LNG receiving and regasification terminal in Bahrain. Also during 2019, the Magellan Spirit was chartered by Teekay LNG to Teekay Parent. During 2018, certain vessels were chartered by Teekay LNG to Teekay Parent. Such intersegment revenue for the three and six months ended June 30, 2019 and 2018 is as follows:



	Three Months Ended June 30,		Six Months Ended June 30,
	2019	2018	2019	2018
	$	$	$	$
Teekay LNG - Liquefied Gas Carriers	2,487	1,439	2,487	9,418
Teekay Tankers - Conventional Tankers	1,000	—	2,129	—
	3,487	1,439	4,616	9,418

The following table includes the Company’s income (loss) from vessel operations by segment for the three and six months ended June 30, 2019 and 2018:



	Income (Loss) from Vessel Operations⁽¹⁾
	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
	$		$		$		$
Teekay LNG
Liquefied Gas Carriers	74,244		9,445		144,687		53,990
Conventional Tankers	433		1,060		(649	)	(18,343	)
	74,677		10,505		144,038		35,647

Teekay Tankers
Conventional Tankers	5,051		(13,415	)	37,148		(21,836	)

Teekay Parent
Offshore Production	(5,987	)	5,541		(18,544	)	12,423
Other	(2,278	)	(710	)	(6,947	)	(5,808	)
	(8,265	)	4,831		(25,491	)	6,615

	71,463		1,921		155,695		20,426


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

Prior to its sale in May 2019, the Company accounted for its investment in Teekay Offshore's general partner and common units using the equity method and recognized equity losses in respect of Teekay Offshore for the periods from April 1, 2019 to May 8, 2019 and January 1, 2019 to May 8, 2019 of $nil and $3.1 million, respectively (three and six months ended June 30, 2018 – equity losses of $9.3 million and $8.7 million, respectively). The Company wrote-down the investment in Teekay Offshore by $64.9 million in the six months ended June 30, 2019 and recognized a loss on sale of $8.9 million in the three and six months ended June 30, 2019.

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



	June 30, 2019		December 31, 2018
	$		$
Teekay LNG – Liquefied Gas Carriers	5,207,739		5,188,088
Teekay LNG – Conventional Tankers	13,748		39,450
Teekay Tankers – Conventional Tankers	2,118,499		2,106,169
Teekay Parent – Offshore Production	361,785		311,550
Teekay Parent – Conventional Tankers	—		13,056
Teekay Parent – Other	91,683		25,224
Teekay Offshore	—		233,225
Cash and cash equivalents	235,199		424,169
Other assets not allocated	130,348		70,153
Eliminations	(32,983	)	(19,414	)
Consolidated total assets	8,126,018		8,391,670