XML 42 R34.htm IDEA: XBRL DOCUMENT v3.19.2
Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2019
Fair Value Disclosures [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, 2019
 
December 31, 2018
 
Fair
Value
Hierarchy
Level
 
Carrying
Amount
Asset
(Liability)
$
 
Fair
Value
Asset
(Liability)
$
 
Carrying
Amount
Asset
(Liability)
$
 
Fair
Value
Asset
(Liability)
$
Recurring
 
 
 
 
 
 
 
 
 
Cash, cash equivalents and restricted cash (note 18)
Level 1
 
322,883

 
322,883

 
505,639

 
505,639

Derivative instruments (note 15)
 
 
 
 
 
 
 
 
 
Interest rate swap agreements – assets (1)
Level 2
 
1,896

 
1,896

 
9,640

 
9,640

Interest rate swap agreements – liabilities (1)
Level 2
 
(56,663
)
 
(56,663
)
 
(43,175
)
 
(43,175
)
Cross currency interest swap agreements – liabilities(1)
Level 2
 
(31,006
)
 
(31,006
)
 
(29,122
)
 
(29,122
)
Foreign currency contracts
Level 2
 
(101
)
 
(101
)
 
—

 
—

Stock purchase warrants
Level 3
 
—

 
—

 
12,026

 
12,026

Freight forward agreements
Level 2
 
61

 
61

 
(57
)
 
(57
)
Other
 
 
 
 
 
 
 
 
 
Loans to equity-accounted investments
(2)
 
93,924

 
(2
)
 
169,197

 
(2
)
Loans to equity-accounted investments – Long-term
(2)
 
62,196

 
(2
)
 
62,207

 
(2
)
Short-term debt
Level 2
 
(15,000
)
 
(15,000
)
 
—

 
—

Long-term debt – public (note 9)
Level 1
 
(627,981
)
 
(658,046
)
 
(856,986
)
 
(851,470
)
Long-term debt – non-public (note 9)
Level 2
 
(2,215,344
)
 
(2,168,252
)
 
(2,462,537
)
 
(2,395,300
)
Obligations related to finance leases, including current portion (note 6)
Level 2
 
(1,826,732
)
 
(1,872,238
)
 
(1,673,845
)
 
(1,652,345
)
 
(1)
The fair value of the Company's interest rate swap and cross currency swap agreements at June 30, 2019 includes $2.6 million (December 31, 2018 - $3.2 million) accrued interest expense which is recorded in accrued liabilities on the unaudited consolidated balance sheets.

(2)
In the unaudited interim consolidated financial statements, the Company’s loans to and investments in equity-accounted investments form the aggregate carrying value of the Company’s interests in entities accounted for by the equity method. The fair value of the individual components of such aggregate interests is not determinable.
Stock Purchase Warrants Changes in Fair Value Measured on Recurring Basis Using Significant Unobservable Inputs (Level 3)
Changes in fair value during the three and six months ended June 30, 2019 and 2018 for the Company’s Brookfield Transaction Warrants and the Series D Warrants, which were measured at fair value using significant unobservable inputs (Level 3), are as follows: 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
 
$
 
$
 
$
 
$
Fair value at the beginning of the period
14,342

 
29,065

 
12,026

 
30,749

Unrealized gain included in earnings
24,584

 
6,206

 
26,900

 
4,522

Realized (loss) gain included in earnings
(25,559
)
 
—

 
(25,559
)
 
—

Settlements
(13,367
)
 
—

 
(13,367
)
 
—

Fair value at the end of the period
—

 
35,271

 
—

 
35,271
Summary of Financing Receivables
The following table contains a summary of the Company’s carrying value of 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, 2019
 
December 31, 2018
$
 
$
Direct financing leases
 
Payment activity
 
Performing
 
564,685

 
575,163

Other loan receivables
 
 
 
 
 
 
 
 
Loans to equity-accounted investments and joint venture partners
 
Other internal metrics
 
Performing
 
156,120

 
231,404

Long-term receivable and accrued revenue included in accounts receivable and other assets
 
Payment activity
 
Performing
 
6,857

 
15,694

 
 
 
 
 
 
727,662

 
822,261